Ask Your Legislator... > State > State Budget Solutions

Ask Your Legislator...

Which budget process do you currently employ for our state: priority-based budgeting, zero-based budgeting, baseline budgeting, or something else entirely?
---» BACKGROUND
What do you see as the state government’s core functions?
---» BACKGROUND
Regardless of the budgeting process you use, how do you currently measure progress and success of government functions, and how would you measure this in the future after defining the core functions? Who is currently responsible for measuring success, and how does that responsible party report the findings?
---» BACKGROUND
How much money does the state have available to spend, and how is that amount calculated?
---» BACKGROUND

1. Which budget process do you currently employ for our state: priority-based budgeting, zero-based budgeting, baseline budgeting, or something else entirely?

Priority-based budgeting: Priority and reality-based budgeting views all of state government -- all of its agencies and functions -- as a single enterprise. New proposals are evaluated in the context of all that state government is responsible for doing, and the strategies for achieving the best results are developed with an eye on all of the state's resources. Agencies and services are not sealed in fortified towers where they siphon large portions of state revenue with few questions asked; they are all under one tent where they can be constantly evaluated to ensure they are delivering the highest priorities as efficiently and effectively as possible.
Zero-based budgeting: A method of budgeting in which all expenses must be justified for each new period. This process starts from a "zero base" and every function within an organization is analyzed for its needs and costs. Budgets are then built around what is needed for the upcoming period, regardless of whether the budget is higher or lower than the previous one.
Baseline budgeting: Baseline budgeting is a method of developing a budget which uses existing spending levels as the basis for establishing future funding requirements. The baseline is normally enhanced by adding adjustment factors based on issues such as inflation, new programs, and anticipated changes to existing programs.

2. What do you see as the state government’s core functions?

The first step in responsible budgeting is to determine the state's core functions: the essential services it must deliver to citizens, in priority order. We suggest developing a meaningful list of no more than ten core government functions.
Once the core functions are determined, they should serve as a litmus test for the hundreds of agencies, boards, commissions, programs and services currently being funded, as well as all future proposals. Agencies should be asked to submit their budgets based on delivering one or more of the state's identified core functions. If an agency or program is not advancing one of these functions, it should be abolished.

3. Regardless of the budgeting process you use, how do you currently measure progress and success of government functions, and how would you measure this in the future after defining the core functions?

After identifying the state's core functions, legislatures must determine what it looks like to accomplish those core functions. In other words, it must define specific and measurable results to be achieved, as well as benchmarks to measure progress toward those results.
Once the state and agencies have defined what it looks like to successfully achieve government's core functions, legislators must determine how to measure progress toward those outcomes. Performance indicators are a key tool to make accountability possible by allowing legislators and agencies to answer the question: "Are we making progress toward our goals?"
The importance of a careful review of both the core functions of government and the outcome-based measures of success cannot be overstated. Once these are in place, agencies and programs can be prioritized based on how effectively they will help meet the state's goals. This is how you are able to hold legislators and government functions accountable.

4. How much money does the state have available to spend, and how is that amount calculated?

This is a superbly sensible question to answer before the legislative session even begins, but it is rarely asked even when the budget session begins. In many states, standing committees meet and pass legislation with little or no relevant spending framework. By asking the question up front, lawmakers would understand their spending limitations in advance, which would enhance the importance of standing committee hearings. States should not spend or plan to spend more than the forecasted revenue for the next budget period.

5. Budget gimmicks?

Check the State Budget Solutions “Budget Gimmicks” page to find out if your state has used any gimmicks lately. If so, ask your legislator about it.

6. Unfunded pension liability?

Every state has a pension bill that will come due soon. Check the State Budget Solutions paper, “Just How Big are Public Pension Liabilities?” to see how much your state owes on its promised public pensions. Then ask your legislator how he or she plans to solve this problem.