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User: Performance-based budgeting is the practice of developing budgets based on the relationship between program funding levels and expected results from that program.

2019-01-06T16:24:16Z

Performance-based budgeting is the practice of developing budgets based on the relationship between program funding levels and expected results from that program.

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Performance-based budgeting is the practice of developing budgets based on the relationship between program funding levels and expected results from that program. The performance-based budgeting process is a tool that program administrators can use to manage more cost-efficient and effective budgeting outlays.<ref>Defining Performance Based Budgeting [https://en.wikipedia.org/wiki/Performance-based_budgeting en.wikipdia.org]</ref>

A performance budget has the following characteristics:<ref>Performance Based Budgeting Fact Sheet [http://www.ncsl.org/research/fiscal-policy/performance-based-budgeting-fact-sheet.aspx ncsl.org]</ref>

*It presents the major purpose for which funds are allocated and sets measurable objectives.
*It tends to focus on changes in funding rather than on the base (the amount appropriated for the previous budget cycle).
*It identifies programs and agencies that are seeking similar outcomes, thereby drawing such inter-relationships to the legislature's attention.
*It offers agencies flexibility to reallocate money when conditions merit, rewarding achievement and possibly imposing sanctions for poor performance.

It is important to understand that performance-based budgeting is not simply the use of program performance information in developing a budget. Performance-based budgeting does more than just inform the resource allocation decisions that go into the development of a traditional type of budget. In other words, it is not just "budgeting based on performance." Instead, it is the process by which a particular type of budget is developed -- a Performance Budget (or "program performance budget"). To design an effective system of performance-based budgeting, it is therefore vital to understand first exactly what the end product itself should be, what it should contain, and how it should look. A true Performance Budget is not simply a Line-Item (or object class) budget with some program goals attached. It tells you much more than just that for a given level of funding a certain level of result is expected. A real Performance Budget gives a meaningful indication of how the dollars are expected to turn into results. Certainly not with scientific precision, but at least in an approximate sense, by outlining a general chain of cause and effect. The most effective governmental Performance Budget does this by showing, for each program area, how dollars fund day-to-day tasks and activities, how these activities are expected to generate certain outputs, and what outcomes should then be the result.<ref>What is Performance Based Budgeting? [http://strategisys.com/pbb strategisys.com]</ref>

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@@ Line 1: / Line 1: @@
-Performance-based budgeting is the practice of developing budgets based on the relationship between program funding levels and expected results from that program. The performance-based budgeting process is a tool that program administrators can use to manage more cost-efficient and effective budgeting outlays.<ref>Defining Performance Based Budgeting [https://en.wikipedia.org/wiki/Performance-based_budgeting en.wikipdia.org]</ref>
+Performance-based budgeting is the practice of developing budgets based on the relationship between program funding levels and expected results from that program. The performance-based budgeting [[process]] is a tool that program administrators can use to manage more cost-efficient and effective budgeting outlays.<ref>Defining Performance Based Budgeting [https://en.wikipedia.org/wiki/Performance-based_budgeting en.wikipdia.org]</ref>
-A performance budget has the following characteristics:<ref>Performance Based Budgeting Fact Sheet [http://www.ncsl.org/research/fiscal-policy/performance-based-budgeting-fact-sheet.aspx ncsl.org]</ref>
+A performance [[budget]] has the following characteristics:<ref>Performance Based Budgeting Fact Sheet [http://www.ncsl.org/research/fiscal-policy/performance-based-budgeting-fact-sheet.aspx ncsl.org]</ref>
 *It presents the major purpose for which funds are allocated and sets measurable objectives.
@@ Line 8: / Line 8: @@
 *It offers agencies flexibility to reallocate money when conditions merit, rewarding achievement and possibly imposing sanctions for poor performance.
-It is important to understand that performance-based budgeting is not simply the use of program performance information in developing a budget. Performance-based budgeting does more than just inform the resource allocation decisions that go into the development of a traditional type of budget. In other words, it is not just "budgeting based on performance." Instead, it is the process by which a particular type of budget is developed -- a Performance Budget (or "program performance budget"). To design an effective system of performance-based budgeting, it is therefore vital to understand first exactly what the end product itself should be, what it should contain, and how it should look. A true Performance Budget is not simply a Line-Item (or object class) budget with some program goals attached. It tells you much more than just that for a given level of funding a certain level of result is expected. A real Performance Budget gives a meaningful indication of how the dollars are expected to turn into results. Certainly not with scientific precision, but at least in an approximate sense, by outlining a general chain of cause and effect. The most effective governmental Performance Budget does this by showing, for each program area, how dollars fund day-to-day tasks and activities, how these activities are expected to generate certain outputs, and what outcomes should then be the result.<ref>What is Performance Based Budgeting? [http://strategisys.com/pbb strategisys.com]</ref>
+It is important to understand that performance-based budgeting is not simply the use of program performance information in developing a budget. Performance-based budgeting does more than just inform the resource allocation decisions that go into the development of a traditional type of budget. In other words, it is not just "budgeting based on performance." Instead, it is the process by which a particular type of budget is developed -- a Performance Budget (or "program performance budget"). To [[design]] an effective [[system]] of performance-based budgeting, it is therefore vital to understand first exactly what the end [[product]] itself should be, what it should contain, and how it should look. A true Performance Budget is not simply a Line-Item (or object class) budget with some program [[goals]] attached. It tells you much more than just that for a given level of funding a certain level of result is expected. A real Performance Budget gives a meaningful indication of how the dollars are expected to turn into results. Certainly not with scientific precision, but at least in an approximate sense, by outlining a general chain of cause and effect. The most effective governmental Performance Budget does this by showing, for each program area, how dollars fund day-to-day tasks and activities, how these activities are expected to generate certain outputs, and what outcomes should then be the result.<ref>What is Performance Based Budgeting? [http://strategisys.com/pbb strategisys.com]</ref>
 ===References===
 <references />

Performance Based Budgeting (PBB) - Revision history

User: The LinkTitles extension automatically added links to existing pages (https://github.com/bovender/LinkTitles).

User: Performance-based budgeting is the practice of developing budgets based on the relationship between program funding levels and expected results from that program.