CSSB 25(STA): "An Act relating to the state budget and to planning and reports regarding state finances and operations; and providing for an effective date."

00 CS FOR SENATE BILL NO. 25(STA) 01 "An Act relating to the state budget and to planning and reports regarding state 02 finances and operations; and providing for an effective date." 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 financial plan covering 08 the succeeding 15 fiscal years. 09 * Sec. 2. AS 37.07.020(c) is amended to read: 10 (c) Proposed expenditures may not exceed estimated revenue for the 11 succeeding fiscal year. The expenditures proposed in the six-year capital 12 improvements program and the 15-year long-range financial plan may not exceed the 13 estimated revenue and bond authorizations passed and proposed. 14 * Sec. 3. AS 37.07.040 is amended to read:

01 Sec. 37.07.040. Office of management and budget. The Alaska office of 02 management and budget shall 03 (1) assist the governor in the preparation and explanation of the 04 proposed comprehensive program and the 15-year long-range financial plan, 05 including the coordination and analysis of state agency goals and objectives, plans, 06 and budget requests; 07 (2) prepare for submission to the governor an annually updated six- 08 year capital improvements program and the proposed capital improvements budget for 09 the coming fiscal year, the latter to include individual project justification with 10 documentation of estimated project cost; 11 (3) develop procedures to produce the information needed for effective 12 policy decision making, including procedures to provide for the dissemination of 13 information about plans, programs, and budget requests to be included in the annual 14 budget and opportunity for public review and comment during the period of budget 15 preparation; 16 (4) assist state agencies in their statement of goals and objectives to 17 achieve, among other things, the legislature's mission and desired results, preparation 18 of plans, assessments of the extent to which missions and desired results have been 19 achieved, budget requests, and reporting of program performance; all documents 20 forwarded by the office to a state agency containing instructions for the preparation of 21 program plans and budget requests and the reporting of program performance are 22 public information after the date they are forwarded; 23 (5) administer its responsibilities under the program execution 24 provisions of this chapter so that the policy decisions and budget determinations of the 25 governor and the legislature are implemented; 26 (6) provide the legislative finance division with the budget information 27 it may request; 28 (7) provide the legislative finance division with an advance copy of the 29 governor's budget workbooks by the first Monday in January of each year, except that 30 following a gubernatorial election year the advance copy shall be provided by the 31 second Monday in January;

01 (8) prepare the proposed capital improvements budget for the coming 02 fiscal year evaluating both state and local requests from the standpoint of need, equity, 03 and priorities of the jurisdiction; other factors such as project amounts, population, 04 local financial match, federal funds being used for local match, municipality or 05 unincorporated community acceptance of the facility, and all associated costs of the 06 facility may be considered; 07 (9) for each department in the executive branch, report to the 08 legislature by the 45th day of each regular session the amount of money appropriated 09 to the department that is expected to lapse into the general fund at the end of the 10 current fiscal year; 11 (10) establish and administer a state agency program performance 12 management system involving planning, performance budgeting, performance 13 measurement, and program evaluation; the office shall ensure that information 14 generated under this system is useful for managing and improving the efficiency and 15 effectiveness of agency operations. 16 * Sec. 4. AS 37.07.060 is amended to read: 17 Sec. 37.07.060. Governor's recommendation. (a) The governor shall 18 formulate the operating and capital improvements programs and the long-range 19 financial plan [PLANS] required to be recommended to the legislature by 20 AS 37.07.020 after considering the state agency proposed program and financial plans, 21 and other programs and alternatives that the governor considers appropriate. The 22 governor's recommended plans must include 23 (1) the governor's recommended missions and desired results; 24 (2) [,] recommended strategies to implement the missions and desired 25 results; 26 (3) [,] recommended measures for determining whether the missions 27 and desired results are achieved, including an assessment of whether adequate 28 progress has been made toward achieving prior year missions and desired results; 29 (4) an estimate, for the succeeding fiscal year, of expected revenue 30 from all sources, listed by source; 31 (5) estimates of amounts for each of the major areas of

01 expenditure for the succeeding fiscal year; 02 (6) a [HAVE BEEN ACHIEVED,] recommended operating program 03 for the succeeding fiscal year; 04 (7) an estimate for the succeeding six fiscal years of expected 05 revenue from all sources, listed by source; 06 (8) a [,] recommended capital improvements program for the 07 succeeding six fiscal years; 08 (9) [,] recommended programs for the upgrading of public buildings 09 and facilities prepared in accordance with AS 35.10.015, including a proposed time 10 to begin each of the upgrading projects; 11 (10) [AND] recommended revenue measures to support the programs 12 for the upgrading projects; 13 (11) a projection of revenue for the succeeding 15 years 14 categorized by each major source of revenue and an explanation of any 15 significant changes from previous projections; 16 (12) projections of the expenditures for the succeeding 15 years 17 listed by each major area of expenditure and an explanation of any significant 18 changes from previous projections; 19 (13) the assumptions on which the 15-year projections are made; 20 (14) proposed actions for increasing revenue or cutting 21 expenditures as necessary to ensure expenditures do not exceed revenue; 22 (15) changes in strategy or new strategies needed as a result of 23 previously unanticipated changes in expenditures, revenue, or unsuccessful 24 strategies; 25 (16) an analysis of state debt, identification of the target maximum 26 debt amount, and, if debt is projected to exceed the target maximum, strategies to 27 reduce state debt, satisfy outstanding bonds, and meet deferred maintenance 28 needs; 29 (17) the status of unfunded state liabilities, a trend analysis for the 30 liabilities, and the strategy for funding the liabilities; 31 (18) an analysis of anticipated changes in federal funding and the

01 plan for accommodating the reduced funding; 02 (19) the target minimum level of funds in the budget reserve fund 03 (art. IX, sec. 17, Constitution of the State of Alaska) and, if the amount is less 04 than the target minimum level, the target level of repayments to the budget 05 reserve fund together with the plan for achieving the repayments; 06 (20) the target level of funding for an emergency fund to address 07 state disasters and the plan for achieving the funding; 08 (21) a plan for using surplus state revenue if there is any; 09 (22) actions the legislature must take for the state's financial 10 strategy to succeed and the time each action must be taken. 11 (b) The governor shall present the proposed comprehensive operating and 12 capital improvements programs and the long-range financial plan [PLANS] in a 13 message to a joint session of the legislature before the fourth legislative day following 14 the convening of the legislature in regular session. The message must be preceded 15 [ACCOMPANIED] by an explanatory report that summarizes recommended goals, 16 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, the [AND] capital improvements 24 program for the succeeding six fiscal years, and the long-range financial plan for 25 the succeeding 15 years, including [WHICH MUST INCLUDE] 26 (A) a description of each capital project, its estimated cost for 27 the year construction is to start and the estimated cost of the project adjusted 28 for inflation over the estimated period of construction, and the source of 29 financing for the project; the project description for a new building or a new 30 facility or for a major addition to a building or facility should include a site 31 plan, preliminary drawings, and architect's or engineer's total cost estimate for

01 the project; 02 (B) a summary of projects previously authorized and not yet 03 completed; 04 (C) a summary, listed by agency, of all previously proposed 05 projects that have been deferred beyond the six years covered by the capital 06 improvements program [PLAN] and the year in which construction has been 07 rescheduled to begin; 08 (D) a forecast of the debt structure of the state and the various 09 debt ratios over the life of the state's bonds outstanding, bonds authorized and 10 to be issued, and bond authorizations recommended in the capital 11 improvements program and the long-term financial plan; 12 (E) a description of additional revenue measures needed to 13 finance the capital improvements program and the long-term financial plan 14 in lieu of debt; 15 (F) bond election bills to authorize the bonds required to fund 16 the projects scheduled for the first three years of the capital improvements 17 program [PLAN]; 18 (G) projections of population of the state and its regions and 19 communities used in developing the capital improvements program and 20 the long-range financial plan; 21 (H) economic data and projections necessary for the evaluation 22 of the capital improvements program and the long-range financial plan; 23 (I) long-range projections of state revenue and expenditures 24 listed by major areas of expenditure; 25 (4) a summary of state receipts in the last fiscal year, a revised estimate 26 for the current fiscal year, and an estimate for the succeeding fiscal year; 27 (5) a summary of expenditures during the last fiscal year, those 28 authorized for the current fiscal year, and an estimate for the succeeding fiscal year; 29 (6) any additional information that will facilitate understanding of the 30 governor's proposed programs and financial plans by the legislature and the public. 31 * Sec. 5. This Act takes effect July 1, 2007.