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Mid-America Transportation Center

NDOR Policy Research Report: Risk-Based Budgeting Review and Recommendations

Final Report
click to download report


Researchers

  • Principal Investigator: Laurence Rilett (lrilett2@unl.edu 402-472-1992)
  • Project Status
    Complete
    Sponsors & Partners
  • Nebraska Department of Roads
  • Abstract
    This report summarizes our analysis of NDoR historic budget data with an eye toward making practical suggestions for managing budget risks. We first report on our analysis of the statistical properties of revenue and expenditure series, identifying the major sources of budget risk. Then, we suggest a budget risk management approach that employs Monte Carlo simulations using readily available software and illustrate the use of that approach for key NDoR expenditures. Finally, we provide additional recommendations for managing budget risk.
    Project Amount
    $ 55,694