Conclusion

Performance management is a natural precursor to performance-based budgeting. The focus on using data and evidence to understand which programs and initiatives are furthering progress towards goals should lead an organization to think about which programs and initiatives should be funded. Many cities are building on existing performance management efforts to expand into performance-based budgeting. By thinking strategically about how performance-based budgeting aligns to current budgeting efforts, developing clear guidelines for proposals and the revised budgeting process, and building in opportunities for revisioning and monitoring, cities can dramatically shift their budgeting conversations from what should be cut to what should be kept, while building consensus internally and externally for those decisions.