Twelve Davidson County departments saved more than $1.3 million during the 2004-05 fiscal year using a budgeting strategy known as performance-based management.
By meeting performance goals that department heads set at the beginning of the year, they can “bank” as much as 8 percent of their total budget allocation. The balance goes back into the general fund, where it is available for other needs.
“In my mind, performance-based budgeted basically gives you facts to prove what you’re doing well,” said Assistant County Manager Zeb M. Hanner, who also serves as the county budget officer. “It quantifies what you’re doing successfully.”
Hanner compiles the results in an annual “performance scorecard.” He recently released the results for the third year of the program, and the figures reveal a sharp rise in its effectiveness.
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