Performance measures proposed, complete with rewards and punishments

Gov. Rick Scott promised to run government more like a business, arguing that government fails to adequately control costs or adjust to the changing dynamics of the economy.

To that end, Scott pledged during the campaign to bring greater accountability to state government spending.

He said he wanted to "measure the living daylights" out of state government through a process he called accountability budgeting. "Rick will institute accountability budgeting," Scott promised as part of his seven-step plan to create 700,000 private-sector jobs. "He will make each state agency set annual goals for every dollar they spend, then measure their performance against those goals and hold them accountable for their outcomes." 

His two-year budget, released on Feb. 7, 2011, puts those words onto paper.

Scott's budget proposal and the accompanying implementation legislation includes new standards for justifying government programs.

Terms of just how agencies and programs will be measured are somewhat hazy, but Scott clearly intends to create a "performance-based accountability budget."

Scott has asked, by Sept. 1, 2011, that each state agency review and analyze current performance measures, and suggest new performance measures. He said outcomes must be clearly delineated for each program, and that expenditures must be justified to meet the outcomes. Scott also wants to task Florida's chief inspector general, a employee of the governor, to help coordinate and lead the implementation and monitoring of the new performance measures.

The inspector general will have the ability to "advise in the development of performance measures, standards and procedures for the evaluation of state agency programs," and "review the actions taken by a state agency to improve program performance and meet program standards."

The creation of performance measures comes with both a carrot and a stick.

Incentives for meeting the performance measures include retention of up to 50 percent of all unspent funds, which could be used for lump-sum bonuses, employee training or technology improvements.

Failure to meet the performance goals carries a wide possibility of disincentives. Agencies could be required to provide mandatory reports on progress to meet the standards, or be summoned to appear before the governor and Cabinet. They could have their program eliminated, outsourced or restructured. Or they could have positions or money stripped from the program, or both.

The governor's budget recommendations still must be approved by the Legislature, so while Scott has made progress on instituting his form of "accountability budgeting," we have to wait to see how legislators respond. For now, we rate this promise In the Works.