1. Presentation to WCMA Region 3: Performance Measurement by WI Municipalities Craig Maher Associate Professor UW-Oshkosh MPA Program Director, Office for Governmental Studies

2. 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

3. 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."Governing “…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.

4. Wisconsin Rankings 2006 US Bureau of CensusP.C. AmtRankUS Avg. Direct general expend. $ 7,09319 $ 7,087 Higher education $ 81314 $ 640 Elementary & secondary $ 1,68018 $ 1,672 Public welfare $ 1,29615 $ 1,237 Highways $ 58716 $ 452 Police protection $ 25817 $ 264 Fire protection $ 10023 $ 114 Corrections $ 23012 $ 209 Parks and Recreation $ 11224 $ 116 Sewerage $ 14712 $ 131 Solid Waste Mgmt$ 6425 $ 76 Financial Administration $ 9142 $ 125

5. Counties are Generally Below 100,000 Population

6. Most Cities are Well Below 50,000 Population

7. Villages are Typically Below 5,000 Population

8. Towns Tend to be Under 2,500 Population

9. Local Revenue Contribution to Local Spending Source: WI Kettl Commission One of the areas where WI stands out is in the amount of intergovernmental aid

10. 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

11. 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

12. Does this budget format look familiar? Are the questions posed really about policy? Can one make effective policy decisions using this format?

13. 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.”

14. 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

15. 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)?

16. 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

17. 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

18. An Important Piece of the Puzzle; Getting Elected Officials to Buy-In

19. Getting elected officials interested in using results-based 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. How can elected officials be encouraged to address and use outcome information? Source: NLC and Urban Institute’s Legislating for Results Presentation

20. 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

21. 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)

22. Recent Example: Project Done by UW-Oshkosh MPA Students for Waunakee, WIWaunakee, WI Recent Example: Project Done by UW-Oshkosh MPA Students for Waunakee, WIWaunakee, WI

23. Evaluating Waunakee: A Resident’s Manual Evaluating Waunakee: A Resident’s Manual

28. 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

29. Resources Available National League of Cities Urban Institute ICMA Craig Maher (maher@uwosh.edu)maher@uwosh.edu & Alan Probst (UW-Extension, Local Government Center) (alan.probst@uwex.edu)