S-1660               _______________________________________________

                                                   SENATE BILL NO. 4205

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By Senators McDonald, Zimmerman, Cantu, Saling, Benitz, Barr, Johnson, Bailey, Kiskaddon, Bluechel, McCaslin, Hayner, Lee and Patterson

Read first time 2/8/85 and referred to Committee on Ways and Means.

AN ACT Relating to the legislative evaluation and accountability program; adding a new section to chapter 44.48 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 this act to provide for long-range financial planning as a formal and routine element of the legislative budget process and the legislature's financial oversight strategy.

NEW SECTION. Sec. 2.  A new section is added to chapter 44.48 RCW to read as follows:

          (1) The legislative evaluation and accountability program committee shall compile and maintain a six-year financial plan for the state.  The plan shall be updated quarterly to reflect changes in revenues and expenditures and fluctuations in primary budget drivers as defined in RCW 43.88.020.

          (2) The financial plan shall be based upon revenue, expenditure, and primary budget driver assumptions underlying current legislative appropriations.  Projected revenues, expenditures, and primary budget drivers beyond the current appropriation period shall be prepared by the agencies administering the programs.  The projections shall be formulated in accordance with guidelines jointly promulgated by the office of financial management and the legislative evaluation and accountability program committee.  The projections are subject to review by the office of financial management, the economic and revenue forecast council, and the legislative evaluation and accountability program committee prior to incorporation into the six-year financial plan.

          (3) The format and components of the six-year financial plan shall be determined by the legislative evaluation and accountability program committee after consultation with the operating agencies, the office of financial management, the economic and revenue forecast council, and the committees on ways and means of the senate and house of representatives.

          (4) The legislative evaluation and accountability program committee shall provide reports detailing variances between actual and assumed revenues, expenditures, and primary budget drivers based upon quarterly updates to the six-year financial plan.

          (5) The committee shall submit to the legislature and the governor an annual report that assesses the assumptions regarding revenues, expenditures, and primary budget drivers reflected in the six-year financial plan.

          (6) The committee may request data from any agency of the state in the committee's preparation of the financial plan.  The committee shall coordinate its activities under this section with the economic and revenue forecast council.