CSHB 125(W&M): "An Act relating to budget planning and a fiscal plan for the State of Alaska."
00 CS FOR HOUSE BILL NO. 125(W&M) 01 "An Act relating to budget planning and a fiscal plan for the State of Alaska." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 37.07.020(b) is amended to read: 04 (b) In addition to the budget and bills submitted under (a) of this section, the 05 governor shall submit a capital improvements program [AND FINANCIAL PLAN] 06 covering the succeeding six fiscal years. Except during the first year of the 07 governor's first term of office, the governor shall also submit a fiscal plan with 08 estimates of significant sources and uses of funds for the succeeding 10 fiscal 09 years. The fiscal plan 10 (1) must include sufficient details to identify 11 (A) significant sources of funds; 12 (B) significant uses of funds, including lump sum 13 projections of 14 (i) operating expenditures; 15 (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), if any; 06 (2) must balance sources and uses of funds held while providing 07 for essential state services and protecting the economic stability of the state; 08 (3) must include projected balances of significant funds held in 09 separate accounts, including the budget reserve fund (art. IX, sec. 17, 10 Constitution of the State of Alaska), the public education fund (AS 14.17.300), 11 and the Alaska capital income fund (AS 37.05.565); 12 (4) may, at the discretion of the governor, also include 13 recommendations to 14 (A) encourage economic growth and stability, maintain a 15 high quality of life, develop the state's natural resources, educate the 16 children of the state, and maintain public health, safety, and welfare; 17 (B) provide services as efficiently as practicable and reduce 18 state expenditures where possible; 19 (C) establish policies that protect the principal of the 20 Alaska permanent fund over time while using the income of the fund to 21 (i) offset the effect of inflation on the principal of the 22 fund; 23 (ii) maintain a strong permanent fund dividend 24 program; 25 (iii) retain the legislature's flexibility to determine 26 the appropriate use of the remaining income of the fund; 27 (D) raise revenue for the operation of state government 28 while maintaining a stable tax environment; and 29 (E) provide adequate reserve funds to mitigate the 30 consequences of market price volatility on state revenue from resources; 31 (5) may include a list of reports, plans, and other materials relied
01 on in the preparation of the fiscal plan, together with a brief description of the 02 relevance of the materials and how to obtain paper or electronic copies of the 03 material. 04 * Sec. 2. AS 37.07.020(c) is amended to read: 05 (c) Proposed expenditures may not exceed estimated revenue for the 06 succeeding fiscal year. The expenditures proposed in the six-year capital 07 improvements program [AND FINANCIAL PLAN] may not exceed the estimated 08 revenue and bond authorizations passed and proposed. 09 * Sec. 3. AS 37.07.040 is amended to read: 10 Sec. 37.07.040. Office of management and budget. The Alaska office of 11 management and budget shall 12 (1) except during the first year of the governor's first term of 13 office, prepare for submission to the governor an annually updated 10-year fiscal 14 plan and assist the governor in the preparation and explanation of the [PROPOSED 15 COMPREHENSIVE PROGRAM AND FINANCIAL] plan, including the 16 coordination and analysis of state agency goals and objectives, plans, and budget 17 requests; 18 (2) prepare for submission to the governor an annually updated six- 19 year capital improvements program and the proposed capital improvements budget for 20 the coming fiscal year, the latter to include individual project justification with 21 documentation of estimated project cost; 22 (3) develop procedures to produce the information needed for effective 23 policy decision making, including procedures to provide for the dissemination of 24 information about plans, programs, and budget requests to be included in the annual 25 budget and opportunity for public review and comment during the period of budget 26 preparation; 27 (4) assist state agencies in their statement of goals and objectives to 28 achieve, among other things, the legislature's mission and desired results, preparation 29 of plans, assessments of the extent to which missions and desired results have been 30 achieved, budget requests, and reporting of program performance; all documents 31 forwarded by the office to a state agency containing instructions for the preparation of
01 program plans and budget requests and the reporting of program performance are 02 public information after the date they are forwarded; 03 (5) administer its responsibilities under the program execution 04 provisions of this chapter so that the policy decisions and budget determinations of the 05 governor and the legislature are implemented; 06 (6) provide the legislative finance division with the budget information 07 it may request; 08 (7) provide the legislative finance division with an advance copy of the 09 governor's budget workbooks by the first Monday in January of each year, except that 10 following a gubernatorial election year the advance copy shall be provided by the 11 second Monday in January; 12 (8) prepare the proposed capital improvements budget for the coming 13 fiscal year evaluating both state and local requests from the standpoint of need, equity, 14 and priorities of the jurisdiction; other factors such as project amounts, population, 15 local financial match, federal funds being used for local match, municipality or 16 unincorporated community acceptance of the facility, and all associated costs of the 17 facility may be considered; 18 (9) for each department in the executive branch, report to the 19 legislature by the 45th day of each regular session the amount of money appropriated 20 to the department that is expected to lapse into the general fund at the end of the 21 current fiscal year; 22 (10) establish and administer a state agency program performance 23 management system involving planning, performance budgeting, performance 24 measurement, and program evaluation; the office shall ensure that information 25 generated under this system is useful for managing and improving the efficiency and 26 effectiveness of agency operations. 27 * Sec. 4. AS 37.07.060 is amended to read: 28 Sec. 37.07.060. Governor's recommendation. (a) The governor shall 29 formulate the operating and capital budget, capital improvements program, 30 [PROGRAMS] and fiscal plan [FINANCIAL PLANS] required to be recommended 31 to the legislature by AS 37.07.020 after considering the state agency proposed
01 program and financial plans, and other programs and alternatives that the governor 02 considers appropriate. The plans must include the governor's recommended missions 03 and results, recommended strategies to implement the missions and results, 04 recommended measures for determining whether the missions and desired results are 05 achieved, including an assessment of whether prior year missions and desired results 06 have been achieved, recommended operating program for the succeeding fiscal year, 07 recommended capital improvements program for the succeeding six fiscal years, 08 recommended programs for the upgrading of public buildings and facilities prepared 09 in accordance with AS 35.10.015, and recommended revenue measures to support the 10 programs. 11 (b) The governor shall present the proposed comprehensive operating and 12 capital improvements programs, and fiscal plan if it is required under 13 AS 37.07.020(b), [FINANCIAL PLANS] in a message to a joint session of the 14 legislature before the fourth legislative day following the convening of the legislature 15 in regular session. The message must be accompanied by an explanatory report that 16 summarizes recommended goals, plans, and appropriations. The report must contain 17 (1) the coordinated program goals and objectives that [WHICH] the 18 governor recommends to guide the decisions on the proposed program plans and 19 budget appropriations; 20 (2) the governor's operating program and budget recommendations for 21 the succeeding fiscal year organized by agency as required by AS 37.07.020(a); 22 (3) the governor's capital improvements program and budget 23 recommendations for the succeeding fiscal year and capital improvements program for 24 the succeeding six fiscal years, which must include 25 (A) a description of each project, its estimated cost for the year 26 construction is to start and the estimated cost of the project adjusted for 27 inflation over the estimated period of construction, and the source of financing 28 for the project; the project description for a new building or a new facility or 29 for a major addition to a building or facility scheduled for the first three 30 years of the plan should include a site plan, preliminary drawings, and 31 architect's or engineer's total cost estimate for the project;
01 (B) a summary of projects previously authorized and not yet 02 completed; 03 (C) a summary, listed by agency, of all previously proposed 04 projects that have been deferred beyond the six years covered by the plan and 05 the year in which construction has been rescheduled to begin; 06 (D) a forecast of the debt structure of the state and the various 07 debt ratios over the life of the state's bonds outstanding, bonds authorized and 08 to be issued, and bond authorizations recommended in the plan; 09 (E) a description of additional revenue measures needed to 10 finance the plan in lieu of debt; 11 (F) bond election bills to authorize the bonds required to fund 12 the projects scheduled for the first three years of the plan; 13 (G) projections of population of the state and its regions and 14 communities; 15 (H) economic data and projections necessary for the evaluation 16 of the plan; 17 (4) a summary of state receipts in the last fiscal year, a revised estimate 18 for the current fiscal year, and an estimate for the succeeding fiscal year; 19 (5) a summary of expenditures during the last fiscal year, those 20 authorized for the current fiscal year, and an estimate for the succeeding fiscal year; 21 (6) any additional information that will facilitate understanding of the 22 governor's proposed programs and financial plans by the legislature and the public. 23 * Sec. 5. AS 37.07.070 is amended to read: 24 Sec. 37.07.070. Legislative review. The legislature shall consider the 25 governor's proposed comprehensive operating and capital improvements programs, 26 and fiscal plan if it is required under AS 37.07.020(b) [FINANCIAL PLANS], 27 evaluate alternatives to the plans, make program selections among the various 28 alternatives, and determine, subject to available revenues, the level of funding required 29 to support authorized state services. The presiding officer of each house may refer 30 the fiscal plan to one or more committees. If the fiscal plan is referred, the first 31 committee of referral shall hold at least one hearing on it. The operating and
01 capital budgets of each agency shall be separately reviewed. During each regular 02 session of the legislature, legislative review of the governor's supplemental 03 appropriation bills and the governor's budget amendments are [SHALL BE] governed 04 by the following time limits: 05 (1) requests by the governor for supplemental appropriations for state 06 agency operating and capital budgets for the current fiscal year may be introduced by 07 the rules committee only through the 30th legislative day; 08 (2) requests by the governor for budget amendments to state agency 09 budgets for the budget fiscal year may be received and reviewed by the finance 10 committees only through the 45th legislative day. 11 * Sec. 6. AS 37.14.003(a) is amended to read: 12 (a) The governor shall, at the time the governor presents under 13 AS 37.07.060(b) [SUBMITS] the proposed [COMPREHENSIVE OPERATING 14 AND] capital improvements program, and fiscal [FINANCIAL] plan if it is required 15 [UNDER AS 37.07.060(b)], submit to the legislature a separate appropriation bill 16 limited to appropriations for the state's integrated comprehensive mental health 17 program.