Making the Most of Each Budget Dollar

One of the few things both sides of the political aisle are able to agree on is getting better performance out of programs, as seen by the move toward evidence-based policymaking under prior administrations. The federal government could lead by example, suggests Brookings Fellow Andrew Feldman, by creating a bipartisan team focused on improving performance of federally funded programs, giving states the freedom to implement innovative programming and shoulder more accountability for results, and reducing hurdles to program evaluation while encouraging the incorporation of data analytics into regular reporting. In a time of new federal spending priorities, budget shortfalls, increased need, and much uncertainty, states must get serious about investing in programs that work by actively incorporating outcomes research into their policymaking.

A report from the Pew-MacArthur Results First Initiative, How States Engage in Evidence-Based Policymaking: A National Assessment, assessed the levels of commitment and action of states using research to guide decision-making related behavioral health, criminal justice, juvenile justice and child welfare policy. This study scored each state and the District of Columbia on the extent to which they incorporated research findings in policy, including defining categories of evidence, conducting program cost-benefit analyses, and identifying specific funding for evidence-based programming. According to the brief, 50 states have taken some sort of action through the allocation of funding for programs supported by research findings, while 42 states report outcomes in the budget annually. Just 17 states compare program outcomes and costs.

While Washington, Utah, Minnesota, Connecticut, and Oregon lead the nation in evidence–based policymaking, Pennsylvania is one of 11 “established” states, with 13 evidence-based policymaking actions (three advanced and ten minimum) across the four policy areas studied. According to the assessment scorecard, Pennsylvania uses advanced research-driven policy actions most often in the juvenile justice sector.

Read more about the levels of evidence-based policy-making and individual state scorecards, in the report available at the Pew Charitable Trusts website. Case studies are also available on how to design contracts and grants to require outcomes reporting tied to program performance.

Plotting a Course for 2017

2016 was a year of flipping the script and changing up the status quo. Come tomorrow, it is time to push through our anxiety about what may lie ahead and plot a course to best navigate the unknown terrain of 2017.

But where to start? Some thoughts…

Where will the road take you in 2017?

In December, I always look forward to Lucy Bernholtz’s data and philanthropy forecast for the upcoming year and the insights in Blueprint 2017 are as thought-provoking as those of its predecessors. It is available for download at the Foundation Center’s Grant Craft website.

Diversification of revenue is more important than ever, especially among donors as well as sources.

Show the impact of the work you do – the very change your program facilitates at both the client and community levels. It seems to be in fashion to downplay all measurement because quantifying impact can be challenging, what with small samples and scattered cohorts and bias (oh my!). Yes, it is. But demonstrating how a program meets expected and desired goals – the outcomes – is not a clinical trial, it is just good practice. As is using those data to inform and improve services.

In Pennsylvania, as this fiscal year’s budget shortfall grows, all signs point to a doozy of a 2017-18 negotiation process. Structural changes to the current human services system are also on the table, which may signal new opportunities for nonprofits. How can you best advocate for the sector and your organization?

Moving purposefully into the unknown may be less intimidating for a nonprofit when there is a verbal AND a financial commitment to cultivate leadership within the ranks.

On the topic of developing leaders, this is a perfect time to engage in a some formative assessment of a more personal nature. As an established or up-and-coming nonprofit leader, how do will you look back on 2016 and plan for 2017?

  • Set aside some time to conduct your own career-centered end of year review.
  • Use/create a rubric to determine where you are now and what you should focus on, add, or set aside in 2017. Rubrics consist of a descriptive set of items or elements and a related performance scale. List your goals or expectations for 2016, then rate each one on a numerical scale where each point is defined along a continuum of progress, for example, 0 = “No progress made” while 4 = “Achieved 100%.” Add as much or as little detail to each rating point as needed to accurately capture the situation.
  • Last January, I worked with Emily Marco on a year-in-review that included a look back at professional and personal events and milestones of 2015 and planning for 2016. She also helped me clarify my goals and identify “action steps” to begin working toward them immediately. Emily is a visual problem solver who excels at helping people organize their thoughts and build a plan of action to achieve their goals. If you are interested in exploring a new way to digest the old and plan for the new you can learn more about her new online learning experience Relaunch 2017 or contact her for a goal setting session at Emilymarco.com.

 

 

Note:  This post is not sponsored.  I do not receive any compensation or services for mentions or links included in the post.

PA Nonprofits May Want to Prepare for a Rough 2017-18 Budget Process

A few years ago, a study from the Forbes Funds, The Pittsburgh Foundation and the United Way of Allegheny County examined the impact of nonprofits (minus the health care systems and institutions of higher education) on Pittsburgh’s economy. It found that nonprofits, ranging from human service agencies to animal rescue organizations, provided over 75,000 jobs for local residents and spent $4.4 billion in the local economy – supporting over 31,000 jobs in other industries.  Preventive factors associated with such community–focused programming resulted in both lives and tax dollars saved. The state-wide data for nonprofits (including healthcare organizations) confirms the strength of the sector. In 2015, Pennsylvania nonprofits employed over 15% of the state workforce and generated $132 billion in annual revenue.

Unfortunately, even with this proven social and economic impact, there is concern that Pennsylvania nonprofits may once again face a serious threat to their operations during the upcoming budget process. First, the 2016-17 budget was never really balanced, and the expected revenue shortfalls are a reality (first quarter revenue collections were $200 million short).  Second, a pension reform bill supported by Governor Wolf failed to pass in the PA House earlier this week after opposition from unions, including the Pennsylvania State Troopers Association, pushing that debt issue further down the road.  Third, our decaying infrastructure issues, already underfunded, are not going away in 2017-18 and the gas tax residents pay to fund repairs and improvements is being spent on state police. Also, 2018 is a gubernatorial election year in Pennsylvania. Could we see the sequel to the 2015 impasse?

You can stay up to date on nonprofit-focused policy and budget news at the Greater Pittsburgh Nonprofit Partnership (GPNP) website’s weekly summary page. The Pennsylvania Association of Nonprofit Organizations (PANO) is another resource for news out of the General Assembly.

School Budget Cuts Become Reality as Students Return

 

As we approach the start of another school year, students in Pennsylvania may find themselves returning to fewer elective classes (even in math science and English), increased class sizes, old textbooks, suspension of field trips, and fewer teachers and staff due to furloughs and hiring freezes. These intended changes, from a survey conducted by the Pennsylvania Association of School Business Officials and the Pennsylvania Association of School Administrators, also include, 22 percent of districts cutting tutoring programs for students (just under a third – 32 percent – did the same for the 2012-13 school year), and 13 percent of districts ending summer school programs for 2013-14, as did 21 percent last year.

While the enormous impact of the recession prompted serious budgetary reviews, from the dinner table to the halls of the State Capitol, the reduction in education funding has hit urban schools first, and worst.   While fingers point at various “causes of the problem” and some argue the problem doesn’t exist but for mismanagement,  the financial shortfall, at least in urban Pennsylvania schools, appears to be a mixture of shrinking tax bases, shrinking enrollment, ever-increasing per-pupil spending, and bureaucratic administrations, coupled with reductions in funding from the Commonwealth.  Still, cutting programs (like tutoring) that are designed to help struggling students seems to only contribute to the achievement gap that already exists between schools  in poorer areas and their more affluent counterparts.

The report, Poverty and Education: Finding the Way Forward by Richard J. Coley of Educational Testing Service (ETS) and Rutgers University professor Bruce Baker, examines the connection between poverty and life outcomes, including success in education and future employment.  The researchers note the academic achievement gap is larger between poor and not poor than between races, with those living in extreme poverty lagging most behind peers in cognitive performance.  Poverty is also associated with outcomes of less schooling, lower income, and higher likelihood of involvement in the criminal justice system.   The impact of poverty on educational quality is illustrated in the brief, The Impact of Teacher Experience, Examining the Evidence and Policy Implications by Jennifer King Rice, through a discussion of data that indicate high-poverty schools have teachers with the least experience and, according to some studies, a lower level of effectiveness.  A National Center on Educational Evaluation brief reports that, overall, poorer students had unequal access to the highest quality teachers (although the study on just 10 districts is not generalizable).

Lest one think such relationships have little bearing on their local schools, the issue of poverty and education is no longer just a concern for city residents as the 2000’s saw a shift in the distribution of families living below the poverty line.  Suburbs are the fastest growing pockets of poverty in the country, according to the book Confronting Suburban Poverty in America by Elizabeth Kneebone and Alan Berube. Over the last decade, the population of poor in the suburbs grew by 64 percent and at a brisker pace than in many of their regional cities.  According to Kneebone and Berube, there are more poor people living in the suburbs now than anywhere else in America.

This past year, school districts – urban and suburban – have dealt with budget issues by challenging mandates that limited the number of students to teachers in a classroom, removing access to or increasing participation fees for extracurricular activities, and reducing the number of available courses.  A cursory read of the trends in income, funding steams and predicted economic growth suggests that even the more affluent districts won’t be able to escape the experience of severe budget cuts and need for increased tax revenues for too much longer.