“A strategic process used to incorporate data and evidence and align strategic priorities and metrics with financial decisions and to shift funding and resources from ineffective programs and services, to those that are evidence-based and resident-focused.”
San José, California
2023 Gold Bloomberg Philanthropies What Works Cities Certification
All too often, local budgets run on autopilot, with allocations for longstanding programs defaulting to whatever was spent the previous year, with small adjustments up or down.
That’s not how it works in San José. The city of nearly 1 million anchoring Silicon Valley demonstrates a systematic approach to budgeting in a strategic and data-driven way. San José’s budget is aligned around high-level outcomes city leaders want to see, along with performance indicators tracking progress toward specific goals.
In recent years, San José has strengthened its budget process to ensure city resources are used effectively and fairly to meet community needs. City departments are now required to develop action plans detailing specific steps they’re taking to address disparities in services and outcomes, as well as performance measures to track progress. Those plans are supported by a structured budgeting process that helps department leaders assess how proposed investments will impact residents and citywide goals.
In response to budget direction, departments provide information on how their budgets embed inclusion through a welcoming framework. Additionally, City departments review whether any proposed additions or reductions to their services impact the most vulnerable and underserved communities. As part of the budget development process, departments receive guidance as an accompaniment to assist departments in evaluating how requests for core services or programs may affect different communities within the city. Departments are expected to use data disaggregated by factors such as race, ethnicity, gender and age to track how they are using budget dollars to close gaps in services and outcomes. It’s one way that San Jose ensures that its city budget is an accurate expression of local priorities and values.
San José City Government Resources:
- San José city budget
- San José City Council policy on City Values and Standards
- Guidance to departments on designing Action Plans
- San José Budgeting worksheet