How Do We Measure Up?
Tax season is behind us, but we still face the ongoing fiscal shortfalls within the State of California. At Franchise Tax Board, we commit to excellence and efficiency in responsibly managing the $500 million budget entrusted to us by California taxpayers. Like all state agencies, we track our budget carefully to make sure we follow all laws, policies, and procedures. But more important than staying within budget, we are dedicated to use our resources in the most cost-effective manner possible. While we deliver services that Californians value and need to meet their tax obligations, we ensure that we collect revenues to fund government programs and services. To hold ourselves accountable to our mission, we developed a series of performance measures to report the:
- Number of taxpayers we served to help meet their tax obligation.
- Methods and service that we provided.
- Cost associated with our methods and service.
- Revenue achieved for California.
The following table defines five balancing measures we use to evaluate our overall performance and why they are important.
|Measure||Why is this important?|
|1. Number of “closed tax years” produced||A closed tax year is produced when an individual taxpayer has met his or her tax obligation. When this (unit) is produced, we know that the taxpayer has successfully met their tax obligation of filing, filing accurately, and paying the correct amount due.|
|2. Average number of days to produce a “closed tax year”||This provides the average length of time it took for us to help the taxpayer meet their tax obligation.|
|3. Average cost to produce a “closed tax year”||This calculates the average cost per unit produced.|
|4. Percent of taxpayers meeting their obligation of filing, filing accurately, and paying the correct amount due||This measure tells us how successful we are at helping the maximum number of taxpayers meet their tax obligation|
|5. Percent of dollars collected to dollars available to collect||This measure tells us how effective we are at collecting the right amount of tax.|
So, how are we doing? In calendar year 2010 (inclusive of the 2005 – 2009 tax years):
- Measure #1 – We produced 16.2 million closed tax years.
- Measure #2 – The average production rate (number of days to close) was 34.19 days per tax year.
- Taxpayers who filed timely, accurately, and paid the correct amount – Average of 7.34 days per tax year closed.
- Taxpayers who filed late, or were incorrect, or did not pay the correct amount – Average of 186.44 days per tax year closed.
- Measure #3– The average cost per tax year closed was $18.78.
- Measure #4– A total of 94.21 percent of taxpayers met their obligation to file, file accurately, and pay the correct amount due.
- Measure #5 - We collected 97.81 percent of the total dollars available to collect.
For measures 2 and 3 (time and cost), our goal is to reduce the number through more efficient processes and better services. Measures 4 and 5 shows our effectiveness at collecting the right amount of tax – the higher the number, the better.