QUESTION 1 83.6% line item budgeting BUDGET 44.6% incremental - - PowerPoint PPT Presentation

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QUESTION 1 83.6% line item budgeting BUDGET 44.6% incremental - - PowerPoint PPT Presentation

May 21, 2023 244 likes •540 views

QUESTION 1 83.6% line item budgeting BUDGET 44.6% incremental METHODS IN 14.5% budgeting by programs USE BY GFOA 9.2% priority budgeting MEMBERS 10.3% target based budgeting 16.1% ZBB 11.9% performance budgeting

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SLIDE 1

QUESTION 1

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BUDGET METHODS IN USE BY GFOA MEMBERS

  • 83.6% line item budgeting
  • 44.6% incremental
  • 14.5% budgeting by programs
  • 9.2% priority budgeting
  • 10.3% target based budgeting
  • 16.1% ZBB
  • 11.9% performance budgeting
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TRAVERSE CITY AREA PUBLIC SCHOOLS

Aging Facilities

Declining Enrollment

Declining Revenue

DIFFICULT DECISIONS

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SLIDE 4

Principles

  • Education priorities should drive the

budget

  • You can’t be all things to all people
  • Get the most bang for our buck
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SLIDE 5

S5

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SLIDE 6

QUESTION 2

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THE TRAGEDY OF THE COMMONS

S7

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THE TRAGEDY OF THE COMMONS

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THE TRAGEDY OF LOCAL GOVERNMENT?

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FINANCIAL FOUNDATIONS FRAMEWORK

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SLIDE 12

Diagram from FSG.org

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SAN BERNARDINO COUNTY

  • Largest County in USA
  • Very diverse geographies
  • Diverse stakeholders
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AN UNSUSTAINABLE PATH

In 2009, $80M deficit rolled into next year (10% of total budget), even while salary and benefit increase approved

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SLIDE 15

COUNTY VISION & STRATEGIC PLAN

  • Where does the County and the community want be in 20 years?

—Highlights everyone’s shared interest —Defines why County should be financially sustainable

  • Led to shared vision for water resources across agencies
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SLIDE 16
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FORT COLLINS VS CABLE TV

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S18

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SLIDE 19

S19

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SA2020 SURPRISING FACTS

  • Maintained through 3 different mayors
  • 7th largest city in US: heterogeneous
  • 70% of 61 indicators are doing better today than in 2010
  • Attracting philanthropic support
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SA2020 BUILT TO LAST

  • True communitywide vision
  • Engaged public, private, and non-profit organizations
  • SA2020 spun-off as separate non-profit
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QUESTION 3

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SLIDE 23
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SLIDE 24

S24

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OTHER KEY FINDINGS

  • Define a service baseline
  • Do program inventory
  • Explore special service areas or

similar tax devices

  • Explore value capture
  • Define a user fee policy

S25

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QUESTION 4

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FINANCIAL FOUNDATIONS FRAMEWORK

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KEY FINDINGS ON FUNDING LIABILITIES

  • Long-term vision

—Establish funding liabilities as worth undertaking —Identify realistic funding goals —Show steady progress

  • Trust and open communication

—Pay off bad debts —Opportunity costs —Consistent message

  • Collective decision making

—Set a clear policy, including goals

  • Clear rules

—Have a long-term repayment schedule, like debt

  • Treat everyone fairly

—Intergenerational equity