Table of Contents - Governor's Office of Planning and Budget

Zero-Based Budget Analysis
Introduction
The Governor’s Office of Planning and Budget (OPB) is responsible
for managing and developing the state budget. OPB utilized a zerobased
budgeting (ZBB) approach to analyze selected programs
during the AFY 2013 and FY 2014 budget process. The purpose of
the zero-based budget analysis is to assess individual programs
against their statutory responsibilities, purpose, cost to provide
services, and outcomes achieved in order to determine the
efficiency and effectiveness of the program and its activities.
OPB conducted a zero-based budget analysis of 10 percent of all
budgetary programs during the fall of 2012. The ZBB review process
included a detailed analysis of the cost and sources of funding for
program activities, an examination of two years of expenditure
trend data, as well as a review of the program’s performance
through measures capturing the effectiveness, efficiency, and
workload of program activities. This analysis was used to develop
recommendations for the AFY 2013 and FY 2014 Governor’s Budget
Report.
During the fall of 2012 OPB, the House Budget Office and the Senate
Budget and Evaluation Office reviewed the performance measures
for each of the ZBB programs. The coordinated review helped
develop a common understanding of the program’s purpose and
ensure that the measures reported satisfy the expectations of all
three budget offices.
The ZBB review process formalizes the work inherent in OPB’s
budget analysis and provides a systematic review and reporting of
the activities, performance and expenditures of the programs in the
state budget.
The reports in this document are a summary of the information
gathered and analyzed by OPB as part of our ZBB reviews. The
document includes four sections for each program reviewed:
1. Results of Analysis: This section summarizes OPB’s analysis
and provides recommendations for future review or
changes to the program budget and operations.
2. Program Purpose and Key Activities: This section lists the
agency and program purpose. A list of the program’s key
activities is provided with its authority, number of positions,
and state and total funds budgeted. In addition, this section
lists alternative approaches to delivering program activities
assuming a 3% and a 10% state funds budget reduction as
submitted by the agency.
3. Performance Measures: This section lists the goals of the
program and a set of measures for the program.
4. Financials: This section provides a summary of the program
expenditures and budget. The section lists two years of
expenditures, the current fiscal year budget, and the
Governor’s recommended changes for the FY 2014 budget.
Recommended changes exclude statewide adjustments for
retirement contributions and technology costs.
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