Wagner believes that his policy of allowing the department managers to participate in the budger process and then holding them accountable for their performance is essential, especially during these times of limited resources. He also believes that department managers will be positively motivated to increase the efficiency and effectiveness of their departments because they have provided input into the initial budgetary process and are required to justify any unfavorable performances.

A. Expalin the operational and behavioral benefits that generally are attributed to a participative budgeting process.

B. Identify deficiencies in Wagner's participative budgetary policy for palnning and perfromace evaluation purposes. For each deficiency identified, recommend how the deficiency can be corrected.

Dobbs ht the 100Lai (LO5) on for the state, recognizes the importance Anthony Wagner, the controller in the Division of Transportation for the state, re of the budgetary process for planning, control, and motivation purposes. He believe implemented participative budgeting process for planning purposes and a management b reporting procedure based on that budget will moi their particular departments. Based on this philosophy. Wagne procedures MA21-44. Behavioral Considerations and Budgeting es that a properl by exception dure based on that budget will motivate his subordinates to improve prodo r has implemented the foll subordinates to improve productivity within An appropriation target figure is given to each department manager. This amount is the funding that each department can expect to receive in the next fiscal year. Department managers develop their individual budgets within the following spending co as directed by the controller's staff I. Expenditure requests cannot exceed the appropriation target 2. All fixed expenditures should be included in the budget; these should include items he maximum ng constrants nstraints . include items such a contracts and salaries at current levels t in their All government projects directed by higher authority should be included in the budge entirety The controller consolidates the departmental budget requests from the various depa one budget that is to be submitted for the entire division Upon final budget approval by the legislature, the controller's staff allocates the ap to the various departments on instructions from the division manager. However, a specifi percentage of each department's appropriation is and special funding needs. The amount and use of this contingency fund are left to the discretion of the division manager Each department is allowed to adjust its budget when necessary to operate within the reduced appropriation level. However, as stated in the original directive, specific projects authorized lby higher authority must remain intact The final budget is used as the basis of control for a management by exception form of reporting. Excessive expenditures by account for each department are highlighted on a monthly basis. Department managers are expected to account for all expenditures over budget. Fisca the various departments into . allocates the appropr iation manager. However, a specified held back in anticipation of potential budget cuts . . responsibility is an important factor in the overall performance evaluation of department managers