NCJ Number
54849
Date Published
1977
Length
22 pages
Annotation
A GOVERNMENTAL BUDGETING SYSTEM THAT DIRECTLY LINKS REVENUES TO SPECIFIC SERVICES IS DESCRIBED.
Abstract
MOST GOVERNMENT FUNCTIONS ARE FINANCED FROM A GENERAL FUND. ECONOMISTS AND OTHER BUDGETARY THEORETICIANS ARGUE THAT THIS APPROACH IS NECESSARY TO GIVE POLICYMAKERS THE FLEXIBILITY THEY NEED. IN REALITY, THE GENERAL FUND BECOMES A BATTLEGROUND FOR OPPOSING ECONOMIC, FUNCTIONAL, AND SPECIAL INTEREST FORCES. THIS CONTENTION OBSCURES THE RELATIONSHIP BETWEEN REVENUES RAISED AND SERVICES PROVIDED. A NEW BUDGETING APPROACH, THE INTEGRATIVE BUDGETING SYSTEM (IBS), ADDRESSES THE SHORTCOMINGS OF BOTH THE GENERAL FUND AND PREVIOUS BUDGETING INNOVATIONS. IBS ALSO TAKES INTO CONSIDERATION DATA-HANDLING AND BEHAVIORAL CONSTRAINTS EXTANT IN LOCAL GOVERNMENT. THE PURPOSE OF IBS IS TO CONNECT DIRECTLY ALL GOVERNMENT REVENUES TO SPECIFIC SERVICES. IN THIS WAY, IBS PROVIDES BOTH TAXPAYERS AND GOVERNMENT OFFICIALS WITH INFORMATION ON HOW TAX MONEY IS BEING SPENT. THE MAIN FEATURES OF IBS ARE AS FOLLOWS: (1) SPECIFIC ASSIGNMENT OF REVENUES TO NARROWLY DEFINED FUNDS TO FINANCE SPECIFIED SERVICES; (2) USE OF THE GENERAL FUND TO FINANCE SUPPORT AND CENTRAL STAFF SERVICES ONLY; (3) DISTRIBUTION OF SUPPORT AND CENTRAL COSTS AMONG PROGRAMS BY FORMULA; (4) ASSIGNMENT OF PROGRAM RESPONSIBILITIES TO PROGRAM MANAGERS; AND (5) USE OF A MERIT PAY PLAN TO REWARD MANAGERS FOR GOOD PERFORMANCE. THE IBS APPROACH HAS BEEN PARTIALLY IMPLEMENTED IN SEVERAL CALIFORNIA CITIES. AN EXTENSION OF THE APPROACH CALLED MATRIX BUDGETING WOULD MAKE IT POSSIBLE FOR GOVERNMENT SERVICE CHARGES TO BE ALLOCATED ON A NEIGHBORHOOD BASIS. DETAILS OF IBS AND ITS DEVELOPMENT ARE PROVIDED. (LKM)