Week 10: Implementing and Managing BudgetsBCP: Commission on Improving Life Through ServicePractice in Budget JustificationsBudget Management VocabularyBudget Management IssuesTools for Budget Management and ControlCase Study on County Prison Overtime ExpendituresCase Study Continued--Issues and QuestionsDevelopment of BCP FormatsPreview of Week 11Week 10: Implementing and Managing Budgets•Complete discussion of sample BCPs•Sample justifications -- (all-class exercise)•Budget management vocabulary•Budget management issues–degree of control–use of discretion–flexibility and accountability•Development of format for final BCP•Distribute and discuss mid-term examBCP: Commission on Improving Life Through Service•Strengths–Strong analytical basis for requested increase•growth in local programs•constant administrative budget•exhaustion of prior year carryover•evidence from privates of limits to their support•new program responsibilities•Weaknesses–some numbers with no context or benchmarks–too long and repetitive–only cited three states that receive state supportPractice in Budget JustificationsCase 1: Sacramento Fire Department•requests 8 additional firefighters, two new fire stations, and 6 new vehicles Case 2: CSUS -- Academic Affairs•requests two additional counselor positions for working with student in underrepresented groups to improve retention and graduation rates----------------------------------------------------------------------------------------Program officers:•develop rationale; make up hypothetical numbers where needed to make your case; anticipate questions from program officersBudget officers:•prepare specific questions for program officers; make sure they fully justify their requestsBudget Management Vocabulary •appropriation/allocation•line item control•chart of accounts/acct bal.•over-expenditure/deficit•budget transfer•budget projection•year end balance•carry forward•supplemental approp.•mandatory costs•discretionary costs•Budget/control language•Supplemental language•May Revise•Audit (internal/external)•one-time expenditure•limited-term position•sunset provision•contingency reserve•unallocated reduction•pro-rata/across the board•purchase orderBudget Management Issues•What are reasons for and against tight control over implementation of budget by:–legislative over executive branch?–central executive unit over agencies and departments?•What are the arguments for and against the practice of taking back funds unexpended at year end?•Relationship between management flexibility and accountability–National Performance Review: deregulation•CSUS case study: College of BusinessTools for Budget Management and Control•Level of appropriation•Control over budget transfers•Line item controls, e.g. out-of-state travel•Expenditure limit approvals•Position control•Audits (fiscal and program)•Budget language/control language•Contract oversight•Reporting requirements•Analysis of budgeted v actual expendituresCase Study on County Prison Overtime ExpendituresKey Points•County Commissioners controlled by Democrats–re-election prospects depend on reducing expenditures•County elected officials -- Republicans•Prison Board controlled by Republicans; controls prison expendituresKey Players•Truly, County Administrator•Dexter, Finance Director (reports to Truly)•Goodheart, Director of Corrections•Kirby, Chair of County Commission (Democrat)•Strickland, President of Prison Board (Republican)•Eager, Consultant (daughter of Republican Party County chairman)Case Study Continued--Issues and QuestionsIssues•the politics of administration•organizational culture: private v public•scope of conflict•budget management principles--control v delegationQuestions•are overtime expenditures reasonable?•what options are available, politically, if you agree that overtime cannot safely be reduced?•was the chosen option the best one?•what should the consultant recommend?Development of BCP Formats1. BCP Title and Brief Description of Request2. Background/History/Problem Statement-- include prior year budget data as baseline-- data to document or quantify problem3. Proposal/Funding Request-- include funding source, one-time v ongoing4. Justification/Rationale/Impact-- quantify basis for request and expected benefits5. Accountability/performance measures and objectives6. Implications for Other State or Local Agencies7. Analysis of Alternatives8. Recommendation and TimetablePreview of Week 11•Eureka Budget Simulation–Tim Hodson, Executive Director, Center for California Studies, CSUS–http://www.csus.edu/calst/Civic_Education/eureka.html•mid-term