Bill Text: OR HB3575 | 2011 | Regular Session | Introduced
Bill Title: Relating to state budget policy; declaring an emergency.
Spectrum: Bipartisan Bill
Status: (Failed) 2011-06-30 - In committee upon adjournment. [HB3575 Detail]
Download: Oregon-2011-HB3575-Introduced.html
76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 3930
House Bill 3575
Sponsored by Representative J SMITH; Representatives CLEM,
JENSON, MATTHEWS
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Directs Oregon Department of Administrative Services and
Governor to submit continuous improvement level state budget
based on performance management and performance measurement
techniques. Specifies contents of budget.
Allows Joint Committee on Ways and Means, Emergency Board and
Legislative Fiscal Office to review performance management and
performance measurement processes for services contracted by
state agencies and school districts.
Directs Governor and Chief Justice to report to Legislative
Assembly on plan to implement continuous improvement strategies.
Declares emergency, effective on passage.
A BILL FOR AN ACT
Relating to state budget policy; creating new provisions;
amending ORS 291.200 and 291.216; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Sections 2 to 4 of this 2011 Act are added to
and made a part of ORS 291.201 to 291.222. + }
SECTION 2. { + As used in sections 2 to 4 of this 2011 Act:
(1) 'Continuous improvement' means a set of actions designed to
permanently improve state agency performance, either in a
specific targeted area or across all levels of an agency, through
the use of structured process analysis and problem solving.
(2) 'Performance management' means a formal, comprehensive set
of business processes, including strategic planning, performance
measurement, leadership, process management and human resources
that help ensure more efficient and effective management
operations and practices and reduce costs.
(3) 'Performance measurement' means a process of assessing
progress toward achieving predetermined program objectives,
including information on the efficiency with which resources are
transformed into goods and services, the quality of those goods
and services, the results of a program activity compared to its
intended purpose and the effectiveness of state agency operations
in terms of their specific contributions to program objectives.
(4) 'State agency' means every state officer, board,
commission, department, institution, branch or agency of the
state government whose costs are paid wholly or in part from
funds held in the State Treasury.
(5) 'State government' has the meaning given that term in ORS
174.111. + }
SECTION 3. { + (1) As part of the tentative budget plan and
the budget report required under ORS 291.210 and 291.216, the
Oregon Department of Administrative Services and the Governor
shall submit a continuous improvement level budget. The
continuous improvement level budget shall be based on the results
of state agency performance management and performance
measurement, shall describe and measure state agency efforts to
implement process improvements and shall reflect state agency
efforts to achieve, through process improvements, quality service
delivery at a lower cost.
(2) The budget for each state agency shall:
(a) Identify how the agency is addressing performance
management and performance measurement;
(b) For each agency program, state the number of persons served
by the program and the amount expended for each person served by
the program; and
(c) In the case of different agency programs that serve the
same persons, aggregate and state the total cost per capita of
the multiple programs. + }
SECTION 4. { + The Joint Committee on Ways and Means, the
Emergency Board and the Legislative Fiscal Office may review
performance management and performance measurement processes for
services provided by contract by state agencies or by school
districts. + }
SECTION 5. { + (1) Not later than December 31, 2011, the
Governor, for the executive department as defined in ORS 174.112,
and the Chief Justice, for the judicial department as defined in
ORS 174.113, shall each report to the Legislative Assembly a
comprehensive plan that describes continuous improvement
strategies for the respective departments, including descriptions
of performance management and performance measurement strategies.
(2) As used in this section:
(a) 'Continuous improvement' means a set of actions designed to
permanently improve state agency performance, either in a
specific targeted area or across all levels of an agency, through
the use of structured process analysis and problem solving.
(b) 'Performance management' means a formal, comprehensive set
of business processes, including strategic planning, performance
measurement, leadership, process management and human resources
that help ensure more efficient and effective management
operations and practices and reduce costs.
(c) 'Performance measurement' means a process of assessing
progress toward achieving predetermined program objectives,
including information on the efficiency with which resources are
transformed into goods and services, the quality of those goods
and services, the results of a program activity compared to its
intended purpose and the effectiveness of state agency operations
in terms of their specific contributions to program
objectives. + }
SECTION 6. ORS 291.200 is amended to read:
291.200. (1) It is the intent of the Legislative Assembly to
require the Governor, in the preparation of the biennial budget,
to state as precisely as possible what programs the Governor
recommends be approved for funding under estimated revenues under
ORS 291.342. If estimated revenues are inadequate, the
Legislative Assembly intends that it be advised by the Governor
as precisely as possible how the Legislative Assembly might
proceed to raise the additional funds. It is also the intent of
the Legislative Assembly, in the event that the additional
funding is not possible, to be informed by the Governor precisely
what programs or portions thereof the Governor recommends be
reduced accordingly. Finally, if the Governor chooses to
recommend additional new programs or program enhancements, the
Legislative Assembly intends that the Governor specify how the
additional funding might be achieved. The Legislative Assembly
believes that the state government must allocate its resources
for effective and efficient delivery of public services by:
(a) Clearly identifying desired results;
(b) Setting priorities;
(c) Assigning accountability; and
(d) Measuring, reporting and evaluating outcomes to determine
future allocation.
{ + (2) In addition to the intentions of subsection (1) of
this section, in preparing the biennial budget, the Governor and
the Legislative Assembly shall use a continuous improvement level
budgeting process described in section 3 of this 2011 Act. + }
{ - (2) - } { + (3) + } To achieve the intentions of
{ - subsection (1) - } { + subsections (1) and (2) + } of this
section, it is the budget policy of this state to create and
administer programs and services designed to attain societal
outcomes such as the Oregon benchmarks and to promote the
efficient and measured use of resources.
{ - (3) - } { + (4) + } To effect the policy stated in
subsection { - (2) - } { + (3) + } of this section, state
government shall:
(a) Allocate resources to achieve desired outcomes;
(b) Express program outcomes in measurable terms;
(c) Measure progress toward desired outcomes;
(d) Encourage savings;
(e) Promote investments that reduce or avoid future costs;
(f) Plan for the short term and long term using consistent
assumptions for major demographic and other trends; and
(g) Require accountability at all levels for meeting program
outcomes.
SECTION 7. ORS 291.216 is amended to read:
291.216. (1) Not later than November 10 of each even-numbered
year the Governor shall cause the budget report to be compiled
and prepared for printing.
(2) The budget report shall include a budget message prepared
by the Governor, including recommendations of the Governor with
reference to the fiscal policy of the state government for the
coming biennium, describing the important features of the budget
plan, embracing a general budget summary setting forth the
aggregate figures of the budget report so as to show a balanced
relation between the total proposed expenditures and the total
anticipated income, with the basis and factors on which the
estimates are made, the amount to be borrowed, and other means of
financing the estimated expenditures for the ensuing biennium,
compared with the corresponding figures for at least the last
completed biennium and the current biennium.
(3) The budget plan shall be supported by explanatory schedules
or statements, classifying the expenditures reported therein,
both past and proposed, by organization units, objects and funds,
and the income by organization units, sources and funds, and the
proposed amount of new borrowing as well as proposed new tax or
revenue sources, including a single comprehensive list of all
proposed increases in fees, licenses and assessments assumed in
the budget plan.
(4) The budget plan shall be submitted for all dedicated funds,
as well as the state General Fund, and shall include the
estimated amounts of federal and other aids or grants to state
agencies or activities provided for any purpose whatever,
together with estimated expenditures therefrom.
(5) The budget report shall embrace the detailed estimates of
expenditures and revenues. It shall include statements of the
bonded indebtedness of the state government, showing the actual
amount of the debt service for at least the past biennium, and
the estimated amount for the current biennium and the ensuing
biennium, the debt authorized and unissued, the condition of the
sinking funds and the borrowing capacity. It shall contain the
Governor's recommendations concerning tax expenditures identified
under ORS 291.214. It shall also contain any statements relative
to the financial plan which the Governor may deem desirable or
which may be required by the legislature.
(6) The budget plan shall use the estimated revenues under ORS
291.342 for the fiscal year in which the plan is submitted as the
basis for total anticipated income under subsection (2) of this
section, subject to such adjustment as may be necessary to
reflect accurately projections for the next biennium.
(7) As supplemental information to the budget report, the
Governor shall publish an existing level tentative budget plan
for the two fiscal years for which the budget report is required.
This summary budget shall reflect only existing revenues
estimated under subsection (6) of this section; subject to such
adjustment as may be necessary to reflect accurately projections
for the next biennium. The supplemental information to the budget
report shall be submitted at the same time as the budget report.
(8)(a) The budget report shall present information regarding
the expenses of the state in the following categories:
(A) Personnel expenses, including compensation and benefits for
state employees, but excluding costs of services contracted out
and temporary service costs.
(B) Supplies, equipment and the costs of services contracted
out.
(C) Capital construction.
(D) Capital outlay.
(E) Debt service.
(b) For each category described in paragraph (a) of this
subsection, the report shall show actual expenditures to date.
(c) For each category described in paragraph (a) of this
subsection, the report shall show:
(A) The amount of merit increases for the existing workforce.
(B) Increases for the cost of replacement and repair of
supplies and equipment.
(C) Increases for the costs of new construction or major
remodeling.
(D) Increases for the cost of inflation.
(d) The report shall show the total increase in the cost of
salaries and benefits for all state positions.
(9) The budget report shall include:
(a) The total number of positions included in the budget.
(b) The average vacancy rate in the present biennium.
(c) The number of permanent, full-time equivalent vacancies,
excluding academics, as of July 1 of even-numbered years.
(10) The budget report shall include computations showing
budget figures as a percentage of the total General Fund, federal
fund, fee or other source category, as may be appropriate.
(11) The budget report shall include, in a format that provides
side-by-side comparison with the State Debt Policy Advisory
Commission report of net debt capacity, a six-year forecast, by
debt type and repayment source, of:
(a) That portion of the capital construction program required
to be reported by ORS 291.224 that will be financed by debt
issuance.
(b) The acquisition of equipment or technology in excess of
$500,000 that will be financed by debt issuance.
(c) Other state agency debt issuance for grant or loan
purposes.
{ + (12) The budget report shall include the continuous
improvement level budgeting information required by section 3 of
this 2011 Act. + }
{ - (12) - } { + (13) + } As supplemental information to
the budget report, the Governor shall prepare an alternative
budget plan for the two fiscal years for which the budget report
is required and shall provide the alternative budget plan to the
President of the Senate, the Speaker of the House of
Representatives and the majority and minority leaders in the
Senate and the House of Representatives. The alternative budget
plan shall establish funding for each state agency's programs and
activities at 90 percent of the appropriations requested for the
state agency in the budget report, excluding appropriations that
are not made to fund recurring activities. For each state agency,
the Governor shall describe the 10 percent reduction in
appropriated moneys in terms of the activities or programs that
the agency will not undertake. The activities or programs that
are not undertaken as a result of the reductions in appropriated
moneys made in the alternative budget plan shall be ranked in
order of importance and priority on the basis of lowest cost for
benefit obtained.
SECTION 8. { + Sections 1 to 4 of this 2011 Act and the
amendments to ORS 291.200 and 291.216 by sections 6 and 7 of this
2011 Act apply to tentative budget plans and budget reports
prepared for biennia beginning on or after July 1, 2013. + }
SECTION 9. { + This 2011 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2011 Act takes effect on its
passage. + }
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