00 CS FOR SENATE BILL NO. 76(FIN) 01 "An Act relating to results-based government and the state budget; relating to 02 state agency program and financial plans; relating to the withholding or reduction 03 of appropriations to a state agency; and relating to state agency performance and 04 other reports." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 37.07 is amended by adding new sections to read: 07  Sec. 37.07.014. Responsibilities of the legislature. (a) To carry out its 08 legislative power under art. II, sec. 1, Constitution of the State of Alaska, and to 09 promote results-based government, the legislature shall issue a mission statement for 10 each agency and the desired results the agency should achieve. The legislature may 11 issue a separate mission statement for a subunit of an agency. A mission statement 12 and desired results should represent the priorities of the majority of state residents and 13 should promote the efficient, measured use of the state's resources. A mission 14 statement and desired results constitute policy under which an agency shall operate, 01 and, where appropriate, the mission statement may be implemented by statute. 02  (b) The legislature shall provide for a budget review function that promotes 03 results-based government. The legislature shall adopt a method of measuring results 04 for each agency, and measurements shall be reported quarterly by each agency to the 05 legislature. The reports shall be used by the legislature to evaluate whether the 06 mission and desired results for that agency or subunit of the agency are being 07 achieved. 08  (c) The legislature shall analyze the comprehensive operating and capital 09 improvements programs and financial plans recommended by the governor. 10  (d) To foster results-based government, to carry out the mission statements, 11 and to obtain desired results, the legislature shall authorize the comprehensive 12 operating and capital improvements programs and financial plans. The legislature shall 13 allocate the state's resources for effective and efficient delivery of public services by 14  (1) clearly identifying desired results; 15  (2) setting priorities; 16  (3) assigning accountability; and 17  (4) using methods for measuring, reporting, and evaluating results. 18  (e) The legislature shall 19  (1) provide for a post-audit function to cover financial transactions, 20 program accomplishment, and compliance with legislative intent; 21  (2) adopt or revise the estimate of receipts required to balance the 22 succeeding fiscal year's budget in order that proposed expenditures do not exceed 23 estimated receipts for that fiscal year; 24  (3) adopt, revise, or initiate revenue measures in order to balance the 25 succeeding fiscal year's budget and the capital improvements section of the budget for 26 the succeeding six years. 27  (f) To help fulfill the legislature's responsibilities under this section and 28 achieve results-based government, each agency shall 29  (1) allocate resources to achieve the mission and desired results 30 established by the legislature; 31  (2) express desired results established by the legislature and other 01 program results in measurable terms; 02  (3) measure progress towards mission statements and desired results 03 established by the legislature and other results; 04  (4) promote activities consistent with mission statements and desired 05 results established by the legislature that reduce or avoid future costs; 06  (5) plan for the short-term and the long-term using consistent 07 assumptions for major demographic and other trends; and 08  (6) require accountability at all levels for meeting program mission 09 statements and desired results established by the legislature. 10  Sec. 37.07.016. Governor's primary duty. To carry out the executive power 11 under art. III, sec. 1 and sec. 16, Constitution of the State of Alaska, the governor shall 12 use the mission statements and desired results issued by the legislature as the guide to 13 implement and execute the law. The governor shall assure that each agency complies 14 with the mission statement and achieves the desired results identified by the legislature. 15 * Sec. 2. AS 37.07.020(a) is amended to read: 16  (a) The governor shall prepare a budget for the succeeding fiscal year that 17 must cover all estimated receipts, including all grants, loans, and money received from 18 the federal government and all proposed expenditures of the state government. The 19 budget shall be organized so that the proposed expenditures for each agency are 20 presented separately. The budget must be accompanied by  the information required 21 under AS 37.07.050 and by  the following separate bills: (1) an appropriation bill 22 authorizing the operating and capital expenditures of the state's integrated 23 comprehensive mental health program under AS 37.14.003(a); (2) an appropriation bill 24 authorizing state operating expenditures other than those included in the state's 25 integrated comprehensive mental health program; (3) an appropriation bill authorizing 26 capital expenditures other than those included in the state's integrated comprehensive 27 mental health program; and (4) a bill or bills covering recommendations, if any, in the 28 budget for new or additional revenue. The budget for the succeeding fiscal year and 29 each of the bills shall become public information on December 15 at which time the 30 governor shall submit copies to the legislature and make copies available to the public. 31  The copies shall be accompanied by a statement of "Truth in Budgeting" 01 prepared under (e) of this section.  The bills, identical in content to the copies 02 released on December 15, shall be delivered to the rules committee of each house 03 before the fourth legislative day of the next regular session for introduction. 04 * Sec. 3. AS 37.07.020 is amended by adding a new subsection to read: 05  (e) The governor shall prepare a statement entitled "Truth in Budgeting" for 06 the budget for the succeeding fiscal year. The statement shall be signed and dated by 07 the governor. When referring to the budget as a whole in the statement, the governor 08 shall include the entire budget for the executive, judicial, and legislative branches of 09 government. When referring to the part of the budget for a single branch of 10 government or for an agency or other unit of government, the governor shall 11 specifically identify the branch or unit referred to. The statement must indicate 12 whether the budget proposed by the governor 13  (1) represents an increase or a decrease in general fund expenditures, 14 stated in dollars and, excluding inflation, compared to the budget for the immediately 15 preceding year; 16  (2) includes increases or decreases in taxes or user fees, and, if it does, 17 the statement must specify each tax or user fee change; 18  (3) is covered entirely by recurring revenue, excluding interest earned 19 on reserve accounts, and, if it is not, the statement must declare that the budget is 20 running a deficit. 21 * Sec. 4. AS 37.07.040(4) is amended to read: 22  (4) assist state agencies in their statement of goals and objectives  to 23 achieve, among other things, the legislature's mission and desired results , 24 preparation of plans,  assessments of the extent to which missions and desired 25 results have been achieved,  budget requests, and reporting of program performance; 26 all documents forwarded by the office to a state agency containing instructions for the 27 preparation of program plans and budget requests and the reporting of program 28 performance are public information after the date they are forwarded; 29 * Sec. 5. AS 37.07.050(a) is repealed and reenacted to read: 30  (a) The agencies shall assure the development of a statewide system of results- 31 based government designed to increase efficiency and effectiveness of state programs and 01 services. Toward that end, each state agency shall, on a quarterly basis, identify results-based 02 measures that have been used to work toward achievement of the mission statement and 03 desired results issued by the legislature and of other goals of the agency, and set out the 04 results as measured. Each state agency shall also prepare information that shall be compiled 05 and submitted on December 15 each year to the office, the legislature, and the legislative 06 finance division. The information must 07  (1) identify the agency mission and desired results established by the 08 legislature; 09  (2) identify the goals and objectives the agency will use to achieve the 10 legislature's mission and desired results; 11  (3) set out the results of any user group surveys and, if the results do 12 not agree with the mission and desired results, goals, and objectives, explain why; 13  (4) include written, defined methods of measuring results that apply to 14 the responsibilities, products, and services of the agency; 15  (5) identify results-based measures that have been used to work toward 16 achievement of the mission statement and desired results issued by the legislature and 17 other goals of the agency, and set out the results as measured; 18  (6) identify surveys or other methods of gathering user group opinions 19 that have been used by the agency to identify ways to improve its programs; 20  (7) identify methods of measuring performance when the mission 21 statement and desired results issued by the legislature involves more than one agency 22 and make recommendations to eliminate duplication of government functions and 23 waste; 24  (8) identify ways in which the agency has involved its employees in 25 the development of methods of measuring results, including opportunities for employee 26 representatives to participate in committees established to develop methods of 27 measuring results; 28  (9) include the budget requested to carry out the agency's proposed 29 plans in the succeeding fiscal year, including information reflecting the expenditures 30 during the last fiscal year, the expenditures authorized for the current fiscal year, the 31 expenditures proposed for the succeeding fiscal year, an explanation of the services to 01 be provided, the number of total positions for all persons employed or under contract 02 by the agency for personal services including those rendered for capital improvement 03 projects, the need for the services, the cost of the services, and other information 04 requested by the office; 05  (10) include a report of agency receipts during the last fiscal year, an 06 estimate of receipts during the current fiscal year, and an estimate of receipts for the 07 succeeding fiscal year; 08  (11) identify legislation required to implement the proposed programs 09 and financial plans; 10  (12) include an evaluation of the advantages and disadvantages of 11 specific alternatives to existing or proposed agency activities or administrative 12 methods. 13 * Sec. 6. AS 37.07.050 is amended by adding a new subsection to read: 14  (h) Each agency shall, with participation of its employees, develop methods 15 for measuring agency results. A group or committee established by an agency to 16 develop methods of measuring results shall include a representative of each of the 17 bargaining units that represents employees of the agency. 18 * Sec. 7. AS 37.07.060(a) is amended to read: 19  (a) The governor shall formulate the operating and capital improvements 20 programs and financial plans required to be recommended to the legislature by 21 AS 37.07.020 after considering the state agency proposed program and financial plans, 22 and other programs and alternatives that the governor considers appropriate. The plans 23 must include the governor's recommended  missions  [GOALS] and  results  24 [POLICIES], recommended  strategies  [PLANS] to implement the  missions  [GOALS] 25 and  results, recommended measures for determining whether the missions and 26 desired results are achieved, including an assessment of whether prior year 27 missions and desired results have been achieved  [POLICIES], recommended 28 operating program for the succeeding fiscal year, recommended capital improvements 29 program for the succeeding six fiscal years, recommended programs for the upgrading 30 of public buildings and facilities prepared in accordance with AS 35.10.015, and 31 recommended revenue measures to support the programs. 01 * Sec. 8. AS 37.07.080(a) is amended to read: 02  (a) Except as limited by  executive  [POLICY] decisions of the governor,  the 03 mission statements and desired results issued by the legislature,  appropriations by 04 the legislature, and other provisions of law, the several state agencies have full 05 authority for administering their program service assignments and are responsible for 06 their proper management. 07 * Sec. 9. AS 37.07.080(c) is amended to read: 08  (c) The office shall 09  (1) review each operations plan to determine that it is consistent with 10 the  executive  [POLICY] decisions of the governor , the mission statement and 11 desired results issued by the legislature,  [AND] appropriations by the legislature, 12  and other provisions of law,  that it reflects proper planning and efficient management 13 methods, and that appropriations have been made for the  legislatively established  14 [PLANNED] purpose and will not be exhausted before the end of the fiscal year; 15  (2) approve the operations plan if satisfied that it meets the 16 requirements under (1) of this subsection; otherwise, the office shall require revision 17 of the operations plan in whole or in part. 18 * Sec. 10. AS 37.07.030, 37.07.080(g)(2), and 37.07.090 are repealed.