Performance-based budgeting for North Carolina public transportation systems : final report - Page 9 |
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Performance-Based Budgeting for North Carolina Transit Systems
Institute for Transportation Research and Education, Public Transportation Group 1
Executive Summary
Introduction
The North Carolina Department of Transportation, Public Transportation Division
(NCDOT/PTD) intends to take performance measurement and benchmarking at North
Carolina public transportation systems to the next level—performance-based budgeting
(PBB). This intention is driven by the Division’s goal to continuously improve the
performance of these transit systems and to help direct public funding toward programs
and services that best achieve desired results. In addition, the NCDOT/PTD’s goal is to
provide good stewardship of local, state and federal public funding dollars.
The objectives of this study were to:
§ Extend the concept of performance measurement and benchmarking into transit
agency budgeting practices.
§ Evaluate the use of PBB in various public transportation and governmental
agencies.
§ Develop a PBB process for use by the public transportation agencies in North
Carolina.
§ Produce a guidebook to help the agencies conduct performance-based budgeting.
Anticipated benefits from the use of PBB include:
§ A closer linkage between agency goals and objectives, performance, and
budgetary decision making and resource allocation.
§ Enhanced ability to improve individual transit system performance.
§ Increased accountability for the use of public funds.
Literature Review
PBB is described as a management and budgeting system used by many state, county and
local governments as well as by the federal government to link budgetary decision
making with performance. It is designed to integrate the allocation of budget resources
with the achievement of agency goals and objectives based on measurable performance
results.
A number of conclusions emerged from the literature review:
§ PBB is widely practiced at all levels of government—local, state and federal.
§ PBB has a clear potential to produce important organizational benefits such as
creating a more rational allocation of scarce resources through improved budget
decision making, more closely aligning budgets with strategic plans and
organizational goals, and providing increased accountability both internally and
externally. However, its experience in reducing costs is mixed. While some
organizations have achieved overall cost savings by using PBB, many others have
not. It should therefore more realistically be viewed in the context of its many
other benefits, not as a method for cutting bottom-line costs. Its effect is more
likely to be a shifting of scarce resources to higher-priority or higher-performing
uses.
Object Description
Description
| Title | Performance-based budgeting for North Carolina public transportation systems : final report - Page 9 |
| Full Text | Performance-Based Budgeting for North Carolina Transit Systems Institute for Transportation Research and Education, Public Transportation Group 1 Executive Summary Introduction The North Carolina Department of Transportation, Public Transportation Division (NCDOT/PTD) intends to take performance measurement and benchmarking at North Carolina public transportation systems to the next level—performance-based budgeting (PBB). This intention is driven by the Division’s goal to continuously improve the performance of these transit systems and to help direct public funding toward programs and services that best achieve desired results. In addition, the NCDOT/PTD’s goal is to provide good stewardship of local, state and federal public funding dollars. The objectives of this study were to: § Extend the concept of performance measurement and benchmarking into transit agency budgeting practices. § Evaluate the use of PBB in various public transportation and governmental agencies. § Develop a PBB process for use by the public transportation agencies in North Carolina. § Produce a guidebook to help the agencies conduct performance-based budgeting. Anticipated benefits from the use of PBB include: § A closer linkage between agency goals and objectives, performance, and budgetary decision making and resource allocation. § Enhanced ability to improve individual transit system performance. § Increased accountability for the use of public funds. Literature Review PBB is described as a management and budgeting system used by many state, county and local governments as well as by the federal government to link budgetary decision making with performance. It is designed to integrate the allocation of budget resources with the achievement of agency goals and objectives based on measurable performance results. A number of conclusions emerged from the literature review: § PBB is widely practiced at all levels of government—local, state and federal. § PBB has a clear potential to produce important organizational benefits such as creating a more rational allocation of scarce resources through improved budget decision making, more closely aligning budgets with strategic plans and organizational goals, and providing increased accountability both internally and externally. However, its experience in reducing costs is mixed. While some organizations have achieved overall cost savings by using PBB, many others have not. It should therefore more realistically be viewed in the context of its many other benefits, not as a method for cutting bottom-line costs. Its effect is more likely to be a shifting of scarce resources to higher-priority or higher-performing uses. |
