8. Investing in What Works through Budgeting

The Colorado Governor’s Office of State Planning & Budgeting (OSPB) has required evidence-related information in budget proposals since FY 2017-18. These requirements have changed over time to reflect improved practices and statutory requirements in S.B. 21-284 and the recently passed H.B. 24-1428. OSPB and legislative staff collaborated for more than a year to refine new statutory requirements embodied in H.B. 24-1428, with the help of experts from the University of Denver’s Colorado Evaluation and Action Lab.

The new statutory requirements include a revised process for state agencies to characterize the evidence related to budget proposals and encourage agencies to continually build evidence to better inform the decision making process. In addition to considering evidence in budget-related decisions, state agencies are instructed to evaluate requests through a lens of equity, diversity, and inclusion. Departments must identify all stakeholder groups who may be impacted and explain how, identify groups who may be disproportionately impacted and determine whether the request will have negative, positive, or mixed equity impacts.

The OPM Secretary and Executive Budget Officer include requirements to measure impact and program outcomes as part of the annual process for agencies to request budget changes. The guidance includes requests for ‘evidence or data that the expansion will be effective’ and documentation about a focus on ‘inclusion, outcomes and performance.’

The Illinois Budgeting for Results (BFR) Commission is the state’s performance-based budgeting initiative. The commission’s annual report summarizes the state’s performance improvement efforts across seven statewide results areas (p. 9): education, economic development, public safety, human services, healthcare, environment and culture, and government services. BFR, in partnership with the state legislature, effectively repealed Blighted Areas Redevelopment Act of 1947, an outdated, discriminatory mandate housing policy. According to BFR, “the repeal of this act seeks to redress historical injustices in the use of state eminent domain authorities to remove affordable housing in predominantly Black neighborhoods without commensurate affordable housing to replace the demolished dwellings.” The Commission also recommended updating program evaluation methods, integrating diversity, equity, and inclusion analysis into the unit’s work in 2022 among other evidence-building activities supported by the Commission.

The State of Maryland’s Office of Budget Analysis (OBA), organized under the Department of Budget and Management (DBM), worked with the Governor’s Office and Results for America to include definitions of “evidence-based” and “evidence-building” as part of this year’s budget development cycle and offered trainings for agency heads and fiscal staff on this new addition to the budget process.

In order to pilot this process as part of the FY 2026 budget cycle, DBM requested that entities submit evidence information for over the target enhancement requests. OBA has specified a field in the state’s enterprise budgeting system to capture this information, and submitted evidence will be incorporated into this year’s budget deliberations.

New Mexico’s Accountability in Government Act defines evidence-based, research based and promising programs. Beginning in 2023, the Legislature requires that agencies complete a budget expansion request form to expand funding for specific programs. This form includes questions regarding if the program has research behind it. The New Mexico Legislative Finance Committee publishes a post session review providing information on evidence-based items signed into law or vetoed. Budget guidelines provide additional information on consideration of evidence and outcome. New Mexico is a minority majority state, as well as a state with roughly half of its population on Medicaid, therefore, many of our state policies directly affect the needs of those who may experience unfavorable outcomes.

​​North Carolina’s FY23-25 budget instructions require agencies to justify requests for new and expanded programs and services. In their justifications, agencies indicate the level of existing evidence supporting the expected outcomes of the proposal, using OSBM’s evidence scale, and outline their plans for evaluating its implementation and effectiveness.

​OSBM’s evidence scale provides a common language for communicating the effectiveness of a program or policy and the degree of confidence in those conclusions.

​OSBM provides training to agency staff to develop strong proposals supported by evidence, and offers assistance for evaluation planning.

​The budget instructions also emphasize proposals that align with the Governor’s strategic priorities, including advancing equal opportunities and diversity. 

Ohio’s Fiscal Year 2026-2027 budget guidance requires agencies to provide detailed information on program effectiveness as part Results-Focused Budgeting. Agencies must submit logic models, output and outcome measures, and evidence for new or expanding programs. Results-focused information provided in the agency budget requests informs discussions that build the Governor’s executive budget proposal and the testimony before the legislature in support of the budget. Training was provided to facilitate adoption of Results-Focused Budgeting. OBM now requires quarterly reporting and development of results-focused dashboards for priority programs. These dashboards will track progress toward long-term goals and focus on demonstrating results and ROI.

A 2003 Oregon law provides a definition of evidence-based program as a program that “incorporates significant and relevant practices based on scientifically based research; and is cost effective” and states that the Oregon Department of Corrections, the Oregon Youth Authority, the Oregon Youth Development Division, and “the part of the Oregon Health Authority that deals with mental health and addiction issues” shall (1) spend at least 75% of state moneys that the agency receives for programs on evidence-based programs; (2) perform cost-benefit analyses; and (3) compile a biennial program inventory with results from funded programs.

Budget and Legislative Concepts Instructions for the 2023-25 budget incorporated a racial equity toolkit (Appendix B).

Since 1997, Rhode Island state law requires agencies to submit performance measure data and targets as part of the annual budget request process. The Performance Management Unit within the Office of Management and Budget collects this performance data and works with agencies to achieve performance goals. Agencies are required to report on program evidence and performance when submitting budget requests, utilizing a tiered evidence scale (proven effective, promising, and theory-based). 

Beginning in FY20-21, the Tennessee budget instructions aligned the governor’s priorities with agency strategic plans. The instructions also encourage agencies to invest in programs that are supported by research and evidence. The cost increase and base reduction support forms invite agencies to, within their budget requests, highlight their programs’ level of evidence based on the five evidence steps defined by the state’s Office of Evidence and Impact (OEI), as well as the most recent performance data.

OEI reviews each submission and provides the Budget Office and Governor’s Office with a summary report for use in the budget process. The summary report objectively presents the evidentiary information and any available data for each programmatic budget request to inform the governor’s decisions regarding those requests. Departments may choose to leverage this information in presentations to the legislature.

Since 2023, Tennessee has also implemented targets for the percentage of cost increase requests dedicated to evidence-based programs. These targets aim to strategically allocate funding towards initiatives that have been proven to improve outcomes for residents, thereby ensuring that public resources are invested in programs with a demonstrated impact.

Evidence of effectiveness is required through GOPB’s budget request forms, with requests having to outline the “evidence-basis” for the associated program.

A 2021 Utah law (updated in 2023) requires agencies to set at least one performance measure for passed and approved budget requests of more than $500,000. These performance measures were reported to the Governor’s Office of Planning and Budget (GOPB) and to the Office of the Legislative Fiscal Analyst (LFA) within 60 days following the passage of the law. Annually, agencies are required to report performance measures identified in the appropriations bills prior to October 1 to support preparation for the next budget cycle. A Performance Measurement Playbook guides agencies on measuring outcomes rather than outputs to track return on investment. All measures and their data can be found at performance.utah.gov and cobi.utah.gov.