CSSSHB 194(W&M): "An Act relating to the duties of the Legislative Budget and Audit Committee; relating to the Executive Budget Act; establishing consensus estimating conferences; relating to the development of official information for use in preparing the state budget; relating to strategic plans, performance plans, and financial plans for executive branch agencies; and providing for an effective date."
00 CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 194(W&M) 01 "An Act relating to the duties of the Legislative Budget and Audit Committee; relating 02 to the Executive Budget Act; establishing consensus estimating conferences; relating to 03 the development of official information for use in preparing the state budget; relating to 04 strategic plans, performance plans, and financial plans for executive branch agencies; 05 and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 16.05.110(b) is amended to read: 08 (b) Except for money received as fisheries fines or forfeitures in settlement of 09 a claim or loss caused by damage to the fish resources of the state that is appropriated 10 to or through the division of commercial fisheries management and development, 11 appropriations of money from the fish and game fund and of money received by the 12 state under the federal aid acts described under AS 16.05.140 shall be made to the 13 division of wildlife conservation or the division of sport fish. The division of wildlife
01 conservation or the division of sport fish may use money appropriated under this 02 subsection to acquire administrative and other services from other agencies if the 03 division acquires the services through reimbursable services agreements. The division 04 of wildlife conservation and the division of sport fish shall include as part of their 05 budgets prepared under AS 37.07.085 [AS 37.07.050] 06 (1) a listing of the reimbursable services agreements that are to be 07 funded with money appropriated under this subsection; 08 (2) a description of the services to be provided under those 09 agreements; and 10 (3) a listing of the entities that are parties to those agreements. 11 * Sec. 2. AS 24.08.035(b) is amended to read: 12 (b) In addition to the fiscal note required by this section, the sponsor of a bill 13 or resolution may prepare a fiscal note in conformity with the requirements of this 14 section and submit it to the committee of first referral or the finance committee. A 15 committee may prepare an additional fiscal note in conformity with the requirements 16 of this section. The sponsor of a bill or resolution or a committee may also request 17 that a special impact estimating conference evaluate a fiscal note under (h) of this 18 section. 19 * Sec. 3. AS 24.08.035 is amended by adding a new subsection to read: 20 (h) A special impact estimating conference appointed under AS 37.07.036 21 may evaluate a fiscal note prepared under this section. The special impact estimating 22 conference may prepare a fiscal note in conformity with the requirements of this 23 section and submit it to the committee of first referral or the finance committee. A 24 fiscal note prepared by the special impact conference replaces the fiscal note prepared 25 by a department, sponsor of a bill or resolution, or committee under this section. 26 * Sec. 4. AS 24.20.206 is amended to read: 27 Sec. 24.20.206. Duties. The Legislative Budget and Audit Committee shall 28 (1) annually review the long-range operating plans of all agencies of 29 the state that perform lending or investment functions; 30 (2) review periodic reports from all agencies of the state that perform 31 lending or investment functions;
01 (3) prepare a complete report of investment programs, plans, 02 performance, and policies of all agencies of the state that perform lending or 03 investment functions and notify the legislature on or before the first day of each 04 regular session that the report is available; 05 (4) in conjunction with the finance committee of each house, 06 recommend annually to the legislature the investment policy for the general fund 07 surplus and for the income from the permanent fund; 08 (5) provide for an annual post audit and annual operational and 09 performance evaluation of the Alaska Permanent Fund Corporation investments and 10 investment programs; 11 (6) provide for an annual operational and performance evaluation of 12 the Alaska Housing Finance Corporation and the Alaska Industrial Development and 13 Export Authority; the performance evaluation must include, but is not limited to, a 14 comparison of the effect on various sectors of the economy by public and private 15 lending, the effect on resident and nonresident employment, the effect on real wages, 16 and the effect on state and local operating and capital budgets of the programs of the 17 Alaska Housing Finance Corporation and the Alaska Industrial Development and 18 Export Authority; 19 (7) provide assistance to the trustees of the trust established in 20 AS 37.14.400 - 37.14.450 in carrying out their duties under AS 37.14.415; and 21 (8) adopt a method of measuring results for state agencies and 22 provide the measures to the Office of the Governor in accordance with 23 AS 37.07.014(b). 24 * Sec. 5. AS 37.07.010 is amended to read: 25 Sec. 37.07.010. Statement of policy. It is the purpose of this chapter to 26 establish a comprehensive system for state program and financial management that 27 furthers the capacity of the governor and legislature to plan and finance the services 28 that they determine the state will provide for its citizens. The system must include 29 procedures for 30 (1) the orderly establishment, continuing review, and periodic revision 31 of the strategic plans, program goals, [AND POLICIES OF STATE AGENCIES] and
01 financial goals and policies of the state; 02 (2) the development, coordination, and review of long-range strategic, 03 performance, program, and financial plans that will measure the extent to which 04 program and financial goals have been met [IMPLEMENT ESTABLISHED 05 STATE GOALS AND POLICIES]; 06 (3) the preparation, coordination, analysis, and enactment of a budget 07 that is organized by the programs and [TO FOCUS ON THE] services provided by 08 state agencies, [AND ON] the cost of those services, and the desired results of those 09 services [THAT PROVIDES FOR IMPLEMENTATION OF POLICIES AND 10 PLANS, IN THE SUCCEEDING BUDGET PERIOD]; 11 (4) the evaluation of alternatives to existing policies, strategic plans, 12 and procedures that offer potential for more efficient state services; 13 (5) annual [THE REGULAR] appraisal and reporting of program 14 performance; 15 (6) public participation in the development of the annual budget, 16 including opportunity for the public to review and comment on [UPON] the services, 17 [PLANS AND] programs, and financial goals of the Office of the Governor and all 18 state agencies in the executive branch, the legislature, the judicial system, the 19 University of Alaska, and the public corporations of the state. 20 * Sec. 6. AS 37.07.014(a) is amended to read: 21 (a) To carry out its legislative power under art. II, sec. 1, Constitution of the 22 State of Alaska, and to promote results-based government, the legislature shall review 23 performance and financial plans approved by the governor and organize the 24 budget for the succeeding fiscal year by service or program within each agency, 25 including service and program cost and desired measurements for each service 26 and program [ISSUE A MISSION STATEMENT FOR EACH AGENCY AND THE 27 DESIRED RESULTS THE AGENCY SHOULD ACHIEVE. THE LEGISLATURE 28 MAY ISSUE A SEPARATE MISSION STATEMENT FOR A SUBUNIT OF AN 29 AGENCY. A MISSION STATEMENT AND DESIRED RESULTS SHOULD 30 PROMOTE THE EFFICIENT, MEASURED USE OF THE STATE'S RESOURCES. 31 A MISSION STATEMENT AND DESIRED RESULTS CONSTITUTE POLICY
01 UNDER WHICH AN AGENCY SHALL OPERATE, AND, WHERE 02 APPROPRIATE, THE MISSION STATEMENT MAY BE IMPLEMENTED BY 03 STATUTE]. 04 * Sec. 7. AS 37.07.014(b) is amended to read: 05 (b) The legislature shall provide for a budget review function that promotes 06 results-based government. The Legislative Budget and Audit Committee 07 [LEGISLATURE] shall adopt a method of measuring results for each agency. The 08 Legislative Budget and Audit Committee shall provide the measures to the Office 09 of the Governor not later than August 1 each year. Measurements [, AND 10 MEASUREMENTS] shall be reported semi-annually by each agency to the 11 legislature. The reports shall be used by the legislature to evaluate whether the 12 [MISSION AND] desired results for that agency or subunit of the agency are being 13 achieved. 14 * Sec. 8. AS 37.07.014(d) is amended to read: 15 (d) To foster results-based government [, TO CARRY OUT THE MISSION 16 STATEMENTS,] and to obtain desired results, the legislature shall authorize the 17 comprehensive operating and capital improvements programs and financial plans. The 18 legislature shall allocate the state's resources for effective and efficient delivery of 19 public services by 20 (1) clearly identifying service, program, and financial goals and 21 desired results; 22 (2) assessing how the governor's performance and financial plans 23 contribute progress toward implementing agency strategic plans [SETTING 24 PRIORITIES]; 25 (3) assigning service or program measurements and financial 26 measurements [ACCOUNTABILITY]; and 27 (4) assigning [USING] methods for measuring, reporting, and 28 evaluating results. 29 * Sec. 9. AS 37.07.016 is amended to read: 30 Sec. 37.07.016. Governor's use of performance plans approved by the 31 governor, and service, program, and financial goals issued by the legislature
01 [MISSION STATEMENTS]. To carry out the executive power under art. III, sec. 1 02 and sec. 16, Constitution of the State of Alaska, the governor shall use the financial 03 goals [MISSION STATEMENTS] and desired results issued by the legislature as a 04 guide to implement and execute the law. The governor shall ensure [ASSURE] that 05 each agency complies with the service or program measurement requirements 06 [MISSION STATEMENT] and achieves the desired results identified by the 07 legislature. The governor shall review the agency strategic plans compiled by the 08 office and performance plans developed by the office. The governor may 09 approve, or require the office to revise, in whole or in part, the agency strategic 10 plans and performance plans. 11 * Sec. 10. AS 37.07.020(a) is amended to read: 12 (a) The governor shall prepare a budget for the succeeding fiscal year that 13 must cover all estimated receipts, including all grants, loans, and money received from 14 the federal government and all proposed expenditures of the state government. The 15 budget shall be organized by service or program within each agency and include 16 service and program cost and desired measurements for each service and 17 program. Each service and program expenditure request must include details on 18 the unit cost and performance cost of the service or program expenditure [SO 19 THAT THE PROPOSED EXPENDITURES FOR EACH AGENCY ARE 20 PRESENTED SEPARATELY]. The budget must be accompanied by the information 21 required under AS 37.07.050, 37.07.055(g), and 37.07.085(a) - (c) and by the 22 following separate bills: (1) an appropriation bill authorizing the operating and capital 23 expenditures of the state's integrated comprehensive mental health program under 24 AS 37.14.003(a); (2) an appropriation bill authorizing state operating expenditures 25 other than those included in the state's integrated comprehensive mental health 26 program; (3) an appropriation bill authorizing capital expenditures other than those 27 included in the state's integrated comprehensive mental health program; and (4) a bill 28 or bills covering recommendations, if any, in the budget for new or additional revenue. 29 In a year in which a new governor has not been elected, the [THE] budget for the 30 succeeding fiscal year and each of the bills shall become public information on 31 December 15. In a year in which a new governor has been elected, the budget for
01 the succeeding fiscal year and each of the bills shall become public information 02 on January 15. On the date the budget and bills become public, [AT WHICH 03 TIME] the governor shall deliver [SUBMIT] copies of the budget and bills to the 04 legislature and make copies available to the public. The budget and bills, identical in 05 content to the copies released on December 15 or January 15, as applicable, shall be 06 delivered to the rules committee of each house before the fourth legislative day of the 07 next regular session for introduction. 08 * Sec. 11. AS 37.07.020(b) is amended to read: 09 (b) In addition to the budget and bills submitted under (a) of this section, the 10 governor shall submit a capital improvements program covering the succeeding six 11 fiscal years. The governor shall also submit a fiscal plan with estimates of significant 12 sources and uses of funds for the succeeding three [10] fiscal years. The fiscal plan 13 (1) must include sufficient details to identify 14 (A) significant sources of funds; 15 (B) significant uses of funds, including lump sum projections 16 of 17 (i) operating expenditures; 18 (ii) capital expenditures; 19 (iii) debt service expenditures; 20 (iv) fund capitalizations; 21 (v) appropriations of income of the Alaska permanent 22 fund (art. IX, sec. 15, Constitution of the State of Alaska), if any; 23 (2) must balance sources and uses of funds held while providing for 24 essential state services and protecting the economic stability of the state; 25 (3) must include projected balances of significant funds held in 26 separate accounts, including the budget reserve fund (art. IX, sec. 17, Constitution of 27 the State of Alaska), the public education fund (AS 14.17.300), and the Alaska capital 28 income fund (AS 37.05.565); 29 (4) must set out significant assumptions used in the projections with 30 sufficient detail to enable the legislature to rely on the fiscal plan in understanding, 31 evaluating, and resolving issues of state budgeting, including information that supports
01 major areas of operating increases, such as population demographics that affect the 02 need for particular government services. 03 * Sec. 12. AS 37.07.020(c) is amended to read: 04 (c) Proposed expenditures may not exceed [ESTIMATED] revenue estimates 05 for the succeeding fiscal year. The expenditures for agency and statewide 06 operations may not exceed official estimates of recurring revenue. The 07 expenditures proposed in the six-year capital improvements program may not exceed 08 the estimated revenue and bond authorizations passed and proposed. 09 * Sec. 13. AS 37.07.020 is amended by adding a new subsection to read: 10 (h) In addition to the budget, bills, and fiscal plan submitted under (a), (b), and 11 (f) of this section, the governor shall submit 12 (1) an alternative budget plan for the succeeding fiscal year based on 13 the average price per barrel for Alaska North Slope crude oil for sale on the United 14 States West Coast over the preceding 10 fiscal years; 15 (2) an alternative budget plan for the succeeding fiscal year based on 16 an average price of $70 per barrel for Alaska North Slope crude oil for sale on the 17 United States West Coast; 18 (3) a three-year forecast based on the average price per barrel over the 19 10 preceding fiscal years for Alaska North Slope crude oil for sale on the United 20 States West Coast over the preceding 10 fiscal years; and 21 (4) a three-year forecast based on an average price of $70 per barrel for 22 Alaska North Slope crude oil for sale on the United States West Coast; 23 * Sec. 14. AS 37.07 is amended by adding new sections to read: 24 Sec. 37.07.034. Formation, powers, and duties of consensus estimating 25 conferences. (a) The following consensus estimating conferences are created in the 26 legislative branch of the state for the following purposes: 27 (1) economic estimating conference, for the purpose of developing 28 official information relating to the national and state economies; the official 29 information of the economic estimating conference 30 (A) must include basic, long-term trend forecasts; 31 (B) may include cycle forecasts if the forecast is developed in a
01 special impact estimating conference under AS 37.07.036; 02 (2) demographic estimating conference, for the purpose of developing 03 official information relating to national and state population demographics, organized 04 by age, race, and sex as the conference considers necessary for state planning and the 05 state budget; 06 (3) revenue estimating conference, for the purpose of developing 07 official information relating to anticipated state and local government revenue and 08 estimated income of a trust fund; 09 (4) education estimating conference, for the purpose of developing 10 official information relating to the state public and private educational systems, 11 including information relating to public school funding, correspondence study 12 programs, and state boarding schools; 13 (5) criminal justice estimating conference, for the purpose of 14 developing official information relating to 15 (A) the criminal justice system in the state, including forecasts 16 of prison admissions and population; and 17 (B) the number of sex offenders who are required by law to 18 register under AS 12.63.010, who are required by law to be placed on 19 probation or parole, and who are subject to electronic monitoring; 20 (6) social services estimating conference, for the purpose of 21 developing official information relating to the social services system of the state, 22 including forecasts of social services caseloads, utilization, and expenditures and 23 information relating to cash assistance and medical assistance caseloads; and 24 (7) retirement systems actuarial assumption conference, for the 25 purpose of developing official information relating to the public employees' retirement 26 system (AS 39.35) and the teachers' retirement system (AS 14.25). 27 (b) The membership of each conference consists of a principal and 28 participants. The principal of each conference is the director of the legislative finance 29 division or the director's designee. The president of the senate, speaker of the house of 30 representatives, and governor shall appoint persons to serve as participants of each 31 conference.
01 (c) Each conference shall develop official information within its area of 02 responsibility that the conference determines, by consensus, is needed for the purpose 03 of preparing the state budget. Unless the members of a conference unanimously agree 04 otherwise, all official information developed by the conference must 05 (1) be based on the assumption that current law and current 06 administrative practices will remain in effect throughout the period for which the 07 official information is to be used; and 08 (2) include forecasts for a period of at least three years. 09 (d) Whenever a conference is convened, official information does not exist 10 until the conference reaches an initial or new consensus. 11 (e) The official information developed by the economic conference and the 12 official information developed by the demographic conference shall be used by the 13 other conferences in developing official information. The division of retirement and 14 benefits shall provide all information requested by the retirement systems actuarial 15 assumption conference. 16 (f) The principal of a conference may preside over conference sessions, 17 convene conference sessions, request information needed by the conference, identify 18 topics to be included on the conference agenda, agree or withhold agreement on 19 whether information is to be official information of the conference, release official 20 information of the conference, interpret official information of the conference, and 21 monitor errors in official information of the conference. The principal shall provide 22 the schedule for conference sessions. 23 (g) The principal of a conference may invite a person to participate in a 24 session of the conference. At the request of the principal, a person invited to 25 participate under this subsection shall, before or during a session of the conference, 26 develop alternative forecasts, collect and supply data, perform analyses, or provide 27 other information needed by the conference. Participants appointed by the governor 28 under (b) of this section shall provide information requested by the principal within a 29 reasonable amount of time. Each conference shall consider the information provided 30 by participants under this subsection when developing its official information. 31 (h) All sessions and meetings of a conference must be open to the public under
01 AS 24.60.037. Unless exempt under the procedures adopted under AS 40.25.123(b), 02 information used to develop the official information of a conference must be made 03 available to the public. 04 (i) A conference may be convened 05 (1) by the governor to develop official information on behalf of the 06 governor for use in the governor's legislative budget recommendations; 07 (2) by a member of a conference to 08 (A) develop official information on behalf of the legislature for 09 the legislature's use in its budget deliberations; 10 (B) review and reconsider official information of the 11 conference that the member believes is no longer valid; or 12 (C) develop official information that reflects specific changes 13 or proposed changes relating to the area of responsibility of the conference. 14 (j) A participant of a conference may notify the principal in writing if the 15 participant believes that an item of official information of the conference is no longer 16 valid. The principal shall review a request made under this subsection and, if the 17 principal determines that a session of the conference is warranted, convene the 18 conference for the purpose of reviewing and reconsidering the official information in 19 question. 20 (k) Following each regular session of the legislature, each conference shall 21 convene in a final session to revise the official information of the conference to reflect 22 changes made in the law. The conference shall publish the official information 23 developed at the final session. The published information constitutes the official 24 information of the conference until the adjournment of the next conference. The 25 principal of the conference shall, within two working days after adjournment of the 26 final session of the conference, prepare a final report on the official information of the 27 conference. The principal shall deliver the final report to the co-chairs of the finance 28 committee of each house of the legislature. The principal shall continue to monitor the 29 official information developed at the final session of the conference to ensure the 30 official information remains valid. 31 (l) The principal of a conference, or the principal's designee, is responsible for
01 preparing and distributing to the participants the necessary documents for the meetings 02 of the conference. The principal may cancel a meeting of the conference if the 03 necessary documents have not been distributed before the meeting. Upon request, the 04 documents must include comparisons with alternative information. 05 (m) In this section, "official information" means the data, forecasts, estimates, 06 analyses, studies, and other information adopted by a consensus estimating 07 conference. 08 Sec. 37.07.036. Special impact estimating conferences. (a) The president of 09 the senate or the speaker of the house of representatives may request a special impact 10 estimating conference to evaluate a legislative proposal using tools and models not 11 generally employed by the conferences under AS 37.07.034, including cost-benefit, 12 return-on-investment, or dynamic scoring techniques, when suitable and appropriate 13 for the legislative proposal being evaluated. A separate special impact estimating 14 conference may be appointed for each legislative proposal. A sponsor of a bill or 15 resolution or a committee may also request a special impact estimating conference to 16 evaluate a fiscal note under AS 24.08.035. 17 (b) A special impact estimating conference consists of four principals, each 18 having appropriate fiscal expertise in the subject matter of the legislative proposal, 19 appointed as follows: 20 (1) one person from the executive branch, appointed by the governor; 21 (2) the director of the legislative finance division, or the director's 22 designee; 23 (3) one person from the staff of the senate, appointed by the president 24 of the senate; and 25 (4) one person from the staff of the house of representatives, appointed 26 by the speaker of the house of representatives. 27 (c) After the appointment of the principals, a special impact estimating 28 conference shall convene to adopt official information relating to the legislative 29 proposal. 30 (d) A principal of a special impact estimating conference may invite a person 31 to participate in the conference, and that person shall be designated as a participant. A
01 participant shall, at the request of a principal, before or during a meeting of the special 02 impact estimating conference, collect and supply data, perform analyses, or provide 03 other information needed by the conference. 04 (e) The director of the legislative finance division may convene whichever 05 type of conference under AS 37.07.034 is needed to reach a consensus on 06 supplemental information required for the analysis of the proposed legislation. 07 (f) The principals of a special impact estimating conference shall adopt by 08 consensus all official information of the conference. 09 (g) In this section, "official information" has the meaning given in 10 AS 37.07.034. 11 * Sec. 15. AS 37.07.040 is amended to read: 12 Sec. 37.07.040. Office of management and budget. The Alaska office of 13 management and budget shall 14 (1) assist the governor in meeting the requirements of AS 37.07.020, 15 including the development of performance plans and financial plans and 16 coordination and analysis of state agency goals and objectives issued by the 17 legislature, strategic plans, and budget requests; 18 (2) prepare for submission to the legislature by December 15 each 19 year a five-year capital improvements program; the five-year capital 20 improvements program must include the estimated cost of construction and 21 maintenance, the estimated project timeline, potential funding sources, and 22 justification for each project; the Alaska office of management and budget shall 23 update the five-year capital improvements program annually [GOVERNOR AN 24 ANNUALLY UPDATED SIX-YEAR CAPITAL IMPROVEMENTS PROGRAM 25 AND THE PROPOSED CAPITAL IMPROVEMENTS BUDGET FOR THE 26 COMING FISCAL YEAR, THE LATTER TO INCLUDE INDIVIDUAL PROJECT 27 JUSTIFICATION WITH DOCUMENTATION OF ESTIMATED PROJECT COST]; 28 (3) develop procedures to produce the information needed for effective 29 policy decision making, including procedures to provide for the dissemination of 30 information about plans, programs, and budget requests to be included in the annual 31 budget and opportunity for public review and comment during the period of budget
01 preparation; 02 (4) assist state agencies in developing and updating strategic plans 03 [THEIR STATEMENT OF GOALS AND OBJECTIVES] to achieve, among other 04 things, the legislature's service, program, and financial goals [MISSION] and 05 desired results, preparation of plans, assessments of the extent to which goals 06 [MISSIONS] and desired results have been achieved, budget requests, and reporting of 07 program performance; all documents forwarded by the office to a state agency 08 containing instructions for the preparation of program plans and budget requests and 09 the reporting of program performance are public information after the date they are 10 forwarded; 11 (5) administer its responsibilities under the program execution 12 provisions of this chapter so that the policy decisions and budget determinations of the 13 governor and the legislature are implemented; 14 (6) provide the legislative finance division with the budget information 15 it may request; 16 (7) provide the legislative finance division with an advance copy of the 17 governor's electronic data for the current fiscal year management plan [BUDGET 18 WORKBOOKS] at least seven days before the legislature convenes in a regular 19 session; 20 (8) prepare the proposed capital improvements budget for the coming 21 fiscal year evaluating both state and local requests from the standpoint of need, equity, 22 and priorities of the jurisdiction; other factors, including [SUCH AS] project amounts, 23 population, local financial match, federal funds being used for local match, 24 municipality or unincorporated community acceptance of the facility, and all 25 associated costs of the facility, may be considered; 26 (9) for each department in the executive branch, report to the 27 legislature by the 45th day of each regular session the amount of money appropriated 28 to the department that is expected to lapse into the general fund at the end of the 29 current fiscal year; 30 (10) establish and administer a state agency program performance 31 management system involving planning, performance budgeting, performance
01 measurement, and program evaluation; the office shall ensure that information 02 generated under this system is useful for managing and improving the efficiency and 03 effectiveness of agency operations; 04 (11) by January 15, list each lease-purchase agreement entered into by 05 an agency during the immediately preceding fiscal year for the acquisition of 06 equipment or other personal property, together with a description of the property 07 acquired and financial details, including the purchase price, the term for payments, the 08 amount of each payment, and the amount of interest or financing charges paid; 09 (12) work with state agencies to develop a standardized methodology 10 to collect and store energy consumption and expense data. 11 * Sec. 16. AS 37.07.050(a) is amended to read: 12 (a) The agencies shall ensure [ASSURE] the development of a statewide 13 system of results-based government designed to increase efficiency and effectiveness 14 of state programs and services. Toward that end, each state agency shall include in its 15 strategic, financial, and performance plans progress made toward [, ON A SEMI- 16 ANNUAL BASIS, IDENTIFY RESULTS-BASED MEASURES THAT HAVE 17 BEEN USED TO WORK TOWARD] achievement of the service, program, and 18 financial goals [MISSION STATEMENT] and desired results issued by the 19 legislature and [OF] other goals of the agency [, AND SET OUT THE RESULTS AS 20 MEASURED]. Each state agency shall also prepare information that shall be compiled 21 and submitted on December 15 each year to the office, the legislature, and the 22 legislative finance division; this information must 23 (1) identify the agency service, program, and financial goals 24 [MISSION] and desired results established by the legislature; 25 (2) identify the goals and objectives the agency will use to achieve the 26 legislature's service, program, and financial goals [MISSION] and desired results; 27 (3) set out the results of [ANY] user group surveys and, if the results 28 do not agree with the service, program, and financial goals [MISSION] and desired 29 results [, GOALS,] and objectives, explain why; 30 (4) include written, defined methods of measuring results that apply to 31 the responsibilities, products, and services of the agency;
01 (5) identify results-based measures that have been used to work toward 02 achievement of the service, program, and financial goals [MISSION 03 STATEMENT] and desired results issued by the legislature and other goals of the 04 agency and set out the results as measured; 05 (6) identify surveys or other methods of gathering user group opinions 06 that have been used by the agency to identify ways to improve its programs; 07 (7) identify methods of measuring performance when the service, 08 program, and financial goals [MISSION STATEMENT] and desired results issued 09 by the legislature involve more than one agency and make recommendations to 10 eliminate duplication of government functions and waste; 11 (8) identify ways in which the agency has involved its employees in 12 the development of methods of measuring results, including opportunities for 13 employee representatives to participate in committees established to develop methods 14 of measuring results; 15 (9) include the budget requested to carry out the agency's proposed 16 plans in the succeeding fiscal year, including information reflecting the expenditures 17 during the last fiscal year, the expenditures authorized for the current fiscal year, the 18 expenditures proposed for the succeeding fiscal year, an explanation of the services to 19 be provided, the number of total positions for all persons employed or under contract 20 by the agency for personal services, including those rendered for capital improvement 21 projects, the need for the services, the cost of the services, and other information 22 requested by the office; 23 (10) include a report of agency receipts during the last fiscal year, an 24 estimate of receipts during the current fiscal year, and an estimate of receipts for the 25 succeeding fiscal year; 26 (11) identify legislation required to implement the proposed programs 27 and financial plans; 28 (12) include an evaluation of the advantages and disadvantages of 29 specific alternatives to existing or proposed agency activities or administrative 30 methods; 31 (13) prioritize the activities of the agency from the most important to
01 the least important. 02 * Sec. 17. AS 37.07 is amended by adding a new section to read: 03 Sec. 37.07.055. Boards and commissions: programs; strategic and 04 financial plans. (a) Each board and commission shall prepare and compile a financial 05 plan and shall, on or before December 15 of each year, submit the plan to the office, 06 the legislative finance division, the senate secretary, and the chief clerk of the house of 07 representatives and notify the legislature that the plan is available. The plan must 08 (1) include 09 (A) the budget requested to carry out the proposed plans of the 10 board or commission in the succeeding fiscal year; 11 (B) the expenditures made during the preceding fiscal year; 12 (C) the expenditures authorized for the current fiscal year; 13 (D) the expenditures proposed for the succeeding fiscal year; 14 (E) an explanation of the services to be provided in the 15 succeeding fiscal year, including the need for the services and the cost of the 16 services; 17 (F) the number of total positions for all persons employed or 18 under contract by the board or commission for personal services, including 19 those rendered for capital improvement projects; and 20 (G) other information requested by the office; 21 (2) include a report of receipts of the board or commission for 22 expenditures made during the preceding fiscal year, an estimate of receipts for 23 expenditures to be made during the current fiscal year, and an estimate of receipts for 24 expected expenditures for the succeeding fiscal year; and 25 (3) identify legislation required to implement the proposed financial 26 plans. 27 (b) Each board and commission shall prepare an annual plan for the operation 28 of each of its assigned programs except for programs that are exempted from this 29 requirement by the office. The strategic plan shall be prepared in the form and content 30 and be transmitted on the date prescribed by the office. The office shall 31 (1) review each strategic plan to determine whether the plan is
01 consistent with the executive decisions of the governor, appropriations by the 02 legislature, and other provisions of law, whether the plan reflects proper planning and 03 efficient management methods, and whether appropriations have been made for the 04 legislatively established purpose and will not be exhausted before the end of the fiscal 05 year; 06 (2) approve the strategic plan if satisfied that the plan meets the 07 requirements under (1) of this subsection; otherwise, the office shall require the board 08 or commission to revise the strategic plan, in whole or in part. 09 (c) The office shall assist boards and commissions in the preparation of their 10 financial plan under (a) of this section. This assistance may include technical 11 assistance, organization of materials, centrally collected accounting, budgeting and 12 personnel information, standards and guidelines formulation, population and other 13 required data, and any other assistance that will help the boards and commissions 14 produce the information necessary for efficient management and effective decision- 15 making by the governor and the legislature. 16 (d) If a board or commission fails to transmit the plan as required under (a) or 17 (b) of this section by the specified date, the office may prepare the plan. 18 (e) The office shall compile and submit to the governor-elect in any year when 19 a new governor has been elected, not later than December 15, a summary of the 20 financial plan prepared by boards and commissions under (a) of this section. 21 (f) All goals and objectives, plans, programs, estimates, budgets, and other 22 documents forwarded to the office by a board or commission under this section are 23 public information after the date they are forwarded. 24 (g) Budget requests for boards and commissions and for those agency 25 programs for the fiscal year following termination under AS 44.66 shall be prepared 26 and submitted by the board or commission. The recommended appropriation request 27 must include 28 (1) an identification of the objectives intended for the program and the 29 problem or need that the activities and operations of the board, commission, or 30 program is intended to address; 31 (2) an assessment of the degree to which the original objectives of the
01 program have been achieved expressed in terms of performance, effects, or 02 accomplishments of the program and of the program or need the objective was 03 intended to address; 04 (3) a statement of the performance and accomplishments of the 05 program in each of the last four completed fiscal years and of the costs incurred in the 06 operation of the program; 07 (4) a statement of the number and types of persons affected by 08 operation of the program; 09 (5) a summary statement, for each of the last three completed fiscal 10 years, of the number of personnel employed in carrying out the program and a 11 summary of the cost of personnel employed under contract in carrying out the 12 program; 13 (6) an assessment of the effect of the program on the economy of the 14 state; 15 (7) an assessment of the degree to which the overall policies of the 16 program, as expressed in regulations adopted by the agency, board, or commission and 17 its decisions, meet the objectives of the legislature in establishing the program; 18 (8) an analysis of the services and performance estimated to be 19 achieved if the life of the agency, board, or commission were to be continued; 20 (9) a prioritized list of the activities the agency, board, or commission 21 would be expected to perform if the life of the agency, board, or commission were to 22 be continued, from the most important to the least important. 23 (h) Each board and commission shall, with participation of its employees, 24 develop methods for measuring results. A group or committee established by a board 25 or commission to develop methods of measuring results shall include a representative 26 of each of the bargaining units that represents employees of the board or commission. 27 (i) The office shall report quarterly to the governor and the legislature on the 28 operations of each board and commission, relating actual accomplishments to those 29 planned and modifying, if necessary, the strategic plan of any board or commission for 30 the balance of the fiscal year. 31 * Sec. 18. AS 37.07.060(a) is amended to read:
01 (a) The governor shall articulate three to five priorities and shall organize 02 [FORMULATE] the operating and capital budget, capital improvements program, and 03 fiscal plan required to be recommended to the legislature by AS 37.07.020 after 04 considering the state agency proposed program and financial plans prepared in 05 accordance with AS 37.07.050, 37.07.055, and 37.07.085 and other programs and 06 alternatives that the governor considers appropriate. The plans must include 07 (1) the governor's recommended statewide priorities, based on the 08 service, program, and financial goals [MISSIONS] and desired results issued by 09 the legislature; 10 (2) performance plans designed [, RECOMMENDED 11 STRATEGIES] to implement the service, program, and financial goals 12 [MISSIONS] and results, including recommended measures for determining whether 13 the service, program, and financial goals [MISSIONS] and desired results are 14 achieved and [, INCLUDING] an assessment of whether prior year service, program, 15 and financial goals [MISSIONS] and desired results have been achieved; 16 (3) [,] recommended operating program for the succeeding fiscal year; 17 (4) [,] recommended capital improvements program for the succeeding 18 six fiscal years; 19 (5) [,] recommended programs for the upgrading of public buildings 20 and facilities prepared in accordance with AS 35.10.015; [,] and 21 (6) recommended revenue measures to support the programs. 22 * Sec. 19. AS 37.07.080(a) is amended to read: 23 (a) As [EXCEPT AS] limited by executive decisions of the governor, the 24 strategic and performance plans that include the service, program, and financial 25 goals [MISSION STATEMENTS] and desired results issued by the legislature, 26 appropriations by the legislature, and other provisions of law, the several state 27 agencies have full authority for administering their program service assignments and 28 are responsible for their proper management. 29 * Sec. 20. AS 37.07.080(b) is amended to read: 30 (b) Each state agency shall prepare an annual strategic plan for the operation 31 of each of its assigned programs except for programs that are exempted from this
01 requirement by the office. The strategic [OPERATIONS] plan shall be prepared in the 02 form and content and be transmitted on the date prescribed by the office. 03 * Sec. 21. AS 37.07.080(c) is amended to read: 04 (c) The office shall 05 (1) review each strategic [OPERATIONS] plan to determine that the 06 plan [IT] is consistent with the executive decisions of the governor, the service, 07 program, and financial goals [MISSION STATEMENT] and desired results issued 08 by the legislature, appropriations by the legislature, and other provisions of law, that 09 the plan [IT] reflects proper planning and efficient management methods, and that 10 appropriations have been made for the legislatively established purpose and will not 11 be exhausted before the end of the fiscal year; 12 (2) approve the strategic [OPERATIONS] plan if satisfied that the 13 plan [IT] meets the requirements under (1) of this subsection; otherwise, the office 14 shall require revision of the strategic [OPERATIONS] plan in whole or in part. 15 * Sec. 22. AS 37.07.080(d) is amended to read: 16 (d) A state agency may not increase the salaries of its employees, employ 17 additional employees, or expend money or incur obligations except in accordance with 18 law and a properly approved strategic [OPERATIONS] plan. 19 * Sec. 23. AS 37.07.080(f) is amended to read: 20 (f) The office shall report quarterly to the governor and the legislature on the 21 operations of each state agency, relating actual accomplishments to those planned and 22 modifying, if necessary, the strategic [OPERATIONS] plan of any agency for the 23 balance of the fiscal year. 24 * Sec. 24. AS 37.07 is amended by adding a new section to read: 25 Sec. 37.07.085. Performance plan and financial plan. (a) Each agency shall 26 annually establish a performance plan and a financial plan that are consistent with the 27 agency strategic plan and submitted in a format and by a date prescribed by the office. 28 The office shall, on or before December 15 of each year, submit the performance plan 29 and the financial plan to the legislative finance division, the senate secretary, and the 30 chief clerk of the house of representatives and notify the legislature that the plans are 31 available.
01 (b) The performance plan must 02 (1) describe the program structure of the agency and any proposed 03 changes to its current program structure; 04 (2) identify each program of the agency and, for each program, provide 05 (A) the constitutional or statutory authority for the program; 06 and 07 (B) a single statement identifying 08 (i) the services provided and customers served by the 09 program; and 10 (ii) the benefit to the public or intended outcome of the 11 program; 12 (3) assess progress toward achieving the service, program, and 13 financial goals issued by the legislature; 14 (4) identify the goals and objectives defined in the agency strategic 15 plan that correspond to each agency performance measure; 16 (5) identify results for each performance measure for the prior four 17 fiscal years and, if historical data is not available, indicate whether the absence of 18 historical data is because a new performance measure is being used; and 19 (6) identify performance targets for each performance measure for the 20 succeeding fiscal year. 21 (c) The financial plan must include the following information: 22 (1) for the prior four fiscal years, identify revenue and expenditures for 23 the agency and for each program of the agency by fiscal year; 24 (2) breakdowns of the revenue and expenditures identified in (1) of 25 this subsection that list amounts received by each different revenue source and 26 amounts expended on each type of expenditure; 27 (3) estimates of revenue and expenditures for the current and 28 succeeding fiscal year; 29 (4) the budget requested to carry out the proposed plans of the agency 30 in the succeeding fiscal year; 31 (5) the expenditures authorized for the current fiscal year;
01 (6) the expenditures proposed for the succeeding fiscal year; 02 (7) the number of total positions for all persons employed or under 03 contract by the agency for personal services, including those rendered for capital 04 improvement projects; 05 (8) the cost of the services provided by each program identified under 06 (b)(2) of this section; 07 (9) a report of receipts of the agency for expenditures made during the 08 preceding fiscal year, an estimate of receipts for expenditures to be made during the 09 current fiscal year, and an estimate of receipts for expected expenditures for the 10 succeeding fiscal year; 11 (10) identification of legislation required to implement the proposed 12 financial plan; and 13 (11) other financial information requested by the office. 14 (d) The office shall provide guidance to agencies in the preparation of their 15 performance plans and financial plans required by (a) - (c) of this section. This 16 guidance may include budget guidelines and limitations, technical assistance, 17 organization of materials, centrally collected accounting, budgeting and personnel 18 information, standards and guidelines formulation, population and other required data, 19 and any other assistance that will help the state agencies produce the information 20 necessary for efficient agency management and effective decision-making by the 21 governor and the legislature. 22 (e) If any state agency fails to transmit the performance plan or financial plan 23 required by (a) - (c) of this section by the date prescribed by the office, the office may 24 prepare the information. 25 (f) Once each calendar quarter, each agency shall prepare a performance 26 report updating the performance information required under (b)(3) - (5) of this section 27 and present its performance report to the office in a format prescribed by the office. 28 (g) All performance plans, financial plans, reports, and other documents 29 forwarded to the office by a state agency under this section are public information 30 after the date they are forwarded. The office shall publish the plans and reports 31 required under this section on a publicly available Internet website.
01 (h) Each state agency shall develop its performance plan with the participation 02 of its employees. A group or committee established by a state agency to develop a 03 performance plan shall include a representative of each of the bargaining units that 04 represent employees of the state agency. 05 * Sec. 25. AS 44.66.050(a) is amended to read: 06 (a) Before the termination, dissolution, continuation, or reestablishment of a 07 board or commission under AS 08.03.010 or AS 44.66.010, a committee of reference 08 of each house, which shall be the standing committee of legislative jurisdiction as 09 provided in the Uniform Rules of the Legislature, shall hold one or more hearings to 10 receive testimony from the public, the commissioner of the department having 11 administrative responsibility for each named board or commission, and the members 12 of the board or commission involved. The hearings may be joint hearings. The 13 committee shall also consider the proposed budget of the board or commission 14 prepared in accordance with AS 37.07.055(g) [AS 37.07.050(f)] and the performance 15 audit of the activities of the board or commission prepared by the legislative audit 16 division as prescribed in AS 24.20.271(1). The committee may consider any other 17 report of the activities of the board or commission, including annual reports, 18 summaries prepared by the Legislative Affairs Agency, and any evaluation or general 19 report of the manner of conduct of activities of the board or commission prepared by 20 the office of the ombudsman. 21 * Sec. 26. AS 37.07.014(f) is repealed. 22 * Sec. 27. Section 7 of this Act takes effect July 1, 2025. 23 * Sec. 28. Except as provided in sec. 27 of this Act, this Act takes effect July 1, 2024.