Bill Text: CA SB14 | 2011-2012 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: State Budget.
Spectrum: Slight Partisan Bill (Democrat 17-8)
Status: (Vetoed) 2012-03-01 - Consideration of Governor's veto stricken from file. [SB14 Detail]
Download: California-2011-SB14-Amended.html
Bill Title: State Budget.
Spectrum: Slight Partisan Bill (Democrat 17-8)
Status: (Vetoed) 2012-03-01 - Consideration of Governor's veto stricken from file. [SB14 Detail]
Download: California-2011-SB14-Amended.html
BILL NUMBER: SB 14 AMENDED BILL TEXT AMENDED IN SENATE MAY 19, 2011 AMENDED IN SENATE MARCH 17, 2011 INTRODUCED BY Senators Wolk, DeSaulnier, and Huff (Principalcoauthor:SenatorAlquistcoauthors: Senators Alquist and Rubio ) (Principal coauthors: Assembly Members Bonilla, Buchanan, Fletcher, Gordon, and Olsen) (Coauthor: Senator Harman) (Coauthors: Assembly Members Block, Harkey, Huffman, and Wagner) DECEMBER 6, 2010 An act to add Sections 9147.8, 13335.3, and 13335.5 to the Government Code, relating to the State Budget. LEGISLATIVE COUNSEL'S DIGEST SB 14, as amended, Wolk. State Budget. (1) The California Constitution requires the Governor to submit annually to the Legislature a budget itemizing state expenditures and estimating state revenues and requires the Legislature to pass the Budget Bill by midnight on June 15. This bill would require that the budget submitted by the Governor to the Legislature for the 2014-15 fiscal year and each fiscal year thereafter be developed pursuant to performance-based budgeting, as defined, for each state agency. (2) Under existing law, a state agency for which an appropriation is made is generally required to submit to the Department of Finance for approval a complete and detailed budget setting forth all proposed expenditures and estimated revenues for the ensuing fiscal year. The bill would require the budget of a state agency, as defined, submitted to the department to utilize performance-based budgeting for all programs, as defined to include those performed not only by state agencies, but by local agencies, contractors, or others that have a material relationship with the state, or its authorities and activities. For those programs not administered by the state, but which confer a benefit that would not otherwise occur but for the action of state government, state departments would be required to develop a process for consulting with responsible local agencies, contractors or other responsible entities, and stakeholders to develop information related to performance standards and program performance. The bill would require the department to include specified performance-based budgeting information in the Governor's budget proposal and to post that information on the department's Internet Web site. The bill would authorizethe Joint Sunset Review Committeea committee designated by the Legislature , utilizing the recommendations of specified entities, to propose legislative changes to those programs. The bill also would establish a task force comprised of the Director of Finance, the Controller, and the chairpersons and vice chairpersons of the Senate Committee on Budget and Fiscal Review and Assembly Committee on Budget to review and comment on performance-based budgeting guidelines and procedures, to be used by state agencies in developing performance-based budgets, to review and comment on a training program for state agency personnel involved in the performance-based budgeting process developed by the Department of Finance, and to review and comment on a plan developed by the department for phasing in performance-based budgeting, which plan would be required to ensure that such budgeting would be in use by the 2012-13 fiscal years, giving priority to those programs that were a part of the 2011-12 realignment project. Implementation of the bill's provisions would be contingent on an appropriation of funding for its purposes in the annual Budget Act. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. It is the intent of the Legislature in enacting this measure during the 2011-12 Regular Session to provide a system of analysis that supports a results-oriented framework for the delivery of public services. That framework should prioritize understanding the results of programs and funding that are subject to a transfer of authority and responsibility from state government to county governments. SEC. 2. Section 9147.8 is added to the Government Code, to read: 9147.8. (a)Within one year ofNot later than one year after the effective date of the act that added this section, theJoint Sunset Review Committee shallLegislature shall designate a committee of the Legislature, which may be a new joint committee created for this purpose or an existing joint committee, to adopt a process, schedule, and deadline for reviewing the performance of all programs at least once every 10 years , and the designated committee shall undertake that review . The schedule shall provide for reviewing programs with expenditures that total one-third or more of total expenditures by July 1, 2015, and that total two-thirds of total expenditures by January 1, 2018. For purposes of this section, "expenditures" includeallappropriations from all variet ies of funds as reflected in the Budget Bill submitted by the Governor, and statutory exemptions, deductions, credits, or exclusions from taxes or fees that would otherwise apply. For purposes of this act, "expenditures" also shall include the revenue and expenditures of state departments that are not reflected in the Budget Bill. The process established by the designated committee to review the performance of public programs shall reflect the principles of performance-based budgeting and shall include the participation of the Senate Committee on Budget and Fiscal Review and the Assembly Committee on Budget. (b)SixNot later than six months prior to the deadline for review of each program, thejointcommittee designated pursuant to subdivision (a) shall refer the information on an initial program review to the appropriate policy committees of each house of the Legislature. For programs with common objectives, the reviews may be combined.WithinNot later than 90 days prior to the deadline, the policy committees shall make recommendations regarding a program to thejointdesignated committee. Thejoint committee'sreview by the designated committee may be based on the recommendations of the policy committees, as well as recommendations that may be made by the Milton Marks "Little Hoover" Commission on California State Government Organization and Economy, the Legislative Analyst, the Bureau of State Audits, or the public. As part of its recommendations to thejoint committeeLegislature , the Bureau of State Audits shall identify those programs that pose the greatest financial risks to the state. If following the review of one or more programs thejointdesignated committee determines that statutory changes are necessary, thejointdesignated committee may propose legislation that includes, but is not limited to, one or more of the following: (1) Modifications to the program that will reduce costs. (2) Modifications to the program that will improve outcomes. (3) Reorganization of the program by consolidating it with programs that have similar objectives. (4) Termination of the program, provided that if a program is recommended for termination, an analysis shall include the potential benefits if performance is improved, the relationship between the program and desired public outcomes, and the impact of eliminating that program. The analysis of impacts of elimination shall include ramifications on related outcomes, the potential to increase the burden and fiscal impact on other public programs, and the potential impact on future budgets. (c) Proposed legislation shall be submitted to the Committee on Rules of each house of the Legislature for referral to the appropriate policy committee for public hearing and further action. (d) Thejointdesignated committee shall post on an Internet Web site its recommendations and the results of the Legislature's action. (e) "Performance-based budgeting" has the same meaning as set forth in subdivision (d) of Section 13335.3. (f) For the purposes of this section, "program" includes statutory or constitutional provisions that authorize services, regulate activities, evaluate services and programs, provide preferences in the tax system, or otherwise confer a benefit that would not otherwise occur were it not for the action of the state government, including the procedures used to administer those programs, whether performed by state agencies, local agencies, contractors, or others that have a material relationship with the state or its authorities and activities, or that have a fiscal effect on the state. SEC. 3. Section 13335.3 is added to the Government Code, to read: 13335.3. (a) The purpose of performance-based budgeting is to inform policy, fiscal, and oversight decisions by the Governor and Members of the Legislature; to focus managers, supervisors, and rank-and-file workers on achieving desired goals; and to communicate to the public the value of public programs, progress toward desired results, and the choices available to improve the expenditure of public funds. (b) Every state agency for which an appropriation has been made shall submit to the department for approval a complete and detailed budget at the time and in the form prescribed by the department, setting forth all proposed expenditures and estimated revenues for the ensuing fiscal year. (c) The budget submitted to the department and proposed by the Governor shall use performance-based budgeting methods that make it clear to policymakers and the public the value and results of existing operations and proposed changes. (d) As used in this article, "performance-based budgeting" means a system of budgeting that uses information on performance to inform resource allocation decisions, thereby establishing clear accountability. (e) A performance-based budget shall identify and update all of the following: (1) The mission and goals of the agency. (2) The activities and programs focused on achieving those goals. (3) Performance metrics that reflect desired outcomes for existing and proposed activities and a targeted performance level for the following year. (4) Prior-year performance data and an explanation of deviation from previous-year targets. (5) Proposed changes in statute, including the creation of incentives or elimination of disincentives that could improve outcomes or hold down costs. (6) A description of the impacts and consequences to the current recipients or beneficiaries of a program proposed for modification or elimination. (f) The Governor's Internet Web site shall provide a summary of each state agency's mission, goals, prior-year performance, and future-year objectives. SEC. 4. Section 13335.5 is added to the Government Code, to read: 13335.5. (a) Not later than the 2014-15 fiscal year, and each fiscal year thereafter, the budget submitted by the Governor to the Legislature, as required by Section 12 of Article IV of the California Constitution, shall be developed by utilizing performance-based budgeting methods. (b) The amount of each appropriation made in the Budget Act for the 2014-15 fiscal year, and each fiscal year thereafter, for expenditure by any state agency shall be determined after considering performance-related data.The Budget BillWhen the Budget Bill is submitted by the Governoralso, he or she shall include performance standards, which may be amended by the Legislature in the same manner as amendments to appropriations in the Budget Bill. These standardsfor that budget in a separate document. These standards shall be applied to each state agency, and should allow the public and policymakers to understand the effectiveness and efficiency of each program. For those programs that are not administered by the state, but which confer a benefit that would not otherwise occur were it not for the action of the state government, departments shall develop a process for consulting with the responsible local agencies, contractors or other responsible entities, and stakeholders to develop information related to performance standards and program performance. (c) The department shall include performance-based budgeting information in the Governor's budget proposal, in both printed and electronic formats if prepared, and post the information on its Internet Web site where it routinely posts budget information. That information shall include, but not be limited to, information on all of the following: (1) The mission and goals of each agency provided spending authority in the budget proposal. (2) The activities and programs focused on achieving those goals. (3) Performance metrics that reflect desired outcomes for existing and proposed activities and a targeted performance level for the following year. (4) Prior-year performance data and an explanation of deviation from previous-year targets. (5) A description of the impacts and consequences to the current recipients or beneficiaries of a program proposed for modification or elimination. (d) The Legislative Analyst's Office shall review the adequacy of performance metrics and progress toward targeted outcomes in preparing its review of the Governor's Budget proposal.(d)(e) A task force consisting of the director, the Controller, and the chairpersons and vice chairpersons of the Senate Committee on Budget and Fiscal Review and the Assembly Committee on Budget shall do all of the following: (1) Review and comment on guidelines and procedures drafted by the department to be used by state agencies in developing performance-based budgets pursuant to Sections 13320 and 13335.3. The guidelines shall describe how state employees will be involved in establishing and implementing performance standards. (2) Review and comment on a training program developed by the department for appropriate executive branch personnel to ensure the successful implementation of performance-based budgeting and management by state agencies. (3) Review and comment on a plan prepared by the department for systematically phasing in the requirements of Sections 13320 and 13335.3. The plan should ensure that, by the 2012-13 fiscal year, performance-based budgeting methods are used in preparing, reviewing, and enacting one-third or more of the total General Fund expenditures as proposed in the Governor's Budget for that fiscal year. Priority shall be given to those programs that were part of the 2011-12 realignment project as enacted.(e)(f) For purposes of this article, "state agency" means any agency, department, or other entity of the executive branch of the state that is required to submit a budget pursuant to Article 2 (commencing with Section 13320). SEC. 5. Implementation of this act is contingent on an appropriation of funding for its purposes in the annual Budget Act.