HB 125: "An Act relating to budget planning and a long-range fiscal plan for the State of Alaska."
00 HOUSE BILL NO. 125 01 "An Act relating to budget planning and a long-range fiscal plan for the State of 02 Alaska." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 37.07.020(b) is amended to read: 05 (b) In addition to the budget and bills submitted under (a) of this section, the 06 governor shall submit a capital improvements program [AND FINANCIAL PLAN] 07 covering the succeeding six fiscal years, and a long-range fiscal plan covering 08 projected sources and uses of funds during the succeeding 10 fiscal years. The 09 long-range fiscal plan 10 (1) must include sufficient details to identify 11 (A) significant sources of funds; 12 (B) significant uses of funds, including projections of 13 (i) operating expenditures; 14 (ii) capital expenditures;
01 (iii) debt service expenditures; 02 (iv) fund capitalizations; 03 (v) appropriations of income of the Alaska 04 permanent fund (art. IX, sec. 15, Constitution of the State of 05 Alaska); 06 (2) must balance state expenditures and revenue while providing 07 for essential state services and protecting the economic stability of the state; 08 (3) must include projected balances of significant funds in separate 09 accounts, including the budget reserve fund (art. IX, sec. 17, Constitution of the 10 State of Alaska), the public education fund (AS 14.17.300), and the Alaska capital 11 income fund (AS 37.05.565); 12 (4) may provide recommendations to 13 (A) encourage economic growth and stability, maintain a 14 high quality of life, develop the state's natural resources, educate the 15 children of the state, and maintain public health, safety, and welfare; 16 (B) provide services as efficiently as practicable and reduce 17 state expenditures where possible; 18 (C) establish policies that protect the principal of the 19 Alaska permanent fund over time while using the income of the fund to 20 (i) offset the effect of inflation on the principal of the 21 fund; 22 (ii) maintain a strong permanent fund dividend 23 program; 24 (iii) retain the legislature's flexibility to determine 25 the appropriate use of the remaining income of the fund; 26 (D) raise revenue for the operation of state government 27 while maintaining a stable tax environment; and 28 (E) provide adequate reserve funds to mitigate the 29 consequences of market price volatility on state revenue from resources. 30 * Sec. 2. AS 37.07.020(c) is amended to read: 31 (c) Proposed expenditures may not exceed estimated revenue for the
01 succeeding fiscal year. The expenditures proposed in the six-year capital 02 improvements program and the long-range fiscal [FINANCIAL] plan may not exceed 03 the estimated revenue and bond authorizations passed and proposed. 04 * Sec. 3. AS 37.07.040 is amended to read: 05 Sec. 37.07.040. Office of management and budget. The Alaska office of 06 management and budget shall 07 (1) prepare for submission to the governor an annually updated 08 10-year long-range fiscal plan and assist the governor in the preparation and 09 explanation of the [PROPOSED COMPREHENSIVE PROGRAM AND 10 FINANCIAL] plan, including the coordination and analysis of state agency goals and 11 objectives, plans, and budget requests; 12 (2) prepare for submission to the governor an annually updated six- 13 year capital improvements program and the proposed capital improvements budget for 14 the coming fiscal year, the latter to include individual project justification with 15 documentation of estimated project cost; 16 (3) develop procedures to produce the information needed for effective 17 policy decision making, including procedures to provide for the dissemination of 18 information about plans, programs, and budget requests to be included in the annual 19 budget and opportunity for public review and comment during the period of budget 20 preparation; 21 (4) assist state agencies in their statement of goals and objectives to 22 achieve, among other things, the legislature's mission and desired results, preparation 23 of plans, assessments of the extent to which missions and desired results have been 24 achieved, budget requests, and reporting of program performance; all documents 25 forwarded by the office to a state agency containing instructions for the preparation of 26 program plans and budget requests and the reporting of program performance are 27 public information after the date they are forwarded; 28 (5) administer its responsibilities under the program execution 29 provisions of this chapter so that the policy decisions and budget determinations of the 30 governor and the legislature are implemented; 31 (6) provide the legislative finance division with the budget information
01 it may request; 02 (7) provide the legislative finance division with an advance copy of the 03 governor's budget workbooks by the first Monday in January of each year, except that 04 following a gubernatorial election year the advance copy shall be provided by the 05 second Monday in January; 06 (8) prepare the proposed capital improvements budget for the coming 07 fiscal year evaluating both state and local requests from the standpoint of need, equity, 08 and priorities of the jurisdiction; other factors such as project amounts, population, 09 local financial match, federal funds being used for local match, municipality or 10 unincorporated community acceptance of the facility, and all associated costs of the 11 facility may be considered; 12 (9) for each department in the executive branch, report to the 13 legislature by the 45th day of each regular session the amount of money appropriated 14 to the department that is expected to lapse into the general fund at the end of the 15 current fiscal year; 16 (10) establish and administer a state agency program performance 17 management system involving planning, performance budgeting, performance 18 measurement, and program evaluation; the office shall ensure that information 19 generated under this system is useful for managing and improving the efficiency and 20 effectiveness of agency operations. 21 * Sec. 4. AS 37.07.060 is amended to read: 22 Sec. 37.07.060. Governor's recommendation. (a) The governor shall 23 formulate the operating and capital budget, capital improvements program, 24 [PROGRAMS] and long-range fiscal plan [FINANCIAL PLANS] required to be 25 recommended to the legislature by AS 37.07.020 after considering the state agency 26 proposed program and financial plans, and other programs and alternatives that the 27 governor considers appropriate. The plans must include the governor's recommended 28 missions and results, recommended strategies to implement the missions and results, 29 recommended measures for determining whether the missions and desired results are 30 achieved, including an assessment of whether prior year missions and desired results 31 have been achieved, recommended operating program for the succeeding fiscal year,
01 recommended capital improvements program for the succeeding six fiscal years, 02 recommended programs for the upgrading of public buildings and facilities prepared 03 in accordance with AS 35.10.015, and recommended revenue measures to support the 04 programs. 05 (b) The governor shall present the proposed comprehensive operating and 06 capital improvements programs and long-range fiscal plan [FINANCIAL PLANS] in 07 a message to a joint session of the legislature before the fourth legislative day 08 following the convening of the legislature in regular session. The message must be 09 accompanied by an explanatory report that summarizes recommended goals, plans, 10 and appropriations. The report must contain 11 (1) the coordinated program goals and objectives that [WHICH] the 12 governor recommends to guide the decisions on the proposed program plans and 13 budget appropriations; 14 (2) the governor's operating program and budget recommendations for 15 the succeeding fiscal year organized by agency as required by AS 37.07.020(a); 16 (3) the governor's capital improvements program and budget 17 recommendations for the succeeding fiscal year and capital improvements program for 18 the succeeding six fiscal years, which must include 19 (A) a description of each project, its estimated cost for the year 20 construction is to start and the estimated cost of the project adjusted for 21 inflation over the estimated period of construction, and the source of financing 22 for the project; the project description for a new building or a new facility or 23 for a major addition to a building or facility scheduled for the first three 24 years of the plan should include a site plan, preliminary drawings, and 25 architect's or engineer's total cost estimate for the project; 26 (B) a summary of projects previously authorized and not yet 27 completed; 28 (C) a summary, listed by agency, of all previously proposed 29 projects that have been deferred beyond the six years covered by the plan and 30 the year in which construction has been rescheduled to begin; 31 (D) a forecast of the debt structure of the state and the various
01 debt ratios over the life of the state's bonds outstanding, bonds authorized and 02 to be issued, and bond authorizations recommended in the plan; 03 (E) a description of additional revenue measures needed to 04 finance the plan in lieu of debt; 05 (F) bond election bills to authorize the bonds required to fund 06 the projects scheduled for the first three years of the plan; 07 (G) projections of population of the state and its regions and 08 communities; 09 (H) economic data and projections necessary for the evaluation 10 of the plan; 11 (4) a summary of state receipts in the last fiscal year, a revised estimate 12 for the current fiscal year, and an estimate for the succeeding fiscal year; 13 (5) a summary of expenditures during the last fiscal year, those 14 authorized for the current fiscal year, and an estimate for the succeeding fiscal year; 15 (6) any additional information that will facilitate understanding of the 16 governor's proposed programs and financial plans by the legislature and the public. 17 * Sec. 5. AS 37.14.003(a) is amended to read: 18 (a) The governor shall, at the time the governor submits the proposed 19 [COMPREHENSIVE OPERATING AND] capital improvements program and long- 20 range fiscal [FINANCIAL] plan under AS 37.07.060(b), submit to the legislature a 21 separate appropriation bill limited to appropriations for the state's integrated 22 comprehensive mental health program.