An Analysis of the Implementation of Program Budgeting in Georgia

This brief examines the challenges faced by Georgia in its implementation of a Prioritized Program Budgeting system, with a particular focus on the development of the state’s budgetary program structure. While there is voluminous information about the development and use of performance measures, e.g.,(Hatry 1999; Poister & Streib 1999; Kittredge & Kissler 1998; Joyce 1999, 2003), there are few resources to help guide states through the process of building the initial programmatic “platform.” This initial step, which was first comprehensively implemented in the fiscal year (FY) 2006 budget year, has proved more challenging for Georgia than was perhaps anticipated. This report is meant to help the various state budget and program officers in Georgia reflect on their current transition from line item to program budgets as well as to provide a resource for other states considering a similar transition. to program, and legislative attention shifted from a focus on inputs to a focus on agency purposes. Previously agencies had been responsible for ensuring that they did not transfer more than 2 percent into any one object class appropriation (associated with personal services, travel, regular operating expenses, etc.) without legislative approval. With the switch to program budgeting, the legislature imposed transfer controls of 2 percent or $250,000 whichever was less on programs in the budget.