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”

1

CPBB Publications on Fiscal Health & Wellness

2

BRINGING VISION INTO FOCUSWITH A NEW “LENS”

3

4

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

5

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”?

6

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

7

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

8

Gartner Press Release, “Gartner Says Solving ‘Big Data’ Challenge Involves More Than Just Managing Volumes of Data”, June 27, 2011.

PBB – RELEVANCE FIRST!

9

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?

10

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)

12

$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

13

79 Programs

103 Programs

103Programs

58 Programs

City of Boulder, Colorado

14

“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”

15

NEW “Program Filtering Tool”

16

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

17

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)jjohnson@pbbcenter.org cfabian@pbbcenter.org

www.pbbcenter.org

  Copyright ©2009 by Chris Fabian and Jon Johnson d/b/a the Center for Priority Based Budgeting,

Denver, Colorado.18