2462-S.E AMS GO S4429.1
ESHB 2462 - S COMM AMD
By Committee on Governmental Operations
Strike everything after the enacting clause and insert the following:
"NEW SECTION. Sec. 1. The legislature finds that demand is growing for a new level of accountability in government. The public is asking its government whether desired results are actually accomplished, not just what volume of services is provided. Taxpayers want to know what value they are receiving for their money. Policymakers need more accurate information for setting policy and allocating scarce resources. Agency directors need better information on whether new and existing programs are effective. Mid-level managers must be able to determine how efficiently they administer programs. Front-line employees must be given the necessary data and opportunity to suggest creative ways to improve program operations.
The legislature finds that ensuring accountability in government is a long-term process that will require a sustained and collaborative effort directed at developing an integrated, comprehensive accountability system that incorporates an ongoing cycle of policy planning, quality management, and program evaluation. It is the intent of the legislature that the state auditor, the legislative budget committee, and the commission for efficiency and accountability in government continue to perform responsibilities as currently defined in state law, except as amended by this act. However, establishing an integrated accountability system will require a collaborative effort between these existing evaluative entities and the public, the legislature, the governor, the office of financial management, and state agencies."
"NEW SECTION. Sec. 2. For the purposes of this chapter, the following terms shall have the following meanings:
(1) "Performance audit" means an audit that determines the following: (a) Whether a government entity is acquiring, protecting, and using its resources economically and efficiently; (b) the causes of inefficiencies or uneconomical practices; (c) whether the entity has complied with laws and rules applicable to the program; (d) the extent to which the desired results or benefits established by the legislature are being achieved; and (e) the effectiveness of organizations, programs, activities, or functions.
(2) "Program evaluation" means the use of scientific research methods to determine the extent to which a program is achieving its legislative intent in terms of producing the effects expected. Program evaluation seeks to make an objective judgment of the efficiency and effectiveness of programs in the context of their goals and objectives, with respect to their implementation, outcomes, and net impact. It includes the application of systematic methods to estimate the extent to which observed results, intended or unintended, are caused by program activities.
(3) "Success measures" means at least each of the following three different categories of indicators: (a) Indicators of service efforts, which include dollar cost inputs and nonmonetary resource inputs expended on a service during a particular period; (b) indicators of service accomplishments, which include outputs such as the amount of workload accomplished, and outcomes, including numeric indicators of program results and indicators of service quality; and (c) indicators that relate service efforts to service accomplishments, such as inputs divided by outputs or outcomes, and indexes of productivity or efficiency."
"Sec. 3. 1987 c 480 s 3 (uncodified) is amended to read as follows:
To carry out the provisions of section 2, chapter 480, Laws of 1987, the commission shall:
(1) ((Prepare a list of)) Identify selected programs funded by the state that will be subject to review by the commission((. The list shall include)) including programs that have a major fiscal impact on the state and where the commission determines that operational and organizational improvements are feasible. The reviews shall concentrate on identifying improvements that will result in increased program efficiency and effectiveness and reduced costs, greater accountability to the general public, increased information and data relative to governmental expenditures, and increased managerial competence and workforce productivity.
(2) ((Develop a four‑year plan for the orderly review of each program identified under subsection (1) of this section. The plan shall contain a timetable for the completion of each program review and an estimate of the resources needed to carry out the reviews. The plan shall be updated annually.
(3) Secure private sector financial and other support for the conduct of the reviews.
(4))) Establish the scope of program reviews, select review teams and direct those teams to conduct the program reviews identified by the commission. The review teams shall report to the commission their findings and recommendations for organizational and operational improvements.
(((5))) (3) Decide upon recommendations for executive action or legislation necessary to implement the operational or organizational improvements developed by program review teams.
(((6) Submit the following reports to the legislature:
(a) By December 31, 1987, a four‑year plan required by subsection (2) of this section;
(b))) (4) Provide to the legislature, upon completion of each program review, its recommendations for operational and organizational improvements for the program reviewed. The report shall include estimates of savings which may result from recommended legislative or executive action.
(((c) By December 31, 1988, a report summarizing recommendations of the commission for legislative and executive actions to accomplish operational and organizational improvements identified in completed program reviews and any executive action initiated as a result of findings of a program review. Thereafter,)) The commission shall report to the legislature annually, no later than December 31, on its progress ((toward completing the four‑year review plan)) and on its recommendations for operational and organizational improvements in state government."
"NEW SECTION. Sec. 4. There is created a government accountability task force to advise the legislature on establishing an integrated accountability system. The composition of the task force shall be as follows:
(1) Four members to be appointed by the governor, with at least one representative each from private sector business and industry, state employee labor unions, and public interest organizations;
(2) One representative from each of the four legislative caucuses, to be appointed by the president of the senate and the speaker of the house of representatives;
(3) The state auditor;
(4) The chair of the legislative budget committee;
(5) The director of the office of financial management;
(6) The superintendent of public instruction;
(7) The chair of the higher education coordinating board;
(8) The commissioner of public lands; and
(9) The chair of the transportation commission.
The chair of the task force shall be selected by its members. Staffing for the task force shall be provided by the office of financial management. The task force shall expire on June 30, 1998.
The major responsibility of the task force is to work toward development of an integrated, comprehensive program accountability system. Toward this end, the task force shall at a minimum:
(a) Recommend, by January 1995, strategies to support four broad categories of program accountability: (i) Compliance with the law in the use of resources; (ii) efficiency in the use of resources; (iii) effectiveness in meeting program goals and objectives; and (iv) appropriateness of program activity in fulfilling the identified public need;
(b) Develop a state reporting process on program accountability that includes information on agency success measures in relation to the results-oriented goals and objectives set forth in the strategic planning process described in section 6 of this act and the budget process described in RCW 43.88.090. This reporting process should provide information on goals and success measures to the governor and to the legislature by January 1997;
(c) Develop a plan for internal and external performance audits of state agencies. This plan shall include identification of the proper roles for state agencies, the state auditor, the legislative budget committee, and the commission for efficiency and accountability in government in conducting these performance audits. The tasks force shall present this plan to the governor and to the legislature by January 1993."
"NEW SECTION. Sec. 5. The office of financial management shall develop a state-wide program evaluation system. Toward this end, the office of financial management shall at a minimum:
(1) Provide technical assistance to agencies in initiating, conducting, and using the results of evaluations to improve programs;
(2) Share evaluation information and results;
(3) Develop standard definitions of commonly used program evaluation terms;
(4) Develop suggested guidelines for conducting program evaluations, including standards of practices and standards for evaluative tools;
(5) Assist in developing training programs in evaluation methodologies for state employees;
(6) Work toward establishing automated data systems that are readily accessible for evaluation purposes;
(7) Establish a clearinghouse for program evaluation results and information from other states and the federal government; and
(8) Develop methods of tracking success measures."
"NEW SECTION. Sec. 6. A new section is added to chapter 43.06 RCW to read as follows:
The office of financial management shall prepare a plan for the establishment of a strategic planning process for many of the key functional areas of state government. The key functional areas that must be accounted for in the strategic planning process are general government, health and human services, community and economic development, the environment and natural resources, transportation, K-12 education, and higher education. The strategic planning processes must include (1) the identification of key stakeholders and a means to involve them actively in the planning process; (2) the establishment of results-oriented goals and objectives for the biennium and for a six-year planning cycle; and (3) the development of indicators of success measures based on the identified goals and objectives, for each key functional area of state government. The plan shall provide for implementing the strategic planning process in July 1993, with specific results-oriented goals and objectives for each functional area to be presented to the legislature for its approval in January 1995. The office of financial management shall report to the legislature and to the governor on the status of the strategic planning process in January 1994. In developing this plan, the office of financial management shall consult with the commissioner of public lands, the transportation commission, the superintendent of public instruction, and the higher education coordinating board to ensure that the requirements of this section are integrated into existing planning practices and processes of such entities. Therefore, nothing in this section shall be interpreted to supersede or duplicate existing or statutory planning responsibilities of any such entities."
"Sec. 7. RCW 43.88.010 and 1986 c 215 s 1 are each amended to read as follows:
It is the purpose of this chapter to establish an effective state budgeting, accounting, and reporting system for all activities of the state government, including both capital and operating expenditures and state program performance; to prescribe the powers and duties of the governor as these relate to securing such ((fiscal)) controls as will promote effective program and budget administration; and to prescribe the responsibilities of agencies of the executive branch of the state government.
It is the intent of the legislature that the powers conferred by this chapter, as amended, shall be exercised by the executive in cooperation with the legislature and its standing, special, and interim committees in its status as a separate and coequal branch of state government."
"Sec. 8. RCW 43.88.090 and 1989 c 273 s 26 are each amended to read as follows:
(1) For purposes of developing budget proposals to the legislature, the governor shall have the power, and it shall be the governor's duty, to require from proper agency officials such detailed estimates and other information in such form and at such times as the governor shall direct. The estimates for the legislature and the judiciary shall be transmitted to the governor and shall be included in the budget without revision. The estimates for state pension contributions shall be based on the rates provided in chapter 41.45 RCW. Copies of all such estimates shall be transmitted to the standing committees on ways and means of the house and senate at the same time as they are filed with the governor and the office of financial management.
(2) ((Estimates from each agency shall include goals and objectives for each program administered by the agency. The goals and objectives shall, whenever possible, be stated in terms of objective measurable results.)) For the purpose of assessing program performance, each state agency shall establish results-oriented goals and objectives, and develop success measures based on these goals and objectives, for each major program in its budget. Each agency shall express the success measures in an objective, quantifiable, and measurable form, whenever appropriate, unless permitted by the office of financial management to adopt a different standard.
The estimates shall include statements or tables which indicate, by agency, the state funds which are required for the receipt of federal matching revenues. The estimates shall be revised as necessary to reflect legislative enactments and adopted appropriations and shall be included with the initial biennial allotment submitted under RCW 43.88.110.
(3) In the year of the gubernatorial election, the governor shall invite the governor-elect or the governor-elect's designee to attend all hearings provided in RCW 43.88.100; and the governor shall furnish the governor-elect or the governor-elect's designee with such information as will enable the governor-elect or the governor-elect's designee to gain an understanding of the state's budget requirements. The governor-elect or the governor-elect's designee may ask such questions during the hearings and require such information as the governor-elect or the governor-elect's designee deems necessary and may make recommendations in connection with any item of the budget which, with the governor-elect's reasons therefor, shall be presented to the legislature in writing with the budget document. Copies of all such estimates and other required information shall also be submitted to the standing committees on ways and means of the house and senate."
"NEW SECTION. Sec. 9. A new section is added to chapter 43.88 RCW to read as follows:
It shall not be in order for either house of the legislature to consider any bill or amendment that provides for the authorization of appropriation of funds unless the bill or amendment specifies results-oriented goals or objectives for the appropriation."
"NEW SECTION. Sec. 10. This act may be known and cited as the government accountability act of 1992."
"NEW SECTION. Sec. 11. If specific funding for this act, referencing this act by bill number, is not provided by June 30, 1992, in the supplemental biennial operating appropriations act, this act shall be null and void."
"NEW SECTION. Sec. 12. Sections 7 through 9 of this act shall take effect July 1, 1993, for the purpose of incorporating these sections into budget planning for the 1995-97 biennium."
"NEW SECTION. Sec. 13. Sections 1, 2, 4, and 5 of this act shall constitute a new chapter in Title 43 RCW."
ESHB 2462 - S COMM AMD
By Committee on Governmental Operations
On page 1, line 1 of the title, after "government;" strike the remainder of the title and insert "amending RCW 43.88.010 and 43.88.090; amending 1987 c 480 s 3 (uncodified); adding a new section to chapter 43.06 RCW; adding a new section to chapter 43.88 RCW; adding a new chapter to Title 43 RCW; creating new sections; and providing an effective date."