1. Week 10: Implementing and Managing Budgets Complete discussion of sample BCPs Sample justifications -- (all-class exercise) Budget management vocabulary Budget management issues –degree of control –use of discretion –flexibility and accountability Development of format for final BCP Distribute and discuss mid-term exam

2. BCP: Commission on Improving Life Through Service Strengths –Strong analytical basis for requested increase growth in local programs constant administrative budget exhaustion of prior year carryover evidence from privates of limits to their support new program responsibilities Weaknesses –some numbers with no context or benchmarks –too long and repetitive –only cited three states that receive state support

3. Practice in Budget Justifications Case 1: Sacramento Fire Department requests 8 additional firefighters, two new fire stations, and 6 new vehicles Case 2: CSUS -- Academic Affairs requests two additional counselor positions for working with student in underrepresented groups to improve retention and graduation rates ---------------------------------------------------------------------------------------- Program officers: develop rationale; make up hypothetical numbers where needed to make your case; anticipate questions from program officers Budget officers: prepare specific questions for program officers; make sure they fully justify their requests

4. Budget Management Vocabulary appropriation/allocation line item control chart of accounts/acct bal. over-expenditure/deficit budget transfer budget projection year end balance carry forward supplemental approp. mandatory costs discretionary costs Budget/control language Supplemental language May Revise Audit (internal/external) one-time expenditure limited-term position sunset provision contingency reserve unallocated reduction pro-rata/across the board purchase order

5. Budget Management Issues What are reasons for and against tight control over implementation of budget by: –legislative over executive branch? –central executive unit over agencies and departments? What are the arguments for and against the practice of taking back funds unexpended at year end? Relationship between management flexibility and accountability –National Performance Review: deregulation CSUS case study: College of Business

6. Tools for Budget Management and Control Level of appropriation Control over budget transfers Line item controls, e.g. out-of-state travel Expenditure limit approvals Position control Audits (fiscal and program) Budget language/control language Contract oversight Reporting requirements Analysis of budgeted v actual expenditures

7. Case Study on County Prison Overtime Expenditures Key Points County Commissioners controlled by Democrats –re-election prospects depend on reducing expenditures County elected officials -- Republicans Prison Board controlled by Republicans; controls prison expenditures Key Players Truly, County Administrator Dexter, Finance Director (reports to Truly) Goodheart, Director of Corrections Kirby, Chair of County Commission (Democrat) Strickland, President of Prison Board (Republican) Eager, Consultant (daughter of Republican Party County chairman)

8. Case Study Continued--Issues and Questions Issues the politics of administration organizational culture: private v public scope of conflict budget management principles--control v delegation Questions are overtime expenditures reasonable? what options are available, politically, if you agree that overtime cannot safely be reduced? was the chosen option the best one? what should the consultant recommend?

9. Development of BCP Formats 1. BCP Title and Brief Description of Request 2. Background/History/Problem Statement -- include prior year budget data as baseline -- data to document or quantify problem 3. Proposal/Funding Request -- include funding source, one-time v ongoing 4. Justification/Rationale/Impact -- quantify basis for request and expected benefits 5. Accountability/performance measures and objectives 6. Implications for Other State or Local Agencies 7. Analysis of Alternatives 8. Recommendation and Timetable

10. Preview of Week 11 Eureka Budget Simulation –Tim Hodson, Executive Director, Center for California Studies, CSUS –http://www.csus.edu/calst/Civic_Education/eureka.html mid-term due