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.