HB 406: "An Act relating to five-year strategic plans and plan benchmarks for executive branch agencies."
00HOUSE BILL NO. 406 01 "An Act relating to five-year strategic plans and plan benchmarks for executive 02 branch agencies." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 37.07.010 is amended to read: 05 Sec. 37.07.010. Statement of policy. It is the purpose of this chapter to 06 establish a comprehensive system for state program and financial management that 07 furthers the capacity of the governor and legislature to plan and finance the services 08 that they determine the state will provide for its citizens. The system must include 09 procedures for 10 (1) the orderly establishment, continuing review, and periodic revision 11 of the five-year strategic plans, program goals , and policies of state agencies and 12 financial goals and policies of the state; 13 (2) the development, coordination and review of long-range program 14 and financial plans that will implement established state strategies, goals , and policies;
01 (3) the preparation, coordination, analysis, and enactment of a budget 02 that is organized to focus on the services provided by state agencies and on the cost 03 of those services and that provides for implementation of policies and plans [,] in the 04 succeeding budget periods [PERIOD]; 05 (4) the evaluation of alternatives to existing policies, plans , and 06 procedures that offer potential for more efficient state services; 07 (5) the regular appraisal and reporting of program performance; 08 (6) public participation in the development of the annual budget and 09 the five-year strategic plans of state agencies , including opportunity for the public 10 to review and comment upon the plans and programs of the Office of the Governor 11 and all state agencies in the executive branch, the legislature, the judicial system, the 12 University of Alaska, and the public corporations of the state. 13 * Sec. 2. AS 37.07.014(a) is amended to read: 14 (a) To carry out its legislative power under art. II, sec. 1, Constitution of the 15 State of Alaska, to strengthen public participation in state government policy 16 making, to promote a sense of common cause among the residents of the state, and 17 to promote results-based government, the legislature shall approve a five-year 18 strategic plan and benchmarks to assess progress under the plan [ISSUE A 19 MISSION STATEMENT] for each agency and shall identify the desired results the 20 agency should achieve. The legislature may approve [ISSUE] a separate strategic 21 plan and separate benchmarks [MISSION STATEMENT] for a subunit of an 22 agency. A strategic plan, benchmarks, [MISSION STATEMENT] and desired 23 results should promote the efficient, measured use of the state's resources. A strategic 24 plan, benchmarks, [MISSION STATEMENT] and desired results constitute policy 25 under which an agency shall operate, and, where appropriate, the strategic plan and 26 benchmarks [MISSION STATEMENT] may be implemented by statute. 27 * Sec. 3. AS 37.07.014(b) is amended to read: 28 (b) The legislature shall provide for a budget review function that promotes 29 results-based government. The legislature shall adopt a method of measuring results 30 for each agency, and measurements shall be reported semi-annually by each agency 31 to the legislature. The reports shall be used by the legislature to evaluate whether the
01 benchmarks [MISSION] and desired results for that agency or subunit of the agency 02 are being achieved. 03 * Sec. 4. AS 37.07.014(c) is amended to read: 04 (c) The legislature shall analyze the strategic plans, comprehensive operating 05 and capital improvements programs , and financial plans recommended by the governor. 06 * Sec. 5. AS 37.07.014(d) is amended to read: 07 (d) To foster results-based government, to implement the five-year strategic 08 plans [CARRY OUT THE MISSION STATEMENTS], and to obtain desired results, 09 the legislature shall approve [AUTHORIZE] the strategic plans, comprehensive 10 operating and capital improvements programs , and financial plans. The legislature 11 shall allocate the state's resources for effective and efficient delivery of public services 12 by 13 (1) clearly identifying desired results; 14 (2) setting priorities; 15 (3) assigning accountability; [AND] 16 (4) using methods for measuring, reporting, and evaluating results ; and 17 (5) identifying benchmarks . 18 * Sec. 6. AS 37.07.014(f) is amended to read: 19 (f) To help fulfill the legislature's responsibilities under this section , foster 20 public participation and a strong civic sector, and achieve results-based government, 21 each agency shall 22 (1) allocate resources to implement its five-year strategic plan and 23 to achieve the benchmarks [MISSION] and desired results approved 24 [ESTABLISHED] by the legislature; 25 (2) express desired results approved [ESTABLISHED] by the 26 legislature and other program results in measurable terms; 27 (3) measure progress towards strategic plans, benchmarks, [MISSION 28 STATEMENTS] and desired results approved [ESTABLISHED] by the legislature and 29 other results; 30 (4) promote activities consistent with strategic plans, benchmarks, 31 [MISSION STATEMENTS] and desired results approved [ESTABLISHED] by the
01 legislature that reduce or avoid future costs; 02 (5) plan for the short-term and the long-term using consistent 03 assumptions for major demographic and other trends; and 04 (6) require accountability at all levels for meeting strategic plans, 05 benchmarks, [PROGRAM MISSION STATEMENTS] and desired results approved 06 [ESTABLISHED] by the legislature. 07 * Sec. 7. AS 37.07.016 is amended to read: 08 Sec. 37.07.016. Governor's primary duty. To carry out the executive power 09 under art. III, sec. 1 and sec. 16, Constitution of the State of Alaska, the governor shall 10 use the five-year strategic plans, benchmarks, [MISSION STATEMENTS] and 11 desired results approved [ISSUED] by the legislature as a guide to implement and 12 execute the law. The governor shall assure that each agency complies with its 13 strategic plan [THE MISSION STATEMENT] and achieves the benchmark and 14 desired results identified by the legislature. 15 * Sec. 8. 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 to show anticipated expenditures and receipts, grants, 20 loans, and federal money for five succeeding years. Proposed [SO THAT THE 21 PROPOSED] expenditures for each agency are presented separately. The budget must 22 be accompanied by the information required under AS 37.07.050 and by the following 23 separate bills: (1) an appropriation bill authorizing the operating and capital 24 expenditures of the state's integrated comprehensive mental health program under 25 AS 37.14.003(a); (2) an appropriation bill authorizing state operating expenditures 26 other than those included in the state's integrated comprehensive mental health 27 program; (3) an appropriation bill authorizing capital expenditures other than those 28 included in the state's integrated comprehensive mental health program; and (4) a bill 29 or bills covering recommendations, if any, in the budget for new or additional revenue. 30 The budget for the succeeding fiscal year and each of the bills shall become public 31 information on December 15 , at which time the governor shall submit copies to the
01 legislature and make copies available to the public. The bills, identical in content to 02 the copies released on December 15, shall be delivered to the rules committee of each 03 house before the fourth legislative day of the next regular session for introduction. 04 * Sec. 9. 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 agency five-year strategic 07 plans and in the six-year capital improvements program and financial plan may not 08 exceed the estimated revenue and bond authorizations passed and proposed. 09 * Sec. 10. 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) assist the governor in the preparation and explanation of the 13 proposed comprehensive program and financial plan, including the coordination and 14 analysis of state agency goals and objectives, strategic and other plans, and budget 15 requests; 16 (2) prepare for submission to the governor an annually updated six-year 17 capital improvements program and the proposed capital improvements budget for the 18 coming fiscal year, the latter to include individual project justification with 19 documentation of estimated project cost; 20 (3) develop procedures to produce the information needed for effective 21 policy decision making, including procedures to provide for the dissemination of 22 information about plans, programs, and budget requests to be included in the annual 23 budget and opportunity for public review and comment during the period of budget 24 preparation; 25 (4) assist state agencies in developing and updating their five-year 26 strategic plans and their statement of goals and objectives to achieve, among other 27 things, the benchmarks [LEGISLATURE'S MISSION] and desired results approved 28 by the legislature , preparation of plans, assessments of the extent to which 29 benchmarks [MISSIONS] and desired results have been achieved, budget requests, 30 and reporting of program performance; all documents forwarded by the office to a state 31 agency containing instructions for the preparation of program plans and budget
01 requests and the reporting of program performance are public information after the date 02 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 legislature 19 by the 45th day of each regular session the amount of money appropriated to the 20 department that is expected to lapse into the general fund at the end of the current 21 fiscal year ; 22 (10) compile the completed and updated strategic plan for each 23 agency into a single state strategic plan for consideration by the governor . 24 * Sec. 11. AS 37.07.050(a) is amended to read: 25 (a) The agencies shall assure the development of a statewide system of results- 26 based government designed to promote public participation and a strong civic sector and 27 to increase efficiency and effectiveness of state programs and services. Toward that end, each 28 state agency shall develop and regularly update a five-year strategic plan with public 29 participation and shall, on a semi-annual basis, identify results-based measures that have 30 been used to work toward achievement of the benchmarks [MISSION STATEMENT] and 31 desired results approved [ISSUED] by the legislature and of other goals of the agency, and
01 set out the results as measured. Each state agency shall also prepare information that shall 02 be compiled and submitted on December 15 each year to the office, the legislature, and the 03 legislative finance division; this information must 04 (1) identify the agency strategic plan, benchmarks, [MISSION] and 05 desired results approved [ESTABLISHED] by the legislature; 06 (2) identify the methods [GOALS AND OBJECTIVES] the agency will 07 use to achieve the benchmarks [LEGISLATURE'S MISSION] and desired results; 08 (3) set out the results of any user group surveys and, if the results do 09 not agree with the benchmarks [MISSION] and desired results, [GOALS, AND 10 OBJECTIVES,] explain why; 11 (4) include written, defined methods of measuring results that apply to 12 the responsibilities, products, and services of the agency; 13 (5) identify results-based measures that have been used to work toward 14 achievement of the agency benchmarks [MISSION STATEMENT] and desired results 15 approved [ISSUED] by the legislature and other goals of the agency, and set out the 16 results as measured; 17 (6) identify surveys or other methods of gathering user group opinions 18 that have been used by the agency to identify ways to improve its programs; 19 (7) identify methods of measuring performance when the benchmarks 20 [MISSION STATEMENT] and desired results approved [ISSUED] by the legislature 21 [INVOLVES] more than one agency and make recommendations to eliminate 22 duplication of government functions and waste; 23 (8) identify ways in which the agency has involved its employees in 24 the development of methods of measuring results, including opportunities for employee 25 representatives to participate in committees established to develop methods of 26 measuring results; 27 (9) include the budget requested to carry out the agency's proposed 28 plans in the succeeding fiscal year, including information reflecting the expenditures 29 during the last fiscal year, the expenditures authorized for the current fiscal year, the 30 expenditures proposed for the succeeding fiscal year, an explanation of the services to 31 be provided, the number of total positions for all persons employed or under contract
01 by the agency for personal services including those rendered for capital improvement 02 projects, the need for the services, the cost of the services, and other information 03 requested by the office; 04 (10) include a report of agency receipts during the last fiscal year, an 05 estimate of receipts during the current fiscal year, and an estimate of receipts for the 06 succeeding fiscal year; 07 (11) identify legislation required to implement the proposed programs 08 and financial plans; 09 (12) include an evaluation of the advantages and disadvantages of 10 specific alternatives to existing or proposed agency activities or administrative 11 methods ; 12 (13) identify ways in which the agency has involved the public in 13 the formulation and updating of its five-year strategic plan . 14 * Sec. 12. AS 37.07.060 is amended to read: 15 Sec. 37.07.060. Governor's recommendation. (a) The governor shall 16 formulate a state five-year strategic plan, the operating and capital improvements 17 programs , and financial plans required to be recommended to the legislature by 18 AS 37.07.020 after considering the state agency proposed program and financial plans, 19 and other programs and alternatives that the governor considers appropriate. The plans 20 must include the governor's recommended benchmarks [MISSIONS] and results, 21 recommended strategies to implement the plans and achieve the benchmarks 22 [MISSIONS] and results, recommended measures for determining whether prior year 23 benchmarks [THE MISSIONS] and desired results [ARE ACHIEVED, INCLUDING 24 AN ASSESSMENT OF WHETHER PRIOR YEAR MISSIONS AND DESIRED 25 RESULTS] have been achieved, recommended operating program for the succeeding 26 five fiscal years [YEAR], recommended capital improvements program for the 27 succeeding six fiscal years, recommended programs for the upgrading of public 28 buildings and facilities prepared in accordance with AS 35.10.015, and recommended 29 revenue measures to support the programs. 30 (b) The governor shall present the proposed state five-year strategic plan 31 and the proposed comprehensive operating and capital improvements programs and
01 financial plans in a message to a joint session of the legislature before the fourth 02 legislative day following the convening of the legislature in regular session. The 03 message must be accompanied by an explanatory report that summarizes recommended 04 goals, plans, and appropriations. The report must contain 05 (1) a summary of the state's five-year strategic plan; 06 (2) the coordinated program goals and objectives that [WHICH] the 07 governor recommends to guide the decisions on the proposed program plans and 08 budget appropriations; 09 (3) [(2)] the governor's operating program and budget recommendations 10 for the succeeding fiscal year organized by agency as required by AS 37.07.020(a); 11 (4) [(3)] the governor's capital improvements program and budget 12 recommendations for the succeeding fiscal year and capital improvements program for 13 the succeeding six fiscal years , which must include 14 (A) a description of each project, its estimated cost for the year 15 construction is to start and the estimated cost of the project adjusted for 16 inflation over the estimated period of construction, and the source of financing 17 for the project; the project description for a new building or a new facility or 18 for a major addition to a building or facility should include a site plan, 19 preliminary drawings, and architect's or engineer's total cost estimate for the 20 project; 21 (B) a summary of projects previously authorized and not yet 22 completed; 23 (C) a summary, listed by agency, of all previously proposed 24 projects that have been deferred beyond the six years covered by the plan and 25 the year in which construction has been rescheduled to begin; 26 (D) a forecast of the debt structure of the state and the various 27 debt ratios over the life of the state's bonds outstanding, bonds authorized and 28 to be issued, and bond authorizations recommended in the plan; 29 (E) a description of additional revenue measures needed to 30 finance the plan in lieu of debt; 31 (F) bond election bills to authorize the bonds required to fund
01 the projects scheduled for the first three years of the plan; 02 (G) projections of population of the state and its regions and 03 communities; 04 (H) economic data and projections necessary for the evaluation 05 of the plan; 06 (5) [(4)] a summary of state receipts in the last fiscal year, a revised 07 estimate for the current fiscal year, and an estimate for the succeeding five fiscal years 08 [YEAR]; 09 (6) [(5)] a summary of expenditures during the last fiscal year, those 10 authorized for the current fiscal year, and an estimate for the succeeding five fiscal 11 years [YEAR]; 12 (7) [(6)] any additional information that will facilitate understanding 13 of the governor's proposed programs and financial plans by the legislature and the 14 public. 15 * Sec. 13. AS 37.07.070 is amended to read: 16 Sec. 37.07.070. Legislative review. The legislature shall consider the state 17 five-year strategic plan offered by the governor. The legislature shall consider the 18 [GOVERNOR'S] proposed comprehensive operating and capital improvements 19 programs and financial plans, evaluate alternatives to the plans, make program 20 selections among the various alternatives , and determine, subject to available revenues, 21 the level of funding required to support authorized state services. The operating and 22 capital budgets of each agency shall be separately reviewed. During each regular 23 session of the legislature, legislative review of the governor's supplemental 24 appropriation bills and the governor's budget amendments shall be governed by the 25 following time limits: 26 (1) requests [REQUESTS] by the governor for supplemental 27 appropriations for state agency operating and capital budgets for the current fiscal year 28 may be introduced by the rules committee only through the 30th legislative day ; [.] 29 (2) requests [REQUESTS] by the governor for budget amendments to 30 state agency budgets for the budget fiscal year may be received and reviewed by the 31 finance committees only through the 45th legislative day.
01 * Sec. 14. AS 37.07.080(a) is amended to read: 02 (a) Except as limited by executive decisions of the governor, the strategic 03 plans, benchmarks, [MISSION STATEMENTS] and desired results approved 04 [ISSUED] by the legislature, appropriations by the legislature, and other provisions of 05 law, the several state agencies have full authority for administering their program 06 service assignments and are responsible for their proper management. 07 * Sec. 15. AS 37.07.080(b) is amended to read: 08 (b) Each state agency shall prepare an annual plan and update its five-year 09 strategic plan for the operation of each of its assigned programs except for programs 10 that are exempted from this requirement by the office. The strategic and operations 11 plans [PLAN] shall be prepared in the form and content and be transmitted on the date 12 prescribed by the office. 13 * Sec. 16. AS 37.07.080(c) is amended to read: 14 (c) The office shall 15 (1) review each strategic and operations plan to determine that it is 16 consistent with the executive decisions of the governor, the benchmarks [MISSION 17 STATEMENT] and desired results approved [ISSUED] by the legislature, 18 appropriations by the legislature, and other provisions of law, that it reflects proper 19 planning and efficient management methods, and that appropriations have been made 20 for the legislatively established purpose and will not be exhausted before the end of 21 the fiscal year; 22 (2) approve the strategic and operations plans [PLAN] if satisfied that 23 they meet [IT MEETS] the requirements under (1) of this subsection; otherwise, the 24 office shall require revision of the strategic or operations plans, as appropriate, 25 [PLAN] in whole or in part. 26 * Sec. 17. AS 37.07.080(f) is amended to read: 27 (f) The office shall report quarterly to the governor and the legislature on the 28 operations of each state agency, relating actual accomplishments to those planned and 29 modifying, if necessary, the strategic and operations plans [PLAN] of any agency for 30 the balance of the fiscal year.