ZERO-BASE BUDGETING AND MENTAL HEALTH PROGRAMS

• NCJ Number: 54441
• Journal: ADMINISTRATION IN MENTAL HEALTH Volume: 5 Issue: 2 Dated: (SPRING/SUMMER 1978) Pages: 162-171
• Author(s): P R BINNER
• Date Published: 1978
• Length: 10 pages
• Corporate Author: Human Sciences Press
• Publication Format: Article
• Language: English
• Country: United States of America

Annotation

THE HISTORY OF ZERO-BASED BUDGETING IS REVIEWED AND ITS APPLICATION TO MENTAL HEALTH PROGRAMS IS DISCUSSED. TWO ISSUES IN PARTICULAR, THE INFORMATION FOR THE DECISION PACKAGE AND THE RANKINGS OF PRIORITIES, ARE CONSIDERED.

Abstract

ZERO-BASED BUDGETING, WHICH STARTED IN PRIVATE INDUSTRY IN THE 1960'S, INTRODUCES TWO ADDITIONAL REFINEMENTS INTO TRADITIONAL PROGRAM BUDGETING: (1) STARTING FROM A BASE OR ZERO EACH YEAR RATHER THAN FROM THE AMOUNT SPENT THE YEAR BEFORE, AND (2) THE DECISION PACKAGE, WHICH PRESENTS ALTERNATIVE LEVELS OF SERVICES WITH ALTERNATIVE COSTS OF PROVIDING SUCH SERVICES. A DECISION PACKAGE MUST INCLUDE A STATEMENT OF GOALS OR OBJECTIVES, A LISTING OF THE CONSEQUENCES OF NOT PERFORMING THE ACTIVITY, MEASURE OF PERFORMANCE, ALTERNATIVE COURSES OF ACTION, AND A LIST OF COSTS AND BENEFITS ATTACHED TO EACH COURSE. THE PROBLEMS OF ZERO-BASED BUDGETING IN GENERAL AND THE PROBLEMS ENCOUNTERED WHEN ZERO-BASED BUDGETING IS APPLIED TO MENTAL HEALTH PROGRAMS ARE DISCUSSED IN DETAIL. IT IS POINTED OUT THAT BUDGETING TECHNIQUES ARE DIFFICULT TO APPLY TO ANY MENTAL HEALTH PROGRAM BECAUSE THE GOALS ARE DIFFICULT TO DEFINE, GOOD PATIENT FOLLOWUP MUST BE THROUGH A CONTINUUM OF SERVICES AND NOT THROUGH A SERIES OF ISOLATED PROGRAM ELEMENTS, AND THE MOST EXPENSIVE MENTAL HEALTH PROGRAMS ARE THE LEAST 'PRODUCTIVE' IN TRADITIONAL TERMS. IT IS POINTED OUT THAT THOSE WHO ARE MOST SERIOUSLY AND CHRONICALLY DISTURBED ARE THOUGHT TO 'NEED' PROGRAMS MORE THAN PATIENTS WHO ARE LESS SERIOUSLY DISTURBED BUT THAT THESE PROGRAMS ARE MORE EXPENSIVE AND SHOW THE LEAST RETURN. IT IS CONCLUDED THAT ZERO-BASED BUDGETING CANNOT BE A SUSTITUTE FOR GOOD MANAGEMENT; IT CAN ONLY PROVIDE A LOGICAL FRAMEWORK FOR THE ASSEMBLING OF NECESSARY FACTS. IT IS CONCLUDED, HOWEVER, THAT THE MENTAL HEALTH MANAGER MUST BECOME FAMILIAR WITH THE TECHNIQUE. AN EXTENSIVE LIST OF REFERENCES IS APPENDED. (GLR)