00HOUSE BILL NO. 412                                                                                                    
01 "An Act relating to optional performance-based budgeting for agencies in the                                            
02 executive branch of state government."                                                                                  
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                               
04    * Section 1.  AS 37.07 is amended by adding a new section to read:                                                 
05  Sec. 37.07.018.  Optional performance-based budgeting.  (a)  A department                                           
06 may request to participate in performance-based budgeting under this section for the                                    
07 following fiscal year for some or all of the programs within the department.  A                                         
08 department that wishes to have some or all of its programs funded through                                               
09 performance-based budget plans shall notify the governor, no later than September 1,                                    
10 of the department's request.  The notification must include a performance-based                                         
11 program budget request and a list of programs and performance measures proposed for                                     
12 participation in the budget plans.  If legislation is needed to implement the proposed                                  
13 budget plans, the department shall include a request for the necessary changes.                                         
14  (b)  The governor shall review the department's budget plans and performance                                          

01 measures and may request the department to make changes to them.  The governor                                          
02 shall include those proposals that are approved in the appropriation bill authorizing the                               
03 operating expenditures for state government submitted to the legislature under                                          
04 AS 37.07.020(a).                                                                                                        
05  (c)  A plan submitted to the legislature under this section must include                                              
06 explanations and justification, expressed in terms of program-effectiveness measures,                                   
07 program-efficiency measures, workload, productivity adjustments, staffing standards,                                    
08 and other criteria needed to evaluate the delivery of governmental services.                                            
09  (d)  If the legislature adopts a performance-based budget plan for a department                                       
10 or departmental program, the legislature shall also adopt explanations and justification                                
11 to be used to measure the performance of the program or department at the end of the                                    
12 fiscal year.                                                                                                            
13  (e)  No later than August 15 of the fiscal year following participation in a                                          
14 performance-based budget plan, the department shall evaluate its performance for the                                    
15 previous fiscal year, based on the program measures adopted by the legislature under                                    
16 this section for that fiscal year and submit the evaluation to the governor for review.                                 
17 The governor may approve or disapprove the evaluation.  No later than September 15,                                     
18 the governor shall notify the legislature of the programs that met or exceeded their                                    
19 performance measures and of those that did not do so.  A program or department that                                     
20 participated in performance-based budgeting but that is not included in the governor's                                  
21 notification to the legislature is considered to have failed to meet its measures for that                              
22 fiscal year.                                                                                                            
23  (f)  Appropriations in the operating budget for the operating expenses of a                                           
24 program that met or exceeded its performance measures are subject to lapsing under                                      
25 AS 37.25.010(f).  The program may use the unexpended balance that it retains under                                      
26 AS 37.25.010(f) for employee training, employee productivity enhancements,                                              
27 acquisition of improved technology, and other employee-performance-related goods and                                    
28 services.                                                                                                               
29  (g)  A performance-based budget plan and performance measures adopted under                                           
30 this section are considered to be a mission statement and desired results issued by the                                 
31 legislature for purposes of this chapter.                                                                               

01    * Sec. 2.  AS 37.25.010(a) is amended to read:                                                                     
02  (a)  Except as provided in (f) of this section, the  [THE] unexpended balance                                       
03 of a one-year appropriation authorized in an appropriation bill lapses on June 30 of the                                
04 fiscal year for which appropriated.  However, a valid obligation (encumbrance) existing                                 
05 on June 30 is automatically reappropriated for the fiscal year beginning on the                                         
06 succeeding July 1 if it is recorded with the Department of Administration by                                            
07 August 31 of the succeeding fiscal year.                                                                                
08    * Sec. 3.  AS 37.25.010 is amended by adding a new subsection to read:                                             
09  (f)  For a departmental program that participated in performance-based                                                
10 budgeting under AS 37.07.018 for a fiscal year and that was determined to have met                                      
11 or exceeded its performance measures under AS 37.07.018(e), one-half of the                                             
12 unexpended balance of the one-year appropriations authorized for the program in the                                     
13 operating budget lapses on June 30 of the fiscal year following the fiscal year for                                     
14 which it was appropriated.