Week 9: Budget Proposals and Priorities

1. Week 9: Budget Proposals and Priorities • Politics of competition for resources • Budget justification and budget analysis • vocabulary • categories of justification • strategies • criteria • Review sample BCPs • Class exercise

2. Politics of Competition (and avoiding competition) • Incrementalism as old school • competition can be dynamic and intense • Structure of competition • macro and micro levels • how budget process structures competition • Strategies for winning • crisis; broad benefits; understate costs; compelling need • Strategies for avoiding • earmarking; mandates; entitlements; formulas; special funds/own revenue sources; fees

3. Budget Analyst’s Vocabulary • workload • marginal cost v average cost • opportunity cost • hard v soft money • baseline v one-time costs/revenues • salary savings • carry over • decentralization/flexibility • micro-management

4. Categories of Budget Justification • workload increase -- ongoing function • new duties • mandated • proposed • compelling need; solve problem • create public value • cost increase • salaries • inflation on operating budgets • reduction in other funding sources

5. Strategies for Developing Budget Justification • baseline cost/workload data (which base year to choose?) • justify changes from base (e.g. quantify workload increase) • comparisons (relevant) • formulas and standards • “fair share” • research on cause and effect • pilot (where research may be lacking or inconclusive) • fit under budget office guidelines, strategic plan, etc. • propose accountability measures • check to avoid “the big mistake”

6. Criteria for Analyzing Budget Requests • compelling need/priority • enough information? • effectiveness • efficiency/cost effectiveness • equity • administrative/legal feasibility • political feasibility • risk

7. BCP: School for the Blind: (if this is a good BCP…….?) OK budget analysts: what questions would YOU ask? • “Existing resources provide an inadequate level of support because the CSB does not receive the same allocation of positions as public school programs for the blind and visually impaired. This denies students at CSB access to the same instructional teaching ratios found in local school districts.” • “Three TA positions have been an extremely positive and long-standing asset to our education program”

8. BCP: School for the Blind (continued) • In response to “what have been recent program changes?” • “CSB has been significantly impacted by the increase of students with multiple disabilities. Approximately 70% of the student body has additional disabilities.” • In response to “are there examples from other states where this approach has succeeded?” • “all other state schools for the blind are funded for teaching assistants.” • In response to “what facts and figures support this…” • “the requested teaching assistants are needed to provide a comparable learning environment to public schools...”

9. BCP: Child Welfare Services • Strengths • addresses why need is compelling • ties to priorities and legislative interest • lots of detail on job duties and potential impact of staffing shortage • Weaknesses • no quantified workload data to justify 8 positions • no explanation on relationship of these duties to those of existing 8 positions • perfunctory analysis of alternatives

10. BCP: 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 support

11. Class Exercise Case 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 officers Budget officers: • prepare specific questions for program officers; make sure they fully justify their requests

12. Preview of Week 10 Implementing and managing budgets • budget as a management tool • budget as control and accountability • organizational perspectives and culture • distribute mid-term