Monday, June 25, 2012

City of Cincinnati Begins Putting Priority Based Budgeting to Use

The city’s budget deficits are expected to continue through 2016, with projected annual expenditure growth (2.8 percent) outpacing revenue growth (2.4 percent), leaving the budget structurally unbalanced.

Council anticipated this and established a new budgeting system: priority-driven budgeting. It is a fundamental change in the way resources are allocated. It uses a collaborative, evidence-based approach to measure services against community priorities. For the first time, it “breaks down” departmental budgets into functions and measures those functions against community priorities. It also identifies functions that duplicate services offered by other entities.

Priority-driven budgeting will not eliminate the pain associated with the operating budget cuts, but it will permit the administration and council to be more strategic – to use a scalpel instead of a hatchet when making the cuts.

Sunday, June 10, 2012

Great Update on the City of Sacramento's Work in Priority Based Budgeting

After five consecutive years of reductions, the City continues efforts to
achieve budget stability and sustainability. It is clear that we can no longer continue to use short-term solutions for what is clearly a long-term problem. As such the development of the budget will continue
to necessitate difficult decisions. Completion of the PBB process will provide a tool for Council to consider allocation of dollars based on expected results/outcomes.

Consistent with the City Manager’s Performance Goals, Strategies
and Metrics as presented on January 10, 2012 the PBB effort has involved employees and the
community through outreach meetings as well as an on-line survey. The information received through
this process and from Council will assist in identifying opportunities for closing future year budget