# Presentation: 186996

## Performance Based Budgeting  

- Making Government Efficient, Effective, and
- Accountable
- Testimony before the House Committee on the Budget
- Congressman Henry Cuellar

## Performance Based Budgeting 

**Performance Based Budgeting:**  a results oriented budget tool that sets goals and performance targets for agencies, and measures their results
_*What Gets Measured Gets Done*_

## Bill Pattern Evolution

**Bill Pattern Comparison for the Texas Department of     Insurance 1970-1971**** **
**Personal Service—**
**Board Members at $23,500****	****	****$****	****70,500****	****	****$****	****70,500**
**Commissioner of Insurance****	****      ****	****	****23,000****	****	****      ****	****23,000**
**Liquidator and Conservator****	****	****	****16,016****	****	****	****16,016**
**Administrative Assistant****	****	****	****14,000****	****	****	****14,000**
**Fire Prevention Coordinator****	****	****	****13,248****	****	****	****13,248**
**Salaries of Classified Positions****	****             ****	****              3,865,914                                       3,997,355**
_**Seasonal Help                                                   **__**	**__**25,000**__**	**__**	**__**	**__**25,000**_
**Total, Personal Services****	****	****$            4,027,678****	****	****$            4,159,119**
**Other Expenses—**
**Travel****	****	****	****                                   398,710      ****	****	****                 398,710**
**Consumable Supplies and Capital Outlay                     326,458****	****	****                 325,138**
**Out-of-State Examinations ****	****	****	****90,000****	****	****	****90,000**
**Burial Rate Board****	****	****	****  ****	****  2,500****	****	****	****  2,500**
**Director of Personnel, Assistant Executive Director****	****16,000****	****	****	****16,000**
**Tuberculosis****	****	****	****	****15,500****	****	****	****15,500**
**Staff Officer and Planning Assistant****	****	****15,500****	****	****	****15,500**
**All other expenses****	****	****              ****	****            27,447,795****	****	****            29,641,065**

## Bill Pattern Evolution

**Bill Pattern Comparison for the Texas Department of Insurance 1982-1983**
**Operating Fund No. 36:**
**Board Officers:**
** ****a.****	****Board Members (3)****	****	****$****	****153,900****	****	****$****	****167,400     **
** ****b.****	****Board Administration ****	****	****	****253,215****	****	****	****269,993**
** ****c.****	****Information Services****	****	****	****254,970****	****	****	****278,006**
**Commissioner’s Offices:**
** ****a.****	****Commissioner****	****	****	****	****  49,600****	****	****	****  53,900**
** ****b.****	****Administration ****	****	****	****	****231,234****	****	****	****217,994**
** ****c.****	****Hearings ****	****	****	****	****167,213****	****	****	****175,159**
** ****d. ****	****Legal Selection****	****	****	****	****410,886****	****	****	****446,927**
** ****e.****	****Personnel****	****	****	****	****213,340****	****	****	****232,047**
** ****f.   ****	****General Support Service****	****	****	****905,454****	****	****	****933,422**
** ****g.****	****Data Processing****	****	****                ****	****                   1,671,931****	****	****                   1,518,631**
** ****h.****	****Company Conservation and Rehabilitation****	****175,824****	****	****	****186,926**
**Business Practices, Enforcement **
** ****a.****	****General Management****	****	****	****423,916****	****	****	****459,082**
** ****b.****	****Licensing and Regulation (IA,A,PFC)****	****	****647,503****	****	****	****698,337**
** ****c.****	****Claims, Complaints, and Investigations****	****	****822,862****	****	****	****893,937**
** ****d. ****	****Administration of (L,A,andH) Insurance,**
**	****Health Maintenance Organizations**
**	**** ****and prepaid legal services****	****	****	****998,456****	****	****	****895,808 **

## Bill Pattern Evolution

**Bill Pattern Comparison for the Texas Department of Insurance 1998-1999**
**Goal: Encourage Fair Competition **
**Encourage fair competition in the insurance industry**
**Outcomes:**
**Percent of Agent License Filling Completed in 15 days                  ****	****  92%****	****	****92%**
**Percent of Stationary Rate and Form Fillings Completed **
**Within 90 Days****	****	****	****	****	****  50%****	****	****55%**
**Number of Automobiles Covered by Voluntary Policies **
**a Percent of Total Private Passenger Automobiles in **
**Underserved Markers****	****	****	****	****	****  45.1%****	****	****46.5%**
**Percent of MAP Applications Eligible for Referral Resulting **
**in the Insurance of a Residential Property Insurance Policy****	****  50%****	****	****50% **
**Percent of Contested Cases Finalized in 180 Days****	****	****  80%****	****	****80%**
**Estimated $ Amount (in Millions) of Insurance Fraud Eliminated****	****  23****	****	****25 **
**(Continued)**

**Strategy: Promote Competition****         $   9,390,159            $   9,388,959**
**Collect and analyze market data,**
**provide information to consumers and industry,**
**and process rates, forms and other required filings.**
**Outputs:**
**Number of Inquiries Answered **
**Number of Rate Guides Distributed****	****	****	****275,000****	****	****275,000**
**Number of Life/Health Insurance Fillings Completed****	****130,000****	****	****130,000**
**Number of HMO Form Filling Completed****	****                  23,500****	****	****  23,500**
**Efficiencies:**
**Average Costs per Rate Guide Distributed **
**Explanatory:****	****	****	****	****	****	****	**
**Total Number of Licensed Agents****	****	****	****171,000****	****	****176,000**
**Number of Texas-Based Required Companies****	****	****      805****	****	****      807**
**Number of Non-Texas Based Required Companies****	****   1,885****	****	****   1,890**
**Number of License HMOs****	****	****	****	****        65****	****                        70**

## A Legislator’s Guide to Using Performance Information Basic questions to ask agencies in budget and program review hearings:

**What is your program’s (or agency’s) primary purpose? Which citizens are affected? **
**What key results are expected from this use of taxpayers’ funds? **
**What key performance indicators do you use to track progress in attaining these results? **
**What were the results in the most recent years? **
**How do these results compare to your targets? Have any results been unexpectedly good or unexpectedly poor? **
**How do the results compare to other benchmarks? **

## A Legislator’s Guide to Using Performance Information Basic questions to ask agencies in budget and program review hearings:

**For which citizen groups have the results been less than desired? (Examples: Groups by location, gender, income, age, race/ethnicity, disability, etc.) **
**If any targets were missed, why were those targets missed? **
**What is currently being done to improve deficiencies? **
**What actions does your new/proposed budget include that would improve results? **
**How would the results change if funding is increased by 5 percent? Decreased by 5 percent? **
**Which groups of citizens might benefit? Which might lose? To what extent? **
**What other programs and agencies are partners in producing desired results?**
**Source: *****Legislating for Results*****, Action Brief 9. National Conference of State Legislatures and the Urban Institute, 2003**