1. 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

2. 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

3. 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