The four types of budgets line-item budget, performance budget, program budget, and zero based budget, found in Rubin Chapter 3 page 82 are all distinct and serve different purposes. I think that many people like the idea of a line item budget because it is easy to discern what money is being spend on, there is no guessing. It makes accountability easy because an individual can point to specific expenditures. I have always thought of it as a way gain control when expenditures are seemingly out of control. However, the obvious negative aspect to this is that the top administrator has no say or leeway when it comes to making expenditures as Rubin points out. My view on this is that it inhibits the essential functions of that administrator because they cannot maximize potential of their assignment. I would think that this is a top role for that administrator.
The performance budget focuses on how well the money that was allocated last year was spent. This seems like a good idea but I have some reservations which I am not sure about. For instance, do they take into account the changes in economy, staffing, costs of goods, etc. from one year to the next. I think that if the budget is approached with those kinds of questions in mind, it could be a useful tool.
Lastly, Zero-based budgeting rates programs or services by their importance and funds those deemed to be the most important. I think that the positive aspect to this is that you can take care of most of the people's concerns with this because those most important programs are being taken care of. This is the best for the majority but someone is going to be left out or a program or service used by a few a minority of people is going to be dropped. However, I think that this program is where the cost cutting is at.
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This analysis provides some good insight regarding the type of budgets discussed by Rubin. From a policy standpoint I believe the program budget provides the most effective method for budgeting because officials can develop various programming priorities that can be funded and administered accordingly. For example, if services for senior citizens, children and affordable housing are considered priorities they can each be allocated money. Typically administrators would then incorporate the money into some type of line item budget to track expenditures like personnel and office related expenses. As policies change programming priorities can be supported financially by this same method. Federal block grant programs lend themselves to this type of budgeting. In this case the federal government allocates a large sum of money with broad policy requirements. State and/or local governments are responsible for developing the programming priorities and service delivery mechanisms. State or local governments can exert power by limiting priorities for the funding or by developing complex application requirements for agencies that seek contracts to administer the programs. Conversely, agencies can lobby policy makers to influence their priorities to benefit their programs.
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