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This newsletter explores the world of peformance budgeting. Our most recent report, "Four Actions to Integrate Performance Information with Budget Formulation" by John Whitley, focuses on specific steps that can be taken by government leaders to better inform budget decisions. Two additional reports provide a primer for the reader. "Linking Performance and Budgeting: Opportunities in the Federal Budget Process" by Philip Joyce, presents an overview and history of performance budgeting in the federal government. The report, "Performance Budgeting: How NASA and SBA Link Costs and Performance" by Lloyd Blanchard describes the statutory and conceptual foundations of costing requirements and follows with a framework for integrating costs and performance.
Author: John Whitley
For years, good government observers have called for the use of performance information in the budgeting process to better inform decisions. In this report, Dr. Whitley offers specific steps that can be taken by government leaders – without legislation -- to make this a reality instead of an exhortation. The author offers a series of recommendations that: (1) engage agency leaders, (2) focus attention on conducting better analyses, (3) improve the budget formulation process, and (4) reform agency budget accounts and cost estimating approaches.
Author: Philip G. Joyce
This report presents an overview and history of performance budgeting in the federal government. Professor Joyce presents a comprehensive view of how performance information can be used at the various stages of the budget process: preparation, approval, execution, and audit and evaluation. (2003)
Author: Lloyd A. Blanchard
This report begins with a description of the statutory and conceptual foundations of costing requirements. Professor Blanchard follows with a framework for integrating costs and performance. He then tells the story of how two very different federal agencies successfully met the PMA’s performance costing requirements. Blanchard draws upon published reports and articles, as well as his own experience leading PMA reform efforts at the National Aeronautics and Space Administration (NASA) and the Small Business Administration (SBA). Blanchard concludes his report with practical recommendations based on the advantages and disadvantages of the two approaches and specific steps that agencies can take to improve their existing procedures and policies. (2006)
The Business of Government Blogs
Four Actions to Better Integrate Performance into Budgeting by John Kamensky