Enrolled HB 125: Relating to budget planning and a fiscal plan for the State of Alaska.
00Enrolled HB 125 01 Relating to budget planning and a fiscal plan for the State of Alaska. 02 _______________ 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. The governor shall also submit a fiscal 07 plan with estimates of significant sources and uses of funds for the succeeding 10 08 fiscal years. The fiscal plan 09 (1) must include sufficient details to identify 10 (A) significant sources of funds; 11 (B) significant uses of funds, including lump sum 12 projections of 13 (i) operating expenditures; 14 (ii) capital expenditures; 15 (iii) debt service expenditures;
01 (iv) fund capitalizations; 02 (v) appropriations of income of the Alaska 03 permanent fund (art. IX, sec. 15, Constitution of the State of 04 Alaska), if any; 05 (2) must balance sources and uses of funds held while providing 06 for essential state services and protecting the economic stability of the state; 07 (3) must include projected balances of significant funds held in 08 separate accounts, including the budget reserve fund (art. IX, sec. 17, 09 Constitution of the State of Alaska), the public education fund (AS 14.17.300), 10 and the Alaska capital income fund (AS 37.05.565); 11 (4) must set out significant assumptions used in the projections 12 with sufficient detail to enable the legislature to rely on the fiscal plan in 13 understanding, evaluating, and resolving issues of state budgeting, including 14 information that supports major areas of operating increases, such as population 15 demographics that affect the need for particular government services. 16 * Sec. 2. AS 37.07.020(c) is amended to read: 17 (c) Proposed expenditures may not exceed estimated revenue for the 18 succeeding fiscal year. The expenditures proposed in the six-year capital 19 improvements program [AND FINANCIAL PLAN] may not exceed the estimated 20 revenue and bond authorizations passed and proposed. 21 * Sec. 3. AS 37.07.040 is amended to read: 22 Sec. 37.07.040. Office of management and budget. The Alaska office of 23 management and budget shall 24 (1) assist the governor in meeting the requirements of AS 37.07.020 25 [THE PREPARATION AND EXPLANATION OF THE PROPOSED 26 COMPREHENSIVE PROGRAM AND FINANCIAL PLAN], including the 27 coordination and analysis of state agency goals and objectives, plans, and budget 28 requests; 29 (2) prepare for submission to the governor an annually updated six- 30 year capital improvements program and the proposed capital improvements budget for 31 the coming fiscal year, the latter to include individual project justification with
01 documentation of estimated project cost; 02 (3) develop procedures to produce the information needed for effective 03 policy decision making, including procedures to provide for the dissemination of 04 information about plans, programs, and budget requests to be included in the annual 05 budget and opportunity for public review and comment during the period of budget 06 preparation; 07 (4) assist state agencies in their statement of goals and objectives to 08 achieve, among other things, the legislature's mission and desired results, preparation 09 of plans, assessments of the extent to which missions and desired results have been 10 achieved, budget requests, and reporting of program performance; all documents 11 forwarded by the office to a state agency containing instructions for the preparation of 12 program plans and budget requests and the reporting of program performance are 13 public information after the date they are forwarded; 14 (5) administer its responsibilities under the program execution 15 provisions of this chapter so that the policy decisions and budget determinations of the 16 governor and the legislature are implemented; 17 (6) provide the legislative finance division with the budget information 18 it may request; 19 (7) provide the legislative finance division with an advance copy of the 20 governor's budget workbooks at least seven days before the legislature convenes in a 21 regular session; 22 (8) prepare the proposed capital improvements budget for the coming 23 fiscal year evaluating both state and local requests from the standpoint of need, equity, 24 and priorities of the jurisdiction; other factors such as project amounts, population, 25 local financial match, federal funds being used for local match, municipality or 26 unincorporated community acceptance of the facility, and all associated costs of the 27 facility may be considered; 28 (9) for each department in the executive branch, report to the 29 legislature by the 45th day of each regular session the amount of money appropriated 30 to the department that is expected to lapse into the general fund at the end of the 31 current fiscal year;
01 (10) establish and administer a state agency program performance 02 management system involving planning, performance budgeting, performance 03 measurement, and program evaluation; the office shall ensure that information 04 generated under this system is useful for managing and improving the efficiency and 05 effectiveness of agency operations. 06 * Sec. 4. AS 37.07 is amended by adding a new section to read: 07 Sec. 37.07.045. Debt affordability analysis. The Department of Revenue shall 08 prepare a report that includes an inventory of state bonded debt, an estimate of state 09 bonded debt that will be acquired within the next three years, and an evaluation of 10 debt affordability. The report must conform to rating agency requirements for a debt 11 affordability study. By January 31 each year, the report must be provided to the 12 legislature for use in budget planning and made available to the public. 13 * Sec. 5. AS 37.07.060 is amended to read: 14 Sec. 37.07.060. Governor's recommendation. (a) The governor shall 15 formulate the operating and capital budget, capital improvements program, 16 [PROGRAMS] and fiscal plan [FINANCIAL PLANS] required to be recommended 17 to the legislature by AS 37.07.020 after considering the state agency proposed 18 program and financial plans prepared in accordance with AS 37.07.050, and other 19 programs and alternatives that the governor considers appropriate. The plans must 20 include the governor's recommended missions and results, recommended strategies to 21 implement the missions and results, recommended measures for determining whether 22 the missions and desired results are achieved, including an assessment of whether 23 prior year missions and desired results have been achieved, recommended operating 24 program for the succeeding fiscal year, recommended capital improvements program 25 for the succeeding six fiscal years, recommended programs for the upgrading of public 26 buildings and facilities prepared in accordance with AS 35.10.015, and recommended 27 revenue measures to support the programs. 28 (b) The governor shall present the proposed comprehensive operating and 29 capital improvements programs, and fiscal plan if it is required under 30 AS 37.07.020(b), [FINANCIAL PLANS] in a message to a joint session of the 31 legislature before the fourth legislative day following the convening of the legislature
01 in regular session. The message must be accompanied by an explanatory report that 02 summarizes recommended goals, plans, and appropriations. The report must contain 03 (1) the coordinated program goals and objectives that [WHICH] the 04 governor recommends to guide the decisions on the proposed program plans and 05 budget appropriations; 06 (2) the governor's operating program and budget recommendations for 07 the succeeding fiscal year organized by agency as required by AS 37.07.020(a); 08 (3) the governor's capital improvements program and budget 09 recommendations for the succeeding fiscal year and capital improvements program for 10 the succeeding six fiscal years, which must include 11 (A) a description of each project, its estimated cost for the year 12 construction is to start and the estimated cost of the project adjusted for 13 inflation over the estimated period of construction, and the source of financing 14 for the project; the project description for a new building or a new facility or 15 for a major addition to a building or facility should include a site plan, 16 preliminary drawings, and architect's or engineer's total cost estimate for the 17 project; 18 (B) a summary of projects previously authorized and not yet 19 completed; 20 (C) a summary, listed by agency, of all previously proposed 21 projects that have been deferred beyond the six years covered by the plan and 22 the year in which construction has been rescheduled to begin; 23 (D) a forecast of the debt structure of the state and the various 24 debt ratios over the life of the state's bonds outstanding, bonds authorized and 25 to be issued, and bond authorizations recommended in the plan; 26 (E) a description of additional revenue measures needed to 27 finance the plan in lieu of debt; 28 (F) bond election bills to authorize the bonds required to fund 29 the projects scheduled for the first three years of the plan; 30 (G) projections of population of the state and its regions and 31 communities;
01 (H) economic data and projections necessary for the evaluation 02 of the plan; 03 (4) a summary of state receipts in the last fiscal year, a revised estimate 04 for the current fiscal year, and an estimate for the succeeding fiscal year; 05 (5) a summary of expenditures during the last fiscal year, those 06 authorized for the current fiscal year, and an estimate for the succeeding fiscal year; 07 (6) any additional information that will facilitate understanding of the 08 governor's proposed programs and financial plans by the legislature and the public. 09 * Sec. 6. AS 37.07.070 is amended to read: 10 Sec. 37.07.070. Legislative review. The legislature shall consider the 11 governor's proposed comprehensive operating and capital improvements programs, 12 and fiscal plan if it is required under AS 37.07.020(b) [FINANCIAL PLANS], 13 evaluate alternatives to the plans, make program selections among the various 14 alternatives, and determine, subject to available revenues, the level of funding required 15 to support authorized state services. The presiding officer of each house may refer 16 the fiscal plan to one or more committees. If the fiscal plan is referred, the first 17 committee of referral shall hold at least one hearing on it. The operating and 18 capital budgets of each agency shall be separately reviewed. During each regular 19 session of the legislature, legislative review of the governor's supplemental 20 appropriation bills and the governor's budget amendments are [SHALL BE] governed 21 by the following time limits: 22 (1) requests by the governor for supplemental appropriations for state 23 agency operating and capital budgets for the current fiscal year may be introduced by 24 the rules committee only through the 15th legislative day; 25 (2) requests by the governor for budget amendments to state agency 26 budgets for the budget fiscal year may be received and reviewed by the finance 27 committees only through the 30th legislative day. 28 * Sec. 7. AS 37.14.003(a) is amended to read: 29 (a) At [THE GOVERNOR SHALL, AT] the time the governor submits the 30 report [PROPOSED COMPREHENSIVE OPERATING AND CAPITAL 31 IMPROVEMENTS PROGRAM AND FINANCIAL PLAN] under AS 37.07.060(b),
01 the governor shall submit to the legislature a separate appropriation bill limited to 02 appropriations for the state's integrated comprehensive mental health program.