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Lean Budgeting Whitepaper #3 by Andrew Kleine

Monday, December 17, 2018

In the first two papers in this series, I discussed how to use Lean techniques to make better budget decisions. This paper is about how to use Lean to streamline the budget process.

In my mind, the budget processes used in most governments are streamlined, but in the wrong way. Traditional budgeting starts from the previous year's spending plan - known as the "base" - and makes incremental adjustments depending on the revenue forecast. When revenue falls short, agency budgets are cut by the same percentage across the board. Inside agencies, the across-the-board cuts are passed along to services.
 
Lean Budgeting needs to look at this process differently and improve so that the government, at all levels, can better meet the needs of the citizens it serves.


OPS Lean Budgeting Paper #3

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