Presentation to WCMA Region 3: Performance Measurement by WI Municipalities Craig Maher

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Presentation to WCMA Region 3:
Performance Measurement by WI
Municipalities
Craig Maher
Associate Professor
UW-Oshkosh MPA Program
Director, Office for Governmental Studies
Recent Headlines from ICMA
News
• “Maricopa County, Arizona Seeks To Address $58
Million Shortfall”
• “Philadelphia Mayor Announces Layoffs, Unpaid
Furloughs”
• “Local, State Governments Face Long-Term Fiscal
Problems; Presents Management Challenges”
• “Washington county seeks to bridge budget gap with
government shutdown”
• “Alameda County, California files suit against
municipal-bond insurers”
• “Market downturn takes heavy toll on public
pensions”
• State Budget Damage 'Just Beginning,' Rockefeller
Institute Report Says
Also Found in ICMA News
• In the Management column in Governing (Nov. 2008)
magazine, Katherine Barrett and Richard Greene write
that "in these economically challenging times,
sophisticated managers see opportunity."
• “…bad times can lead governments to make cuts that
inhibit the kind of analysis that leads to future
savings," and "when the pressure is on to find savings
through managerial change, the easiest thing to do is
simply take action, and promise results," even if they
are not likely to come to pass. Therefore, tough fiscal
times "can be both a blessing and a curse for good
management," Barrett and Greene conclude.
Wisconsin Rankings
2006 US Bureau of Census
Direct general expend.
Higher education
Elementary & secondary
Public welfare
Highways
Police protection
Fire protection
Corrections
Parks and Recreation
Sewerage
Solid Waste Mgmt
Financial Administration
P.C. Amt Rank
$
7,093
19
$
813
14
$
1,680
18
$
1,296
15
$
587
16
$
258
17
$
100
23
$
230
12
$
112
24
$
147
12
$
64
25
$
91
42
US Avg.
$ 7,087
$
640
$ 1,672
$ 1,237
$
452
$
264
$
114
$
209
$
116
$
131
$
76
$
125
Counties are Generally Below
100,000 Population
400
Thousands
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Counties
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300
200
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100
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Most Cities are Well
Below 50,000 Population
200
Thousands
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Cities
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100
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Villages are Typically
Below 5,000 Population
30
Thousands
Villages
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25
20
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15
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10
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5
Towns Tend to be
Under 2,500 Population
25
Thousands
Towns
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20
15
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10
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Local Revenue Contribution
to Local Spending
Local Revenue Share
of Local Spending
Over 71%
67% - 71%
62% to 67%
57% to 62%
Under 57%
(10)
(10)
(9)
(11)
(10)
Source: WI Kettl Commission
One of the areas where WI stands out is in the amount of intergovernmental aid
In Summary
• The nation is facing a serious economic
challenge
• WI local governments are quite small (with a
few exceptions); have limited resources
• WI local governments have limited revenue
authority; not to mention levy limits
• WI invests less than most state/local
governments in fiscal administration
• The fiscal picture necessitates effective
decision-making/administration
The Role of The Common Council
• A common council serves as the
legislative arm of the city
government.
• It decides policy matters.
Source: LWM, Handbook for Wisconsin Municipal Officials
Does this budget format
look familiar?
Are the questions posed
really about policy?
Can one make effective
policy decisions using this
format?
Comments from last night…
• “…outraged by fringe benefit and salary costs…”
• “… given the economic conditions, you should not be
proud of a 2 percent levy increase, it should be going
down…”
• “… you need to look at what you do and how you do
it…government is never forced to look at it.”
• “… you need to look at what businesses are doing to
cut costs.”
• “… look at zero-based budgeting… each department
needs to justify what they do and how they do it.”
• “we just can’t afford it any more.”
The Form of Information Provision
Affects Policy Outcomes
• Elected officials needs information that
enables them to base decisions on
results/outcomes
• They need to use that evidence to
help make resource and policy
decisions.
Source: NLC and Urban Institute’s Legislating for Results Presentation
Performance-based Budgeting
(PBB)
•
Performance-based budgets focus on “return
on investment”—that is, what do we get for
our investment of resources?
• Basic service level (or continuation of basic
services)?
• Increased services (more services to same
recipients or expansion of same services to
more recipients)?
• Better (higher quality) services?
• More efficient services (cost savings in
service delivery)?
Is Budget Time the Only Time to
Use Performance Measurement?
• Budget time most common
• Both operating and capital
• Throughout the year; program review
and/or program audit (GASB working on
“recommendations’)
• Communicating with citizens
• Communicating with the press
Source: NLC and Urban Institute’s Legislating for Results Presentation
Key Assumption in This
Process
• Resources exist for data collection, analysis and
training (of both staff and elected officials)
• A “leap of faith” in administration
• Administration will effectively implement policy
• Unfortunately, many officials are elected on a
platform of “fixing” government
An Important Piece of the Puzzle;
Getting Elected Officials to Buy-In
Getting elected officials interested in using results-based
information
How can elected officials be encouraged to address and
use outcome information?
• Provide educational sessions on the value and uses of
performance information for elected officials.
• Ask senior administrative staff to discuss how information
on results can be used by staff to manage their
operations and continually improve the outcomes of
programs and services.
• Ask departments how they see elected officials using it.
Source: NLC and Urban Institute’s Legislating for Results Presentation
Getting elected officials interested in using results-based
information
How can elected officials be encouraged to address and
use result information? (continued)
• Provide examples of how performance information has
helped other cities/counties improve decision making,
communicate with citizens, and help meet the goals of
elected officials.
• Use materials from UW-O, UW-Extension LGC, the NLC,
ICMA, and other sources.
Source: NLC and Urban Institute’s Legislating for Results Presentation
How Can I Help?
• I’ve worked on this for at least a decade in several capacities
• WTA, Benchmarking
• Council Member, Chair of Finance Committee
• NLC and Urban Institute
• GASB (SEA Task Force)
• I’m a “healthy skeptic”
• I’m convinced that external help is essential; seems to be most effective
model in other states
• I’m not asking for funds (initially), just a commitment to the project
• I have received support from UW-O, WCMA, LWM, UW-Extension Local
Government Center
• A good learning experience for my students
• Pursuit of Grants (looking into Sloan Fdn. And IBM)
Recent Example:
Project Done by
UW-Oshkosh MPA Students
for Waunakee, WI
Why is this Important?
• The current fiscal crisis is expected to worsen; the
State of WI is facing a $3b. GF annual shortfall
• Most Federal grants now require outcome
evaluations (performance measurement) in their
applications
• Bond sales require indicators of financial condition
which are well presented by performance data
• Local government revenue restrictions, current
economic environment necessitate making effective
use of resources imperative
• Promotes the logical tie between planning and
budgeting
Resources Available
• National League of Cities
• Urban Institute
• ICMA
Craig Maher (maher@uwosh.edu)
&
Alan Probst (UW-Extension, Local Government Center)
(alan.probst@uwex.edu)
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