City of Cincinnati's Vice Mayor Qualls Provides Insight on Priority Based Budgeting

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Priority Based Budget

A budget strategy for the new normal

Faced with large budget deficits in the last two years that could have triggered massive layoffs and service cuts, Cincinnati City Council has been forced to rely on one-time sources to balance the budget and protect pools, health clinics and the school nurse program. Employee health care costs and pension fund payments continue to consume huge portions of the general fund. For a closer look at city budget drivers.

Priority-driven budgeting offers a common-sense, strategic alternative to conventional budgeting. It creates a fundamental change in the way resources are allocated by using a collaborative, evidence-based approach to measure services against community priorities. By bringing together community leaders and citizens to determine strategic priorities, the city can align resources with what the community values most, and create service efficiencies and innovation.

Council approved the administration's recommendation to hire the Center for Priority Based Budgeting (Center for PBB) to help with the intensive citizen engagement that drives the new approach. Instead of using the traditional department-based approach, priority-based budgeting focuses on developing the budget around citizen-driven priorities.

Priority Based Budget

A budget strategy for the new normal

Confronted with the 'new normal' of flat or declining revenues, spiraling health care and pension costs, and persistent structural imbalances, local governments are seeking an alternative to the traditional incremental budgeting approach that automatically makes this year's budget the basis for next year's spending plan. In the face of unprecedented budget pressures, the conventional response is usually to reduce costs across the board rather than question old assumptions or demand accountability.

Faced with large budget deficits in the last two years that could have triggered massive layoffs and service cuts, Cincinnati City Council has been forced to rely on one-time sources to balance the budget and protect pools, health clinics and the school nurse program. Employee health care costs and pension fund payments continue to consume huge portions of the general fund. For a closer look at city budget drivers, click here.

Priority-driven budgeting offers a common-sense, strategic alternative to conventional budgeting. It creates a fundamental change in the way resources are allocated by using a collaborative, evidence-based approach to measure services against community priorities. By bringing together community leaders and citizens to determine strategic priorities, the city can align resources with what the community values most, and create service efficiencies and innovation.

Council approved the administration's recommendation to hire the Center for Priority Based Budgeting (Center for PBB) to help with the intensive citizen engagement that drives the new approach. Instead of using the traditional department-based approach, priority-based budgeting focuses on developing the budget around citizen-driven priorities.

The Center for PBB has worked with more than 30 local governments, including the City of Blue Ash, to implement priority-based budgeting.

Based on public sessions and focus groups held throughout the city in April, the Center for PBB has identified seven strategic priorities to guide development of the 2013/2014 biennial budget and aid council in making difficult budget decisions. The process will include scoring services and programs to see how they measure up against the strategic priorities. The administration will bring the results back to City Council before its June recess, and will use them to develop the budget that will be brought to council in November.