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SB 21: "An Act relating to the Executive Budget Act; relating to strategic plans, mission statements, performance plans, and financial plans for executive branch agencies; and providing for an effective date."

00 SENATE BILL NO. 21 01 "An Act relating to the Executive Budget Act; relating to strategic plans, mission 02 statements, performance plans, and financial plans for executive branch agencies; and 03 providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 16.05.110(b) is amended to read: 06 (b) Except for money received as fisheries fines or forfeitures in settlement of 07 a claim or loss caused by damage to the fish resources of the state that is appropriated 08 to or through the division of commercial fisheries management and development, 09 appropriations of money from the fish and game fund and of money received by the 10 state under the federal aid acts described under AS 16.05.140 shall be made to the 11 division of wildlife conservation or the division of sport fish. The division of wildlife 12 conservation or the division of sport fish may use money appropriated under this 13 subsection to acquire administrative and other services from other agencies if the 14 division acquires the services through reimbursable services agreements. The division

01 of wildlife conservation and the division of sport fish shall include as part of their 02 budgets prepared under AS 37.07.085 [AS 37.07.050] 03 (1) a listing of the reimbursable services agreements that are to be 04 funded with money appropriated under this subsection; 05 (2) a description of the services to be provided under those 06 agreements; and 07 (3) a listing of the entities that are parties to those agreements. 08 * Sec. 2. AS 37.07.010 is amended to read: 09 Sec. 37.07.010. Statement of policy. It is the purpose of this chapter to 10 establish a comprehensive system for state program and financial management that 11 furthers the capacity of the governor and legislature to plan and finance the services 12 that they determine the state will provide for its citizens. The system must include 13 procedures for 14 (1) the orderly establishment, continuing review, and periodic revision 15 of the strategic plans, program goals, and policies of state agencies and financial 16 goals and policies of the state; 17 (2) the development, coordination, and review of long-range program 18 and financial plans that will implement established state strategies, goals, and 19 policies; 20 (3) the preparation, coordination, analysis, and enactment of a budget 21 that is organized to focus on the services provided by state agencies and on the cost of 22 those services and that provides for implementation of policies and plans [,] in the 23 succeeding budget periods [PERIOD]; 24 (4) the evaluation of alternatives to existing strategies, policies, plans, 25 and procedures that offer potential for more efficient state services; 26 (5) the regular appraisal and reporting of program performance; 27 (6) public participation in the development of the annual budget, 28 including opportunity for the public to review and comment on [UPON] the plans and 29 programs of the Office of the Governor and all state agencies in the executive branch, 30 the legislature, the judicial system, the University of Alaska, and the public 31 corporations of the state.

01 * Sec. 3. AS 37.07.014(a) is amended to read: 02 (a) To carry out its legislative power under art. II, sec. 1, Constitution of the 03 State of Alaska, and to promote results-based government, the legislature shall review 04 and analyze [ISSUE A] mission statements and performance plans issued by the 05 governor [STATEMENT] for each agency [AND THE DESIRED RESULTS THE 06 AGENCY SHOULD ACHIEVE. THE LEGISLATURE MAY ISSUE A SEPARATE 07 MISSION STATEMENT FOR A SUBUNIT OF AN AGENCY]. A mission statement 08 and performance plan [AND DESIRED RESULTS] should promote the efficient, 09 measured use of the state's resources. A mission statement and performance plan 10 [AND DESIRED RESULTS] constitute policy under which an agency shall operate, 11 and, where appropriate, the mission statement may be implemented by statute. 12 * Sec. 4. AS 37.07.014(b) is amended to read: 13 (b) The legislature shall provide for a budget review function that promotes 14 results-based government. The [LEGISLATURE SHALL ADOPT A METHOD OF 15 MEASURING RESULTS FOR EACH AGENCY, AND MEASUREMENTS SHALL 16 BE REPORTED SEMI-ANNUALLY BY EACH AGENCY TO THE 17 LEGISLATURE. THE REPORTS SHALL BE USED BY THE] legislature shall use 18 the information reported by an agency under (f) of this section to evaluate whether 19 the strategic plan and mission [AND DESIRED RESULTS] for that agency [OR 20 SUBUNIT OF THE AGENCY] are being achieved. 21 * Sec. 5. AS 37.07.014(c) is amended to read: 22 (c) The legislature shall analyze the strategic plans issued by the governor 23 and the comprehensive [OPERATING AND] capital improvements programs and 24 financial plans recommended by the governor. 25 * Sec. 6. AS 37.07.014(d) is amended to read: 26 (d) To foster results-based government, to implement the strategic plans, 27 and to carry out the mission statements, [AND TO OBTAIN DESIRED RESULTS,] 28 the legislature shall authorize the comprehensive [OPERATING AND] capital 29 improvements programs and financial plans necessary to implement agency 30 performance plans. The legislature shall allocate the state's resources for effective 31 and efficient delivery of public services by

01 (1) reviewing and analyzing the strategic plans and mission 02 statements [CLEARLY IDENTIFYING DESIRED RESULTS]; 03 (2) assessing how performance plans and financial plans 04 contribute to progress toward the strategic plans and mission statements 05 [SETTING PRIORITIES]; 06 (3) assigning accountability; [AND] 07 (4) reviewing and integrating financial plans into performance 08 plans; and 09 (5) maintaining the strategic, financial, and performance plans 10 and mission statements on a publicly available Internet website [USING 11 METHODS FOR MEASURING, REPORTING, AND EVALUATING RESULTS]. 12 * Sec. 7. AS 37.07.014(f) is amended to read: 13 (f) To help fulfill the legislature's responsibilities under this section and 14 achieve results-based government, each agency shall 15 (1) allocate resources to implement the strategic plans and achieve 16 the mission issued by the governor [AND DESIRED RESULTS ESTABLISHED 17 BY THE LEGISLATURE]; 18 (2) express its program [DESIRED] results [ESTABLISHED BY 19 THE LEGISLATURE AND OTHER PROGRAM RESULTS] in measurable terms; 20 (3) measure progress toward the strategic plans and [TOWARDS] 21 mission statements issued by the governor [AND DESIRED RESULTS 22 ESTABLISHED BY THE LEGISLATURE] and other results; 23 (4) promote activities consistent with the strategic plans and mission 24 statements issued by the governor [AND DESIRED RESULTS ESTABLISHED BY 25 THE LEGISLATURE] that reduce or avoid future costs; 26 (5) plan for the short-term and the long-term using consistent 27 assumptions for major demographic and other trends; [AND] 28 (6) require accountability at all levels for meeting the strategic plans 29 and program mission statements issued by the governor; and 30 (7) report quarterly to the office its progress toward the 31 performance plan required under AS 37.07.085 [AND DESIRED RESULTS

01 ESTABLISHED BY THE LEGISLATURE]. 02 * Sec. 8. AS 37.07.014 is amended by adding a new subsection to read: 03 (g) In this section, "agency" has the meaning given in AS 37.07.120, but does 04 not include an officer, board, or commission. 05 * Sec. 9. AS 37.07.016 is amended to read: 06 Sec. 37.07.016. Governor's use of strategic plans, mission statements, and 07 performance plans. To carry out the executive power under art. III, secs. [SEC.] 1 08 and [SEC.] 16, Constitution of the State of Alaska, the governor shall review the 09 strategic plans, mission statements, and performance plans compiled and 10 submitted by the office under AS 37.07.040(12) and (13). The governor may 11 approve, or require the office to revise, the strategic plans, mission statements, 12 and performance plans, in whole or in part. Once the governor approves the 13 strategic plans and mission statements, the governor shall use the strategic plans 14 and mission statements [AND DESIRED RESULTS ISSUED BY THE 15 LEGISLATURE AS A GUIDE] to implement and execute the law. Once the 16 governor approves the performance plans, the [THE] governor shall use the 17 performance plans to ensure [ASSURE] that each agency complies with [THE 18 MISSION STATEMENT] and achieves the desired results of the strategic plans and 19 mission statements approved by the governor [IDENTIFIED BY THE 20 LEGISLATURE]. 21 * Sec. 10. AS 37.07.020(a) is amended to read: 22 (a) The governor shall prepare a budget for the succeeding fiscal year that 23 must cover all estimated receipts, including all grants, loans, and money received from 24 the federal government and all proposed expenditures of the state government. The 25 budget shall be organized so that the proposed expenditures for each agency are 26 presented separately. The budget must be accompanied by the information required 27 under AS 37.07.050, 37.07.055, and 37.07.085 and by the following separate bills: (1) 28 an appropriation bill authorizing the operating and capital expenditures of the state's 29 integrated comprehensive mental health program under AS 37.14.003(a); (2) an 30 appropriation bill authorizing state operating expenditures other than those included in 31 the state's integrated comprehensive mental health program; (3) an appropriation bill

01 authorizing capital expenditures other than those included in the state's integrated 02 comprehensive mental health program; and (4) a bill or bills covering 03 recommendations, if any, in the budget for new or additional revenue. The budget for 04 the succeeding fiscal year and each of the bills shall become public information on 05 December 15 at which time the governor shall submit copies to the legislature and 06 make copies available to the public. The bills, identical in content to the copies 07 released on December 15, shall be delivered to the rules committee of each house 08 before the fourth legislative day of the next regular session for introduction. 09 * Sec. 11. 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 meeting the requirements of AS 37.07.020, 13 including the coordination and analysis of state agency goals and objectives, strategic, 14 performance, and other plans, and budget requests; 15 (2) prepare for submission to the governor an annually updated six- 16 year capital improvements program and the proposed capital improvements budget for 17 the coming fiscal year, the latter to include individual project justification with 18 documentation of estimated project cost; 19 (3) develop procedures to produce the information needed for effective 20 policy decision making, including procedures to provide for the dissemination of 21 information about plans, programs, and budget requests to be included in the annual 22 budget and opportunity for public review and comment during the period of budget 23 preparation; 24 (4) assist state agencies in developing and updating strategic plans, 25 mission statements, performance plans, financial plans [THEIR STATEMENT OF 26 GOALS AND OBJECTIVES TO ACHIEVE, AMONG OTHER THINGS, THE 27 LEGISLATURE'S MISSION AND DESIRED RESULTS, PREPARATION OF 28 PLANS, ASSESSMENTS OF THE EXTENT TO WHICH MISSIONS AND 29 DESIRED RESULTS HAVE BEEN ACHIEVED], budget requests, and reporting of 30 program performance; all documents forwarded by the office to a state agency 31 containing instructions for the preparation of program plans and budget requests and

01 the reporting of program performance are public information after the date they are 02 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 at least seven days before the legislature convenes in a 10 regular session; 11 (8) prepare the proposed capital improvements budget for the coming 12 fiscal year evaluating both state and local requests from the standpoint of need, equity, 13 and priorities of the jurisdiction; other factors, including [SUCH AS] project amounts, 14 population, local financial match, federal funds being used for local match, 15 municipality or unincorporated community acceptance of the facility, and all 16 associated costs of the facility, may be considered; 17 (9) for each department in the executive branch, report to the 18 legislature by the 45th day of each regular session the amount of money appropriated 19 to the department that is expected to lapse into the general fund at the end of the 20 current fiscal year; 21 (10) [ESTABLISH AND ADMINISTER A STATE AGENCY 22 PROGRAM PERFORMANCE MANAGEMENT SYSTEM INVOLVING 23 PLANNING, PERFORMANCE BUDGETING, PERFORMANCE 24 MEASUREMENT, AND PROGRAM EVALUATION; THE OFFICE SHALL 25 ENSURE THAT INFORMATION GENERATED UNDER THIS SYSTEM IS 26 USEFUL FOR MANAGING AND IMPROVING THE EFFICIENCY AND 27 EFFECTIVENESS OF AGENCY OPERATIONS; 28 (11)] by January 15, list each lease-purchase agreement entered into by 29 an agency during the immediately preceding fiscal year for the acquisition of 30 equipment or other personal property, together with a description of the property 31 acquired and financial details, including the purchase price, the term for payments, the

01 amount of each payment, and the amount of interest or financing charges paid; 02 (11) [(12)] work with state agencies to develop a standardized 03 methodology to collect and store energy consumption and expense data; 04 (12) compile the strategic plans and mission statements submitted 05 to the office under AS 37.07.050(a) and submit the strategic plans and mission 06 statements to the governor for the governor's consideration; 07 (13) compile the performance plans submitted to the office under 08 AS 37.07.085 and submit the performance plans to the governor for the 09 governor's consideration; 10 (14) compile the quarterly reports submitted to the office under 11 AS 37.07.014(f) and submit the reports to the senate secretary and the chief clerk 12 of the house of representatives and notify the legislature that the reports are 13 available. 14 * Sec. 12. AS 37.07.050 is repealed and reenacted to read: 15 Sec. 37.07.050. Agency strategic plans; mission statements. (a) Each state 16 agency shall develop and submit to the office in an electronic format comprehensive 17 strategic plans and mission statements for the divisions and core functions of that 18 agency consistent with the statutory authority of the agency and the governor's 19 statewide priorities. The strategic plan must cover the following four fiscal years. Each 20 state agency shall update its strategic plans and mission statements at the beginning of 21 each gubernatorial term, and at least once every two years after the beginning of the 22 gubernatorial term, and submit the updated plans and mission statements to the office. 23 A plan must, at a minimum, 24 (1) describe the strategic plan and mission statement; the mission 25 statement must concisely state the fundamental public purpose of the agency and its 26 programs and describe the services provided and activities conducted by the agency, 27 including an explanation of why and for whom those services and activities are 28 provided or conducted; 29 (2) identify three to six goals for the agency; 30 (3) identify specific, measurable, realistic, and timely objectives 31 related to each goal that the agency will use to achieve its goals based on the

01 recommendations of the division directors of the agency; 02 (4) describe any user group surveys or other methods of gathering user 03 group opinions the agency has used to identify ways to improve its program; 04 (5) describe the population served by the agency and major trends 05 affecting that population, including relevant state or national trends; 06 (6) identify key factors external to and outside the control of the 07 agency that could significantly affect the achievement of the goals and objectives 08 identified in the strategic plan; and 09 (7) identify legislation and regulatory changes required to implement 10 the proposed strategic plan. 11 (b) The office shall 12 (1) review each strategic plan and mission statement submitted to the 13 office under (a) of this section to determine whether each plan and mission statement 14 is consistent with the executive decisions and statewide priorities of the governor, 15 appropriations by the legislature, and other provisions of law, whether each plan 16 reflects proper planning and efficient management methods, and whether the planning 17 is consistent with the strategic plans and mission statements issued by the governor; 18 (2) approve the strategic plan and mission statement if satisfied that the 19 plan and mission statement meet the requirements under (1) of this subsection; 20 otherwise, the office shall require the state agency to revise the strategic plan or 21 mission statement, in whole or in part; 22 (3) review each performance plan submitted to the office under 23 AS 37.07.085 to determine whether the plan is consistent with the statewide priorities, 24 strategic plans, and mission statements issued by the governor; 25 (4) approve the performance plan if satisfied that the plan meets the 26 requirements under (3) of this subsection; otherwise, the office shall require the state 27 agency to revise the performance plan, in whole or in part. 28 (c) If a state agency fails to transmit the information as required under (a) of 29 this section by the specified date, the office may prepare the information. 30 (d) All strategic plans, mission statements, and other documents forwarded to 31 the office by a state agency under this section are public information after the date

01 they are forwarded. 02 (e) In this section, "state agency" or "agency" has the meaning given to 03 "agency" in AS 37.07.120, but does not include an officer, board, or commission. 04 * Sec. 13. AS 37.07 is amended by adding a new section to read: 05 Sec. 37.07.055. Boards and commissions: programs; operations and 06 financial plans. (a) Each board and commission shall prepare and compile a financial 07 plan and shall, on or before December 15 of each year, submit the plan to the office, 08 the legislative finance division, the senate secretary, and the chief clerk of the house of 09 representatives and notify the legislature that the plan is available. The plan must 10 (1) include 11 (A) the budget requested to carry out the proposed plans of the 12 board or commission in the succeeding fiscal year; 13 (B) the expenditures made during the preceding fiscal year; 14 (C) the expenditures authorized for the current fiscal year; 15 (D) the expenditures proposed for the succeeding fiscal year; 16 (E) an explanation of the services to be provided in the 17 succeeding fiscal year, including the need for the services and the cost of the 18 services; 19 (F) the number of total positions for all persons employed or 20 under contract by the board or commission for personal services, including 21 those rendered for capital improvement projects; and 22 (G) other information requested by the office; 23 (2) include a report of receipts of the board or commission for 24 expenditures made during the preceding fiscal year, an estimate of receipts for 25 expenditures to be made during the current fiscal year, and an estimate of receipts for 26 expected expenditures for the succeeding fiscal year; and 27 (3) identify legislation required to implement the proposed financial 28 plans. 29 (b) Each board and commission shall prepare an annual plan for the operation 30 of each of its assigned programs except for programs that are exempted from this 31 requirement by the office. The operations plan shall be prepared in the form and

01 content and be transmitted on the date prescribed by the office. The office shall 02 (1) review each operations plan to determine whether the plan is 03 consistent with the executive decisions of the governor, appropriations by the 04 legislature, and other provisions of law, whether the plan reflects proper planning and 05 efficient management methods, and whether appropriations have been made for the 06 legislatively established purpose and will not be exhausted before the end of the fiscal 07 year; 08 (2) approve the operations plan if satisfied that the plan meets the 09 requirements under (1) of this subsection; otherwise, the office shall require the board 10 or commission to revise the operations plan, in whole or in part. 11 (c) The office shall assist boards and commissions in the preparation of their 12 financial plan under (a) of this section. This assistance may include technical 13 assistance, organization of materials, centrally collected accounting, budgeting and 14 personnel information, standards and guidelines formulation, population and other 15 required data, and any other assistance that will help the boards and commissions 16 produce the information necessary for efficient management and effective decision- 17 making by the governor and the legislature. 18 (d) If a board or commission fails to transmit the plan as required under (a) or 19 (b) of this section by the specified date, the office may prepare the plan. 20 (e) The office shall compile and submit to the governor-elect in any year when 21 a new governor has been elected, not later than December 15, a summary of the 22 financial plan prepared by boards and commissions under (a) of this section. 23 (f) All goals and objectives, plans, programs, estimates, budgets, and other 24 documents forwarded to the office by a board or commission under this section are 25 public information after the date they are forwarded. 26 (g) Budget requests for boards and commissions and for those agency 27 programs for the fiscal year following termination under AS 44.66 shall be prepared 28 and submitted. The recommended appropriation request must include 29 (1) an identification of the objectives intended for the program and the 30 problem or need that the activities and operations of the board, commission, or 31 program is intended to address;

01 (2) an assessment of the degree to which the original objectives of the 02 program have been achieved expressed in terms of performance, effects, or 03 accomplishments of the program and of the program or need the objective was 04 intended to address; 05 (3) a statement of the performance and accomplishments of the 06 program in each of the last four completed fiscal years and of the costs incurred in the 07 operation of the program; 08 (4) a statement of the number and types of persons affected by 09 operation of the program; 10 (5) a summary statement, for each of the last three completed fiscal 11 years, of the number of personnel employed in carrying out the program and a 12 summary of the cost of personnel employed under contract in carrying out the 13 program; 14 (6) an assessment of the effect of the program on the economy of the 15 state; 16 (7) an assessment of the degree to which the overall policies of the 17 program, as expressed in regulations adopted by the agency, board, or commission and 18 its decisions, meet the objectives of the legislature in establishing the program; 19 (8) an analysis of the services and performance estimated to be 20 achieved if the life of the agency, board, or commission were to be continued; 21 (9) a prioritized list of the activities the agency, board, or commission 22 would be expected to perform if the life of the agency, board, or commission were to 23 be continued, from the most important to the least important. 24 (h) Each board and commission shall, with participation of its employees, 25 develop methods for measuring results. A group or committee established by a board 26 or commission to develop methods of measuring results shall include a representative 27 of each of the bargaining units that represents employees of the board or commission. 28 (i) The office shall report quarterly to the governor and the legislature on the 29 operations of each board and commission, relating actual accomplishments to those 30 planned and modifying, if necessary, the operations plan of any board or commission 31 for the balance of the fiscal year.

01 * Sec. 14. AS 37.07.060(a) is amended to read: 02 (a) The governor shall identify three to five statewide priorities and shall 03 formulate the operating and capital budget, capital improvements program, and fiscal 04 plan required to be recommended to the legislature by AS 37.07.020 after considering 05 the information provided under AS 37.07.040, 37.07.050, 37.07.055, and 37.07.085 06 [STATE AGENCY PROPOSED PROGRAM AND FINANCIAL PLANS 07 PREPARED IN ACCORDANCE WITH AS 37.07.050], and other programs and 08 alternatives that the governor considers appropriate. The plans must include the 09 governor's statewide priorities, strategic plans, mission statements, performance 10 plans [RECOMMENDED MISSIONS AND RESULTS, RECOMMENDED 11 STRATEGIES TO IMPLEMENT THE MISSIONS AND RESULTS, 12 RECOMMENDED MEASURES FOR DETERMINING WHETHER THE 13 MISSIONS AND DESIRED RESULTS ARE ACHIEVED, INCLUDING AN 14 ASSESSMENT OF WHETHER PRIOR YEAR MISSIONS AND DESIRED 15 RESULTS HAVE BEEN ACHIEVED], recommended operating program for the 16 succeeding fiscal year, recommended capital improvements program for the 17 succeeding six fiscal years, recommended programs for the upgrading of public 18 buildings and facilities prepared in accordance with AS 35.10.015, and recommended 19 revenue measures to support the programs. 20 * Sec. 15. AS 37.07.060 is amended by adding a new subsection to read: 21 (c) The governor shall present the governor's strategic plans and mission 22 statements in a message to a joint session of the legislature at the same time the 23 governor presents the governor's message under (b) of this section. The message under 24 this subsection must be accompanied by an explanatory report that identifies the 25 governor's statewide priorities and summarizes the strategic plans and mission 26 statements. The governor may not update the strategic plans, mission statements, or 27 explanatory report after the 30th legislative day following the convening of the 28 legislature in regular session. 29 * Sec. 16. AS 37.07.070 is amended to read: 30 Sec. 37.07.070. Legislative review. The legislature shall consider the 31 governor's statewide priorities, strategic plans, mission statements, financial

01 plans, agency performance plans, proposed comprehensive operating and capital 02 improvements programs, and fiscal plan if it is required under AS 37.07.020(b), 03 evaluate alternatives to the plans, make program selections among the various 04 alternatives, and determine, subject to available revenue [REVENUES], the level of 05 funding required to support authorized state services. The presiding officer of each 06 house may refer the fiscal plan to one or more committees. If the fiscal plan is 07 referred, the first committee of referral shall hold at least one hearing on it. The 08 operating and capital budgets of each agency shall be separately reviewed. During 09 each regular session of the legislature, legislative review of the governor's 10 supplemental appropriation bills and the governor's budget amendments are governed 11 by the following time limits: 12 (1) requests by the governor for supplemental appropriations for state 13 agency operating and capital budgets for the current fiscal year may be introduced by 14 the rules committee only through the 15th legislative day; 15 (2) requests by the governor for budget amendments to state agency 16 budgets for the budget fiscal year may be received and reviewed by the finance 17 committees only through the 30th legislative day. 18 * Sec. 17. AS 37.07.080(a) is amended to read: 19 (a) Except as limited by executive decisions of the governor, the strategic 20 plans and mission statements [AND DESIRED RESULTS] issued by the governor 21 [LEGISLATURE], appropriations by the legislature, and other provisions of law, 22 [THE SEVERAL] state agencies have full authority for administering their program 23 service assignments and are responsible for their proper management. 24 * Sec. 18. AS 37.07.080(d) is amended to read: 25 (d) A state agency may not increase the salaries of its employees, employ 26 additional employees, or expend money or incur obligations except in accordance with 27 law and a properly approved strategic, performance, or operations plan, as 28 applicable. 29 * Sec. 19. AS 37.07 is amended by adding a new section to read: 30 Sec. 37.07.085. Performance plan and financial plan. (a) Each agency shall 31 annually establish a performance plan and a financial plan that are consistent with the

01 agency strategic plan and submitted in a format and by a date prescribed by the office. 02 The office shall, on or before December 15 of each year, submit the performance plan 03 and the financial plan to the legislative finance division, the senate secretary, and the 04 chief clerk of the house of representatives and notify the legislature that the plans are 05 available. 06 (b) The performance plan must 07 (1) describe the program structure of the agency and any proposed 08 changes to its current program structure; 09 (2) identify each program of the agency and, for each program, provide 10 (A) the constitutional or statutory authority for the program; 11 and 12 (B) a single statement identifying 13 (i) the services provided and customers served by the 14 program; and 15 (ii) the benefit to the public or intended outcome of the 16 program; 17 (3) identify performance measures that clearly assess and capture the 18 progress made by the agency in meeting the goals and objectives of its divisions and 19 core functions of the agency stated in the strategic plan required under 20 AS 37.07.050(a); 21 (4) identify the goals and objectives defined in the agency strategic 22 plan that correspond to each performance measure identified under (3) of this 23 subsection; 24 (5) identify results for each performance measure for the prior four 25 fiscal years and, if historical data is not available, indicate whether the absence of 26 historical data is because a new performance measure is being used; and 27 (6) identify performance targets for each performance measure for the 28 succeeding fiscal year. 29 (c) The financial plan must include the following information: 30 (1) for the prior four fiscal years, identify revenue and expenditures for 31 the agency and for each program of the agency by fiscal year;

01 (2) breakdowns of the revenue and expenditures identified in (1) of 02 this subsection that list amounts received by each different revenue source and 03 amounts expended on each type of expenditure; 04 (3) estimates of revenue and expenditures for the current and 05 succeeding fiscal year; 06 (4) the budget requested to carry out the proposed plans of the agency 07 in the succeeding fiscal year; 08 (5) the expenditures authorized for the current fiscal year; 09 (6) the expenditures proposed for the succeeding fiscal year; 10 (7) the number of total positions for all persons employed or under 11 contract by the agency for personal services, including those rendered for capital 12 improvement projects; 13 (8) the cost of the services provided by each program identified under 14 (b)(2) of this section; 15 (9) a report of receipts of the agency for expenditures made during the 16 preceding fiscal year, an estimate of receipts for expenditures to be made during the 17 current fiscal year, and an estimate of receipts for expected expenditures for the 18 succeeding fiscal year; 19 (10) identification of legislation required to implement the proposed 20 financial plan; and 21 (11) other financial information requested by the office. 22 (d) The office shall assist agencies in the preparation of their performance 23 plans and financial plans required by (a) - (c) of this section. This assistance may 24 include technical assistance, organization of materials, centrally collected accounting, 25 budgeting and personnel information, standards and guidelines formulation, 26 population and other required data, and any other assistance that will help the state 27 agencies produce the information necessary for efficient agency management and 28 effective decision-making by the governor and the legislature. 29 (e) If any state agency fails to transmit the performance plan or financial plan 30 required by (a) - (c) of this section by the date prescribed by the office, the office may 31 prepare the information.

01 (f) Once each calendar quarter, each agency shall prepare a performance 02 report updating the performance information required under (b)(3) - (5) of this section 03 and present its performance report to the office in a format prescribed by the office. 04 (g) All performance plans, financial plans, reports, and other documents 05 forwarded to the office by a state agency under this section are public information 06 after the date they are forwarded. The office shall publish the plans and reports 07 required under this section on a publicly available Internet website. 08 (h) Each state agency shall develop its performance plan with the participation 09 of its employees. A group or committee established by a state agency to develop a 10 performance plan shall include a representative of each of the bargaining units that 11 represent employees of the state agency. 12 * Sec. 20. AS 37.07.120 is amended by adding new paragraphs to read: 13 (11) "goal" means a broad statement generally describing a desired 14 outcome for an agency or a program of the agency; 15 (12) "objective" means a measurable target that describes the end 16 result that a service or program is expected to accomplish in a given amount of time; 17 (13) "performance measure" means a quantifiable and enduring 18 measure of an outcome, output, efficiency, or effectiveness; 19 (14) "strategic plan" means a strategic plan developed under 20 AS 37.07.050. 21 * Sec. 21. AS 44.66.050(a) is amended to read: 22 (a) Before the termination, dissolution, continuation, or reestablishment of a 23 board or commission under AS 08.03.010 or AS 44.66.010, a committee of reference 24 of each house, which shall be the standing committee of legislative jurisdiction as 25 provided in the Uniform Rules of the Legislature, shall hold one or more hearings to 26 receive testimony from the public, the commissioner of the department having 27 administrative responsibility for each named board or commission, and the members 28 of the board or commission involved. The hearings may be joint hearings. The 29 committee shall also consider the proposed budget of the board or commission 30 prepared in accordance with AS 37.07.055(g) [AS 37.07.050(f)] and the performance 31 audit of the activities of the board or commission prepared by the legislative audit

01 division as prescribed in AS 24.20.271(1). The committee may consider any other 02 report of the activities of the board or commission, including annual reports, 03 summaries prepared by the Legislative Affairs Agency, and any evaluation or general 04 report of the manner of conduct of activities of the board or commission prepared by 05 the office of the ombudsman. 06 * Sec. 22. AS 37.07.080(b) and 37.07.080(c) are repealed. 07 * Sec. 23. This Act takes effect July 1, 2024.