It's called budgeting for outcomes:
Osborne offers a solution for fiscal discipline called Budgeting for Outcomes (BFO), which he claims would "build the budget in a way that delivers the results citizens want at a price they are willing to pay." It's a system that's been tried with varying degrees of success in Washington State (where it debuted with Governor Gary Locke), Iowa, Michigan, and over a dozen other cities, counties, and school districts...
The power of Budgeting for Outcomes, Osborne argues, is that it starts where other budgetary processes usually end: how much government will spend next year. BFO starts by deciding up front how much money will be spent in the next fiscal period. The rest of the process unfolds from that critical starting point- actually setting a budget.
What a fascinating idea! Read the whole article here.