Quiz Two Study Guide Type of budget 1 Line Item Budget Characteristics o Illustrates where public money will be spent item by item o Popular among local governments Items are lined up Advantage o Control o Accountability o Easy to understand Disadvantage o Not tied to the performance o Ex Buy 300 for pens for what 2 Performance Budget Characteristics o How much money is allocated to department x is determined by how well department x performs o Amount of work is measured o Quality of the work is measures Impact on future money received o Output indicator Amount of service Units produced or quantity of services o Outcome indicator How well a government meets its goals and objectives Example street sweeping responsibility City Department of Public Works Output Miles of streets swept monthly objective could be 1 000 miles per month Outcome Street cleanliness measured through visual inspection goal could be to maintain a level of 90 streets rated clean Example Mid term and final exam Getting a PA job or good performance in PA Critics o Bias Measurement o Subjective Indicator o Data Collecting is time consuming and expensive o University Ranking Measure Related to performance measurement 3 Zero Based Budget Key o All departments must defend programs and level of funding each year o All expenses must be justified for each new period o Rank the importance of each decision package o Set priorities Advantages Disadvantages o Review all programs o Labor intensive o Overlapped work previous year o Subjective Advantages Disadvantages Results in efficient allocation of Difficult to define decision units resources Drives managers to find cost effective ways to improve operations and decision packages Time consuming and exhaustive Forced to justify every detail related to expenditure Useful where outputs are difficult R D is threatened which could mean less innovation Requires training of manager to implement in organizations to identify Provides staff with greater initiative and responsibility in decision making Increasing communication and co ordination Identifies and eliminates waste 4 Planning Program Budget System Origin o Department of Defense secretary Robert McNamara President Lyndon B Johnson o Based on rational decision making Method o Cost benefit ratio o Benefit Cost Advantages Limitations o Easy to calculate ratio If benefit cost ratio is greater than 1 the benefits of the program are greater than the costs o How to deal with intangible benefit of specific pro grams o A normative theory of budgeting On what basis shall it be decided to allocate x dollars to activity A in stead of activity B V O Key The Policy Cycle Agenda Setting Policy Formation Decision Making Implementation Evaluation 1 2 3 4 5 Alibaba Ali Express o World s biggest online commerce company Output Outcome o Output indicators Workload indicators Reflect the amount of work done or the number of services provided by a government organization or program o Outcome indicators Capture results or quality of the services provided Are essential in determining whether or not stated goals an d objectives have been met National Performance Reviews 1993 o Clinton Administration Vice President Gore lead the National Performance Review Team o Reinventing Government 1993 of Osborne Gaebler Catalytic Government Steering Rather than Rowing Community Owned Government Empowering Rather than Serving Competitive Government Injecting Competition into Service Delivery 1 2 3 4 Mission Driven Government Transforming Rule Driven Organizations Results Oriented Government Funding Outcomes Not Inputs Customer Driven Government Meeting the Needs of the Customer Not the Bureaucracy Enterprising Government Earning Rather than Spending Ex Certificate license Anticipatory Government Prevention Rather than Cure Decentralized Government From Hierarchy to 5 6 7 8 9 10 Market Oriented Government Leveraging Change Through the Market o NPR s philosophy government NPR s philosophy efficiency empowerment and reinventing 1 Cutting Red Tape 2 Putting Customers First 3 Empowering Employees to Get Results 4 Cutting Back to Basics Producing Better Government for Less NPR kept traditional values that underlie democratic governance values such as equal opportunity justice diversity and democracy Hollow state o The tendency to privatize and contract out ha s led to what some call the governing the hollow state Milawrd and Provan 2000 o The hollow state is a metaphor for the increasing use of third parties often nonprofits to deliver social services and generally act in the name of the state Milawrd and Provan 2000 still has some measure of control over the private organization delivering the services Overview of Methods to Collect Information o Survey Overall Purpose Advantages When need to quickly and easily get lots of information from people in a nonthreatening way Can complete anonymously Inexpensive to administer Easy to compare and analyze Administer to many people Can get lots of data Many sample questionnaires already exist Might not get careful feedback Wording can bias client s responses Are impersonal In surveys may need sampling expert Doesn t get full story Challenges o Interview Overall Purpose When want to fully understand someone s impressions or experiences or learn more about their answers to questionnaires Advantages Challenges Get full range and depth of information Develops relationship with client Can be flexible with client Can take much time Can be hard to analyze and compare Can be costly Interviewer can bias client s responses o Documentation review Overall Purpose When want to impression of how program operates without interrupting the program is from review of applications finances memos minutes etc Advantages Challenges Get comprehensive and historical information Doesn t interrupt program or clients routine in program Information already exists Few biases about information Often takes much time Information may be incomplete Need to be quiet clear about what is being looked for Not flexible means to get data data restricted to what already exists o Observation Overall Purpose To gather accurate information about how a program actually operates particularly about processes View operations of a program as they are actually occurring Can adapt to events as they occur Advantages Challenges Can be difficult to interpret seen behaviors Can be complex to categorize observations Can influence behaviors of program participants Can be expensive
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