Performance-Based Program Budgeting

The Florida Legislature created a performance-based program budgeting (PB2) process in 1994 to link funding to agency products or services and results. The 1994 Government Performance and Accountability Act required the Governor to submit performance-based program budgets for the executive agencies to the Legislature.

During the early years, the Legislature was very active in selecting and monitoring the performance measures and results. Now the process is used more by agency supervisors for internal management, although the Legislature retains a key role. In 2006, the Legislature passed Chapter 2006-122, Laws of Florida, which created s. 216.1827, Florida Statutes, to separate the approval of performance measures and standards from the legislative appropriations process. Agencies now provide information on their legislatively approved performance measures and standards in their long-range program plans. To delete or amend these measures and standards, agencies must obtain approval from the Office of the Governor and the Legislative Budget Commission.

Section 216.013, Florida Statutes, requires state agencies and the judicial branch to develop long-range program plans to achieve state goals using an interagency planning process that includes the development of integrated agency program service outcomes. Among other items, the plans are to include

  • legislatively approved output and outcome performance measures;
  • performance standards for each performance measure and justification for the standards and the sources of data to be used for measurement;
  • prior-year performance data on approved performance measures and an explanation of deviation from expected performance; and
  • information regarding performance measurement, which includes, but is not limited to, how data is collected, the methodology used to measure a performance indicator, the validity and reliability of a measure, the appropriateness of a measure, and whether, in the case of agencies the agency inspector general has assessed the reliability and validity of agency performance measures, pursuant to s. 20.055(2), Florida Statutes.

By September 30 of each year, agencies are to post their long-range program plans on their websites and provide written notification to the Governor and Legislature that the plans have been posted. These plans are to cover a five-year period and are to become the basis for legislative budget requests.