PBB in Sacramento: "This type of consideration is essential in order to ensure that the Proposed Budget reflects the Council’s and community’s priorities"

From the City's Budget Book:

Priority Based Budgeting (PBB) – After four consecutive years of reductions, the City continues efforts to achieve budget stability and sustainability. Understanding the correlation between Council’s priorities and the allocation of resources will provide an additional tool to consider in the budget development process.

PBB recasts the budget into programs and their relationship to desired outcomes instead of line items in a budget. PBB results can be utilized to consider funding decisions relative to specific programs and services based on the extent to which that program/service meets priorities. It can also be used to reconsider funding for programs that may be well intended but do not significantly support community priority outcomes.

To the extent that the City is able to correlate resource allocation with Council’s priorities, there may

be an opportunity to consider the reallocation or reduction of allocated resources in future budgets.

This type of consideration is essential in order to ensure that the Proposed Budget reflects the

Council’s and community’s priorities.

The Program Oriented Development (POD) process, initially developed during the FY2010/11 budget process, was introduced as a method of strategic analysis to identify and inventory the City’s programs and services and establish a starting point of hierarchy as across‐the‐board reductions were no longer an effective means of expenditure reductions.

While POD was used as a method to evaluate services included in the current budget as well as the
prior fiscal year, staff is currently working with the non‐profit Center for Priority Based Budgeting to implement a model using the POD inventory that will demonstrate the relationship between current
allocations of City resources and Council’s priorities.

Today we know how much the City currently spends on a particular program or service; however, we
don’t know how those dollars line up relative to desired outcomes.

PBB recasts the budget into programs and their relationship to desired outcomes instead of line items in a budget. PBB results can be utilized to consider funding decisions relative to specific programs and services based on the extent to which that program/service meets priorities. It can also be used to reconsider funding for programs that may be well intended but do not significantly support community priority outcomes.

To the extent that the City is able to correlate resource allocation with Council’s priorities, there may
be an opportunity to consider the reallocation or reduction of allocated resources in future budgets.
This type of consideration is essential in order to ensure that the Proposed Budget reflects the
Council’s and community’s priorities.