Legislature(1997 - 1998)
02/19/1998 03:35 PM Senate STA
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SB 76 - STATE LONG-TERM PLANNING
CHAIRMAN GREEN called the Senate State Affairs Committee to order
at 3:35 p.m., and noted the presence of Senators Ward, Miller,
Mackie and Green. She then brought SB 76 before the committee as
the first order of business.
Number 010
RICH VITALE, staff to Senator Parnell, expressed Senator Parnell's
regrets that he was out of town and could not testify on the
legislation.
Mr. Vitale directed attention to a proposed CSSB 76(STA), version
"K" which corrects a drafting error in version "H." On page 2,
lines 18 through 26, a new subsection (e) has been added. He
explained this is existing law and it was inadvertently left out of
the previous draft.
Mr. Vitale said SB 76 will enact results-based government to better
serve Alaskans. It revises the Executive Budget Act to require the
legislative and executive branches to more clearly focus on results
for Alaskans through policies established by the Legislature and
executed by the Governor. Specifically, the Legislature will
establish policy by issuing mission statements and desired results
for each state agency to achieve. To accomplish this, the
Legislature will identify desired results, set priorities for each
agency, assign accountability and require methods for measuring,
reporting, and evaluating results. These results will be reported
quarterly to the Legislature for continuity and effective
oversight.
The Governor, through the Office of Management and Budget (OMB),
executes, coordinates, and manages each agency's efforts to achieve
the Legislature's mission and desired results. The Governor shall
also, through discussions with the public, its employees and
management teams, make recommendations for future mission
statements and desired results for consideration by the
Legislature.
Mr. Vitale said Senator Parnell respectfully requests the
committee's support for SB 76 which will result in a new method of
budgeting.
Number 056
SENATOR MACKIE moved the adoption of CSSB 76(STA), version "K," as
a working document. Hearing no objection, it was so ordered.
Number 070
CHAIRMAN GREEN commented that the Executive Budget Act currently
has the leeway to do something similar to what SB 76 proposes
without new legislation. MR. VITALE agreed that it might be
possible, but he said the committee substitute repeals a section
in law, 090, which he understands has rarely been followed, and
part of the problem has been that the Executive Budget Act has
grown over time and compiled a lot of vague gray language that
talks about doing this, but it doesn't give a coherent, logical
step by step of how to do it. In the committee substitute they are
attempting to streamline and consolidate the system so that it is
more understandable of what's going on.
CHAIRMAN GREEN noted AS 37.07.030 is repealed in the committee
substitute, and she asked if the new functions that are comparable
to those are included somewhere else in the bill. MR. VITALE
clarified that Section 37.07.014 in Section 1 is a reenactment of
030. He added that is really the heart of what the bill is about.
It addresses the responsibility of laying out what it means to do
the type of results-based government they are looking for.
Number 100
CHAIRMAN GREEN asked if without the passage of this legislation
there would be any problem in implementing the new mission-based
budget currently being worked on in the Finance Committee. MR.
VITALE said he didn't think there would be a problem with
implementing it, however, he thinks it sends a mixed message to the
Executive Branch about the Legislature's intentions for setting
policy and executing the policy.
SENATOR MACKIE suggested that it might be a good idea to ask for a
legal opinion on whether this is something that is needed. He
asked how closely coordinated this legislation is with the
leadership's direction or with the Finance Committee's leadership
direction in terms of budget process options that are currently
being reviewed. MR. VITALE replied that there have been
discussions with the Finance co-chair's office and they have heard
nothing that this would conflict with what they are trying to do.
MR. VITALE pointed out the legislation also contains a repealing of
one clause (AS 37.07.080(g)(2)) that was declared unconstitutional
by the Supreme Court several years ago and has been left in
statute.
SENATOR MACKIE commented that he thinks there is some merit in the
approach of wanting to see results in the budgeting process, but he
questions if this type of thing can be legislated and if things
such as mission statements, etc. belong in the Executive Budget
Act. CHAIRMAN GREEN agreed with Senator Mackie, and she said she
too has some questions and concerns with the concept. She
suggested formulating these questions and perhaps getting some
legal opinions on them.
Number 197
SENATOR WARD inquired if the Legislature would issue mission
statements to the numerous divisions in the departments. MR.
VITALE acknowledged that it could be handled that way. He said the
intent is to issue the mission statement to the department, but the
option to issue a separate mission statement for a subunit is in
the legislation.
Number 235
JACK FARGNOLI, Senior Policy Analyst, Office of Management and
Budget, stated OMB has no disagreement with the intent or purpose
of the legislation, but he echoed Senator Macki's concern about
results being legislated or placed in law.
On the overall exercise of performance-based budgeting or results-
based government, Mr. Fargnoli said OMB agrees with that being the
desired end, and OMB has been working closely with the finance
committees on these performance measurements, as well as working
with Senator Parnell on this concept.
Mr. Fargnoli pointed out that departments and agencies are oriented
and obliged by law to follow statutory missions, and the question
raised on the bill about issuing a mission statement, which the
bill envisions happening either selectively or exhaustively, or
somewhere in between, could cause a lot of confusion to agencies
and programs as to how they would manage being responsible for
filling those program purposes if their budgets were oriented and
allocated according to a few measures or results that were
specified in an appropriation bill. He said that has not been
talked through, and he did know if anyone was proposing that all
the missions of the many agencies be revisited by statute.
Mr. Fargnoli said right now the statutory process, the budget
process, and the Legislature's deliberative process provides many
opportunities for input by the public, and OMB is concerned that if
the legislation is implemented in its present form, which may or
may not be the intent, it would tend to put some confusion into
that process.
In his closing comments, Mr. Fargnoli expressed OMB's willingness
to work with the committee and Senator Parnell and to have full
discussions on these issues.
Number 280
CHAIRMAN GREEN asked Mr. Fargnoli if OMB plans to get an opinion or
some information on the separation of powers issue. MR. FARGNOLI
informed her that they had some discussion with the Department of
Law on the issue, and they will ask that some commentary be
provided to the committee.
Number 328
There being no further testimony on SB 76, CHAIRMAN GREEN stated
the legislation would be set aside.
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