Bill Text: CA SB14 | 2011-2012 | Regular Session | Enrolled
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-Enrolled.html
BILL NUMBER: SB 14 ENROLLED
BILL TEXT
PASSED THE SENATE SEPTEMBER 1, 2011
PASSED THE ASSEMBLY AUGUST 30, 2011
AMENDED IN ASSEMBLY AUGUST 25, 2011
AMENDED IN SENATE MAY 19, 2011
AMENDED IN SENATE MARCH 17, 2011
INTRODUCED BY Senators Wolk, DeSaulnier, and Huff
(Principal coauthors: Senators Alquist and Rubio)
(Principal coauthors: Assembly Members Blumenfield, Bonilla,
Buchanan, Dickinson, Fletcher, Gordon, and Olsen)
(Coauthors: Senators Correa and Harman)
(Coauthors: Assembly Members Alejo, Allen, Beall, Bill Berryhill,
Block, Feuer, Galgiani, Harkey, Huffman, Nielsen, and Wagner)
DECEMBER 6, 2010
An act to add Sections 13335.1, 13335.3, 13335.5, and 13335.7 to
the Government Code, relating to the State Budget.
LEGISLATIVE COUNSEL'S DIGEST
SB 14, 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 2013-14 fiscal year and each fiscal year
thereafter, as specified in a plan developed by the Department of
Finance and distributed to the appropriate committees of the
Legislature by August 1, 2012, 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 as specified in the plan developed by 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 be conferred 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.
Implementation of the requirement to use performance-based
budgeting for departments and programs would be contingent on an
appropriation of funding for that requirement in the annual Budget
Act.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 13335.1 is added to the Government Code, to
read:
13335.1. (a) It is the intent of the Legislature in enacting
Sections 13335.3, 13335.5, and 13335.7 to provide a system of
analysis that supports a results-oriented framework for the delivery
of public services and the operation of state departments and
programs. 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.
(b) The Legislature hereby finds and declares the following:
(1) State government must focus on the outcomes of public policy
decisions and public programs to ensure opportunities are available
for all Californians to achieve a high quality of life.
(2) The Legislature must ensure that policymakers, public program
administrators, and rank-and-file state workers have access to
relevant and timely information so that they can make informed
decisions in the design and delivery of public programs.
(3) The focus of that information must be on the goals of those
public programs and the performance of the public agencies in
administering those programs.
(4) Goal and performance information should be widely available,
relevant, and timely for informing budget, policy, and oversight
decisions.
(5) In order to identify performance measurements relevant to
budget, policy, and oversight decisionmaking, public agencies must
consult with the public, rank-and-file state workers, supervisors,
and other officials responsible for the delivery of public programs.
(6) Performance measurements, including information on outcomes
and other metrics relevant to improving those outcomes, should be
designed to ensure that limited public resources are well spent.
(7) Establishing goal, performance, and outcome information for
public programs should be part of a systematic review of the
effectiveness and efficiency of those programs.
(8) Goal, performance, and outcome information should be made
widely available to the public.
(9) Goal, performance, and outcome information should be used in
the annual budget and policymaking process to inform fiscal and
policy decisions and by the Legislature to enhance oversight of
public programs and to ensure results-based accountability.
(10) As a component of legislative oversight, goal, performance,
and outcome information should be used to identify programs that
require fundamental reforms to improve outcomes and programs subject
to elimination because they are ineffective.
SEC. 2. Section 13335.3 is added to the Government Code, to read:
13335.3. (a) 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.
(b) 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.
(c) 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 plan developed
by the department pursuant to Section 13335.5 that sets forth all
proposed expenditures and estimated revenues for the ensuing fiscal
year.
(d) Budgets submitted to the department pursuant to subdivision
(c) shall use performance-based budgeting to make clear to
policymakers and the public the value and results of existing
operations and proposed changes.
(e) A budget using performance-based budgeting 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 parties
affected by a program proposed for modification or elimination.
(f) Performance-based budgeting shall be used by each state agency
as specified in the plan submitted by the department pursuant to
Section 13335.5 and shall 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 that
confer a benefit that would not otherwise be conferred 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.
(g) The department shall include performance-based budgeting
information in the Governor's Budget proposal, as specified in
Section 13335.7, 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 parties
affected by a program proposed for modification or elimination.
SEC. 3. Section 13335.5 is added to the Government Code, to read:
13335.5. No later than August 1, 2012, the Department of Finance
shall prepare and distribute to the appropriate committees of the
Legislature, and to the Legislative Analyst's Office, a plan and a
timeline to implement the requirements of Section 13335.3, including
information on strategies and a timeline for the integration of
performance-based budgeting into the FISCal system as defined by
Chapter 7 (commencing with Section 15849.20) of Part 10b of Title 2,
as follows:
(a) The plan shall identify those departments and programs for
which performance-based budgeting shall be used beginning with the
development of the Governor's Budget for fiscal year 2013-14, and
shall specify the rate of expansion in the number of departments and
programs for which performance-based budgeting is to be used in
subsequent years.
(b) The plan and timeline shall describe how state employees and
other affected parties will be involved in establishing and
implementing performance standards.
(c) The plan shall identify training needs and opportunities to
ensure that state employees have appropriate opportunities for
education, training, and support to ensure the successful
implementation of performance-based budgeting and management by state
agencies.
SEC. 4. Section 13335.7 is added to the Government Code, to read:
13335.7. (a) Beginning with the budget submitted by the Governor
to the Legislature pursuant to Section 12 of Article IV of the
California Constitution for the 2013-14 fiscal year, the department
shall require the use of performance-based budgeting for those
departments and programs required by the plan submitted by the
department to the Legislature pursuant to Section 13335.5 to use
performance-based budgeting for the applicable fiscal year.
(b) The budget submitted by the Governor to the Legislature
pursuant to Section 12 of Article IV of the California Constitution
for the 2018-19 fiscal year, and for every fiscal year thereafter,
shall be developed for each program and department using
performance-based budgeting.
(c) 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) For purposes of Sections 13335.3 and 13335.5, "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 Section 13335.7 of the Government Code
is contingent on an appropriation of funding for its purposes in the
annual Budget Act.
