Bill Text: MS SB2908 | 2012 | Regular Session | Introduced

Mississippi Senate Bill 2908 (Prior Session Legislation)

Introduced

Bill Title: "Mississippi Strategic Planning and Performance Budgeting System Act of 2012"; enact.

Sponsorship: Partisan Bill (Republican 1)

Status: (Failed) 2012-03-06 - Died In Committee [SB2908 Detail]

Download: Mississippi-2012-SB2908-Introduced.html

MISSISSIPPI LEGISLATURE

2012 Regular Session

To: Accountability, Efficiency, Transparency; Appropriations

By: Senator(s) Clarke

Senate Bill 2908

AN ACT TO ENACT THE "MISSISSIPPI STRATEGIC PLANNING AND PERFORMANCE BUDGET SYSTEM ENHANCEMENT ACT OF 2012"; TO DEFINE CERTAIN TERMS; TO ESTABLISH A PROCESS FOR STATEWIDE STRATEGIC PLANNING AND AGENCY BUDGETING; TO REQUIRE THAT CERTAIN FUNCTIONS BE CARRIED OUT BY THE LEGISLATIVE BUDGET COMMITTEE AND THE LEGISLATIVE BUDGET OFFICE; TO PROVIDE FOR THE ANNUAL PREPARATION OF A STRATEGIC PLAN FOR THE OPERATION OF ALL STATE AGENCIES TO COMPLY WITH THE GOALS FOR EACH AREA IN WHICH THE AGENCIES PROVIDE SERVICES; TO PROVIDE FOR INDIVIDUAL AGENCY STRATEGIC PLANS BASED UPON THE STATE PLAN TO BE SUBMITTED ANNUALLY BY STATE AGENCIES; TO PROVIDE THAT FUNDS TO STATE AGENCIES SHALL BE BUDGETED AND APPROPRIATED BASED UPON THE AGENCY STRATEGIC PLANS; TO PRESCRIBE THE COMPONENTS OF THE STRATEGIC PLANS; TO REQUIRE ACHIEVEMENT GOALS FOR EACH FUNCTIONAL AREA OF STATE GOVERNMENT TO BE INCORPORATED IN THE AGENCY STRATEGIC PLAN, AND TO DIRECT THE LEGISLATIVE BUDGET OFFICE TO ESTABLISH A SYSTEM OF PERFORMANCE AUDITS AND EVALUATIONS TO DETERMINE THE EXTENT TO WHICH STATE AGENCIES ARE COMPLYING WITH THE ADOPTED PERFORMANCE GOALS AS PRESCRIBED IN THE AGENCIES APPROPRIATION BILL; TO PROVIDE THAT BEGINNING WITH THE 2015 REGULAR SESSION THE LEGISLATURE SHALL ENACT NINE APPROPRIATION BILLS TO DEFRAY THE EXPENSES OF ALL STATE GENERAL-FUND AND SPECIAL-FUND AGENCIES BASED UPON CERTAIN FUNCTIONAL AREAS TO CONFORM WITH THE ADOPTED STATE AGENCY STRATEGIC PLAN; TO PROVIDE FOR CERTAIN DUTIES OF THE PEER COMMITTEE RELATING TO PERFORMANCE MONITORING OF AGENCY BUDGETS AND TO GRANT TO THE PEER COMMITTEE THE POWER OF COMPULSORY PROCESS AND POWER OF ENFORCEMENT; TO DIRECT LBC TO ESTABLISH AN AGENCY INNOVATION INCENTIVE PROGRAM; TO CODIFY SECTIONS 5-3-68 AND 5-3-70 AND TO AMEND SECTIONS 5-3-59, 27-103-101, 27-103-103, 27-103-111, 27-103-129, 27-103-131, 27-103-137 AND 27-103-211, AND TO BRING FORWARD SECTION 27-103-139, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; TO AMEND SECTIONS 27-104-3 AND 27-104-5, MISSISSIPPI CODE OF 1972, TO EMPOWER THE DEPARTMENT OF FINANCE AND ADMINISTRATION AND ITS EXECUTIVE DIRECTOR TO PROVIDE STATE AGENCIES WITH TRAINING REGARDING STRATEGIC PLANNING AND BUDGETING; TO AMEND SECTION 27-104-13, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT MIDYEAR BUDGET REVISIONS SHALL BE MADE FROM THE LOWEST PRIORITY PROGRAMS AS IDENTIFIED BY THE LEGISLATURE; TO REPEAL SECTIONS 27-103-121, 27-103-123, 27-103-125 AND 27-103-127, MISSISSIPPI CODE OF 1972, WHICH PROVIDE CERTAIN BUDGETING PRACTICES; TO REPEAL SECTIONS 27-103-151 THROUGH 27-103-157, AND 27-103-209, MISSISSIPPI CODE OF 1972, WHICH ARE THE BUDGET AND STRATEGIC PLANNING ACT OF 1994; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) This act shall be known as the "Mississippi Strategic Planning and Performance Budget System Enhancement Act of 2012."

(2) The Legislature finds that:

(a) There is little broad-based strategic planning and preparation for the delivery of services that the citizens of Mississippi need and expect;

(b) The executive and the legislative branches, while empowered with separate constitutional responsibilities, must work cooperatively to ensure that the needs of Mississippi's citizens are met;

(c) The process by which the state budgets and plans the delivery of state governmental services is in need of revision and cooperation; and

(d) These ends may be achieved through a revised method of planning and budgeting services and monitoring accountability for the delivery of services and the use of state funds.

SECTION 2. For purposes of this act, the following terms shall have the definitions set out herein ascribed to them:

(a) ACTION PLANS. Detailed methods of specifying how a strategy is implemented. Task specification includes staff assignments, material resource allocations, and schedules for completion. Action plans separate strategies into manageable parts for coordinated implementation of goals and objectives. Action plans specify detailed cost and expenditure information and are often referred to as "operational plans" or "implementation plans."

(b) AGENCY GOALS. The general ends toward which agencies direct their efforts. A goal addresses issues by stating policy intention. Goals are both qualitative and quantifiable, but not quantified. In a strategic planning system, goals are ranked for priority. Goals stretch and challenge an agency, but they are realistic and achievable.

(c) AGENCY MISSION. The reason for an agency's existence. It succinctly identifies what the agency does, why, and for whom. A mission statement declares to the public, the Governor, legislators, the courts, and agency personnel, of the unique purposes promoted and served by the agency.

(d) AGENCY PHILOSOPHY. Conduct of the agency in carrying out its mission. It describes how the agency conducts itself as it does its work.

(e) BENCHMARK. Benchmark is the quantified standard against which achievement of a stated goal, objective, or strategy can be measured. It is a tool for gauging "added value" performance that benefits the customer/stakeholder or progress toward achieving increased productivity and strategic efficiency.

(f) BENCHMARKING PROCESS. An integral part of the external and internal assessment conducted during the strategic planning process. It is an interactive method of identifying, analyzing, and emulating the standards and best practices of external organizations that achieve a high degree of productivity or innovative success in program and service changes to internally managed processes. It helps define any needed improvements to individual sub-functions within an organization.

(g) BUDGET STRUCTURE. The framework used by an agency in preparing its request for legislative appropriation. The budget structure usually consists of goals, strategies, measures, measure definitions, and other items of appropriation included in the agency's strategic plan. Only elements in an approved budget structure may be used by an agency as items in its request for appropriation.

(h) CAPITAL IMPROVEMENTS. Building or infrastructure projects that will be owned by the state and built with direct appropriation or with the proceeds of state-issued bonds.

(i) CUSTOMER COMPACT. An agreement made with the customers of an agency or institution to provide services that follow a predetermined set of guiding principles. It sets forth the rights of the customer and defines the standards that customers should expect.

(j) EFFICIENCY MEASURES. Indicators of the input resources required to produce a given level of output. They measure resource cost in dollars, employee time, or equipment used per unit of product or service output. An efficiency measure relates agency efforts to agency outputs. Indicators of average cost and average time normally serve as efficiency measures for agency processes, but they may also serve as outcome measures when cost per unit of outcome is the focus and can be meaningfully captured.

(k) EXPLANATORY MEASURES. Provide information that can help users to assess the significance of performance reported on other types of measures. An agency may have limited or no control over factors addressed by explanatory measures, including environmental or demographic characteristics related to agency target populations. A major use of this type of measure is to describe the level of customer demand or public need for an agency's products and services. Explanatory measures also may focus on variables over which an agency has significant control, such as staffing patterns for specific functions.

(l) EXTERNAL/INTERNAL ASSESSMENT. An evaluation of key factors that influence an agency's success in achieving its mission and goals. Detailed evaluation of trends, conditions, opportunities, and obstacles directs the development of each element of the strategic plan. This type of assessment should be heavily quantitative. Key external factors may include economic conditions, population shifts, technological advances, geographical changes, and/or statutory changes. Key internal factors include management policies, resource constraints, organizational structure, automation, personnel, and operational procedures.

(m) FUNCTIONAL AREA. A grouping of state agencies that provide related services.

(n) INDIRECT ADMINISTRATION. Support costs or expenditure requirements not directly attributable to the implementation of specific goals, objectives, and strategies, or the achievement of performance targets.

(o) INPUTS. The resources, including human, financial, facility, or material, that an agency uses to produce services.

(p) MANAGEMENT GOALS. Management goals reflect agency or institution management approaches in its overall administration. They may encompass activities and management approaches such as total quality management training, customer service initiatives, and other managerial techniques that support greater efficiency and effectiveness in short-term or long-term operations. A management goal and sub-elements frequently may be nonbudgetary in nature, that is, not included as a distinct and separate item in the appropriation request. It may have measures associated with successful implementation or accomplishments that remain internal to the agency and are not reported on a routine basis to oversight entities.

(q) NONBUDGETARY ELEMENTS. A strategic planning goal, objective, or strategy created to convey a tangible agency activity or service that is not separately and directly funded. They cannot be solely policy-related or philosophical statements. Nonbudgetary elements are not included as a distinct and separate item in the agency's appropriation request and may have measures that remain internal to the agency and are not routinely reported to oversight entities.

(r) OBJECTIVES. Clear targets for specific action. They mark interim steps toward achieving an agency's long-range mission and goals. Linked directly to agency goals, objectives are measurable, time-based statements of intent. They emphasize the results of agency actions at the end of a specific time.

(s) OUTCOME MEASURES. Indicators of the actual impact or effect on a stated condition or problem. They are tools to assess the effectiveness of an agency's performance and the public benefit derived therefrom. An outcome measure is typically expressed as a percentage, rate, or ratio.

(t) OUTPUT MEASURES. Tools, or indicators, to count the services and goods produced by an agency. The number of people receiving a service and the number of services delivered are often used as measures of output.

(u) PERFORMANCE MEASURES. Quantifiable, enduring measures of outcomes, outputs, efficiency, or cost-effectiveness. Performance measures are typically related to an agency's mission and programs and do not measure one-time or short-term activities.

(v) PROGRAM EFFICIENCIES. Ratios that identify the effectiveness or productivity of a program. Cost per unit of goods and services are used to identify program efficiencies. The amount of time to complete a task could also be used to measure productivity.

(w) PROGRAM OUTCOMES. Measurable results of funding certain activities within a program. Performance can be determined by comparing actual outcomes to targeted outcomes of the agency.

(x) PROGRAM OUTPUTS. Goods and services provided by an agency. Output measures are the means of quantifying the goods and services provided by an agency. The number of clients/customers served or the number of items processed/produced is used to identify program outputs.

(y) STATE AGENCIES. State agencies covered by strategic planning requirements are departments, commissions, boards, offices, or other agencies within the executive branch of state government as defined in Section 27-103-103.

(z) STATEWIDE GOALS. The general ends toward which the state directs its efforts. Statewide goals address the primary issues facing the state within broad groupings of interrelated state concerns. Statewide goals are founded on the statewide vision and may involve coordination among several agencies with similar functions.

(aa) STRATEGIC PLANNING. A long-term, future-oriented process of assessment, goal-setting, and decision-making that maps an explicit path between the present and a vision of the future; that relies on careful consideration of an organization's capabilities and environment; and that leads to priority-based resource allocation and other decisions.

(bb) STRATEGIES. Methods to achieve goals and objectives. Formulated from goals and objectives, a strategy is the means for transforming inputs into outputs and, ultimately, outcomes, with the best use of resources. A strategy reflects budgetary and other resources.

(cc) VISION. An inspiring picture of a preferred future. A vision is not bound by time, represents global and continuing purposes, and serves as a foundation for a system of strategic planning. A statewide vision depicts an ideal future and the contributions that state government can make to that end.

SECTION 3. (1) From the effective date of this section, until June 30, 2015, the Office of the Governor acting through the Department of Finance and Administration, the Legislative Budget Committee acting through the Legislative Budget Office, and the PEER Committee acting through the PEER Committee Staff, shall have the following duties and responsibilities relative to ensuring an orderly transition to the program budgeting and planning practices required by this act.

(a) The Governor, acting through the Department of Finance and Administration, shall seek consultation and advice from the Legislative Budget Committee and the PEER Committee regarding the preparation of instructions, manuals and other guidance, including rules, for agencies for the implementation of strategic planning required by this act.

(b) The PEER Committee, acting through the PEER Committee staff, shall seek consultation and advice from the Legislative Budget Committee and the Office of the Governor regarding the development of instructions, manuals and guidelines for performance measure management to be utilized in strategic plans and appropriation bills.

(c) The Legislative Budget Committee, acting through the Legislative Budget Office, shall seek consultation and advice from the Office of the Governor and the PEER Committee regarding development of instructions, forms, rules and templates necessary to direct agencies on the preparation of legislative appropriation requests.

(2) The Governor's office acting through the Department of Finance and Administration, the Legislative Budget Committee acting through the Legislative Budget Office, and the PEER Committee acting through the PEER Committee Staff shall develop training programs on all manuals, the development of which they are responsible for, and shall offer such training to agency personnel at times to be determined by the Governor, the Legislative Budget Committee and the PEER Committee. Such training shall be given to provide agency personnel with sufficient understanding of the principles of strategic planning and performance budgeting in order to comply with the mandates of this act.

(3) All preparations required by this section shall be complete for implementation of the fiscal year 2016 budget cycle.

(4) This section shall stand repealed from and after June 30, 2015.

SECTION 4. (1) Beginning with the budget for fiscal year 2016, the following shall be components of the process by which general-fund and special-fund agencies prepare strategic plans and the Legislature sets the budget of the State of Mississippi.

(a) Strategic planning: The Governor, acting through the Department of Finance and Administration, shall formulate a vision, mission and philosophy for state government. In conjunction with the development of the state vision, mission and philosophy, the Governor shall devise statewide goals and benchmarks for the achievement of this vision for the following nine (9) functional areas of state government:

(i) General government;

(ii) Health and human services;

(iii) Education;

(iv) Public safety, corrections and administration of justice;

(v) Natural resources;

(vi) Business and economic development;

(vii) Transportation; and

(viii) Regulation.

Prior to formulating the elements set out in this subsection, the Governor, acting through the Department of Finance and Administration, shall work with the Joint Legislative Budget Committee (LBC), established in Section 27-103-101, to arrive at the vision, mission, philosophy, goals and benchmarks for state government. Prior to publishing these elements of the strategic plan, the Governor shall meet with LBC to discuss these elements. The Governor shall make all reasonable efforts to incorporate any recommendations LBC may have relative to the strategic elements provided for in this subsection. Following the meeting with LBC, the Governor shall publish the vision statement, along with the statement of mission, philosophy, benchmarks and goals of government. The Governor, acting through the Department of Finance and Administration, shall complete all requirements of this paragraph (a) by May 1 of each year.

(b) Agency strategic plans: Each general-fund agency, including the institutions of higher learning, and special-fund agency, as defined in Section 27-103-103, shall prepare an agency strategic plan for its operations in conformity with the vision, goals and benchmarks established by the Governor. Such plans shall contain, at minimum, the following:

(i) Statewide vision, mission and philosophy;

(ii) Agency mission statements;

(iii) Agency statements of philosophy;

(iv) External/internal assessment;

(v) Agency goals;

(vi) Agency objectives;

(vii) Outcome measures;

(viii) Strategies;

(ix) Output measures;

(x) Efficiency measures;

(xi) Explanatory measures; and

(xii) Action plans.

Prior to issuing instructions to the agencies for the completion of their plans, the Governor shall meet with the Joint Legislative Budget Committee to discuss instructions for completion of agency strategic plans. The Governor shall make all reasonable efforts to include recommendations of LBC into the agency strategic planning instructions. Following the meeting, the Governor shall issue instructions to the agencies for the completion of their plans. Plans required by this paragraph (b) shall be completed by June 15 of each year and submitted to the Governor.

(c) The Joint Legislative Budget Committee shall prepare proposed budget instructions for preparing legislative appropriations requests and instructions for all general-fund and special-fund agencies as defined by Section 27-103-103. Prior to adopting these instructions, LBC shall discuss the proposed instructions with the Governor at the same meeting conducted for the purpose of discussing agency strategic plans. LBC shall make all reasonable efforts to incorporate the recommendations of the Governor into its budget instructions, and shall, following the completion of the meeting, issue such instructions to the agencies.

(2) The Governor shall compile all agency plans prepared in compliance with this section and file them with the Joint Legislative Budget Committee no later than August 1 of each year. The Governor may review all agency plans for conformity with the requirements of this section and any instructions adopted to carry out its purposes. The Governor, acting through the Department of Finance and Administration, may reject an agency plan and either direct the agency to refile such plan or may substitute a plan for the agency plan. The Governor shall submit to the Legislature any plan offered by the Board of Trustees of State Institutions of Higher Learning, without revision, but the Governor may comment on the components of such plan.

(3) The Legislature, its committees and staffs shall be exempt from any strategic planning required by this act. The Legislature may voluntarily develop and impose upon its houses, committees and staffs any planning requirements it considers to be necessary for its own use.

(4) The Supreme Court shall provide any and all strategic planning documents to the Governor as required by this act to be utilized in the planning and budgeting process. Such plans shall be accepted by the Governor and included for submission to the Legislature without modification.

SECTION 5. (1) Beginning with the 2016 fiscal year budget, by August 15 of each year, each general-fund agency and special-fund agency as defined in Section 27-103-103 shall submit to the Joint Legislative Budget Committee a legislative appropriation request. This request shall consist of the following:

(a) A summary of the agency's request by strategy;

(b) A summary of the agency's request by method of financing; and

(2) The Joint Legislative Budget Committee, in conjunction with the Governor, acting through the Department of Finance and Administration, may establish supplemental requirements for any additional information required to support and document the legislative appropriation request.

(3) (a) By December 15 of each year, the Joint Legislative Budget Committee, acting through the Legislative Budget Office, shall prepare a balanced budget for the state and shall additionally prepare for consideration in the next legislative session appropriation bills for each of the eight (8) functional categories and for the Legislature set out in Section 4 of this act. Such bills shall contain:

(i) The method of financing the agency and its operations;

(ii) The number of full-time equivalent employment positions;

(iii) The items of appropriation by goals and strategies;

(iv) Object of expense to be determined by the Department of Finance and Administration; and

(v) Performance measure targets by each goal, including outcomes, outputs and efficiencies.

(b) The Joint Legislative Budget Committee, acting through the Legislative Budget Office, may prepare any other reports pertinent to the state budget that it deems necessary and proper to support the appropriation process.

(4) (a) The Legislature hereby declares that the preparation of a budget is a constitutional core function of the Legislature in this state. To this end, the Legislature shall cooperate with the Governor and the Department of Finance and Administration and all state agencies in preparing this budget. The ultimate responsibility for preparing a budget is, however, a legislative function. To this end, the Legislature may proceed to prepare a budget for all branches of government if the Governor or any agency of the state fails to compile any plan for request required by this act.

(b) The Legislature may utilize any outcome, output, or performance measure or other reporting indicator offered by any general-fund agency or special-fund agency in conformity with the requirements of this act. The Legislature may, after consultation with the Governor and the agencies, adopt for appropriation purposes any substitute measure, outcome or objective the Legislature deems appropriate to ensure accountability and effectiveness of the appropriation process.

SECTION 6. (1) Beginning in calendar year 2014, the Legislative Budget Office shall monitor for the purpose of suggesting possible improvements, agency development and implementation of all measures of goals, objectives, outcomes and outputs required by this act.

(2) No appropriation utilizing the components of a legislative appropriation request shall be required until fiscal year 2016.

(3) The Joint Legislative Budget Committee is hereby authorized and directed to establish an innovation incentive program whereby agencies which develop and implement innovative cost-saving measures can receive both public commendation and monetary reward in recognition of their efforts. LBC shall develop policies and procedures as may be required in order to properly administer said program and such policies and procedures shall include the development of evaluation criteria by which the cost-saving results of the various innovations can be calculated and compared against the innovations of other agencies. The Department of Finance and Administration shall make all agencies aware of the innovation incentive program and shall encourage the participation of agencies in the program.

LBC shall submit its recommendations for innovation incentive awards to the Legislature for consideration on or before January 1 of each year. The recommendations of LBC shall include the following items of information: (a) proposed recipients of awards, (b) the proposed nonmonetary award or recognition, and (c) the proposed manner in which the monetary award should be made available to the recipient. The Legislature may hold hearings in regard to the innovations recommended for consideration by LBC and may, in its discretion, appropriate funds to reward agencies for innovations.

SECTION 7. Beginning with the fiscal year 2016 budget, the Legislature shall enact nine (9) appropriation bills to defray the expenses of all state general-fund and special-fund agencies as defined in Section 27-103-103, based upon the following functional areas to conform with the state agency strategic plan adopted under Section 4 of this act:

(a) General government;

(b) Health and human services;

(d) Public safety, corrections and administration of justice;

(e) Natural resources;

(f) Business and economic development;

(g) Transportation;

(h) Regulation; and

(i) Legislature.

The Legislature may adopt deficit or supplemental appropriation bills in its discretion, in addition to the nine (9) functional bills prescribed above.

SECTION 8. Section 27-103-101, Mississippi Code of 1972, is amended as follows:

27-103-101. (1) There is created the Joint Legislative Budget Committee and the Legislative Budget Office which shall be governed by such committee. The joint committee shall be composed of the following members: The Chairman of the Senate Finance Committee, the President Pro Tempore of the Mississippi State Senate, the Lieutenant Governor of the State of Mississippi, the Chairman of the Senate Appropriations Committee and three (3) members of the Senate to be named by the Lieutenant Governor; the Chairman of the Ways and Means Committee of the House of Representatives, the Chairman of the Appropriations Committee of the House of Representatives, the Speaker of the House of Representatives and four (4) members of the House of Representatives to be named by the Speaker of the House. In the event any ex officio member of the joint committee holds two (2) positions entitling him to membership on the committee, the Lieutenant Governor or the Speaker of the House, as the case may be, shall appoint another member of the respective house to membership on the committee. The chairmanship shall alternate for twelve-month periods between the Speaker of the House of Representatives and the Lieutenant Governor, with the Speaker of the House of Representatives serving as the first chairman. In the absence of the Chairman of the Senate Finance Committee, Senate Appropriations Committee, House Appropriations Committee and Ways and Means Committee, the vice chairman of any such committee shall be entitled to attend; if the vice chairman is unable to attend or if an appointed member is unable to attend, another legislator may be designated to attend by the Lieutenant Governor or the Speaker of the House, as the case may be. If the Lieutenant Governor or Speaker of the House is unable to attend a meeting, he may designate a legislator to substitute for him at that meeting. If the President Pro Tempore of the State Senate is unable to attend a meeting, the Lieutenant Governor shall designate a member of the Senate to substitute for him at that meeting. Any proxy shall have a vote at the meeting he was selected to attend and also shall, when attending, receive compensation and expenses in the same manner and amount as regular members of the joint committee.

There shall be no business transacted, including adoption of rules of procedure, without the presence of a quorum of the Joint Legislative Budget Committee. A quorum shall be eight (8) members, to consist of four (4) members from the Senate and four (4) members from the House of Representatives. No action shall be valid unless approved by the majority of those members present and voting, entered upon the minutes of the Joint Legislative Budget Committee and signed by the chairman and vice chairman. All actions of the Joint Legislative Budget Committee shall be approved by at least four (4) Senate members and four (4) House members.

As used in Sections 27-103-101 through 27-103-139, and in Sections 1 through 5 of this act, the term "committee," "joint committee" or "LBC" shall mean the Joint Legislative Budget Committee (LBC).

(2) The members of the committee shall receive, in addition to other compensation due them, per diem as is authorized by law for their services in carrying out the duties of the committee and, in addition thereto, shall receive a daily expense allowance equal to the maximum daily expense rate allowable to employees of the federal government for travel in the high rate geographical area of Jackson, Mississippi, as may be established by federal regulations, including mileage as authorized by Section 25-3-41, the same to be paid from the operating budget of the Legislative Budget Office. However, in no case shall the members of the committee draw per diem while the Legislature is in regular or special session, except that members may receive the per diem and expenses authorized by this section when the Legislature is in session but in recess under the terms of a concurrent resolution, or in recess during a special session.

(3) The committee may meet at least once each month; and the chairman or director may call additional meetings at such times as they deem necessary or advisable.

(4) The Legislative Budget Office shall, upon the request of a member or member-elect of the Senate or House of Representatives, make available one (1) copy of data, reports, fiscal information or related information submitted to the budget office by any general or special fund agency, whether submitted in support of its budget request or pursuant to any requirement of law or rule of the budget committee or office.

(5) All expenses incurred by and on behalf of the committee shall be paid from funds appropriated therefor, or from a sum to be provided in equal portion from the contingency funds of the Senate and House of Representatives or from transfers of funds as provided in Section 7-13-7.

(6) LBC shall have all powers necessary, including the power to make rules and require forms and templates, to accomplish the purposes of this act, and all other duties conferred upon it by Section 27-103-101 et seq. LBC shall direct the Legislative Budget Office to conduct variance analyses as provided for in Section 27-103-111(2). Additionally, the LBC may direct the Legislative Budget Office to perform any other analysis or report necessary and proper to carry out the purposes of this act.

SECTION 9. Section 27-103-103, Mississippi Code of 1972, is amended as follows:

27-103-103. (1) For the purpose of Sections 27-103-101 through 27-103-139 and 27-104-1 through 27-104-27, the term "state general-fund agency" or "general-fund agency" shall mean any agency, department, institution, board or commission of the State of Mississippi which is supported in whole or in part by appropriation from the General Fund; but such term shall not include the Legislature.

(2) For the purposes of Sections 27-103-101 through 27-103-139 and 27-104-1 through 27-104-27, the term "state special-fund agency" or "special-fund agency" shall mean any agency, department, institution, board or commission of the State of Mississippi which receives no appropriation from the General Fund, but which is supported entirely from special-fund sources, by appropriation, or otherwise, but such term shall not include * * * the Mississippi Industries for the Blind.

(3) For the purposes of Sections 27-103-101 through 27-103-139 and 27-104-1 through 27-104-27, the term "state agency" shall mean any general-fund agency or special-fund agency as defined in this section, or the Mississippi Department of Transportation, or the Division of State Aid Road Construction of the Mississippi Department of Transportation as is evident from the context wherein it is used.

(4) For the purposes of Sections 27-103-101 through 27-103-139 and 27-104-1 through 27-104-27, the term "special funds" shall mean all revenues and/or income other than appropriation from the State General Fund which are received, collected by, or available for the support of or expenditure by any state general-fund agency or special-fund agency or the Mississippi Department of Transportation or the Division of State Aid Road Construction of the Mississippi Department of Transportation, whether such funds be derived from taxes or fees collected by or for such general-fund agency or special-fund agency or the State Highway Department or the Division of State Aid Road Construction of the Mississippi Department of Transportation, as the case may be, or from any other types of revenue from any other source.

(5) For the purposes of Sections 27-103-101 through 27-103-139 and 27-104-1 through 27-104-27, the term "special funds" shall include revolving funds and all funds received from the United States Government by any state general-fund agency or special-fund agency, but shall not include any revolving fund established prior to July 1, 1984, for the purpose of paying or retiring any indebtedness as is authorized by statute.

SECTION 10. Section 27-103-111, Mississippi Code of 1972, is amended as follows:

27-103-111. (1) The business of the committee and the Legislative Budget Office shall be administered by a director, who shall be appointed by the committee and who shall serve at the will and pleasure of the committee. He shall receive such compensation as may be provided by the committee and shall perform such duties as may be prescribed by this or any other statute. Subject to the approval of the committee, he shall have the authority to appoint and employ such stenographic, secretarial, clerical and technical assistants as may be necessary to perform the duties required of the committee and to fix the salaries thereof. All salaries established herein shall be subject to the approval of the committee.

(2) The Legislative Budget Office shall analyze variances between actual and targeted agency and program performance, as directed by the Legislative Budget Committee. In conducting this analysis, the Legislative Budget Office shall identify those agencies and programs whose actual performance has fallen below or exceeded their targeted performance and determine the causes of disparities between targeted and actual performance and shall determine whether performance targets should be revised or maintained. Such report shall be prepared and published by December 15 of each year and shall be known as the Budget and Performance Assessment Report. The report shall incorporate the PEER audit prepared annually as required by Section 11 of this act. The Legislative Budget Office shall consult with the staff of the PEER Committee on the implications of any findings PEER reported and their implication for the budgeting and performance measurement efforts of the state.

SECTION 11. The following shall be codified as Section 5-3-68, Mississippi Code of 1972:

5-3-68. Annually, no later than November 15 of each year, the PEER Committee shall publish a report on the performance budgeting system of the state. This report shall address any program or functional areas the PEER Committee considers appropriate for reporting. In determining the scope of the report, the PEER Committee Chairman and Executive Director shall consult with the Chair of the Legislative Budget Office, the Executive Director of the Department of Finance and Administration, and any other persons the committee considers appropriate to assist in determining the subject matter of the report.

SECTION 12. Section 5-3-59, Mississippi Code of 1972, is amended as follows:

5-3-59. (1) The director, after giving notice to the PEER Committee, while in the discharge of official duties, shall have the following additional powers:

(a) To subpoena and examine witnesses; to require the appearance of any person and the production of any paper or document; to order the appearance of any person for the purpose of producing any paper or document; and to issue all process necessary to compel such appearance or production. When such process has been served, the committee may compel obedience thereto by the attachment of the person, papers or records subpoenaed; and if any person shall willfully refuse to appear before such committee, or answer any question posed by a member of the committee, or to produce any paper or record in obedience to any process issued by the committee and served on that person, he shall be guilty of contempt of the committee shall be * * * punished by a fine of not more than One Thousand Dollars ($1,000.00) or by imprisonment in the county jail for not more than six (6) months, or both.

(b) To administer oaths to witnesses appearing before the committee when, by a majority vote, the committee deems the administration of an oath necessary and advisable as provided by law.

(c) To determine that a witness has perjured himself by testifying falsely before the committee, and to institute penal proceedings as provided by law.

(2) (a) Whenever facts alleged to constitute contempt under paragraph (a) of subsection (1) arise, the Chairman of the PEER Committee shall certify a statement to this effect to the Attorney General or to the appropriate county prosecuting attorney who shall institute and prosecute a criminal proceeding against the accused for contempt under the provisions of this section.

(b) Any offense defined in paragraph (a) of subsection (1) shall be deemed to have been committed in any of the following counties, and the trial for the offense may take place in any of such counties:

(i) In the county where the subpoena was issued;

(ii) In the county where the offender was served with the subpoena; or

(iii) In the county where the subpoena ordered the offender to give testimony or to produce papers or other evidence.

SECTION 13. The following shall be codified as Section 5-3-70, Mississippi Code of 1972:

5-3-70. (1) (a) As an alternative to a criminal proceeding as provided in Section 53-3-59, in any instance wherein a witness fails to respond to the lawful subpoena of the PEER Committee at any time or, having responded, fails to answer all lawful inquiries or to turn over evidence that has been subpoenaed, the committee may seek judicial enforcement of the process as provided in paragraph (b) of this subsection.

(b) The director, in the name of the PEER Committee, may file a complaint before any chancery court of the state setting up such failure on the part of the witness. On the filing of such a complaint, the court shall take jurisdiction of the witness and the subject matter of the complaint and shall direct the witness to respond to all lawful questions and to produce all documentary evidence in the possession of the witness that is lawfully demanded. The failure of a witness to comply with the order of the court constitutes contempt of court and the court shall punish the witness as provided in Section 9-1-17.

(c) The director, in the name of the PEER Committee, may utilize the Office of the Attorney General to bring a civil enforcement action or may utilize contract counsel to commence an enforcement action authorized in this subsection (1).

(2) The provisions of this section are hereby declared to be supplemental to the powers of the Legislature and of the Senate and of the House of Representatives to punish for contempt, and the Legislature hereby reserves to itself and to the Senate and to the House of Representatives all inherent and all constitutional powers to punish for contempt.

SECTION 14. Section 27-103-129, Mississippi Code of 1972, is amended as follows:

27-103-129. (1) To enable the Legislative Budget Office to prepare an annual budget, it shall have full and plenary power and authority to require all general-fund and special-fund agencies and the Mississippi Department of Transportation and the Division of State Aid Road Construction of the Mississippi Department of Transportation to file a legislative appropriation request with such information and in such form and in such detail as it may deem necessary and advisable, and it shall have the further power and authority to reduce or eliminate any item or items of requested appropriation by any state agency in the * * * office's recommended budget to the Legislature. However, where any item of requested appropriation shall be so reduced or eliminated, the head of the agency involved shall have the right to appear before the appropriate legislative committee to urge a revision of the budget to restore the item reduced or eliminated. * * *

* * *

(2) All agencies enumerated in subsection (1) of this section shall include in their legislative appropriation request the following information regarding contract workers for the most recently completed fiscal year:

(a) The name of each worker;

(b) The specific type of services provided;

(d) Total gross salary or wages paid; and

(e) Whether the worker is a retired member of the Public Employees' Retirement System.

(3) (a) In addition to any other information required by law, each state agency, general-fund agency and special-fund agency, as defined in Section 27-103-103, desiring to purchase any vehicle as defined by this section shall submit as part of its legislative appropriation request to the Legislative Budget Office and the Department of Finance and Administration a detailed justification for the proposed purchase. The Legislative Budget Office and the Department of Finance and Administration shall jointly prescribe the forms and formats to be used by agencies making the requests. Such forms shall require, at minimum, the following information:

(i) The kind of vehicle to be purchased;

(ii) The person to whom the vehicle will be assigned and the employment responsibilities of that person which necessitate a state-owned vehicle;

(iii) Whether the vehicle is a work vehicle or passenger vehicle; and

(iv) If the vehicle is assigned to a pool and not an individual, the purposes for which the pool vehicle is assigned and the names of the anticipated users of the pool vehicle.

(b) The Legislative Budget Office and the Department of Finance and Administration shall offer a recommendation to the Joint Legislative Budget Committee on all agency requests for vehicles. In making the recommendation, the Legislative Budget Office and the Department of Finance and Administration may consider break-even analyses for the kind of vehicle requested, the travel patterns of the person for whom the vehicle shall be acquired, and shall determine if there exist surplus vehicles in the possession of other agencies that could be used as a substitute for a new vehicle and why such vehicle should not be used. Beginning July 1, 2007, the purchase of vehicles by an agency shall be a specific line item in the agency's appropriation bill.

(c) If an agency determines that an urgent need exists for a vehicle when it is not feasible to obtain prior legislative approval, the agency may make an emergency request to the Bureau of Fleet Management. Any emergency determination shall be made only upon the existence of extraordinary circumstances. The Bureau of Fleet Management shall make a recommendation to the Executive Director of the Department of Finance and Administration and shall give notification of such recommendation to the Lieutenant Governor, the Speaker of the House and the Chairmen of the Senate and House of Representatives Appropriations Committees. The Executive Director of the Department of Finance and Administration shall have the final authority to approve or disapprove the emergency request. The executive director must set forth specific reasons for approval which shall be a public record. If approved and if adequate funding is available, the agency may purchase a specific vehicle to meet its specific emergency needs. The Bureau of Fleet Management shall report any emergency purchase to the Legislative Budget Office. Any such vehicle shall be subject to the same rules and regulations as provided for nonemergency vehicles.

(d) For purposes of subsections (3) and (4) of this section, the term "passenger vehicle" shall mean a vehicle used primarily in transporting agency personnel and the agency's equipment from one location to another. This term shall include only those vehicles for which a license plate or tag is required under Chapter 19, Title 27, Mississippi Code of 1972.

(e) For purposes of subsections (3) and (4) of this section, the term "work vehicle" shall mean a vehicle used primarily to perform a work assignment or task while incidentally transporting agency personnel and agency equipment from one location to another. This term shall include only those vehicles for which a license plate or tag is required under Chapter 19, Title 27, Mississippi Code of 1972.

(4) All state agencies, special-fund agencies and general-fund agencies making budget requests under the authority of this section shall include with their budget requests a report of all passenger and work vehicles in their possession. Such report shall detail the persons to whom the vehicles are assigned and the purposes for the vehicles.

(5) Subsections (3) and (4) of this section shall not apply to any vehicle assigned to a sworn officer of the Department of Public Safety and used in undercover operations.

(6) The provisions of subsections (3) and (4) of this section shall not apply to any state institution of higher learning.

(7) Beginning July 1, 2007, the purchase of wireless communication devices as defined in Section 25-53-191 by any state agency, special-fund agency or general-fund agency making budget requests under the authority of this section shall be a specific line item in the agency's appropriation bill.

SECTION 15. Section 27-103-131, Mississippi Code of 1972, is amended as follows:

27-103-131. If any officer or employee of any state agency whose duty it is to do so shall refuse or fail to file a strategic plan or a legislative appropriation request with such information and in such form and in such detail and within such time as the Legislative Budget Office may require in the exercise of its authority, the Governor, acting through the Department of Finance and Administration, shall prepare such strategic plan for the officer or employee and the expense thereof shall be personally borne by said officer or employee, and he or she shall be responsible on his or her official bond for the payment of the expense; provided that a negligently prepared strategic plan or a legislative appropriation request shall be considered as a refusal or failure under the provisions of this section. The Director of the Legislative Budget Office shall prepare and file, or cause to be prepared and filed, a legislative appropriation request for such agency, and the expense thereof shall be personally borne by said officer or employee, and he or she shall be responsible on his or her official bond for the payment of the expense; provided that a negligently prepared budget shall be considered as a refusal or failure under the provisions of this section. The records of the Legislative Budget Office and the overall budget submitted by it to the Legislature shall clearly identify and set forth all the facts relative to any agency legislative appropriation request prepared by the director under the authority of this section.

SECTION 16. Section 27-103-137, Mississippi Code of 1972, is amended as follows:

27-103-137. The Joint Legislative Budget Committee (LBC) shall hold such hearings as may be necessary to determine the actual budget requirements of the agencies. The Department of Finance and Administration and representatives of the Governor's Office may be present, and, with the consent of the Chairman of LBC, direct questions to representatives of any agency making a presentation to LBC. The Legislative Budget Office shall prepare a sufficient number of copies of its proposed legislative appropriation bills and any other reports deemed appropriate by LBC in order that the data contained therein will be available to the members of the Legislature * * * and to each state agency on or about December 15 of each year. The Legislative Budget Office shall also post such information on the Internet to facilitate efficient distribution of the proposed bills.

SECTION 17. Section 27-103-139, Mississippi Code of 1972, is brought forward as follows:

27-103-139. On or before November 15 preceding each regular session of the Legislature, except the first regular session of a new term of office, the Governor shall submit to the members of the Legislature, the Legislative Budget Office or the members-elect, as the case may be, and to the executive head of each state agency a balanced budget for the succeeding fiscal year. The budget submitted shall be prepared in a format that will include performance measurement data associated with the various programs operated by each agency. The total proposed expenditures in the balanced budget shall not exceed the amount of estimated revenues that will be available for appropriation or use during the succeeding fiscal year, including any balances that will be on hand at the close of the then current fiscal year, as determined by the revenue estimate jointly adopted by the Governor and the Legislative Budget Committee. The total proposed expenditures from the State General Fund in the balanced budget shall not exceed ninety-eight percent (98%) of the amount of general fund revenue estimate for the succeeding fiscal year, plus any unencumbered balances in general funds that will be available and on hand at the close of the then current fiscal year. However, for fiscal years 2010, 2011 and 2012 only, the total proposed expenditures from the State General Fund in the balanced budget shall not exceed one hundred percent (100%) of the amount of the general fund revenue estimate for the succeeding fiscal year, plus any unencumbered balances in general funds that will be available and on hand at the close of the then current fiscal year. The general fund revenue estimate shall be the estimate jointly adopted by the Governor and the Joint Legislative Budget Committee. Unencumbered balances in general funds that will be available and on hand at the close of the fiscal year shall not include projected amounts required to be deposited into the Working Cash-Stabilization Reserve Fund and the Education Enhancement Fund under Section 27-103-203.

The revenues used in preparing the balanced budget shall be only those revenues that will be available under the general laws of the state as they exist when the balanced budget is prepared, and shall not include any proposed revenues that would become available only after the enactment of new legislation. If the Governor has any recommendations for additional proposed expenditures or proposed revenues that are not included in his balanced budget, he shall submit those recommendations in a supplement that is separate from his balanced budget, and whenever the Governor recommends any such additional proposed expenditures, he also shall recommend proposed revenues that are sufficient to fund the additional proposed expenditures, providing specific details regarding the sources and the total amount of those proposed revenues.

The Governor may employ a budget officer for the purpose of receiving information from the State Fiscal Officer and preparing his recommendations on the budget. If the Governor determines that information received from the State Fiscal Officer is not sufficient to enable him to prepare his budget recommendations, he may request an appropriation from the Legislature to provide additional staff within the Governor's office for that purpose. At the first regular session after his election for Governor, the Governor shall submit any budget recommendations plus the required revenue source recommendations no later than January 31 of that year.

SECTION 18. The Joint Legislative Committee on Performance Evaluation and Expenditure Review shall review the adequacy of state government fiscal control systems, including legal authority and methodology of agencies that exercise control over state expenditures necessary to assess the costs associated with program outputs and outcomes. Specifically, the review shall focus on the Mississippi Accountability System for Government Information and Collaboration (MAGIC) and its development, implementation and benefits for supporting the state's strategic planning and performance budget system. A report by the committee on its findings shall be provided to the Legislature and the Governor by December 15, 2012, and annually each December until the Joint Legislative Budget Committee certifies to the Joint Legislative Committee on Performance Evaluation and Expenditure Review and the Governor that the state's performance budget system is fully functional.

SECTION 19. Section 27-103-211, Mississippi Code of 1972, is amended as follows:

27-103-211. The total sum appropriated by the Legislature from the State General Fund for any fiscal year shall not exceed ninety-eight percent (98%) of the general fund revenue estimate for that fiscal year developed in writing and signed by the State Fiscal Officer, the Executive Director of the Legislative Budget Office, the Executive Director of the Department of Revenue, the State Treasurer and the State Economist and adopted by the Joint Legislative Budget Committee, plus any unencumbered balances in general funds that will be available and on hand at the close of the then current fiscal year. The unencumbered balances in general funds that will be available and on hand at the close of the fiscal year shall not include projected amounts required to be deposited into the Working Cash-Stabilization Reserve Fund under Section 27-103-203. However, for fiscal years 2010, 2011 and 2012 only, the total sum appropriated by the Legislature from the State General Fund shall not exceed one hundred percent (100%) of the amount of the general fund revenue estimate for that fiscal year, plus any unencumbered balances in general funds that will be available and on hand at the close of the then current fiscal year.

SECTION 20. Section 27-104-3, Mississippi Code of 1972, is amended as follows:

27-104-3. In addition to other powers and duties prescribed by statute, the Department of Finance and Administration shall have the following powers and duties, with regard to fiscal management:

(a) Provide direct technical assistance and training to state agencies and departments in implementing generally accepted accounting principles, in preparing financial statements as required by law, and in management and executive development.

(b) Provide temporary administrative services in financial accounting and public administration to any state agency, department or institution upon request of the governing board of the state agency, department or institution.

(c) Prepare and issue a comprehensive reference manual or manuals of policies and procedures for each state agency and department to use, which may include chapters on purchasing, personnel, payroll, travel, chart of accounts, fund classifications, receipts, warrants, expenditures, fixed assets, property inventory, and maintaining financial records and preparing financial reports as required and prescribed by law. The manual shall be revised on a continuing basis. The manual shall be prepared and revised in consultation with the State Auditor's office.

(d) Provide assistance to any state agency in preparing its strategic plan and any portion of an agency's legislative appropriation request as needed by the agency.

(e) Provide assistance to any state agency, department or institution in collecting a fee or other valid obligation that another agency, department or institution has failed to pay to it. For purposes of this paragraph, the agency, department or institution seeking to collect the funds shall be referred to as the "creditor agency," and the agency, department or institution that has not paid the creditor agency shall be referred to as the "delinquent agency." A valid obligation may be evidenced by an invoice or any other documentation as may be required by the Department of Finance and Administration, hereinafter referred to as the department. A creditor agency may request assistance from the department, and the department may require the creditor agency to furnish detailed information regarding the obligation. Upon determining that the delinquent agency owes the creditor agency a specific amount, the State Fiscal Officer shall pay to the creditor agency that amount out of any funds in the State Treasury to the credit of the delinquent agency. The State Fiscal Officer shall notify the creditor agency and the delinquent agency of the total amount of funds transferred. Either agency may appeal the transfer of funds or the failure to transfer funds, under rules and regulations promulgated by the department and approved by the Office of the State Auditor. The Department of Finance and Administration shall report any actions taken under this paragraph (d) to the Chairmen of the Appropriations Committees of the House of Representatives and the Senate on a quarterly basis.

SECTION 21. Section 27-104-5, Mississippi Code of 1972, is amended as follows:

27-104-5. (1) The Executive Director of the Department of Finance and Administration shall receive an annual salary to be set by the State Personnel Board, unless otherwise provided for by law. He shall devote his full time to the office and shall not pursue any other business or occupation or hold any other office of profit. The executive director (a) shall be a certified public accountant; or (b) shall possess a master's degree in business, public administration or a related field; or (c) shall have at least ten (10) years' experience in fiscal management in the private or public sector and a minimum of five (5) years' experience in a high-level management position with a documented record of management. Said qualifications shall be certified by the State Personnel Board.

The executive director shall execute a bond in some surety company authorized to do business in the state, to be approved by the Governor, and filed in the Office of the Secretary of State in the penal sum of One Hundred Thousand Dollars ($100,000.00), conditioned for the faithful and impartial discharge of the duties of his office. The premium on such bond shall be paid as provided by law out of funds appropriated to the Department of Finance and Administration.

(2) The executive director shall have the following powers and responsibilities:

(a) Employment of such professional, administrative, stenographic, secretarial, clerical and technical assistance as may be necessary to perform the duties and responsibilities of the department subject to the rules and regulations of the State Personnel Board;

(b) Developing accurate and timely revenue forecasts;

(d) Prescribing and implementing an accounting system using generally accepted accounting principles;

(e) From and after October 1, 1986, preaudit and payment of funds which shall be in accordance with all laws and regulations;

(f) Development and implementation of fiscal management training;

(g) Development of short- and long-range planning pertaining to matters of revenue forecasting;

(h) Providing assistance and expertise to state agency and institution governing bodies or other agency management, pursuant to Section 27-104-3;

(i) Cooperation and coordination with the State Auditor, State Treasurer, Commissioner of Revenue, University Research Center and the Mississippi Legislature on all matters pertaining to the fiscal matters of Mississippi state government; * * *

(j) The authority to establish training courses in programs for the personnel of the various governmental entities under the jurisdiction of the department. The training courses and programs shall include, but not be limited to, topics on internal control of funds, governmental accounting and financial reporting, internal auditing, and budgeting. The executive director is authorized to charge a fee from the participants of these courses and programs, which fee shall be deposited into a special fund created for these deposits. State and local governmental entities are authorized to pay such fee, and any travel expenses, out of their general funds or any available funds from which such payment is not prohibited by law; and

(k) To provide support to the Office of the Governor in preparing vision statements, statements of philosophy, goals and benchmarks for governmental activity as provided for in Section 3 of this act; and

(l) To assist agencies in preparing strategic plans that comply with the requirements of Section 3 of this act.

SECTION 22. Section 27-104-13, Mississippi Code of 1972, is amended as follows:

27-104-13. (1) The State Fiscal Officer may disapprove or reduce and revise the estimates of general funds and state-source special funds for any general fund or special fund agency and for the "administration and other expenses" budget of the Mississippi Department of Transportation, in an amount not to exceed five percent (5%), if at any time he finds that funds will not be available within the period for which the budget is drawn, or if at any time he finds that the requested expenditures, or any part thereof, are not authorized by law, and that action shall be reported to the Legislative Budget Office. In making such reductions authorized by this subsection, the State Fiscal Officer shall make his cuts from the lowest priority programs identified through the legislative appropriations request and appropriations process, unless reductions of such programs shall not be sufficient to generate sufficient funds to address any projected revenue shortfalls.

The State Fiscal Officer may, upon his determination of need based upon a finding that funds will not be available within the period for which the budget is drawn, transfer funds as provided in Section 27-103-203, from the Working Cash-Stabilization Reserve Fund to the General Fund to supplement the general fund revenue.

If the estimates of general funds and state-source special funds of all general fund and special fund agencies and of the "administration and other expenses" budget of the Mississippi Department of Transportation have been reduced by five percent (5%), additional reductions may be made, but shall consist of a uniform percentage reduction of general funds and state-source special funds to all general fund and special fund agencies and to the "administration and other expenses" budget of the Mississippi Department of Transportation.

Any state-source special funds reduced under the provisions of this subsection (1) shall be transferred to the State General Fund upon requisitions for warrants signed by the respective agency head, and the transfer shall be made within a reasonable period to be determined by the State Fiscal Officer.

The provisions of this subsection (1) authorizing the State Fiscal Officer to disapprove or reduce and revise the estimates of general funds and state-source special funds for the "administration and other expenses" budget of the Mississippi Department of Transportation shall be suspended during the period from June 30, 2009, through June 30, 2010.

(2) The Department of Revenue and University Research Center, utilizing all available revenue forecast data, shall annually develop a general fund revenue estimate to be adopted by the Legislative Budget Office as of the date of sine die adjournment. If, at the end of October, or at the end of any month thereafter of any fiscal year, the revenues received for the fiscal year fall below ninety-eight percent (98%) of the Legislative Budget Office general fund revenue estimate at the date of sine die adjournment, the State Fiscal Officer shall reduce allocations of general funds and state-source special funds to general fund and special fund agencies and to the "administration and other expenses" budget of the Mississippi Department of Transportation, in an amount necessary to keep expenditures within the sum of actual general fund receipts, including any transfers to the General Fund from the Working Cash-Stabilization Reserve Fund for the fiscal year.

The State Fiscal Officer may, upon his determination of need based on the revenue shortfall, transfer funds as provided in Section 27-103-203 from the Working Cash-Stabilization Reserve Fund to the General Fund to supplement the general fund revenue. State-source special funds in an amount equal to any reduction made under the provisions of this subsection (2) shall be transferred to the State General Fund upon requisitions for warrants signed by the respective agency head, and the transfer shall be made within a reasonable period to be determined by the State Fiscal Officer.

No agency's allocation shall be reduced in an amount to exceed five percent (5%); however, if the allocations of general funds and state-source special funds to all general fund and special fund agencies and to the "administration and other expenses" budget of the Mississippi Department of Transportation have been reduced by five percent (5%), any additional reductions required to be made under this subsection (2) shall consist of a uniform percentage reduction of general funds and state-source special funds to all general fund and special fund agencies and to the "administration and other expenses" budget of the Mississippi Department of Transportation. Any receipt from loans authorized by Sections 31-17-101 through 31-17-123 shall not be included as revenue receipts.

The State Fiscal Officer shall immediately send notice of any action taken under authority of this subsection (2) to the Legislative Budget Office.

The provisions of this subsection (2) requiring the State Fiscal Officer to reduce allocations of general funds and state-source special funds to general fund and special fund agencies and to the "administration and other expenses" budget of the Mississippi Department of Transportation shall be suspended during the period from June 30, 2009, through June 30, 2010.

(3) For the purpose of this section, the term "state-source special funds" means any special funds in any agency derived from any source, but shall not include the following special funds: special funds derived from federal sources, from local or regional political subdivisions, from agricultural commodity assessments, or from donations; special funds derived from additional fees paid for the issuance of distinctive motor vehicle license tags or plates authorized under the provisions of Chapter 19, Title 27, Mississippi Code of 1972; special funds held in a fiduciary capacity for the benefit of specific persons or classes of persons; special funds of the Mississippi Veterans Affairs Board that are paid to the board by the veteran residents of state veterans homes to fund their monthly expenses at the state veterans homes; self-generated special funds of the state institutions of higher learning or the state community or junior colleges; special funds of Mississippi Industries for the Blind, the State Port at Gulfport, Yellow Creek Inland Port, Pat Harrison Waterway District, Pearl River Basin Development District, Pearl River Valley Water Management District, Tombigbee River Valley Water Management District, Yellow Creek Watershed Authority, or Coast Coliseum Commission; special funds of the Department of Wildlife, Fisheries and Parks and the Department of Marine Resources derived from the issuance of hunting or fishing licenses; and special funds generated by agencies whose primary function includes the establishment of standards and the issuance of licenses for the practice of a profession within the State of Mississippi.

SECTION 23. Sections 27-103-121, 27-103-123, 27-103-125 and 27-103-127, Mississippi Code of 1972, which provide for the separation of the state budget into parts, shall stand repealed from and after July 1, 2014.

SECTION 24. Sections 27-103-151, 27-103-153, 27-103-155, 27-103-157 and 27-103-209, Mississippi Code of 1972, which are the Budget and Strategic Planning Act of 1994, shall stand repealed from and after July 1, 2014.

SECTION 25. This act shall take effect and be in force from and after July 1, 2012, provided that Sections 8 through 11, and 14 through 18, 20, 21, 22, 23 and 24 shall be effective from and after July 1, 2014.