Implementing a Public Services Cost System in São Paulo (Brazil)
Posted by Mario Pessoa and Gerardo Uña[1]
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The Government of the State of São Paulo, Brazil, is implementing a sophisticated new public services costs system (PSCS). The system aims to improve the efficiency of public services, strengthen budget realism, generate savings, and increase the transparency of public spending. The PSCS seeks to influence both the macro level of budget management, and decisions at the micro level, i.e., in relation to the final services provided to citizens by each cost center. For example, in the case of the State Secretariat of Education (SSE), PSCS would calculate the costs associated with the provision of basic education per pupil at the level of each of the 5,500 schools, each of which is a center cost. In the case of the Secretary of Penitentiary Administration, cost reports for each of the 166 state penitentiaries are routinely produced by PSCS already.
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