performance-based budgeting

• Performance-based budgeting

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Performance-based budgeting

1 Performance-based budgeting is the practice of developing budgets based on the relationship between program funding levels and expected results

from that program. The performance-based budgeting process is a tool

that program administrators can use to manage more cost-efficient and

effective budgeting outlays.


Performance-based budgeting - Introduction

1 From a conceptual point of view, performance-based budgeting systems are a sub-set of what are known as 'outcomes

systems'. Outcomes systems are any systems designed to identify, prioritize,

measure, attribute and/or hold parties to account for outcomes. The technical

principles for developing and implementing sound performance-based budgeting

systems as a type of outcomes system are described in outcomes theory.


Performance-based budgeting - Performance-based budgeting (PBB)

1 This whole framework points us to a newer way of budgeting, the performance-based

budgeting.



1 It is a way to allocate resources to achieve specific objectives based on

program goals and measured results.” The key to understanding performance-based budgeting lies

beneath the word “result”



1 As can be seen from some of the definitions used here, Performance-

Based Budgeting is a way to allocate resources for achieving certain

objectives,Aristovnik, Aleksander Seljak, Janko, 2009. 'Performance budgeting: selected international experiences and some lessons for

Slovenia', MPRA Paper 15499, University Library of Munich,

Germany. https://store.theartofservice.com/the-performance-based-budgeting-toolkit.html


1 Harrison Greg Harrison,'Performance-Based Budgeting in California State

Government: a blue print for effective reform', October 2003

elaborates: “PBB sets a goal, or a set of goals, to which monies are

“connected” (i.e. allocated). From these goals, specific objectives are

delineated and funds are then subdivided among them.”


Performance-based budgeting - Achieving PBB

1 Adopting public sector’s 'performance-based budgeting ' to

the private sector using the Corporate Performance Management (CPM) framework. In performance-based budgeting first the goals and

objectives of organization or department are identified, then

measurement tools are developed and the last step is reporting.


Performance-based budgeting - Achieving PBB

1 The point is that the CPM framework has not much touched on the topic of

Performance-Based Budgeting, although the similarities in policies offered by these frameworks are

worth a deeper look


Tom McClintock - Tenure

1 McClintock has a long history of opposing various tax increases. During the 2000 dot-com bubble, he was instrumental in proposing a two-thirds reduction in the vehicle license fee, or car

tax. In 2003, he opposed then-Governor Gray Davis's attempt to rescind a rollback of a

vehicle license fee. McClintock has also opposed deficit reduction efforts that would have

increased taxes. He supported the Bureaucracy Reduction and Closure Commission and

performance-based budgeting.


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