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?
Support your claims with examples from
required material(s) and/or other scholarly resources, and properly cite any
definition of budgeting is that it is a
methodical way to assign resources. varied styles of government budgeting systems are developed to serve multiple purposes. Money management,
management, planning, priority setting for scarce funds, and accountability within the use of
public resources plays a important part in budgeting. It is also important to
have good relationship with the news
media, as the news media is a big influence on the public.
It is also
important to note that Budget and finance functions vary widely across each
county and state. In order to be successful in
obtaining a budget that works you need to have a good strategy. That is why surveys, and
round table discussions are done on the topic of budgeting. In one round table discussion Chief Carey cautioned, “it’s
critical to have somebody in the next layer who has a conceptual understanding
of how budget and work programs fit into the philosophy of the department....
You need to have cops somewhere in the
process, overseeing what happens, so they can put everything together...with
the management philosophy of the department.” (Police Department Budgeting,
budget is considered as a system in an organization whereby individual and
particular department performances are usually linked to the budgeting process.
In a case were an individual meets his/her goals get an increment in funds.
This system is advantageous in a manner that when a firm is budgeting funds it
will consider benefits from every activity funds are posted in. It will also
become easy to justify funds allocation when it comes to budgeting. In another
case using this system, there might be disadvantageous since it might cause
conflict in the organization.
budget is a system whereby every expenditure in the firm must be accounted for
in every budget cycle. This system can be advantageous since every cost is
usually re-evaluated annually. In zero-based budget system every expenditure is
revisited so as to clear the financial imbalance. This system gives managers of
firms’ ideas on how to improve operations in the firm and gets rid of some of
the useless operations. Zero-based budget system on the other hand is very time
consuming and requires some training in order to perfect.
A study completed by PERF, there was a fifty one percent of
the respondents said they use the line-item budget (Police Department
Budgeting, 2002). Line
item budget is a form of budgeting whereby each expense is separately accounted
for to enhance readability and analysis. This technique is very useful in
financial planning, cost reduction measures and identifying sources of waste or
fraud. Line item budget is easy to make as one can easily list all expenses on
specified columns with the amount of dollars. It provides flexible budgetary
control to some programs that is based on defined criteria. It also makes
adequate historical data that is useful when writing a budget to determine
whether departments should receive the same funding or additional funding.
In Scottsdale they operate on a
modified zero-based budgeting system, also known as performance budgeting. Said Chief Bartosh, “It
helps us to make maximum use of our
budget. If we identify areas that no
longer present a priority, we can take that money and move it somewhere
else...based on the overall critical objectives and our goals.” (Police
Department Budgeting. 2002, p, 13).
is why as a police chief I would prefer using performance based budget system.
This is because I would be able to distribute funds according to the effort
made for example night shifts and it would result to few of misunderstandings
“Chief Bloechle observed, “In a conservative fiscal
environment, my elected officials are going to ask those kinds of hard
questions: Can you show me what works, where it works, how it works? What’s it
going to do? What’s the net effect? You can’t blame them, when they can pick up
the paper and read horror stories about agencies in our area who purchased a
new system that then collapsed and they had to go out and replace it.” (Police
Department Budgeting, 2002, p.21).
Brishton, R. (1979). The management philosophies
and controls in capital budgeting:(a comparative study of South African
subsidiaries of multi-national corporations).
Guthrie, J. (2007). Modern education
finance and policy. Boston: Pearson/Allyn and Bacon.
Police Department Budgeting: A Guide for Law ... (2002, November). Retrieved
from www.policeforum.org/...Online.../Budgeting/ police%20department%20bu... -
Please look over make any changes you feel necessary. thanks