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IIIIIIIIIIIIIII What is the organizational subunit that will be evaluated
<br />for alignment with the organization's strategic priorities?
<br />Departments, divisions, programs? Something else?
<br />IIIIIIIIIIIIIII How will subunits be scored, and who will score them?
<br />The scoring mechanism is central to PDB-
<br />How and where will elected offi cials, the public, and staff
<br />be engaged in the process? Engagement is essential for
<br />democratic legitimacy.
<br />Jurisdictions can tailor the process to their needs so long as
<br />they stay true to the philosophy of PBD, which is about how a
<br />government should invest resources to meet its stated objec-
<br />tives. Prioritizing helps a jurisdiction better articulate why its
<br />programs exist, what value they offer citizens, how they bene-
<br />fit the community, what price we pay for them, and what
<br />objectives and citizen demands they are achieving. PDB is
<br />about directing resources to those programs that create the
<br />greatest value for the public.
<br />Once the amount of available resources is identified, the
<br />forecasts should be used to educate and inform all stake-
<br />holders about what is truly available to spend for the next fi s-
<br />cal year. As the organization begins developing its budget,
<br />everyone must understand and believe that this is all there is
<br />— that there is no padding beyond what is forecast. Sharing
<br />the assumptions behind the revenue projections creates a level
<br />of transparency that dispels the belief that there are always
<br />44 secret funds" to fix the problem. This transparency establishes
<br />the level of trust necessary for PD B to be successful.
<br />In the fir t ye ar of implementing PD B, an organization might
<br />chose to focus attention on only those funds that appear to be
<br />out of alignment on an ongoing basis.This will usually involve
<br />the general fund, but the organization might decide to
<br />include other funds in the PCB process. Polk County, Florida,
<br />for instance, limits the scope to the general fund.
<br />Intended Result: A common under-
<br />standing throughout the organization
<br />about the amount of resources
<br />available, which limits how much can be
<br />A PDB process can be broken down anid adaptal,:de �s a, cl-iaJHer),ge. budgeted for the Upcoming fiscal year.
<br />into a few major steps. In addressing each I 110,wever,, lug - t I�s a]SO an (D P P,0[----
<br />step, there are several options for answer- tur)u'ty ti(D 0US't1(D[-T'Jze a, pl-] I 101-ity...
<br />ink the five key custornization questions. driver) [Yuldge-thr),g PI-01cess tl-iat
<br />I. Identify Available Resources. The
<br />fi[f-S yi(DIJ (D1,ri),a]1�za- �10Ill I-est,
<br />_1 t
<br />organization needs to fundamentally shift
<br />its approach to budgeting before embark-
<br />ing on priority-driven resource allocation.
<br />An organization should begin by clearly identifying the
<br />amount of resources available to fund operations, one-time
<br />initiatives, and capital expenditures, instead of starting out by
<br />identifying the amount of resources the organization needs
<br />for the next fiscal year.
<br />Many jurisdictions start developing their budgets by analyz-
<br />ing estimated expenditures to identify how much money the
<br />organizational units will need to spend for operations and
<br />capital in the upcoming fiscal year. Once those needs are
<br />determined, then the organization looks to the finance
<br />department or budget office to figure out how they will be
<br />funded. When adopting a PD B approach, the first step is to
<br />gain a clear understanding of the factors that drive revenues.
<br />Jurisdictions perform the requisite analysis to develop accu-
<br />rate and reliable revenue forecasts of how much money will
<br />be available for the upcoming year.
<br />�10 Government Finance Review IAF)ril 2010
<br />2. Identif►Your Priorities. PD B is built
<br />around a set of organizational strategic
<br />priorities. These priorities are similar to
<br />well-designed mission statements in that
<br />they capture the fundamental purposes
<br />behind the organization — why it exists
<br />and are broad enough to have staying
<br />power from year to year.The priorities are
<br />very different from a mission statement, however, in one
<br />respect: They should be expressed in terms of the results or
<br />outcomes that are of value to the public.These results should
<br />be specific enough to be meaningful and measurable, but not
<br />so specific that they outline how the result or outcome will be
<br />achieved, or that they will become outmoded after a short
<br />time. Mesa County, California, has six priority results,which are
<br />expressed as citizen statements:
<br />IIIIIIIIIIIIIII Economic Vitality. "I want Mesa County to have a variety
<br />of industries that will promote a healthy and sustainable
<br />economy
<br />IIIIIIIIIIIIIIL Well-Planned and Developed Communities. "I want
<br />plans and infrastructure that maintain quality of life.''
<br />IIIIIIIIIIIIIIL Self-Sufficient Individuals and Families. "I want a com-
<br />munity where citizens have opportunities to be self-suffi-
<br />cient. 1)
<br />DesI�gnh-),g a, tl-iat I�s
<br />p"1101cess
<br />S S
<br />�N 0 Y1111
<br />��3 V N
<br />f'aii�, acicess�[:de,,
<br />transpar-ent,
<br />II 3 U II 3 G
<br />IN G
<br />Intended Result: A common under-
<br />standing throughout the organization
<br />about the amount of resources
<br />available, which limits how much can be
<br />A PDB process can be broken down anid adaptal,:de �s a, cl-iaJHer),ge. budgeted for the Upcoming fiscal year.
<br />into a few major steps. In addressing each I 110,wever,, lug - t I�s a]SO an (D P P,0[----
<br />step, there are several options for answer- tur)u'ty ti(D 0US't1(D[-T'Jze a, pl-] I 101-ity...
<br />ink the five key custornization questions. driver) [Yuldge-thr),g PI-01cess tl-iat
<br />I. Identify Available Resources. The
<br />fi[f-S yi(DIJ (D1,ri),a]1�za- �10Ill I-est,
<br />_1 t
<br />organization needs to fundamentally shift
<br />its approach to budgeting before embark-
<br />ing on priority-driven resource allocation.
<br />An organization should begin by clearly identifying the
<br />amount of resources available to fund operations, one-time
<br />initiatives, and capital expenditures, instead of starting out by
<br />identifying the amount of resources the organization needs
<br />for the next fiscal year.
<br />Many jurisdictions start developing their budgets by analyz-
<br />ing estimated expenditures to identify how much money the
<br />organizational units will need to spend for operations and
<br />capital in the upcoming fiscal year. Once those needs are
<br />determined, then the organization looks to the finance
<br />department or budget office to figure out how they will be
<br />funded. When adopting a PD B approach, the first step is to
<br />gain a clear understanding of the factors that drive revenues.
<br />Jurisdictions perform the requisite analysis to develop accu-
<br />rate and reliable revenue forecasts of how much money will
<br />be available for the upcoming year.
<br />�10 Government Finance Review IAF)ril 2010
<br />2. Identif►Your Priorities. PD B is built
<br />around a set of organizational strategic
<br />priorities. These priorities are similar to
<br />well-designed mission statements in that
<br />they capture the fundamental purposes
<br />behind the organization — why it exists
<br />and are broad enough to have staying
<br />power from year to year.The priorities are
<br />very different from a mission statement, however, in one
<br />respect: They should be expressed in terms of the results or
<br />outcomes that are of value to the public.These results should
<br />be specific enough to be meaningful and measurable, but not
<br />so specific that they outline how the result or outcome will be
<br />achieved, or that they will become outmoded after a short
<br />time. Mesa County, California, has six priority results,which are
<br />expressed as citizen statements:
<br />IIIIIIIIIIIIIII Economic Vitality. "I want Mesa County to have a variety
<br />of industries that will promote a healthy and sustainable
<br />economy
<br />IIIIIIIIIIIIIIL Well-Planned and Developed Communities. "I want
<br />plans and infrastructure that maintain quality of life.''
<br />IIIIIIIIIIIIIIL Self-Sufficient Individuals and Families. "I want a com-
<br />munity where citizens have opportunities to be self-suffi-
<br />cient. 1)
<br />
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