Provide incentives for City employees to spend money efficiently by building in performance bonuses. Bonuses could be based on financial savings or potentially also on schedule efficiencies. Revenue generated by increased efficiency would be equally shared between: Employees of the department that generated the savings; Rollover for the Departmental budget that provided the savings, in addition to regular budget allocation; and the City general fund.
Advocates of smaller government are often critical of the efficiency that government agencies demonstrate and make comparisons with the private sector. While the comparison is not a fair one, as the agencies have different goals, it would be fantastic to alter the culture of government departments to include performance incentives, as they are notorious for lack of efficiency.
One thing that most government employees are painfully aware of is that any budget surplus results in deduction from the budget of the agency for the next fiscal year, so there is no incentive to save any money at all. We can cure this by offering performance incentives that not only appeal the the personal interest of the staff, but also would add proportionally to the budget of the agency for the next fiscal year, as well as provide additional resources for the City or County.
It is enormously important that funds allocated for public benefit be spent on the public. It is equally important that these funds be spent for the maximum benefit of the public. A policy of incentives for savings and efficiency could provide obvious short term benefits with the potential for enormous long term savings, positive shift in government employee culture, and development of resources that could be applied to maintaining deteriorating infrastructure or legacy projects for public benefit.
All performance incentives to staff would have to be union negotiated and approved, the goal being equal distribution throughout the department.