BudgetingPhilosophies
Examine the pros and cons of using a performance-based budget, zero-basedbudget and line item budget. Which would you use during a budget cycle as apolice chief, and why?
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Mrscos Performance-based budget is a form of budget PBB requires allanticipated costs associated with the new activity be captured and reportedseparately. This would include personnel costs, fringe benefits, vehicles,vehicle operation costs, uniforms, office supplies, utilities, etc. (Stuart,Unknown). In the ICJE reading assignment the author uses the example of adepartment adding four motor units to enforce traffic laws. This programuses citizen feedback as one of the determining factors to measure itseffectiveness. I believe that this could be a pro because it allows thedepartment to be transparent with the public. In order to enforce trafficlaws a motor officer needs to write citations. This it can be misunderstood asa quota by the public and become controversial.
Zero-based budget a police agency must be able to justify its existence byjustifying why it should be funded. The agency must plan each program from zeroat the beginning of each fiscal year. In ZBB, each program or activityrequested in a budget is organized into a decision package (DP) and includesthree alternative funding levels: eliminated or reduced, current, and enhanced(Swanson, 2012). The pro to this budget is that every department has afresh start allowing officials an opportunity to start new programs or toexpand an existing one. The con to this is that costs such as overtime,fuel, legal fees, and payouts for resigned or retired personnel are hard toanticipate and must be anticipated as close as possible to derive a realisticprojection (Stuart, unknown).
Line Item Budge is the most popular form ofbudgeting. Line budgets are easy to prepare, present, and understand. Everyitem or class of items for which expenditures made is controlled and controlsystems prevents overspending budget (Swanson, 2012). The disadvantage ofhis type of budgeting is that there is no program structure (e.g., “DUIEnforcement” or “Abatement of Drugs in Nightclubs”). Although some police lineitem budgets have headings called programs, they are often just a line itembudget broken down into major units, such as the patrol division (Swanson,2012).
As a Police Chief, I would use the Line Item Budget It is simple and easier tomanage. The performance based budget seems to cost more especially if theprogram proves to be a failure.
Swanson, Charles R., Leonard Territo, and Robert Taylor. PoliceAdministration: Structures, Processes, and Behavior, 8/e Vitalsource eBook forAshford University, 8th Edition. Pearson Learning Solutions. VitalBookfile.
Stuart, R.D (Unknown) BudgetingBasics http://www.icje.org/articles/BudgetingBasics.pdf
