With the passage of the state’s general fund budget last week, PARCA Senior Research Associate Tom Spencer took a moment to sit down with WBHM’s Andrew Yeager to provide an overview of the budget and how some of the key departments will be affected.
“Medicaid, prisons, and education had strategic plans in place,” said Spencer. He says that allows lawmakers to make budgeting decisions for those parts of state government within an existing framework. That kind of planning doesn’t happen with other general fund agencies. With cuts to many agencies starting at 6 percent and no strategic plans in place, it’s hard to know the effects it will have on those agencies.
“We spent a lot of time [in the special session] with proposals coming from left and right about what to close and what to eliminate,” said Spencer. “They weren’t really based, in a lot of cases, on good solid information or well-thought-out plans.”
PARCA has recommended for years that the state adopt a system called performance-based budgeting. Performance based budgeting differs from other budgeting methods by focusing on policy goals and results rather than money spent.
“Figure out where you are, set a goal of where you want to go, identify the strategies that will get you to where you want to go, show what kind of investments need to be made, and pursue that. Measure your results, discard things that aren’t working and adopt different strategies,” Spencer said.
“State and local taxes are the lowest per capita in the United States of America. We have to run more efficiently than anybody else if we want to provide the same level of services. If we’re not asking tough questions and paying close attention to the bottom line, we’re not going to get good results.”