Impacts
Budget simulations help demonstrate the effect line-item choices have on the bottom line. But the consequences of budget decisions don't stop at the finance office. Each item can reflect trade-offs between financial resources and other important priorities like equity, sustainability, and long-term financial outlook. Adding an impact to a budget simulation helps you show how changes to some budget items affect both this year's bottom line and that additional priority.
To add one or more impacts to your budget simulation, follow the steps below:
While editing a simulation, click the Impacts tab.
If you don't see it, contact us to get it enabled.
Create an Impact.
Click the "Create Impact" button.
Set the Impact Multipliers
Click the gear icon next to the impact you just created:
Then enter multipliers for any budget subcategories that should affect the impact. The subcategory's contribution to the impact total during the simulation will be the subcategory's current dollar amount times the multiplier. If you have a large dollar amount and you want small impact for a subcategory, then the multiplier should be a very small number. For example, if we think that switching to electric police cars will get us 4% of the way to our sustainability goal and the cost is $500,000, then we should set the multiplier to 0.000008.
If you want your impact total to start out at zero, then make sure that any subcategories with multipliers also start out at zero. You can use a scenario question to provide an option with a specific dollar amount. In the case above, the "Electric Police Car" subcategory has an initial value of zero and two multiple choice options: No ($0) and Yes ($500,000).
Try It Out
Now preview your budget simulation and adjust one of the categories with an impact multiplier:
When the electric car subcategory changes from zero to $500,000, the Sustainability impact total changes from zero to 4% because 500,000 x 0.000008 = 4
Conclusion
Adding an impact to your budget simulation is simple enough once you know how much each relevant subcategory should affect the total. But how should you decide those numbers? Sometimes it will be straightforward and objective, such as showing the impact to your reserve fund. But, many community priorities that your budget affects are difficult to quantify. Impacts like equity and environmental sustainability will only be estimates. Planning documents and community organizations are two potential resources to help you create these estimates.
Have ideas for ways this feature could be used or improved? Get in touch with us!