CHAPTER V

NEED FOR THE ADOPTION OF A "WORK-PROGRAM," WITH A SYSTEM OF ALLOTMENTS AS A MEANS

OF EXECUTIVE CONTROL

The one thing which is most conspicuously lacking in the management of public affairs is the element of planning. The budget has been spoken of as an instrument of legislative control. The control of expenditures which may be exercised by the legislature to advantage through a budget is limited to questions of authority to be given to spending officers-that is to say, the legislature, as such, does not spend money; it gives authority to others to spend. This is a principle of modern constitutional law which is usually stated in some such language as: "No public money shall be expended except pursuant to act of appropriation."

The control which may be exercised in acts of appropriation, or authorizations to spend, may be made effective in two ways, viz.:

1. By fixing a limit on the amount which is available to each
spending officer.
2. By prescribing (a) the kinds of services and things which
may be bought, (b) the conditions governing contracts
and purchases, and (c) the uses which may be made of
the services and things acquired.

The itemization of the act of appropriation giving what services and things may be bought has already been discussed (pp. 33 to 39). The conditions which it is thought should be attached to govern contracts and purchases are discussed on pages 39 to 46 inclusive. It remains by way of further comment to point out the kind of conditions which may be attached to the uses that may be made of the services and things purchased by spending officers, without in any manner depriving the corporation of the managing abilities of its executives.

Method of Adoption of a Work-Program

The fifth constructive recommendation submitted for the consideration of the budget committee of the board of estimate and apportionment is that a definite "work-program" be prepared by the board of estimate and apportionment as a part of the budget submitted to the board of aldermen and published for the information of citizens. This "work-program" would be attached to the ordinance of appropriation and made the basis for the administration of a resolution preexercising current control over the efficiency and economy of management. (See form "work-program," page 94, and form of resolution, page 91, paragraph 3.)

Method of Making Changes in Work-Program

The method proposed for making changes in "work-program " would be prescribed by resolution as one of the conditions attached by the board of estimate and apportionment acting under section 226 of the charter. This would in effect be the same as that now used for making "transfers" from one item of appropriation to another. It would be done by the board of estimate and apportionment acting in the capacity of an executive committee. The effect of such a change, however, would be quite different than under the present form of act of appropriation. To make this quite clear let us illustrate. The first item of appropriation to the department of health for 1914 is as follows:*

Tax Levy Force......

237,360 00

All of the items of appropriation as proposed are shown on pages 9697. By setting up the various classes of things which may be purchased under titles which show kinds of work or functions," it is to be observed that the board takes away from the executive all discretion as to how he will use his men and how he will use his materials, supplies, and equipment. It is also to be observed that there is no possibility of making changes in "work-program " without making transfers of funds for purchase of "personal service," "supplies," etc. It is further to be observed that by the act of 1914 in only a few departments is the "workprogram" expressed except as it is brought out in the itemization of "personal services."

By the proposed method a full and well considered "work-program " would be submitted to the board of aldermen and published for the information of citizens as a reason for asking for authority to spending officers to purchase personal services and material things. The workprogram would be prepared after careful consideration of the plan or program of "public service" to be rendered and of "improvements" to be made to carry out a predetermined or modified policy. This full workprogram may be brought before the board of estimate and apportionment at any time to be reconsidered or amended on its merits without being confused with the problem of work-management. Questions of the advantage or disadvantage of making change in the work to be done and the relative cost of the changes proposed may be considered without deciding just where each person will work, and each kind of thing will be used. If, upon consideration of this kind, it is found that the change in workplan can be made without change in personnel and materials available, then no "transfers" in funds need be made. If it is found that it is desirable to have more funds for "equipment" and less for " supplies" or personal services," transfer may be made either with or without change in work-program. But at all times the authorization to contract and purchase will be kept free and distinct from the "work-program," and the manager will be responsible for using his personnel and things purchased with greatest economy and efficiency. What is quite as much to the advantage of the city, it would relieve the board of estimate and apportionment, as the central planning board of the city, from much of the harassing and time-consuming details of making transfers in the personal service" schedules, without which, under the present form of appropriation the departments could not operate at all except at enormous sacrifice of public resources.

Method of Exercising Current Control Over Efficiency and Economy

of Management

The method of exercising control over work to be done and changes in work-program has been discussed. It remains to consider the methods or technique whereby the management may be held responsible for efficiency and economy in the execution of plans; and especially what would be the conditions attached to funds by the board to conserve this end. The method which is thought to be best adapted to the purpose is what is known as a system of executive allotments. The part of the suggested resolutions of the board dealing with this subject provides for:

1. Quarterly or other periodical allotments of the several gross items carried in the work-program," as a means of forcing frequent reconsideration and review of results. (See page 98.)

as a basis for current administrative consideration of efficiency, management, and economy of work, and for further estimates and approvals. (See page 99.)

3. Independent inspection and audit of the cost accounts and

work reports. (See page 100.)

4. Current compilation of cost data and purchase data as a means of enforcing accountability and as a basis for budgetmaking. (See page 100.)

Periodical Executive Allotments

The "work-program” would be a plan for general guidance. Through this perspective would be given and decision would be reached as to how much the city would spend for each class of work, i. e., how much for education," how much for "health" and for each of the other major functions or activities which are to be made the subject of separate executive responsibility. This being done, the "plans and specifications necessary to control the several work processes would be a matter of executive determination. For example, the work-program" might carry an amount for the operation and maintenance of a vaccine laboratory or of a repair shop. As a means of establishing control over the efficiency and economy of management, however, it would be desirable to decide what work units or processes would be used as a standard for judgment of efficiency and economy and then to have estimates prepared on the basis of these work units or processes for executive approval. This being done, the allotments would also serve as a classification of cost accounts and reports, to keep subordinates within authorizations, and to test their efficiency. The "allotment" would be the means whereby the executive would keep his activities within his financial authorizations; it would also be the means of protecting his responsibility for the acts and efficiency of subordinates. But what is quite as important, the board would have a direct means of independently determining the two factors of efficiency:

1. Efficiency of purchase.
2. Efficiency of work.

The Means Suggested Not New

The suggestion is not new. It is found in successful operation in many places, in city, state, and federal governments, and in private corporate agencies. In some instances it is an executive requirement-one imposed by the manager himself for his own convenience and protection. It is a method established by the executive himself as a means whereby