Reform 1.16: Performance-based Budgeting

Adopt Performance-based Budgeting Ordinance.

Other Information:

Cities and counties across the country have embraced the concept of “performance budgeting” whereby the budget process begins with the definition of performance results and the executive and legislature work to align available resources with those results. Once a budget is adopted the executive branch is given flexibility to manage resources throughout the year—provided that those results are achieved. Enhanced performance measures would be put in place to help define results and track results throughout the year in a transparent way—to the legislature as well as to the general public. Once the strategic plans, performance measures and full cost accounting systems are implemented, the City Council should reform the city’s budget process to require that the Mayor submit an annual performance plan to the City Council no later than January 15 of each year that includes measurable outcome goals and measures for each city department. A listing of major services by program area in each department—complete with workload/output measures—should also be included. No later than February 1, the City Council shall adopt a performance plan by resolution and the Mayor shall prepare and submit a budget that reflects the resources required to each the level of performance expected from each city department. As decisions are made on resources throughout the budget process, the Mayor shall advise the City Council on the impact on performance expectations for each city department. All changes in performance measures and targets shall be included in the annual budget ordinance passed by the City Council. NOTE: Additional reforms related to contracting and competitive sourcing are dealt with in the section of this plan relating to Commitment 6 “Fair and Open Competitive Sourcing.”

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