Outcome-Based Budgeting Process

Transcription

1 Outcome-Based Budgeting Process Fiscal Year 2011 is the fourth year for the outcome-based budget process in Broward County. The process puts additional focus on results or outcomes in the development of the budget. These outcomes are the results the County Commission has determined to be of high priority. The Board of County Commissioners has consistently balanced the demands for services with the need for responsible stewardship of public funds. By taking a proactive approach to budgeting, Broward was prepared for the mandated rollback of property taxes in FY2008, the approval of Amendment 1 that reduced the tax roll for FY2009, and the substantial decline in the tax roll due to economic conditions in FY2010 and FY2011. Faced with a cumulative reduction in property values of more than 20% and declining revenues over the past two years, the County s FY2011 Outcome Based Budget process once again focused on minimizing the budgetary impact on the highest priority services. Broward County s Outcome Based Budgeting approach is a performance-based approach that evaluates each program based on the performance it delivers, not the activities it conducts. This helps to drive budget decisions based on data showing the end results of the services provided. Budget background information and tax-roll projections were discussed by the Board of County Commissioners at a goal setting workshop and budget retreat held in February. Conceptual direction from that workshop assisted the County Administrator and Department Results Teams in formulating their program priorities. The Results Teams, organized by Department for FY2011, were tasked with developing options for reducing budgets for their respective program areas by 25% with the least impact on priority outcomes and services. Following three years of budget reductions, incrementally trimming staff and budgets was not a viable approach. The Team s developed options including agency consolidations/reorganizations, changing the approach to service delivery, significant service level reductions and program eliminations. To evaluate efficiency, agencies provided benchmarked efficiency measures to compare the County s cost to achieve a particular result with costs for other comparable jurisdictions. Agencies also provided the data necessary for the Teams to do traditional budget analysis such as review of historical spending data. To evaluate effectiveness, agencies reviewed outcome and client benefit measures and benchmarking data when available. Once the Teams completed their prioritized recommendations, meetings were held with County Administration and the Office of Management and Budget and final recommendations to the Board of County Commissioners were developed. These options were discussed with the County Commission at the June budget workshop. The County Commission will hold two more workshops in August and two public hearings in September to adopt the budget and tax rates. 4

2 Overview of Fiscal Year 2011 Budget The County provides many services with its funds, which staff has categorized into four broad service areas. Regional services are those that the County provides countywide. Contract regional services include those that the County Commission has determined to be available to all County residents by contract such as Broward Sheriff s Office (BSO) road patrol, and building and permitting services. Municipal services are those that the County provides to the unincorporated area only that will be provided by a City once the areas are annexed into cities. When all of the unincorporated area is annexed, the County will no longer be providing these services. The final category is internal services which include the support services that the County must provide to itself to do business. The chart below shows all County services under the four categories that have been described: Regional Services Regional Services Contract Regional (Continued) Services* Municipal Services Internal Services Airport Medical Examiner Services Road Patrol Code Enforcement Accounting Animal Care & Regulation Auto Tag Licensing Mosquito Control Nuisance Abatement Building Code Services Garbage Collection Lot Clearing Audit Services Collection & Investment Civil Rights Protection Collection of Taxes Plat Review Port Fire Rescue Municipal-Level Neighborhood Parks Neighborhood of Revenue Comprehensive Planning Consumer Affairs Property Assessments Services Planning County Administration Contractor Licensing Recording Officials & Public Aquatic Weed Control Neighborhood Roads Equal Opportunity Convention Center Records Documents School Crossing Guards Facility Construction/Facilities Cultural Programs Redevelopment Zoning Code Services Maintenance Detention/Corrections Economic Development Regional Communications Regional Fire Rescue Fleet Services Human Resources Elections Administration Regional Parks Information Technology Emergency Management Construction/ Maintenance Intergovernmental Relations Environmental Protection Of County Road Internal Investigators Health Care Small Business Opportunity Legal Services Housing Programs Homeless Programs Solid Waste/Resource Recovery Management & Budget Phone Services Human Services Tourism Development Professional Standards Land Use Planning & Traffic Engineering Purchasing Development Mgmt Transit Records Storage Law Enforcement Specialized Services Transportation Planning Trauma Mgmt Services Radio Maintenance Risk Management Libraries Value Adjustment Board Water Management * Contract regional services are funded by contractual payments from the cities. 5

3 Another way to view the budget is to categorize the expenses according to the type of expense, i.e., operating budget, capital budget or debt service budget. The following chart illustrates where the resources are allocated: Operating 58% Debt Service 10% Capital 32% The Operating Budget includes the ongoing activities of the County government from enterprise operations, which are totally user fee supported, to special purpose operations, which are user fee and grant supported; to general purpose operations, which are supported by a mixture of user fees, assessments, ad valorem taxes, and other revenues. The Capital Budget includes all major construction projects funded by a variety of funding sources. The most significant revenues are taxes, bond and loan proceeds, grants, user fees, and fund balances. The Debt Service Budget provides for payment of principal and interest on revenue and general obligation (voted) bonds and the required reserves. The following graphs provide an overview of the major activities funded in the operating, capital and debt service budgets: 6

4 Operating (Millions) Reserves & Non-Departmental $225.3 Boards & Agencies $54.3 Transportation $125.4 Public Works $354.4 $91.6 Human Services $136.5 Finance $265.1 Envir Protect & Growth Mgmt $44.8 Libraries, Parks, & Cultural $99.4 $169.8 Elected/Judicial $733.1 County Admin/Commission $25.9 $0 $100 $200 $300 $400 $500 $600 $700 $800 Debt Service (Millions) Courthouse Bonds 21.3 Solid Waste/Resource Recovery 6.8 General Fund Non-Ad Valorem Water/Waste Water 60.1 Convention Center Civic Arena 18.8 General Obligation 56.0 $0 $20 $40 $60 $80 $100 $120 $140 $160 7

5 Capital (Millions) Community Development Public Safety/Judicial General Government Facilities and Equipment Unincorporated Neighborhood Improvements Recreation, Tourism and Environmental Water & Wastewater and Waste & Recycling Transportation $7.8 $19.6 $38.8 $6.3 $12.4 $68.2 $85.9 $78.1 $865.4 $0.0 $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 $700.0 $800.0 $900.0 $1,000.0 To understand the County Budget, it is necessary to view it from the perspective of both Revenues and Appropriations. The next two sections describe how the budget is supported by Revenues and the major changes to Appropriations from fiscal year 2010 to fiscal year