HB 450: "An Act relating to optional performance-based budgeting for agencies in the executive branch of state government."

00                             HOUSE BILL NO. 450                                                                          
01 "An Act relating to optional performance-based budgeting for agencies in the executive                                  
02 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 department may use the unexpended balance that it retains                                   
26       under AS 37.25.010(f) for employee training, employee productivity enhancements,                                  
27       acquisition of improved technology, and other employee-performance-related goods                                  
28       and services.                                                                                                     
29            (g)  A performance-based budget plan and performance measures adopted                                        
30       under this section are considered to be a mission statement and desired results issued                            
31       by the legislature for purposes of this chapter.                                                                  
01    * Sec. 2.  AS 37.25.010 is amended by adding a new subsection to read:                                             
02            (f)  For a departmental program that participated in performance-based                                       
03       budgeting under AS 37.07.018 for a fiscal year and that was determined to have met or                             
04       exceeded its performance measures under AS 37.07.018(e), notwithstanding (a) of this                              
05       section, one-half of the unexpended balance of the one-year appropriations authorized                             
06       for the program in the operating budget lapses on June 30 of the fiscal year following                            
07       the fiscal year for which it was initially appropriated and, during that following fiscal                         
08       year, may be expended for departmental purposes as the commissioner considers                                     
09       appropriate unless otherwise provided in the original appropriation.