HomeMy WebLinkAboutREP FC 454 07/18/1984 1980-1984 411 REPORT OF THE 111
COMMITTEE ON FINANCE
Date: July 18, 1984. Re: Comm. 1652
' Place: Councilroom
Time: 9:00 a.m.
Chairman -and Members
Hawaii County Council •
Hilo, Hawaii.
Your Committee on Finance, to which was referred Resolution 946-84,
reports as follows :
The purpose of Resolution 946-84 is to request that the
Administration explore and report to the Council on the possible -
development and implementation of zero-base budgeting for 1985-86.
Zero base budgeting is defined as an operating, planning and
budgeting process which requires each manager to justify his entire
budget request in detail. The burden of proof shifts to each manager
to justify why he should spend any money. Zero base budgeting
differs significantly from incremental budgeting. Zero base
budgeting begins from a base of zero. All programs compete equally
for available funds. Incremental budgeting begins with the prior
period ' s budget as its base. Decision making concentrates on
incremental changes in various sections of the budget.
Zero base budgeting is preferable to incremental budgeting because
the former assures that the effectiveness and merit of each program
is evaluated. This evaluation process serves as the means for
establishing program priorities and facilitates long-term planning.
Your Committee on Finance concurs with the intent of
Resolution 946-84 and recommends its approval .
(ABSENT & EXCUSED) n, 41111110
TOMIO FUJII, CHAIRMAN MERLP K. LAI, VICE C RWOMAN
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JAM . K. DAHLBERG, MEMBER ' FRANK DE LUZ III, MEMBER
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TAKASHI DOMINGO, •' •ER HELENE H. HALE, MEMBER
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W LLI S. KAWAHARA, MEMBER SP ICER K. SCHUTTE, MEMBER
LA/CRB
FC REPORT No. 454
ADOPTED: 'JUL 2 6 1984
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