○ Used frequently in rec field ○ Key agency staff identify each program they provide then determine costs associated with each program ○ Costs systematically removed from line item and allocated to each program ○ Illustrates services with their related costs ○ Usually create line item budget first, the create more detailed program budget ● Performance Budget: identifies specific program outputs associated with specific program money requests ○ If budget has ratio-- almost always performance budget
■ Inputs : outputs ■ Ex: cost per participant : number of people served ○ Places emphasis on relationship between resource inputs and program outputs ○ Answers the question of what is achieved with money spent ■ Review of program performance ○ Use performance indicators ○ Works for some programs, not for others ○ Positives: ■ Acts as another form of program eval ■ Clearly know costs associated with performing services ○ Negatives: ■ Turns people into numbers, takes humannes out of it ■ Ratio info/stats need to be collected ahead of making budget, collecting this data is tricky ● Entrepreneurial Budgeting System/Target-Based Budget: budget ceiling set for departments (an approach to budgeting, not a specific budget type) ○ Top-down approach ○ Establishes limits at the top, forces choice of alternatives at bottom ○ Delegation of authority ○ Managers set budget limits, people running programs get to make their own budget and spend the money they are given however they want ○ Empowers employees ○ Works best in smaller organizations where there is trust ○ Fits under rational budget ○ Disadvantages: ■ Must trust employees to budget well, some may not be able to do that ■ Can lead to misappropriation of funds ■ People at top don’t know how to run the programs, so they don’t know how much money to give, but they give a set amount and that’s it 10. Enterprise funds are used by Bellingham PARD. How are they used? Why have they become popular? Why would we (or why would we not) want to cross-pledge them?
- Fall '08