WHAT ARE PERFORMANCE-BASED BUDGETS?
Each major item in the budget should contain clear and precise goals that are realistic and explicit expectations of outcomes or results. These outcomes or results are called performance measures and specify in quantifiable terms what an agency or program is expected to achieve. They should be easily understood and agreed to by those who will judge the success of agencies and programs, such as legislative standing committees, and by those who will be held accountable, such as agency program managers. Ideally the process begins with the agency program managers developing performance measures. To accomplish this, managers consider the legislative intent for each program as well as the governor’s budget directions. The performance measures must include baseline data for making comparisons, descriptions of how the measures relate to the agency’s strategic plan, and identification of outputs produced by, and outcomes resulting from, each program. These measures must be approved by the head
