Performance Budgeting
Business and Management
Paper instructions:
the assignment here is to reply to the two posted discusses of my fellow classmates. at least (1) APA reference is required per reply.
Kayla’s Posting:
Performance budgeting is factoring the budget based on the performance of the business. What makes it suitable for the local government is that the programs directly impact the locality of the government. Meaning that if a program isn’t being well supported by the community than the next year’s budget can decrease the amount allotted to the program. Or it can also go the other way. “Connecting performance information and cost information implies the ability to appropriately measure both” (Lee, Johnson, Joyce 2008). this means that measuring the balance of programs will ensure a beneficial distribution of funds in all local government aspects.
Since the process of performance budgeting is beneficial to the local elements there may be some benefits it the state and federal aspect. The same attributes may not be beneficial to the federal government in the same way as it is to the local, however the federal government can use the information that the local government gains and use it when budgeting there gained revenue. The federal budget does not benefit from performance budgets as much the lower governments; however the federal budget system impacts the government to restructure the budget (Posner, 1997). Performance Budgeting is an effective tool on smaller governments because there performance can be more closely monitored.
Lee, R.D. & Johnson, RW., Joyce, P.G. (2008). Public budgeting systems (8th ed.). Sudbury, MA: Jones and Bartlett. ISBN:
9780763746681
Posner, P. (1997). Performance Based Accountability and Budgeting. Retrieved From: http://webcache.googleusercontent.com/search?q=cache:LzZtI-IzYGEJ:govinfo.library.unt.edu/npr/library/gao/ai97046.pdf+performance+budgeting+on+a+federal+level&cd=2&hl=en&ct=clnk&gl=us
Steven’s Posting:
Programs have to be managed to see if they are working for the citizens. When a program is implemented it has to have an audit that follows to observe its performance and if the program is making a difference. Two years ago there was a safe prison program in the Texas prison system that assisted inmates with the exiting process at the end of their sentence. They would help with some education needs, social security cards, birth certificates, and find housing for inmates that quailified. The program was around for several years until it started to lose its worth in helping inmates. The performance of the program was declining. During budget hearings, the State decides to cut the program and put funds in other areas of the state government. The program was cut do to a decline in performance. This is called performance budgeting.
Performance budgeting allows the government to observe a program and see if it is working for the community. How much money are you putting into a program on the positive side, and how much money has been put in when the program is failing. The important part is it allows a government to phase out a program, if it is found to be costing more then what the program is worth.
Performance budgeting is used in evaluating programs that don’t work for the country. I think the federal level looks at things differently, and the federal level may take longer to phase out a program, depending on the political backing of a certain program or programs. However, if a program is not working and the citizens are unhappy then you will see the performance budgeting take place at the federal level.