A zero-base budgeting process with goal programming feedback

This paper describes the decision process used to establish the annual budget for allocating general fund revenues to non-revenue generating service activities of a city. This process combines zero-base budgeting (ZBB) and goal programming. The goal programming model formalizes the relationship between the ZBB decision packages specified by city departmental needs and the planning issue goals identified by either the city council, the city administrative staff or a citizens' survey. A budget committee reviews input data, forms the model and uses its output to revise budget inputs. The goal programming model provides a format for (1) effectively evaluating budget assumptions, (2) consistently representing the relationships between the ZBB decision packages and the city planning issues, and (3) quantifying and evaluating the contribution made by the decision packages toward satisfying the planning issue goals.