Examine the pros and cons of using a performance-based budget, zero-based budget and line item budget. Which would you use during a budget cycle as a police chief, and why?
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Mrscos Performance-based budget is a form of budget PBB requires all anticipated costs associated with the new activity be captured and reported separately. 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 a department adding four motor units to enforce traffic laws. This program uses citizen feedback as one of the determining factors to measure its effectiveness. I believe that this could be a pro because it allows the department to be transparent with the public. In order to enforce traffic laws a motor officer needs to write citations. This it can be misunderstood as a quota by the public and become controversial.
Zero-based budget a police agency must be able to justify its existence by justifying why it should be funded. The agency must plan each program from zero at the beginning of each fiscal year. In ZBB, each program or activity requested in a budget is organized into a decision package (DP) and includes three alternative funding levels: eliminated or reduced, current, and enhanced (Swanson, 2012). The pro to this budget is that every department has a fresh start allowing officials an opportunity to start new programs or to expand 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 to anticipate and must be anticipated as close as possible to derive a realistic projection (Stuart, unknown).
Line Item Budge is the most popular form of budgeting. Line budgets are easy to prepare, present, and understand. Every item or class of items for which expenditures made is controlled and control systems prevents overspending budget (Swanson, 2012). The disadvantage of his type of budgeting is that there is no program structure (e.g., “DUI Enforcement” or “Abatement of Drugs in Nightclubs”). Although some police line item budgets have headings called programs, they are often just a line item budget 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 to manage. The performance based budget seems to cost more especially if the program proves to be a failure.
Swanson, Charles R., Leonard Territo, and Robert Taylor. Police Administration: Structures, Processes, and Behavior, 8/e Vitalsource eBook for Ashford University, 8th Edition. Pearson Learning Solutions. VitalBook file.
Stuart, R.D (Unknown) Budgeting Basics http://www.icje.org/articles/BudgetingBasics.pdf