BP BHEAD INT S [atlas:bill]

AN ACT Relating to incentives for state agencies to save money; amending RCW 43.88.140; 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. The legislature finds that making government more responsive and more efficient involves changes in the civil service system, changes in the structure of the bureaucracy, and changes in the budget system. The budget system does not provide a vehicle to evaluate whether public money is being spent efficiently and effectively. Allowing agencies to assist in identifying programs and activities that can be eliminated will help set priorities for spending on those activities that are most important to accomplishing agency missions.

It is the intent of the legislature to provide an incentive for identifying savings by allowing agencies to include in their appropriations, sixty-five percent of the savings resulting from elimination of programs and activities identified during the budget development process. It is also the intent of the legislature to encourage public confidence in government by providing incentives for spending public money more efficiently and effectively. The legislature recognizes that, in implementing programs, state employees can accomplish more with less money if they are allowed flexibility in achieving program objectives. The legislature also recognizes the need for clear policy goals that can be achieved by agency managers and employees. The combination of clear goals from the legislature and flexibility in implementation with the measures to demonstrate success in achieving the goals will result in better service to the public. The legislature supports efforts to establish a better balance between accountability for spending public money and flexibility in achieving outcomes that result in greater confidence in government.

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

(1) The innovation and efficiency 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 sixty-five percent of the difference between the amount appropriated to an agency from general fund‑-state revenue in the omnibus appropriations act and the amount actually expended by the agency from that source each fiscal year 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.

Sec. 3. RCW 43.88.140 and 1981 c 270 s 9 are each amended to read as follows:

Thirty-five percent of all appropriations made from general fund‑-state revenue shall lapse at the end of the fiscal ((~~period~~)) year for which the appropriations are made to the extent that they have not been expended or lawfully obligated.

An amount equal to sixty-five percent of all appropriations made from general fund‑-state revenue for a fiscal year, to the extent that they have not been expended or lawfully obligated, shall be deposited by the state treasurer into the efficiency savings account after the end of the fiscal year for which the appropriations are made.

Any remaining appropriations shall lapse at the end of the fiscal year for which the appropriations are made to the extent that they have not been expended or lawfully obligated.

NEW SECTION. Sec. 4. A new section is added to chapter 43.88 RCW to read as follows:

During development of budget proposals to the legislature, the governor shall require recommendations from agencies of programs or expenditure items that can be eliminated in the ensuing biennium while maintaining the ability to achieve program objectives and measures identified under RCW 43.88.090. Sixty-five percent of the savings that results from elimination of a program or activity for the ensuing biennium shall be included as part of the agency's budget proposal. Any proposed budget reductions shall be credited against one hundred percent of the savings identified under this section.