H-3620

AN ACT Relating to greater fiscal responsibility and accountability during the budget adoption process by providing for a modified zero-base budget review; adding new sections to chapter 43.88 RCW; and declaring an emergency.

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

NEW SECTION. Sec. 1. (1) The first year of every biennium, at least two general areas of responsibility in the operating budget must be subject to a modified zero-base budget review, known as the review. The review will analyze the success or failure of the programs and the associated costs based on the legislative intent and the efficiency of the program. The review of the program will be done without reference to past incremental funding. The review will only include the state portion of the general fund. The biennial operating budget as passed by both bodies of the legislature must reflect the recommendations of the modified zero-base budget review, including cost-saving measures and efficiencies identified in the reviews.

(2) The zero-base budget review must include estimates on the program's administrative cost. The estimate should include a break down of the cost for programs included in the budget base. The proposed enhancements must receive a similar review for anticipated administrative costs.

(3) The review must also include an estimate on the amount of funds or benefits that actually reach the intended recipients.

(4) A cost benefit analysis may also be performed for programs in the budget base or part of the essential requirement level. The enhancements must receive a similar review for anticipated administrative costs.

(5) The review shall include an estimate of the total cost to operate the program as it relates to funding from the state portion of the general fund.

(6) The review shall include an estimate of the major costs of operating the program.

(7) The final analysis by the senate committee on ways and means and the house of representatives appropriations committee must independently determine whether to: (a) Enhance or modify appropriations; (b) eliminate or consolidate programs; or (c) other actions; based upon the criteria in this section.

(8) The modified zero-base budget review of each biennium's operating budget will consist of three biennial budget reviews of funding from the state portion of the general fund. The first modified zero-base budget review shall consist of the appropriations for the department of social and health services and general government. The general areas of general government include but are not limited to: The legislature and legislative agencies; the judiciary and judicial agencies as well as the office of the governor; the office of financial management, and the remaining general government. The review shall be completed no later than May 1, 1993. The second review shall consist of appropriations for the remaining human resources and natural resources areas. The second modified zero-base budget review shall be completed no later than May 1, 1995. The third review shall consist of appropriations for education for public schools, four-year schools, community colleges, vocational education, transportation, and special appropriations. The third review shall be completed by May 1, 1997. When the three modified zero-base budget reviews are completed by May 1, 1997, the reviews will start over again in the next biennial budget of 1999-2001 and will continue indefinitely.

(9) The modified zero-base budget review shall be completed by both the house of representatives appropriations committee and the senate committee on ways and means. The committees shall independently complete their modified zero-base budget review. The house of representatives appropriation committee review must be completed prior to the release of the house of representatives operating budget proposal. The senate committee on ways and means review must be completed prior to the release of the senate committee on ways and means operating budget proposal. The final general fund state operating budget passed by both bodies of the legislature must be based in part on the recommendations of the house of representatives and senate modified zero-base budget reviews. Programs which are no longer needed or are unable to satisfactorily complete the intended goal of the program will no longer be funded.

NEW SECTION. Sec. 2. (1) The first modified zero-base budget review shall include the department of social and health services and the general areas of general government including but not limited to: The legislature and legislative agencies; and the judiciary and judicial agencies.

(2) General government includes but is not limited to all the general fund--state appropriations for the office of the governor, office of the lieutenant governor, public disclosure commission, secretary of state, governor's Indian advisory council, Asian-American affairs, state treasurer, state auditor, attorney general, office of financial management, economic development board, deferred compensation commission, Hispanic affairs commission, department of retirement systems, department of revenue, tax appeals board, municipal research council, uniform legislative commission, minority and women's businesses, department of general administration, accountancy board, boxing commission, liquor control board, military department, public employment relations committee, and any other programs related to general government.

NEW SECTION. Sec. 3. (1) The second modified zero-base budget review shall include the remaining areas of human resources excluding the department of social and health services, natural resources, and the transportation area.

(2) Human resources includes but is not limited to all the general fund--state appropriations for the health care authority, department of health, department of community development, human rights commission, department of labor and industries, indeterminate sentence review board, department of veterans affairs, department of corrections, services for the blind, corrections standards board, basic health plan, sentencing guidelines commission, employment security, and any other programs related to human resources.

(3) Natural resources includes but is not limited to all the general fund--state appropriations for the state energy office, Washington centennial committee, Columbia river gorge commission, department of ecology, parks and recreation commission, outdoor recreation, environmental hearing, trade and economic development, conservation commission, winter recreation commission, Puget Sound water quality commission, department of fisheries, department of wildlife, department of natural resources, department of agriculture, and any program related to natural resources.

(4) The transportation area includes but is not limited to all the general fund--state appropriations for the department of licensing, Washington state patrol, and other transportation agencies.

NEW SECTION. Sec. 4. (1) The third modified zero-base budget review shall include the general area of education funds for public schools, community colleges, vocational education, four-year schools, the higher education coordinating board, funding relating to higher education, and special appropriations.

(2) Public schools include but are not limited to: Funding for public schools, funding related to kindergarten through twelfth grade. The biennial modified zero-base budget review shall exclude appropriations for basic education.

(3) Higher education shall include all funding for four-year schools, community colleges, vocational schools, and the remaining funding for education.

(4) Special appropriations includes but is not limited to all the general fund--state appropriations for the governor, belated claims, sundry claims, retirement contributions, state revenue for distribution, and any other programs related to special appropriations.

NEW SECTION. Sec. 5. (1) To plan for the zero-base budget review, the senate ways and means' staff and the house of representatives appropriations' staff will coordinate with the office of financial management and the executive agencies to establish the method and format for reporting information to the legislature.

(2) The senate ways and means' staff and the house of representatives appropriations' staff will decide what is required from each agency to perform the zero-base budget review within the period specified within this chapter. The required information from the executive agencies will include financial, accounting, and other program-related data.

(3) The office of financial management will act as an advisor to the senate ways and means' staff and the house of representatives appropriations' staff in the planning and coordination with the executive agencies.

(4) Planning meetings for the requirements from the executive agencies must start no later than May 1, 1992. The senate ways and means' staff and the house of representatives appropriations' staff must decide on the final format of the required information to perform the zero-base budget review for agencies that receive appropriations for public schools and transportation by July 1, 1992. The final format for performing the zero-base budget shall be promulgated in the Washington Administrative Code.

(5) The executive agencies that receive general fund appropriations for public schools and transportation must complete the requested information for the zero-base budget review and must provide it to the senate committee on ways and means and the house of representatives appropriations committee, no later than December 15, 1992. Every six years after completion of the first review of December 15, 1992, the new review must be completed.

(6) Planning meetings for the requirements from the executive agencies must start no later than May 1, 1992. The senate ways and means' staff and the house of representatives appropriations' staff must decide on the final format of the required information to perform the zero-base budget review for agencies that receive appropriations for human resources, natural resources, and the judiciary by July 1, 1992. The final format for performing the zero-base budget shall be promulgated in the Washington Administrative Code.

(7) The executive agencies that receive general fund appropriations for human resources, natural resources, and the judiciary must complete the requested information for the zero-base budget review, and must provide it to the senate committee on ways and means and the house of representatives appropriations committee, no later than December 15, 1994. Every six years after completion of the first review of December 15, 1994, the new review must be completed.

(8) The senate ways and means' staff and the house of representatives appropriations' staff must decide on the final format of the required information to perform the zero-base budget review for agencies that receive appropriations for general government and special appropriations by July 1, 1994. The final format for performing the zero-base budget shall be promulgated in the Washington Administrative Code.

(9) The executive agencies that receive general fund appropriations for general government and special appropriations must complete the requested information for the zero-base budget review, and must provide it to the senate committee on ways and means and the house of representatives appropriations committee, no later than December 15, 1996. Every six years after completion of the first review of December 15, 1996, the new review must be completed.

NEW SECTION. Sec. 6. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.

NEW SECTION. Sec. 7. Sections 1 through 5 of this act are each added to chapter 43.88 RCW.