Adapted from budgeting for outcomes.
What is Outcome Budgeting?
- Outcome Budgeting is a budget process that aligns resources with results.
- It’s a budgeting tool that integrates strategic planning, long range financial planning, and performance management.
- Outcome Budgeting is not an additional way of budgeting; it will replace the current system.
How does Outcome Budgeting work in Baltimore?
- Instead of starting from last year’s spending and adjusting City agency allocations up or down, in Outcome Budgeting we start with what results matter most to citizens. The Baltimore Citizen Survey is one method of gathering this important information from citizens.
- Interdisciplinary teams made up from representatives from City agencies, community organizations, and citizens, called Results Teams, evaluate budget proposals from agencies to determine the best way to deliver the results that citizens expect and maximize the results per dollar spent.
- The Mayor, City Council, and citizens have better information about what we are getting for the tax dollars we’re spending. Budget decisions clearly show how agency contributions advance the Priority Outcomes for Baltimore.
- Through the budgeting process and CitiStat agency performance is tracked and monitored.
Why outcome Budgeting?
Traditional budgeting may have worked in the past, but the economy we face today required a more strategic, transparent budget process. Outcome Budgeting does just that, it:
- Address fiscal constraints
- Rewards innovation
- Measures performance
- Makes the budget process more transparent
Outcome Budgeting Process
7 Budget Process Points
- Mayor, Council and Citizens establish priorities
- Determine available resources
- Results Teams issue guidance documents
- Agencies submit proposals to provide services that achieve results
- Results Teams rank the proposals
- Mayor uses rankings to make decisions
- Budget is finalized