Focus: Spending or Investing? Focuses on results Value or “ROI” for all dollars being spent Challenges current costs Spending Focuses on “inputs” How much money does program get Little examination of current costs If sit through budget subcommittee, questions tend to be: Why moving 20.0 from travel to contractual Why does program need another 100.0? Typical answer, because of backlog, more students, etc. Little discussion on whether a program is effective at achieving its intended or promised purpose That’s how RBG is different Emphasis is shifted from inputs to outcomes

When Investing is Emphasis Aligns activities with program’s mission Measures effectiveness in terms of results Measures efficiency Cost of getting the results Basis to establish “return on investment” By examining current program activities: 1. Ensures current priorities are being met 2. Measures effectiveness: % of increase/decrease in reported child abuse cases % of increasce/decreate in illness related to contaminated water source 3. Measures efficiency in using public resources cost/child abause case cost/inspection cost/permit 4. Combined, two measures give a basis to compares costs with benefits

Example: Welfare-to-Work Investing emphasis On results Effectiveness % clients that got a job % clients that kept a job Efficiency Cost per client that get a job Spending emphasis On activities Cases established Persons trained Clients needing child care Clients taught interviewing skills How RBG changes incentives: Justification for more monety is typically the number on a wait list, aseload per caseworker What incentives are there then to reduce the wait list? If they do, they lose some justification for more money? Manage to what you measure