Departmental & Program Budget Review Process

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Steve Adler
Posts: 533
Joined: Fri Jan 16, 2015 2:12 pm

Departmental & Program Budget Review Process

Post by Steve Adler »

FYI, following up on the conversation the Council had with Ed Van Eenoo during the budget forecast presentation about a departmental and program budget review process that would occur outside the budget development process, I wanted you to know that I’ve sent the following messages to the Manager and to the Auditor.


Steve



From: "Adler, Steve" <Steve.Adler@austintexas.gov>

Subject: Fwd: Departmental and Program Budget Review

Date: July 29, 2015 at 12:12:57 AM CDT

To: "Ott, Marc"


Marc:

Wanted you to see the email I sent to Corrie Stokes following up on the conversation the Council had with Ed Van Eenoo during the budget forecast briefings about looking at whether there would be benefit from a departmental and program budget review process that would occur outside the Council’s participation in the budget development process since that time is so very limited.


As you and I have discussed, I sure would like your thoughts, suggestions and advice to council on this matter, even while the Auditor’s input is also being sought.


We’re looking forward to the budget presentation on Thursday and learning of the budget work to be done over the following two months. Your work and the work of your staff is recognized as being very significant and it is much appreciated.


Steve




From: "Adler, Steve" <Steve.Adler@austintexas.gov>

Subject: Departmental and Program Budget Review

Date: July 29, 2015 at 12:02:41 AM CDT

To: "Stokes, Corrie"




Ms. Stokes,

During our recent budget discussions related to the forecast, the City Council's focus was primarily on incremental changes to the base budget. Unsatisfied with the limits of that kind of review, the Council discussed diving further into the base budget. By way of illustration, the Council discussed the concept of a departmental and program budget review process to better provide our city council the means and method to review substantial programs and activities within individual departments on a recurring schedule. The benefit of a department and program budget review process would be to provide early inclusion into the budget process in a systematic way that will allow time to affect the base budget that has imbedded costs/revenues that the Council has very little time to consider during the budget development process. This would allow the City Council and staff to work jointly to improve services, understand the need for imbedded programs, and improve everyone's budget literacy.

A department and program review process would be outside the budget development calendar and the goal would be to identify potential opportunities to: (1) improve service delivery; (2) test continued desirability of programs and whether they’re meeting data driven outcome objectives that remain current council priorities; and, (3) positively impact the annual operating budget through reduced costs and/or increased efficiencies and revenues. I understand that the City of Austin has undertaken in the past through the Budget office and the Auditor's office elements of such or a similar process and that they may have been referred to as “sunset review" processes. I also understand that the cities of Dallas and Ft. Worth are currently conducting department and program budget reviews that they call “sunset reviews” and that the auditor in Portland performs regular department reviews but I’m not sure what they’re called or their specifics.

Your office currently conducts performance audits of City departments, programs, and services along with investigative services. It would be helpful to know if your department is aligned to recommend a means or methods or to carry out such department and program reviews. It would be good to know if a sunset or other process is feasible and we would want to learn, without limitation, through a special request report to the Auditor for the following:

1. Collection of information about municipal department and program reviews or other reviews and in particular for cities with a city manager form of government. The review should include the purpose of the reviews, the process, whether they are true sunset reviews or other types, the calendar, the review results, the types of potential opportunities derived, e.g. improved oversight, efficiencies, cost savings, staffing levels, outsourcing, modify performance measures, continued program desirability, etc.



2. Identify how other cities implement these reviews or use other methods and how might this be implemented If a review process were to be implemented in Austin beginning in early fiscal year 2016 and based on these cities that conduct sunset or other reviews what would be required such as, staffing, resources, sunset or other review targets, time allocations for review, and other logistical details.



3. Document how other cities carry out department and program reviews organizationally such as through the City Manager’s office, intergovernmental teams, the auditor, or other departments such as the Budget office.

Your assistance is greatly appreciated. Thanks.

Steve Adler
Mayor