H-3198.1  _______________________________________________

 

                          HOUSE BILL 2273

          _______________________________________________

 

State of Washington      53rd Legislature     1994 Regular Session

 

By Representatives Romero, Patterson, Orr, Dunshee, Foreman, Wolfe, Holm, Eide, Brown, G. Fisher, Peery, Johanson, Hansen, Long, L. Johnson, Quall, Lisk, Chandler, Kremen and Fuhrman

 

Read first time 01/12/94.  Referred to Committee on Appropriations.

 

Providing for incentives to increase agency spending efficiencies.



    AN ACT Relating to incentives to increase state agency spending efficiencies; adding new sections to chapter 43.88 RCW; and creating a new section.

 

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

 

    NEW SECTION.  Sec. 1.  It is the intent of the legislature to provide incentives for spending public funds efficiently and effectively.  The system that allows the spending of public money should reward frugality, not encourage wasteful spending.  Agencies should be encouraged to identify efficiencies and then use a portion of the resulting savings to enhance service to the customers of government.  It is the further intent of the legislature that such savings identified by an agency should not be used as an offset to that agency's future appropriations.  To ensure that savings are used appropriately, agencies should identify needs during the budget development process as part of a plan for using their portion of the savings.  Appropriate incentives will allow government to do more with less.

 

    NEW SECTION.  Sec. 2.  A new section is added to chapter 43.88 RCW to read as follows:

    (1) The efficiency incentive fund is created in the custody  of the state treasurer.  An account within the fund shall be established for each state agency.  An amount equal to eighty percent of the difference between the amount appropriated to an agency from state general fund revenue in the omnibus appropriations act and the amount actually expended by the agency from that source each biennium shall be deposited into that agency's account within the fund. 

    (2) Only the director of the office of financial management or, as he or she designates, the directors of each agency may authorize expenditures from the fund.  The amount in a particular agency's account may be authorized for expenditure only for that agency. 

    (3) The fund is not subject to allotment under chapter 43.88 RCW, and no appropriation is required for expenditures.

 

    NEW SECTION.  Sec. 3.  A new section is added to chapter 43.88 RCW to read as follows:

    (1) Expenditures from the efficiency incentive fund may be made after authorization under section 2 of this act and after development of an agency spending plan approved by the office of financial management.

    (2) Expenditures from the fund may be used for:

    (a) One-time projects designed to improve efficiency of the agency;

    (b) Maintaining facilities and equipment; or

(c) Unanticipated expenditures.

 


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