The Human Side of Budgeting: Budget Games and How to End Them

by Scott Douglas Lazenby

Most current books on government budgeting focus on the policy process for making budget decisions. They also focus almost exclusively on the federal budget. The Human Side of Budgeting instead approaches the budget from a local government management point of view, and makes the case that traditional budget systems work against almost everything we know about good management (i.e., that most of our employees are not, in fact, lazy and stupid). The Human Side of Budgeting was written both for pre-career students of public management as well as more senior managers who wonder why their budgeting systems produce such pathological behavior in their staff and governing bodies. “It might sound like an oxymoron to refer to a book about budgeting as engaging, but this one is. The Human Side of Budgeting is well written and provocative throughout. Lazenby’s argument is audacious enough to cause the optimistic reader to stay with it because it offers an alternative to a system that is a continuing source of frustration and for the doubter to remain engaged because it looks as if there just has to be a catch somewhere .” Phillip Cooper, author of By Order of the President & Professor, Portland State University Hatfield School of Government “This book makes an important contribution to a critical piece of the puzzle for those wanting to move from expenditure-based budgeting to revenue-based budgeting.” Douglas Morgan, co-author of Local Public Budgeting “In creating The Human Side Of Budgeting Scott Lazenby has provided us with a book that fits perfectly between tomes on the politics of public budgeting and the texts and handbooks on the mechanics of public budgeting.  The fact that no one has filled this niche before is as astounding as it is disheartening.”   Jim Hough, City Manager Emeritus, Banks, Oregon “I really, really like this!”  Phil Keisling, Director, Center for Public Service, Portland State University & former Oregon Secretary of State

176 pages, Paperback

First published May 30, 2013

Reviews

[Paul]

A good, basic book about budgeting in the public sector. One chapter highlights all the budget games that can be played but thankfully I haven’t needed to use them in my career. Overall a good beginners book with some depth in parts showcasing the author’s expert knowledge of the subject matter. Key excerpts below.

- …the best budget is, after all, nothing more than an educated guess on what the future will hold. P3. PJK: So true… you set a budget and things seem to change with a couple months. Some budget items are not worth long arguments because of this.
- Budgeting in the public sector was meant to make government more businesslike, but business budgets are plans, not legal limits. P12-13.
- Increased spending authority does not entail a loss of control. To the contrary, it begets more control of the most powerful sort - self-control. P28.
- For many accountants and budget analysts, the budget process begins with the budget manual, or the instructions to departments and managers on how to prepare the budget for the next fiscal cycle. P56. PJK: Learning the Pentagon’s processes was key to my success (ex: TAA, POM cycle).
- Many people are drawn to government organizations as a result of their public service values. They are motivated by a desire to make a difference in people's lives. P56.
- …direction from the governing body is a key component in building trust between elected officials and staff… it's critical that these services and projects delivered by the operating managers are the same ones that the governing board wants done. P59. PJK: Very true.
- …the staff's goal is to provide the highest level of service possible with the available resources. P61.
- All resourceful budget managers keep their own contingency accounts, to give them some flexibility to respond to unforeseen circumstances… This is good management; contingencies do arise, and managers should have resources at their disposal to deal with them. P81.
- Departments should have full freedom to shift resources across line items, and department heads should have freedom to move resources across various programs they oversee. P85.
- …there is a strong pragmatic reason for allowing operating managers to carry forward all of their savings…. When faced with a choice between losing half their savings, or being able to keep as much of it as possible through a year end spending spree, they will choose the latter. P91.

[Matt]

A very interesting change to government accounting. It empowers the department heads which eliminates micro-managing techniques with normal line-item budgeting. This will be a challenging sell to many council members but with the proper presentation, I think it's very possible. Fast read and interesting for a budging book.

[Esmé]

Quietly & surprisingly fascinating (read for class!)

[Du]

Written in a very clear and no nonsense fashion. Easy concept to understand, not sure it is an easy concept to implement. It has some flaws that exist if you are in a snow area or tax cap based municipal budget community. All the same, it is a good concept.