EOM PRESIDENTIAL TRANSITION MATERIALS

“Strengthening the Government’s Budgeting and Fiscal Management Capacity” by F. Stevens Redburn and Philip Joyce

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Executive Summary

This issue paper examines the evolving institutional role of the President as steward of the executive branch’s planning, budgeting, and financial management systems. It identifies potential gaps that must be addressed to improve decision-making and accountability.

While important improvements to the budget and performance management processes have been made in recent years, better information on costs, benefits, and relative returns on investment can help the President make better choices. The authors recommend:

Recognizing accruing costs as they arise;
Fully incorporating tax expenditures into budget reviews and presentations; and
Taking further steps to improve performance information and its use.

In addition to better information, institutional adjustments affecting how the budget is developed and presented would improve budgeting and financial management. The changes most needed are those that will permit the public to hold both the executive branch and Congress accountable for responsible budgeting and effective use of resources. The authors recommend:

Returning to multi-year budgeting
Strengthening financial management through improved full-cost accounting and reporting around agency strategic objectives
Continuing the shift to performance-driven program management
Enacting automatic triggers and encouraging responsible legislative action by granting delegated spending control authority to the President
Giving citizens a formal role in assessing performance and providing advice on budget and policy alternatives

Many helpful changes can be instituted by the President alone; others will require congressional action.

Related Resources

EOM Panel Minutes:
Topic presented at EOM Panel on June 16, 2006.

Associated Presentation Materials:
“Linking Performance and Budgeting: Opportunities in the Federal Budget Process,” by Philip Joyce

Other Related NAPA Materials:
None

About the Authors

F. Stevens Redburn is a Fellow of and occasional project director for the National Academy of Public Administration and an adjunct faculty member of the School of Public Policy and Public Administration, The George Washington University. He served in 2007 as advisor to the budget director of Kosovo as part of a USAID project working for BearingPoint. Prior to his retirement from the federal senior executive service in April 2006 Dr. Redburn was chief of the housing branch of the Office of Management and Budget.

His email is sredburn@comcast.net and his mobile phone number is 240-643-1935.

Philip Joyce is Professor of Public Policy and Public Administration at The George Washington University. Professor Joyce has published widely in the areas of performance measurement, public budgeting, the Congressional budget process, and intergovernmental relations. Phil has a Ph.D in Public Administration from the Maxwell School at Syracuse University, and has 12 years of public sector work experience, including seven years with the State of Illinois and five years with the United States Congressional Budget Office. He is a Fellow of the National Academy of Public Administration.

His email is pgjoyce@gwu.edu and his phone number is 202-994-4071.