PRIORITY BASED BUDGETING – Technology and Tools
Showcase
Jon Johnson & Chris Fabian July 9, 2013
Center for Priority Based Budgeting2013 ANNUAL CONFERENCE “A SUMMIT of LEADING
PRACTICES”
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CPBB Publications on Fiscal Health & Wellness
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BRINGING VISION INTO FOCUSWITH A NEW “LENS”
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Fiscal Wellness
Achieve Fiscal Health
Value Programs Based on Evidence
of their Influence on Results
Support Resource Allocation Decision
Making with Prioritization of Programs
Identify, Define and Value the Results
of Government
Identify Programs and Services
ACHIEVING LONG-TERM FISCAL WELLNESS
Identify and Define Results
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Stewardship of the Environment
Encourages energy conservation and efficiency through
education, incentives and the provision of alternative
solutions
Provides for the renewal of the
environment through recycling and reuse
Manages and mitigates factors that impact environmental quality and sustainability
Promotes and regulates a clean, orderly and
ecologically balanced community
Controls and abates threats to the
environment caused by nature
Strategic Questions 1. What are we in “business” to do?2. What exactly do we do?3. How do we figure out what is “core” OR
What is of the highest importance?4. How do we know we are successful?
5. How do we ask “better” questions that lead to “better” decisions about “what we do” and “why we do it”?
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PRIORITY BASED BUDGETING - (A “GIS” Approach to the Budget)
Example of an “information system” we’re already familiar with: GISFar better
understanding of the budget when we can aggregate & disaggregate information
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PBB as “BIG DATA”?What is the promise of Big Data?
Different systems store data in different formats, even within the
same organization, making it difficult to aggregate data for analysis
As a result, an organization’s investment in data, one of its most highly valued assets, goes underutilized
Increased awareness of the value gained by analyzing data in context drives desire for the ability to discover patterns and
relationships to enable improved decision making for better outcomes
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Gartner Press Release, “Gartner Says Solving ‘Big Data’ Challenge Involves More Than Just Managing Volumes of Data”, June 27, 2011.
PBB – RELEVANCE FIRST!
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RelevancePerformanceEfficiencyService Delivery
• Relevance is the foundational assumption of Priority Based Budgeting
• Program relevance is the “base layer” of information on which to base your discussions
• All other conversations are much more powerful within the context of whether a program is relevant or not
Incr
easi
ng R
elev
ance
What can be done to ensure this
program continues to remain relevant
in the future?
What can be done to increase the
relevance of this program?
Has this program lost it’s relevance? Is there any chance
it will regain relevance in the
future?
Is this highly-relevant program performing at its highest possible
potential?
Are the key indicators that
demonstrate this program is solidly achieving results?
Would improved performance increase the
relevance of this program?
If this program is continued, what is the minimum level
of acceptable performance?
How can this highly-relevant
program be provided more
efficiently ?
What is the lowest investment of
resources needed to provide this program?
If this program is continued, what is the bare minimum level of resources
needed?
Would a change in service level impact
this program’s ability to achieve
Results?
Can we lessen the level of service for
this program, engage a partner or find an alternative
provider?
If this program is continued, what is the lowest level of service that can be
offered?
Quartile
1Quartile
2Quartile
3
Quartile
4
Decreasing Relevance
Can anything be done to change the way this program is offered to make it
more relevant?
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EFFICIENCYSERVICE DELIVERY
PERFORMANCERELEVANCE
Is this program being provided as
efficiently as possible?
What is the optimal level of service
required for this program ?
New Layers – New Perspectives
RelevancePerfo
rmance
Efficiency
Service Delivery
• Workforce Data• Vacant Positions• Retirement Eligible
Positions• Nearing Retirement
Eligible PositionsWorkforce
0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0
147
101316192225283134374043464952555861646770737679828588919497
100103
Total Score for Community Oriented ProgramsTo
tal
Num
ber
of P
rogr
ams Quartile 1
Quartile 2
Quartile 3
Quartile 4
Quartile 1:79 Programs
Quartile 2:103 Programs
Quartile 3:103 Programs
Quartile 4:58 Programs
City of Boulder, Colorado
Defining Quartile Groupings
Key:Programs are grouped into Quartiles (not ranked, one
versus the other)
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$85,915,772
$51,726,155
$21,505,297
$7,498,842
$- $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 $80,000,000 $90,000,000 $100,000,000
1
2
3
4
Quarti
le Rank
ing(Qu
artile 1
: High
est Ra
ted Pro
grams
;Qua
rtile 4:
Lowest
Rated
Progra
ms)
Prioritization Array: Combined City-wide Programs
Step 5: Allocate Resources Based on Prioritization
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79 Programs
103 Programs
103Programs
58 Programs
City of Boulder, Colorado
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“Resource Alignment Diagnostic Tool”City of Boulder, CO
Quartile Ranking Programs in ArrayQrt 1 88
Qrt 2 116
Qrt 3 1102-10%Qrt 4 54
TOTALS 368
October 30, 2012
Community-Oriented Programs
All Departments
Funding Source: (Est. Budget, Gen Gov Revenue,
Program Revenues)
Total Estimated BudgetCity-wide
Prioritization Perspective: (City-wide, Fund, Funds)
Choose Department: (All Departments, Specific)
Program Type: (All Programs, Governance,
Community-oriented)
$00.00%
0.00%
$0
$0
$85,915,772
$21,505,297
$51,726,155
0.00%
$0
$0
$0 $85,915,772
$51,726,155 0.00%
$0 $166,646,067 0.00% $0 $166,646,067
2012-13 Proposed Budget Increase (Reduce) % Impact 2012-13 Target Budget
$0
$0
2011 Budget
$7,498,842
$21,505,297
$7,498,842
$85,915,772
$51,726,155
$21,505,297
$7,498,842
$- $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 $80,000,000 $90,000,000 $100,000,000
1
2
3
4
Quar
tile R
ankin
g(Q
uarti
le 1:
Hig
hest
Rate
d Pro
gram
s;Qu
artil
e 4: L
owes
t Rat
ed Pr
ogra
ms)
Priority Based Budgeting: Spending Array Perspectives
Applying Prioritization to Frame A New Conversation
Live Demonstration of
“Resource Alignment
Diagnostic Tool”
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NEW “Program Filtering Tool”
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Role of the Council/BoardEngage in the discussions by looking through this “new
lens.”Be guided to ask the “right” questions – focused on POLICY
rather than OPERATIONS.Allocated resources based on priorities of the communityMake better decisions that you can easily communicate to
your citizens.
Role of the CitizensSee through the “new lens” how decision-makers are more
objectively allocating resources to achieve the community’s priorities
Better understand the budget “choices” that need to be made and the impacts of those choices on the community
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Thank You !
Jon Johnson, Co-Founder Chris Fabian, Co-Founder
303-756-9090, ext. 326 303-756-9090, ext. 325 303-909-9052 (cell) 303-520-1356 (cell)[email protected] [email protected]
www.pbbcenter.org
Copyright ©2009 by Chris Fabian and Jon Johnson d/b/a the Center for Priority Based Budgeting,
Denver, Colorado.18