1. Week 14: Performance Budgeting: Best Practices
Set BCP presentation schedule
Review performance measurement concepts
examples from memo assignments
examples from CSUS planning process
Performance budgeting -- best practices sites
In-class exercises on performance measures and links to budgets--in your agencies (time permitting)

2. Performance Measurement Concepts
Clarify the differences among:
objectives
performance measures
value for a performance measure
benchmark or goal for assessing value on perf. measure
Objective: the intended result of a program or service
Performance measure: a basis for reporting outcomes
Value on performance measure: the score or outcome
Benchmark: a standard to which to compare the score
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Policy outcome v program outcome--useful to distinguish what outcomes are within agency’s control

3. Performance Measurement Exercises: How well does the outcome measure address the objective?
Objective: recruit and hire highly qualified personnel to fill vacant positions
Measure: percentage of recruitments filled with qualified candidates
Objective: reduce recidivism among juvenile offenders
Measure: number of probation officers working directly with juveniles
Objective: reduce interagency barriers to success
Measure: level of interagency cooperation

4. Performance Measurement Exercises: How well does the outcome measure address the objective?
Objective: improve quality of life of clients in drug treatment program
Measures:
monthly visits with clients to determine quality of life
completion rates of treatment programs
Objective: reduce delays in power plant siting process
average time to completion of application
satisfaction of applicants

5. Performance Measurement Exercises: How well does the outcome measure address the objective?
Objective: increase awareness of issue “x” and availability of services “y”
Measures:
creation of a media campaign
number and type informational materials distributed
estimated number of people reached by the campaign
Objective: reduce customer complaints for service “x”
cost to the unit of providing the services
percentage of customers satisfied

6. Examples from CSUS Planning: old v new approach
Old objective:
To provide opportunities for students to experience a variety of pedagogical methods
New objective:
Provide adequate staffing and facility support for faculty who are interested in integrating instructional technology into the classroom
Measures: inventory of “smart” classrooms and instructional technology staff; faculty survey--new question on adequacy of support

7. Examples from CSUS Planning: old v new approach
Old objective:
To increase opportunities for students to engage in experiential learning (e.g. service learning, internships, cooperative education, involvement in research) during their academic career at CSUS
New objective:
Increase enrollment in service learning, internships, and cooperative education coursework
Measures: enrollment data; CASPER phone poll

8. Examples from CSUS Planning: old v new approach
Old objective:
To assist students in becoming effective learners
New objective:
Implement programs or practices aimed at helping students become more effective learners, in light of findings of continuing research on the subject of effective learning
Measures: status of research findings; implementation of new programs or practices

9. Examples from CSUS Planning: old v new approach
Old objective:
To clarify, within the context of the Strategic Plan, the international aspects of the University’s mission
New objective:
Develop, as appropriate, learning outcomes for globalism and increase the coverage of globalism and internationalism in the curriculum
Measures: review of assessment plans, syllabi, program reviews

10. Examples from CSUS Planning: old v new approach
Old objective:
To create an environment in which all employees are supportive of University efforts to achieve a pluralistic community, are knowledgeable about University efforts, and have the skills, awareness, and motivation to support these efforts at the University, unit, and individual levels.
New objective:
Reduce the perceived discrimination and insensitivity on campus with respect to race, ethnicity, culture, religion, gender, sexual orientation, and disability as reported by members of the campus community
Measures: CASPER phone survey; SNAPS; new campus climate survey

11. Examples from CSUS Planning: old v new approach
Old objective:
To improve the ability of the University to serve a qualified, diverse student population while responding to changes in enrollment demand and societal needs
New objectives:
Increase the portion of classes and labs that are scheduled on Fridays, evenings, and weekends to better utilize campus facilities
Measure: new report on % of sections scheduled by time period; Chancellor’s Office measure on % of FTES served by time period
Develop an integrated “evening/weekend college” approach whereby working adults can complete selected entire academic programs without attending during normal work hours
Measure: documentation of effort

12. Relating Performance Measures to Budgeting
Purpose of the budget process
To help decision makers make informed choices about the provision of goods and services and to promote stakeholder participation in the process
Good performance measures: assist government officials and citizens identify program results, evaluate past resource decisions, and improve future resource allocation
Ideal performance budget: helps decision makers understand performance consequences of budget decisions
Good performance budget: helps decision makers connect $$ to program results to try to affect outcomes

13. Performance Budgeting
Definition: Systematic incorporation of performance information into the budgetary process
Requires program structure (or at least program thinking)
“Program” -- a set of related functions that contribute to a common goal
Programs should not be defined around
organizational structure
funding source
Example of program budget at CSUS
student retention (crosses organizational units)
year round operations (crosses organizational units and involves different funding sources)

14. Elements of a Performance Budget
Reflects program planning (mission/goals/objectives)
Includes means to measure results (i.e. the measures)
Includes data on performance measures (i.e. the measurements)
Includes performance targets
Includes strategies for meeting targets
Provides cost projections for meeting strategies
Allocates funds based on cost projections

15. Prince William County
Based on strategic planning
major emphasis on community input
focused on limited set of strategic goals
considers impact of external environment
action oriented
From targets to budgets
desired community outcomes=>program outcomes
measurable program objectives to reach targets
activities to be performed to meet targets
budget for each activity

16. Prince William County (p.2)
Budget approval process
agencies report to Executive Management on prior year performance (measures against targets)
agencies meet with Executive Management to set budget year objectives, targets, activities
internal and external benchmarks used
Executive Management distributes budget instructions
agencies submit budget requests in response to agreed upon targets
review by Board of Supervisors with community input

17. Prince William County (p.3)
Accomplishments of performance budgeting
shift away from line item budgeting
reallocations toward strategic priorities
major increases: public safety, judicial administration, human services, capital improvement
major decreases: parks and library, administration, general government, planning and development
more efficient government (cost per capital declined)
increased citizen satisfaction with value of tax dollars
won several awards (helps gain citizen support)

18. Bellevue, Washington
Budget based on strategic themes
programmatic, cross-departmental approach
Department budget request includes:
goals and significant budget issues organized around city’s strategic themes
programmatic, not line-item presentation
initiatives and budget increases, by program
outcomes, activities, performance measures, all linked

19. Missouri
Budget instructions to agencies
budget requests must be based on strategic plan
budget requests must relate to “Show Me Results”
designed budget form to show “tight linkages” between planning and budgeting
“problem statement” is to relate to “Show Me Results”
form includes outcome measures
objectives that will affect outcomes
strategies and requested funds

20. Preview of Week 15
Two readings on Ethics
Last- discussions questions are due
Course evaluation
Begin BCP presentations
class will evaluate