CUTTING BUDGETS with RBA/OBA Better Decision-making. Greater Public Confidence. GENERATE ANALYZE DECIDE The Fiscal Policy Studies Institute Book - DVD Orders amazon.com resultsleadership.org

GENERATE ANALYZE DECIDE GENERATE: Traditional Methods 2. Across the board x% cut 3. Service by service & line by line: admin - new/not started - reduce # served - reduce quality – cut provider(s) – cut entire service 5. Targeting matrix: non-mandated programs, low impact on life, health and safety 1. Darts Mandated Non-Mandated Low Medium High LIfe – Health - Safety Protect Deep end Cut Prevention Infrastructure 4. Revenue and restructuring: taxes – fees – reserves - incentives - investments Better Decision-making. Greater Public Confidence. CUTTING BUDGETS with RBA/OBA

GENERATE ANALYZE DECIDE GENERATE: Traditional Methods 2. Across the board x% GF cut (w buy-back?) 3. Service by service – reduce # served – reduce quality – cut provider(s) – cut service entirely 5. Targeting matrix: non-mandated programs, low impact on life, health and safety 1. Darts 6. Least harm: to quality of life and service performance Plus RBA/OBA Methods 4. Revenue and restructuring: taxes – fees – incentives - investments Better Decision-making. Greater Public Confidence. Quality of Life As measured by Outcomes & Indicators Service Performance How much did we do? How well did we do it? Is anyone better off? CUTTING BUDGETS with RBA/OBA

GENERATE ANALYZE DECIDE ANALYZE: Traditional Methods 1. Triage: a. Politically feasible (winners-losers, press, geography) b. Administratively feasible (legal, implementable) 2. Impact: a. Financial Impact GF Fund savings, Loss of matching funds (if any) Cost shifting / offsetting costs (if any) b. People Impact Better Decision-making. Greater Public Confidence. CUTTING BUDGETS with RBA/OBA

GENERATE ANALYZE DECIDE ANALYZE: Traditional Methods 1. Triage: a. Politically feasible (winners-losers, press, geography) b. Administratively feasible 2. Impact: a. Financial Impact Disc. Fund savings, Loss of matching funds (if any) Cost shifting / offsetting costs (if any) Plus RBA/OBA Methods b. Population Quality of Life Impact: on key indicators c. Performance Impact: on How much did we do? How well did we do it? Is anyone better off? measures Better Decision-making. Greater Public Confidence. CUTTING BUDGETS with RBA/OBA

GENERATE ANALYZE DECIDE DECIDE: Traditional Methods 1. Darts 2. Political self interest 3. Public good Better Decision-making. Greater Public Confidence. CUTTING BUDGETS with RBA/OBA

GENERATE ANALYZE DECIDE DECIDE: Traditional Methods 1. Darts 2. Political self interest 3. Public good Plus RBA/OBA Methods a. Impact on quality of life b. Impact on the performance of key services Better Decision-making. Greater Public Confidence. CUTTING BUDGETS with RBA/OBA

GENERATE ANALYZE DECIDE 6. Least harm: to quality of life and service performance 2. Impact b. Population Quality of Life Impact: on key indicators c. Performance Impact: on How much did we do? How well did we do it? Is anyone better off? measures Better Decision-making. Greater Public Confidence. 3. Public good a. Impact on quality of life b. Impact on the performance of key services What’s different? CUTTING BUDGETS with RBA/OBA

1. Identify a population result/outcome to which your organization most directly contributes. (e.g. Healthy People, Sustainable Environment, Children Ready for School) 2. What is your organization's role in contributing to this result/outcome? 3. What do you do that causes the greatest contribution? 4. What do you do that causes the least contribution? (Least harm cut candidates) 5. How could you change the way you do your work so as to make the same, or close to the same, contribution with less resources? (Least harm cut candidates) - Time: 5 minutes for each question - Record answers for each question. - Report 3 best ideas and reasoning RBA/OBA Least Harm Cutback Exercise 1: POPULATION Least harm to POPULATION quality of life (Population Accountability)

1. Identify one service. 2. Identify the primary customer group. 3. What are you doing that is most effective in improving the lives of your customers? 4. What is least effective? (Least harm cut candidates) 5. How could you change the way you do your work so as to make the same, or close to the same, contribution with less resources? (Least harm cut candidates) - Time: 5 minutes for each question - Record answers for each question. - Report 3 best ideas and reasoning RBA/OBA Least Harm Cutback Exercise 2: PERFORMANCE Least harm to CUSTOMERS' quality of life (Performance Accountability)