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r�XN <br />I he traditional incremental approach to budget- <br />r <br />ing is not up to the financial challenges posed by <br />WE <br />the Great Fee ssion.An incremental approach is <br />workable (but not optimal) in periods of revenue <br />growth because the new revenue increments can be <br />distributed among departments and programs with rel- <br />atively little controversy. There is much more potential <br />for acrimony though, when allocating revenue decre- <br />ments during times of revenue decline. Hence, <br />the popularity of across-the-board cuts — they are <br />perceived as equitable and thus attenuate conflict. But <br />by definition, across-the-board cuts are not strategic. <br />They do not shape and size government to create value <br />for the public. <br />Priority-driven budgeting (PD B) is a natural alterna- <br />tive to incremental budgeting. Using PDB, the govern- <br />ment identifies its most important strategic priorities. <br />Services are then ranked according to how well they <br />align with the priorities, and resources are allocated in <br />accordance with the ranking.' <br />This article identifies the essential steps in a FLAB <br />process and the major levers that can be pushed and <br />pulled to customize FLAB to local conditions. The fol- <br />lowing organizations contributed to the Government <br />Finance Officers Association's research on PBD: the City <br />of Savannah, Georgia; Mesa County, Colorado; Polk <br />County, Florida; County, Washington; City of Walnut <br />Crash, Cal i fo rn ia - City of San Jose, California- and City of <br />Lakeland, Florida. <br />�M A �K �N G I �H 0 C S S YO U OW �N <br />Designing a process that is fair, accessible, transpar- <br />ent, and adaptable is a challenge. However, it is also an <br />opportunity to customize a PD B process that fits your <br />organization best. The GFOAs research has identified <br />five key customization questions that need to be <br />answered as you design a PD B process: <br />What is the scope? What funds and revenues are <br />included? What is the desired role of non-profit <br />and private-sector organizations in providing public <br />services? <br />What is the role of PD B in the final budget deci- <br />sion? Is it one perspective that will be considered <br />among many, or is it the primary influence? By what <br />method will resources be allocated to services? <br />April 2010 1 Government Finance Review 9 <br />