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Performance Based Budgeting - An Overview

Performance-based budgeting (PBB) is budgeting that related funding to expected results. PBB is often referred to as managing for results. It is a process that relies heavily on strategic and operational planning, and performance accountability to build budgets.

Louisiana began its journey toward managing for results in 1987 which involved a transition from line item budgeting to program budgeting. The concept really began to take hold in both executive and legislative branches in 1995. Since that time, program budgeting has evolved into performance budgeting.

Act 1465 of the 1997 Regular Legislative Session (also called the Louisiana Government Performance and Accountability Act) mandates performance-based budgeting in the Executive Branch of Louisiana state government. There are now statutory requirements for strategic planning, operational planning, performance accountability, and performance reporting for all Executive Branch agencies (whether they are headed by statewide elected officials or officials appointed by the governor or another entity). Post-secondary institutions are included as well. In addition, a range of performance-based rewards and penalties has been established.

 


Enabling Legislation
MANAGEWARE: A Practical Guide to Managing for Results

PBB Guidelines, Instructions and Forms

Performance Accountability

LaPAS: Louisiana Performance Accountability System