Data Driven Budgeting Response Packet

The County of Santa Cruz incremental budgeting document does not illustrate changes in the County’s understanding of the needs of its population. AGREE X PARTIALLY DISAGREE – explain the disputed portion DISAGREE – explain why Response explanation (required for a response other than Agree): The budget is first and foremost a policy document. County policy is set by the Board of Supervisors and implemented by departments with parameters and controls established by the County Administrative Office. Policies change constantly based on community need, State and federal policies, and fiscal constraints. The budget document begins with an extensive financial summary that addresses major changes and trends in the budget. At the department level, more detailed budget changes are highlighted with explanations and associated financial impacts. Furthermore, the County has made efforts to make it easier for the public to identify and understand changes by standardizing information across departments, including more trend charts and description of changes. As departments prepare their budget requests, they recognize and understand the services required based on the needs expressed by the community. Departments use a variety of methods to assess service demands, such as surveys, data monitoring and planning processes. Lastly, a summary of community profile indicators is provided in the budget document in the Community Profile section (pages 27-33). Response Requested by September 5, 2018 Data-Driven Budgeting Santa Cruz County Administrative Officer

The County of Santa Cruz incremental budgeting process fails to integrate data from all departments to enable policy makers to make strategic and responsive decisions for the community. AGREE X PARTIALLY DISAGREE – explain the disputed portion DISAGREE – explain why Response explanation (required for a response other than Agree): The budget process integrates financial data from all departments, and the budget documents provides a financial summary and narrative for every department that highlights major programs, accomplishments and goals. Very little discretionary funding has been available during the recession and following years until FY 2016-17 when revenue growth exceeded expenditure growth for existing programs and services for the first time. This growth allowed the Board to consider funding some new programs. Several initiatives, including strategic planning, operational planning and performance measurement, will enable policy makers to better respond to the needs of the community. Response Requested by September 5, 2018 Data-Driven Budgeting Santa Cruz County Administrative Officer

The County of Santa Cruz incremental budgeting process lacks sufficient data to inform residents about projected efficiency or effectiveness of spending in the County. AGREE X PARTIALLY DISAGREE – explain the disputed portion DISAGREE – explain why Response explanation (required for a response other than Agree): The budget document does not currently include performance measures. However, most departments review data within programs and services to determine their budget request. Departments also provide a summary of accomplishments and goals, including explanations of variances by type of revenue or expense. For many programs, departments also prepare annual reports on spending and outcomes, which are reviewed by the Board for effectiveness. Response Requested by September 5, 2018 Data-Driven Budgeting Santa Cruz County Administrative Officer

Few County departments collect and utilize performance data to develop budgets, resulting in the loss of historical program performance insights and an inability to participate in performance budgeting. AGREE X PARTIALLY DISAGREE – explain the disputed portion DISAGREE – explain why Response explanation (required for a response other than Agree): An incremental budget process ensures that programs maintain historical insights. Many departments track workload indicators and program data to assist with budgeting and cost accounting through either a job ledger or a separate general ledger. A goal of the County is to integrate performance data in the budget process for all departments and provide a system to make this data better available to the public and policy makers. Response Requested by September 5, 2018 Data-Driven Budgeting Santa Cruz County Administrative Officer

The County has not established standardized analytic online tools for departments to develop data-driven reports, which results in the County’s inability to compare and contrast with internal and external agencies. AGREE X PARTIALLY DISAGREE – explain the disputed portion DISAGREE – explain why Response explanation (required for a response other than Agree): Major programs are tracked within the financial system in either a unique division or program key. For purposes of a clear, concise and readable budget document, details are summarized at the department, division or program level with the full financial details available online through an interactive budget tool. The online tool is relatively new to the public, and more outreach and training is necessary to educate the public on its use and importance. Performance data for all departments will be formally integrated in the budget process and the budget document in the future. Response Requested by September 5, 2018 Data-Driven Budgeting Santa Cruz County Administrative Officer