APPLYING PROGRAM BUDGETING TO HIGHWAYS: AN ILLUSTRATIVE EXAMPLE

A SIMPLIFIED VIEW IS PRESENTED OF HOW PROGRAM BUDGETING FITS INTO THE HIGHWAY PROGRAM DEVELOPMENT PROCESS AT THE FEDERAL LEVEL. PROGRAM BUDGETING IS OUTLINED AS A 7-STEP PROCESS: (1) IDENTIFY OBJECTIVES--THE BASIC REASON OR REASONS FOR THE EXISTENCE OF THE PUBLIC PROGRAM ACTIVITY, (2) DEVELOP MEASURES--THE ESTABLISHMENT OF QUANTIFIABLE MEASUREMENT UNITS BY WHICH PROGRESS TOWARD OR AWAY FROM PROGRAM OBJECTIVES CAN BE GAUGED, (3) IDENTIFY NEEDS--WHAT UNDESIRABLE SITUATION WILL THE PROGRAMS ALLEVIATE? (4) SET TARGETS-- A SHORT-RANGE TARGET FOR THE PROGRAM ACTIVITY MUST BE ESTABLISHED, (5) DEVELOP PROGRAM STRUCTURE - THE ALTERNATIVE PROGRAM ACTIVITIES MUST BE IDENTIFIED THROUGH WHICH THE PUBLIC AGENCIES MAY ATTACK THE IDENTIFIED PROBLEM, (6) MAKE ANALYSES--THE ANALYSIS INVOLVES ESTIMATING FOR EACH PROPOSED PROGRAM THE PROBABLE BENEFICIAL RETURNS AT VARIOUS LEVELS OF ANNUAL PROGRAM COST, AND (7) SELECT PROGRAM SIZE AND MIX--THE PROGRAM BUDGETING ANALYST MUST RECOMMEND TO HIS ADMINISTRATOR THE GROUP AND LEVEL OF PROGRAM ACTIVITIES THAT WILL FOR THE FUTURE YEAR RESULT IN EITHER THE DESIRED SHORT-RANGE PERFORMANCE REPORT BEING ACHIEVED AT LOWEST COMBINED PROGRAM COST, OR THE GREATEST BENEFICIAL RESULTS BEING RETURNED FOR THE KNOWN AMOUNT OF AVAILABLE FUNDS. THE END RESULT OF THE STUDIES ARE RECOMMENDATION TO THE AGENCY HEAD OF THOSE PROGRAMS THAT APPEAR MOST JUSTIFIED FROM A COST-EFFECTIVENESS STANDPOINT. THE HYPOTHETICAL EXAMPLE IS USED OF THE TREATMENT OF HIGHWAY SAFETY-ORIENTED IMPROVEMENT PROGRAMS BY THE PPBS PROCESS.

Media Info

  • Media Type: Print
  • Features: Appendices; Figures;
  • Pagination: pp 10-19
  • Monograph Title: Program budgeting
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00200988
  • Record Type: Publication
  • Files: TRIS, TRB
  • Created Date: Dec 29 1994 12:00AM