uw performance measurement & budgeting project a cooperative presentation by uw- extension and...
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UW Performance UW Performance Measurement & Measurement &
Budgeting ProjectBudgeting Project
UW Performance UW Performance Measurement & Measurement &
Budgeting ProjectBudgeting ProjectA Cooperative Presentation by UW-A Cooperative Presentation by UW-Extension and UW-Oshkosh for the Extension and UW-Oshkosh for the
Wisconsin City Managers Wisconsin City Managers AssociationAssociation
Alan Probst, Senior Lecturer, UW-Extension LGCAlan Probst, Senior Lecturer, UW-Extension LGCCraig Maher, Associate Professor, UW-OshkoshCraig Maher, Associate Professor, UW-Oshkosh
A Cooperative Presentation by UW-A Cooperative Presentation by UW-Extension and UW-Oshkosh for the Extension and UW-Oshkosh for the
Wisconsin City Managers Wisconsin City Managers AssociationAssociation
Alan Probst, Senior Lecturer, UW-Extension LGCAlan Probst, Senior Lecturer, UW-Extension LGCCraig Maher, Associate Professor, UW-OshkoshCraig Maher, Associate Professor, UW-Oshkosh
Why the Project?Why the Project?Why the Project?Why the Project?
Current local government financial situation Current local government financial situation requires better efficiency requires better efficiency
Need for education and training was expressed Need for education and training was expressed to the University of Wisconsinto the University of Wisconsin
Logical program staff:Logical program staff:Craig MaherCraig Maher, UW-O, MPA program and city , UW-O, MPA program and city
council membercouncil memberAlan ProbstAlan Probst, UW-EXT, LGC and former city , UW-EXT, LGC and former city
managermanager
Project Status to DateProject Status to DateProject Status to DateProject Status to Date Introductory PresentationIntroductory Presentation CompleteComplete
Instructional PresentationInstructional Presentation CompleteComplete
Performance Handbook/ManualPerformance Handbook/Manual CompleteComplete
Identify Core IndicatorsIdentify Core Indicators DraftDraft
Training ExercisesTraining Exercises First 1 completeFirst 1 complete
Training for local officialsTraining for local officials OngoingOngoing
Data clearinghouseData clearinghouse Seeking Funding Seeking Funding
Performance BudgetingPerformance BudgetingPerformance BudgetingPerformance Budgeting
Originated in late 1940’sOriginated in late 1940’s
Congress enacted through National Congress enacted through National Security Act of 1949 for newly formed Security Act of 1949 for newly formed Department of DefenseDepartment of Defense
Government Performance and Results Government Performance and Results Act (GPRA)Act (GPRA)
Performance BudgetingPerformance BudgetingPerformance BudgetingPerformance Budgeting
Based on the assumption that presenting Based on the assumption that presenting performance information alongside performance information alongside budget amounts will improve budget budget amounts will improve budget decision-making by focusing funding decision-making by focusing funding choices on program resultschoices on program results
Performance Based BudgetingPerformance Based BudgetingPerformance Based BudgetingPerformance Based Budgeting
Performance based budgeting Performance based budgeting cannotcannot begin begin until a system of until a system of performance measurementperformance measurement has been institutedhas been instituted
A functional performance based budgeting A functional performance based budgeting system cannot be expected to produce the system cannot be expected to produce the long-term desired results in the first year of long-term desired results in the first year of its inceptionits inception
Must build a Performance Based Must build a Performance Based Management SystemManagement System
Management ToolManagement ToolManagement ToolManagement Tool
Performance budgets focus on missions, Performance budgets focus on missions, goals, and objectives to explain why money goals, and objectives to explain why money is being spent and provide a way to allocate is being spent and provide a way to allocate resources to achieve specific resultsresources to achieve specific results
PBB is intended to be a management tool for PBB is intended to be a management tool for program improvement, not a “carrot and program improvement, not a “carrot and stick” methodology used to “punish” stick” methodology used to “punish” departments for not meeting goalsdepartments for not meeting goals
Why is this Important?Why is this Important?Why is this Important?Why is this Important?
Most Federal grants now require outcome Most Federal grants now require outcome evaluations (performance measurement) in their evaluations (performance measurement) in their applicationsapplications
Bond sales require indicators of financial condition Bond sales require indicators of financial condition which are well presented by performance datawhich are well presented by performance data
Local government revenues are becoming Local government revenues are becoming insufficient making effective use of resources insufficient making effective use of resources imperativeimperative
Promotes the logical tie between planning and Promotes the logical tie between planning and budgetingbudgeting
Why is this Important?Why is this Important?Why is this Important?Why is this Important? Both the Government Accounting Standards Board Both the Government Accounting Standards Board
(GASB) and the Government Finance Officers (GASB) and the Government Finance Officers Association (GFOA) are promoting performance Association (GFOA) are promoting performance measurement indicating it may soon become a measurement indicating it may soon become a requirementrequirement
Provides a way to quantify to the citizens how well Provides a way to quantify to the citizens how well their local government is doing compared to their local government is doing compared to previous years and other similar communities; i.e. previous years and other similar communities; i.e. “how much bang they’re getting for their buck”“how much bang they’re getting for their buck”
The current fiscal crisis is expected to worsen; the The current fiscal crisis is expected to worsen; the State of WI is facing a $3b. GF annual shortfallState of WI is facing a $3b. GF annual shortfall
Performance MeasurementPerformance MeasurementPerformance MeasurementPerformance Measurement
The regular systematic collection, The regular systematic collection, analysis, and reporting of data that analysis, and reporting of data that tracks resources used, work produced, tracks resources used, work produced, and whether specific outcomes were and whether specific outcomes were achieved by an organizationachieved by an organization
Note: Measurements are only meaningful to the degree that they Note: Measurements are only meaningful to the degree that they are a basis for strategic and operational decision-makingare a basis for strategic and operational decision-making
Performance MeasurementPerformance MeasurementPerformance MeasurementPerformance Measurement
Performance Measurement should:Performance Measurement should:
Be based on program goals and objectives that tie to Be based on program goals and objectives that tie to a statement of program mission or purposea statement of program mission or purpose
Measure program outcomesMeasure program outcomes Provide for resource allocation comparisons over Provide for resource allocation comparisons over
timetime Measure efficiency and effectiveness for continuous Measure efficiency and effectiveness for continuous
improvementimprovement Be verifiable, understandable, and timelyBe verifiable, understandable, and timely
Performance MeasurementPerformance MeasurementPerformance MeasurementPerformance Measurement
Be consistent throughout the strategic plan, Be consistent throughout the strategic plan, budget, and accounting and reporting budget, and accounting and reporting systems over timesystems over time
Be reported internally and externally (Federal Be reported internally and externally (Federal grants do and GASB may soon require it)grants do and GASB may soon require it)
Be monitored and used in managerial Be monitored and used in managerial decision-making processesdecision-making processes
Performance IndicatorsPerformance IndicatorsPerformance IndicatorsPerformance Indicators
CITY GOAL: Ensure a safe and peaceful CITY GOAL: Ensure a safe and peaceful communitycommunity
Fire Service:Fire Service: Structural fires per 1,000 populationStructural fires per 1,000 population Response times reduced to or maintained at ___ Response times reduced to or maintained at ___
minutesminutes Percent of 9-1-1 calls answered in 20 seconds Percent of 9-1-1 calls answered in 20 seconds Inspections w/time periodInspections w/time period Citizen satisfaction Citizen satisfaction ISO ratingISO rating Fire/incident scene accountability Fire/incident scene accountability
Performance IndicatorsPerformance IndicatorsPerformance IndicatorsPerformance IndicatorsPolice/Sheriff:Police/Sheriff: Cases or % of cases closed per reporting Cases or % of cases closed per reporting
periodperiod Violent crime per population or time periodViolent crime per population or time period Property crime per population or time periodProperty crime per population or time period Juvenile offenses per population or time Juvenile offenses per population or time
periodperiod Response timesResponse times Perceptions of safety Perceptions of safety Courthouse security (BIG issue for more Courthouse security (BIG issue for more
urban counties)urban counties)
Performance IndicatorsPerformance IndicatorsPerformance IndicatorsPerformance IndicatorsEMS:EMS: Attain/maintain a cardiac survival rate of Attain/maintain a cardiac survival rate of
_____ %._____ %. Attain/maintain an in-city response time of Attain/maintain an in-city response time of
_____ minutes._____ minutes. (in all but most urban areas of the state, EMS (in all but most urban areas of the state, EMS
and Fire are separate organizations)and Fire are separate organizations) Emergency Management:Emergency Management: Achieve/maintain a public alert rate of Achieve/maintain a public alert rate of
____________.____________.
Performance IndicatorsPerformance IndicatorsPerformance IndicatorsPerformance Indicators
CITY GOAL: Operate and maintain an effective and CITY GOAL: Operate and maintain an effective and safe transportation systemsafe transportation system
Number of miles paved during a reporting periodNumber of miles paved during a reporting period Percent of streets/highways cleared of snow w/24 Percent of streets/highways cleared of snow w/24
hours of snowfallhours of snowfall Percentage of streets/highways with PASER rating Percentage of streets/highways with PASER rating
of 4 or lowerof 4 or lower Percentage of streets reconstructed in reporting Percentage of streets reconstructed in reporting
periodperiod Traffic flow indicatorTraffic flow indicator
Performance IndicatorsPerformance IndicatorsPerformance IndicatorsPerformance Indicators
CITY GOAL: Improve the quality of life in CITY GOAL: Improve the quality of life in neighborhoodsneighborhoods
Resident level of safety in parksResident level of safety in parks Citizen satisfaction with Parks & RecreationCitizen satisfaction with Parks & Recreation Rates of citizen participation per programRates of citizen participation per program Recycling diversion rateRecycling diversion rate Community cleanlinessCommunity cleanliness Acres of park land maintained (mowed, cleaned, etc.) Acres of park land maintained (mowed, cleaned, etc.) Number of households utilizing library service Number of households utilizing library service Water quality ratingsWater quality ratings
Performance IndicatorsPerformance IndicatorsPerformance IndicatorsPerformance Indicators
CITY GOAL: Promote economic vitality CITY GOAL: Promote economic vitality and opportunity and opportunity
Perceptions of community as a place to Perceptions of community as a place to live/worklive/work
Unemployment rateUnemployment rate Per Capita IncomePer Capita Income Equalized Property Value per capitaEqualized Property Value per capita Homeownership rateHomeownership rate
Performance IndicatorsPerformance IndicatorsPerformance IndicatorsPerformance Indicators
CITY GOAL: Efficient city management:CITY GOAL: Efficient city management: Municipal bond ratingMunicipal bond rating Assessment ratioAssessment ratio Building plan/plate reviews completed Building plan/plate reviews completed
(planning dept.)(planning dept.) Building permits issued (planning dept.)Building permits issued (planning dept.) Bills processed on time (finance Bills processed on time (finance
dept./treasurer)dept./treasurer) Public notices published (clerk)Public notices published (clerk) Personnel actions completed (HR or clerk)Personnel actions completed (HR or clerk)
Training ExerciseTraining ExerciseTraining ExerciseTraining ExerciseScenario:Scenario:The City Council of Dog Patch has The City Council of Dog Patch has
complained to the City Administrator complained to the City Administrator that the fire department’s response that the fire department’s response times are too slow, especially for times are too slow, especially for motor vehicle accidents. The City motor vehicle accidents. The City Administrator wants you, the Fire Administrator wants you, the Fire Chief, to begin tracking your Chief, to begin tracking your performance related to response times performance related to response times to:to:
Training ExerciseTraining ExerciseTraining ExerciseTraining Exercise
(A) defend the department’s (A) defend the department’s response performance to the response performance to the council, andcouncil, and
(B) determine what can be done to (B) determine what can be done to improve response times.improve response times.
BenchmarksBenchmarksBenchmarksBenchmarks
Internal:Internal: Average response time for all city public safety Average response time for all city public safety
servicesservices Response time per mile traveledResponse time per mile traveled
External:External: Response times for fire departments in other Response times for fire departments in other
comparable municipalities comparable municipalities 1.1. Bug TussleBug Tussle2.2. Night owlNight owl3.3. Black bogBlack bog4.4. Possum HollowPossum Hollow
Four-Step MethodologyFour-Step MethodologyFour-Step MethodologyFour-Step Methodology
Step 1: Review and Evaluate Existing Step 1: Review and Evaluate Existing Department Mission and Cost Center Department Mission and Cost Center Goals:Goals:
““To provide emergency and non-To provide emergency and non-emergency services to anyone emergency services to anyone requiring assistance in our service requiring assistance in our service area.”area.”
Four-Step MethodologyFour-Step MethodologyFour-Step MethodologyFour-Step Methodology
Step 2: Identify a Service Area.Step 2: Identify a Service Area. Fire suppressionFire suppression Fire preventionFire prevention Fire prevention educationFire prevention education ExtricationExtrication Confined space rescueConfined space rescue Disaster responseDisaster response Other rescue as neededOther rescue as needed Other emergency responses not applicable to Other emergency responses not applicable to
other depts.other depts.
Four-Step MethodologyFour-Step MethodologyFour-Step MethodologyFour-Step Methodology
Step 3: Service Area ObjectivesStep 3: Service Area Objectives
““Arrival of first fire/emergency apparatus Arrival of first fire/emergency apparatus on scene within seven (7) minutes of on scene within seven (7) minutes of dispatch anywhere within municipal dispatch anywhere within municipal limits.”limits.”
Four-Step MethodologyFour-Step MethodologyFour-Step MethodologyFour-Step Methodology
Step 4: Identify indicators that measure Step 4: Identify indicators that measure progress on objectives.progress on objectives.
Time from initial dispatch to report 10-23 on Time from initial dispatch to report 10-23 on station.station.
1.1. During normal workdayDuring normal workday2.2. Night, after darkNight, after dark3.3. Under adverse weather conditionsUnder adverse weather conditions4.4. During unusual eventsDuring unusual events5.5. Other calls requiring response at same timeOther calls requiring response at same time
Four-Step MethodologyFour-Step MethodologyFour-Step MethodologyFour-Step Methodology
Step 4: Identify indicators that measure Step 4: Identify indicators that measure progress on objectives. (cont.)progress on objectives. (cont.)
Manning level/firefighter availability at time Manning level/firefighter availability at time of dispatchof dispatch
Equipment status/availability at time of Equipment status/availability at time of dispatchdispatch
Weather conditions at time of dispatchWeather conditions at time of dispatch
MATRIXMATRIXMATRIXMATRIX
Service Area Objective Input Output Efficiency Service Quality Outcome
Fire Suppression
To ensure arrival of first
fire/emergency apparatus on scene within
seven (7) minutes of dispatch anywhere
within municipal
limits
Actual costs equipment
staff/firefighters
# incidents responded
to
avg. cost per
response avg. response time
acceptable response time for ISO and
benchmarks
Response time 7 minutes
1 engine, 1 truck, 6
firefighters, fuel 342 $1,055 8 minutes, 4
seconds
acceptable response time considering
manning and weather
conditions
Supporting DataSupporting DataSupporting DataSupporting Data
Number of total responses during data Number of total responses during data collection period:collection period: 342342
Average response time:Average response time: 8 min 4 sec8 min 4 sec
Number of responses during periods of Number of responses during periods of reduced manning:reduced manning: 184184
(75% manning or lower)(75% manning or lower)
Average response time:Average response time: 7 min 15 sec7 min 15 sec
Supporting DataSupporting DataSupporting DataSupporting Data
Number of responses during or within 24 hours Number of responses during or within 24 hours of 3 inch snow or ice event:of 3 inch snow or ice event: 127127
Average response time:Average response time: 9 min 32 sec9 min 32 sec
Number of responses w/full manning and no Number of responses w/full manning and no weather event:weather event: 102102
Average response time:Average response time: 6 min 30 sec6 min 30 sec
Average response times for all comparable Average response times for all comparable benchmark municipalities benchmark municipalities 8 min 10 sec8 min 10 sec
Explanatory DataExplanatory DataExplanatory DataExplanatory Data
Data collection period was conducted Data collection period was conducted during month of December, 2008 when during month of December, 2008 when the municipality suffered the snowiest the municipality suffered the snowiest December in recorded history and December in recorded history and budget deficits mandated 2/3 of shifts budget deficits mandated 2/3 of shifts to be manned at 75%. Some responses to be manned at 75%. Some responses experienced both snow/ice event and experienced both snow/ice event and reduced manning.reduced manning.
SummarySummarySummarySummary
The department did not reach the goal of 7 The department did not reach the goal of 7 minutes or less for each response time but minutes or less for each response time but met an acceptable level of an average of 8 met an acceptable level of an average of 8 minutes, 4 seconds from dispatch to minutes, 4 seconds from dispatch to reporting 10-23 on station because of reporting 10-23 on station because of unprecedented manning reductions and unprecedented manning reductions and record-breaking winter weather. Under record-breaking winter weather. Under normal conditions the department actually normal conditions the department actually exceeded the set goal by nearly 8 percentage exceeded the set goal by nearly 8 percentage points and one half minute and still exceeds points and one half minute and still exceeds the overall average response time of external the overall average response time of external benchmarks.benchmarks.
ContactsContactsContactsContacts
Alan ProbstAlan ProbstSenior Lecturer & Local Government SpecialistSenior Lecturer & Local Government SpecialistUW-Extension Local Government CenterUW-Extension Local Government [email protected]
Craig MaherCraig MaherAssociate ProfessorAssociate ProfessorUW-Oshkosh MPA ProgramUW-Oshkosh MPA ProgramDirector, Office of Governmental StudiesDirector, Office of Governmental [email protected]