Inputs Programs Outputs Outcomes

Resources dedicated to the programs and services

Financial

Human

Technological

Physical

Programs, products & services offered

Seniors in organized golf activity

Creative art experience for parent & child

City beautification

Travel program for adults with physical disabilities

Volume of work produced or the number of people served

Number of senior golf leagues, # of sr. golfers served

# of Parent/child art classes offered; # of art projects done together

# of flowers planted

# of adults participating

Benefits received from participation in the program or service or from buying the product

Social interaction with other seniors; improved BMI or health

New appreciation for each other’s interests; exposure to different mediums; increased art appreciation

Decreased vandalism in landscaped areas; increased property values

New experiences; build self-esteem; physical challenge

Adapted from: Measuring Program Outcomes: A Practical Approach (1996)

Performance Outcome Model

Program & Performance Budgets

• Program budgets – outcomes based

• Performance budget – outputs based

• Performance/Program Budgets – outputs & outcomes based

Program Budgets• Focuses on outcomes (end results, g & o) rather

than inputs (LIB, OCB)

• Focuses on explaining why expenditures are required & tied to agency mission, goals & objectives

• Emphasis on effectiveness rather than efficiency of spending

• Not used at federal level• Increasing in public, NPOs, commercial

• Company: Backroads Bike Tours• Program Budget: New York Wine Country

Bike Tour• Program Dates: October 2-7

• Program Length: 6 days• # of participants: 20

• Description:

• This bike tour starts in Skaneateles, NY and tours the wine country in the Finger Lake area. Riders stay at unique inns and B & B’s along the 300 mile route. Trip fee includes 5 nights lodging, 10 meals, beverages and snacks, van support & expert & experienced guides.

• Goals:• 1. Gain appreciation of the wine country in the Finger Lakes

area.• 2. Meet and interact with riders from all over the country.• 3. Develop a program that will help fight obesity•  • Objectives:• 1. Each rider will be given cue sheets describing the attractions

and points of interest along the bike route each day• 2. The trip will be advertised nationally to attract a wide variety

of riders.• 3. Riders will be given a training schedule to begin six months

prior to the tour dates in order to achieve a needed level of physical fitness.

 

Advantages

• Narrative budget description rather than cost only

• Highlights value & uniqueness of the program

• Forces in depth examination of the outcomes

Disadvantages

• Potential of “overselling” a program

• Limited budget-cost detailed information

• Requires the use of another budget system to determine costs

Performance Budgets• Based on results oriented (output)

management

• Used by federal government since 1997• More visibility of outcomes to public• Improved decision making• Accountability• Efficiency

• Budgeting is more closely tied to service provision

Performance Budgets

• Goal to allocate $$ to accomplish specific units of performance

• Set performance indicators for each program• Workload outputs • Efficiency measures• Effectiveness measures….

Performance Budgets

• Workload outputs (program size or volume indicators)• Number of

• parks managed• conferences held• programs offered• worker hours• Clients discharged• season tickets sold

Performance Budgets

• Efficiency measures• Acres mowed per hour• Cost per person served• Hotel capacity rates

• Effectiveness measures• How well the program achieves its goals or

meets a need• % satisfaction on program evaluation

Table 13.5: Performance Budget Example

Goal: Effectively & efficiently manage natural resource areas within the park

Objectives: Budget

1. Protect and maintain the raptor population by installing 25 perches for hawks and insulating electrical wires $72,508

2. Preserve 235 acres of wetlands by stabilizing shoreline erosion $123,500

3. Institute a 7 bus transportation system within the park to minimize traffic congestion, danger to pedestrians, air pollution, & the need for parking lots $723,000

Performance Budgets

• Advantages• Accountability of expenditures• Difficult to hide money

• Disadvantages• #’s driven• Not everything in rec is quantifiable

P/PB Budgets

• Newest form of budgeting

• Focus on outputs & outcomes

• Links objectives & end results

• Shows relationship between inputs, outputs & outcomes

Budget Prep Philosophies &

Issues

Budget Preparation Philosophies

• Zero based budgeting

• Open ended budget

• Alternative budgets

• Historical analysis

• Fixed ceiling budget

Zero Based Budgeting

• Start with no previous budget• Examine effectiveness & value

• Objectives• Outcomes

• Develop & rank budget packages• Top x # of programs funded• Used more in the commercial sector

ZBB- Advantages

• All programs have equal opportunity for funding

• More detailed info is generated to justify program

• Objectives & priorities are examined regularly

• Eliminates waste by eliminating programs not meeting objectives

ZBB - Disadvantages

• Information overload

• Political nightmare

• Time consuming

Open Ended Budget

• No restrictions on spending

• Submit budget for optimum programming

• Later adjust the budget to meet funding capabilities of agency

• Seeing less of this

Alternative Budgets

• Prepare a basic budget & then alternatives to it• Alternatives not shared with board or

public

• Time consuming!

Historic Analysis

• Historical analysis• Looks at past to predict future

Fixed Ceiling Budget

• Limits growth of expenditures

• Doesn’t see changing needs of organization

• Ie.1% growth, no growth budget• Expenditures = 155,000 v 1% = $156,550

• Can you just turn in last year’s budget?

Bidding Process

Invitation to Bid

RFP

Request for Quotation

Bidding Process

• Invitation to bid (sealed/legal bids)• Advertised contract or sealed bid• Price is submitted in a sealed envelope• All bids are opened at the same time

• Eg.• Printing• Equipment• T-shirts

Bidding Process

• Request for Proposal (RFP)• Negotiated contract• General specs outlined• Submit proposal for what they will do for

the price• Negotiate details with the selected vendor• Egs.

• Strategic planning

PURPOSE:The City of Seattle, Department of Parks and Recreation, is issuing this Request for Proposal (RFP) for an Operator to install and manage the ongoing operation of a seasonal, temporary Ice Skating Rink at Occidental Square Park for the winter of 2009-2010.

The selected Operator will be allowed to propose a management and business plan that includes concession activities, event programming, and other activities that generate revenues to help defray their operating costs.

The Department will select the proposal that best addresses the goals and purposes as described in the RFP. Please review the following information carefully, and thank you for your interest in this RFP.

RFP schedule….

RFP SCHEDULE:March 31, 2009 Complete Draft of RFP PacketApril 15, 2009 Final RFP Packages available for pick up or

mailed out to potential proposers and interested parties

April 15, 2009 Publish Ad in news media locallyApril 29, 2009 Deadline for written questions to the Dept.

from proposersMay 6, 2009 Deadline for Dept. responses to proposers’

questionsMay 27, 2009 RFP Submittal DeadlineJune 2-3, 2009 Evaluation Panel reviews and scores proposalsJune 9-10, 2009 Oral interviews – Optional by DepartmentJune 17, 2009 Recommendation to Superintendent of

successful proposerJune 24, 2009 Superintendent decision, successful proposer

notifiedJuly 1, 2009 Issue a one year permit to operate pending

finalizing the long-term agreementJuly - Aug. 2009 Agreement negotiationSeptember 2009 Law Dept. and Dept. of Finance review of

Agreement/LegislationOctober 2009 Proposed Ordinance is submitted to the City CouncilNovember 2009 Agreement commencement date

Bidding Process

• Request for Quotation• Like RFP but not a binding contract• Negotiable after acceptance