BP BHEAD INT S [atlas:bill]

AN ACT Relating to performance budgeting for transportation agencies; adding a new section to chapter 43.88 RCW; adding a new chapter to Title 47 RCW; and creating new sections.

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

NEW SECTION. Sec. 1. TITLE. This act may be known and cited as the transportation efficiency and accountability act.

NEW SECTION. Sec. 2. INTENT. It is the intent of the legislature to ensure efficiency and accountability for transportation agencies' programs and activities. Performance budgeting requires investment choices that are based on anticipated results and outcomes.

This chapter capitalizes upon activities performed by the transportation agencies: Strategic planning, performance measure establishment, quality initiatives, performance reporting, and participation in the transportation executive information system.

The objective of this chapter is to require the department of licensing, department of transportation, and Washington state patrol to submit performance-based budgets for the 2001-2003 biennium to the governor and the legislature. The use of performance budgeting provides the opportunity to prioritize and focus transportation revenues on programs that maximize the value of the public's transportation resources and revenues. This chapter provides the framework for the citizens of the state to more fully benefit from the transportation programs and their goals, objectives, and effectiveness.

NEW SECTION. Sec. 3. PERFORMANCE BUDGET DEVELOPMENT. The transportation agencies, in cooperation with the office of financial management and the legislative transportation committee, shall implement a performance budgeting process that provides a measurable link between agency objectives, service levels, and budget. The agencies shall also develop indicators of performance, stated in terms of expected results, to measure the agencies' progress in achieving the agencies' goals.

NEW SECTION. Sec. 4. STRATEGIC PLAN. The transportation agencies shall submit a strategic plan with their agency request budgets. At a minimum, the strategic plan must include a six-year outlook and operational and strategic components that serve as a focus for agency operations. The operational component shall define and clarify the agency mission, provide the basis for budget development, and outline the agency's goals. The strategic component shall define and clarify the agency vision and outline the agency goals and strategies.

NEW SECTION. Sec. 5. PERFORMANCE MEASURE ESTABLISHMENT. The agencies shall establish performance indicators that measure activities and associated goals and strategies in the strategic plan. The agencies shall also provide a preferred level of performance over the next six years. Among other indicators, the satisfaction of the consumers of the agencies' services shall be considered. The agencies shall establish performance measures for the activities of each program.

NEW SECTION. Sec. 6. PROGRAM AUTHORIZATION REVIEW. (1) The legislative transportation committee, the office of financial management, and the transportation agencies shall establish the means of conducting program authorization reviews of all transportation programs. The reviews shall include:

(a) An agency self-assessment to judge the quality and usefulness of:

(i) The agency's long-term strategic program goals;

(ii) Program priorities and objectives;

(iii) Activities necessary to achieve program priorities and objectives;

(iv) Service level criteria for the necessary activities;

(v) Best practices by other states as a possible benchmark of the performance of their programs; and

(vi) Service level criteria, as measured against different funding levels;

(b) A review of the agency self-assessment and a report to the legislature;

(c) A report which recommends whether to retain, eliminate, or modify funding and related statutory references for the agency. The parties conducting the review shall consider: (i) Whether the agency performance measurements adequately measure the agency goals; (ii) whether the program performs efficiently and effectively, including comparisons with other jurisdictions, if applicable; (iii) whether there are other cost-effective alternative methods of accomplishing the program's mission; and (iv) whether there are any funds saved by the agency's performance.

(2) The legislature will propose a six-year program evaluation schedule.

NEW SECTION. Sec. 7. IMPLEMENTATION SCHEDULE. The transportation agencies shall each designate a program to test the effectiveness of performance-based budgeting for the 1999-2001 budget submittal period and biennium as a phase-in of full performance-based budgeting by 2001-2003.

NEW SECTION. Sec. 8. ACTIVITY INVENTORY. Each agency shall submit a program list to the legislative transportation committee and the office of financial management at the end of each fiscal year. The list must describe the functions of the program, the fund sources for the program, and the number of full-time equivalents. Each agency shall consider the name of each program to ensure that the name is clear and understandable to a lay person.

NEW SECTION. Sec. 9. PROGRAM LEVEL BUDGET REQUESTS. The transportation agencies shall develop agency biennial budget requests at the agency budget program level, rather than the object level, and submit their biennial and supplemental budget requests to the office of financial management via a common budget system beginning July 1, 1998.

NEW SECTION. Sec. 10. TRANSPORTATION EXECUTIVE INFORMATION SYSTEM. The agencies shall input monthly their financial information and quarterly program performance measurements into the transportation executive information system and other systems as required by the office of financial management. There is no requirement to submit a monthly hard copy report to the legislature.

NEW SECTION. Sec. 11. CURRENT ACTIVITIES. This act does not require an agency to develop a new strategic plan, performance measures, or management quality initiatives in place of current activities that substantively meet the intent of this act.

NEW SECTION. Sec. 12. Section captions used in this act are not part of the law.

NEW SECTION. Sec. 13. Sections 1 through 6 and 8 through 11 of this act constitute a new chapter in Title 47 RCW.

NEW SECTION. Sec. 14. A new section is added to chapter 43.88 RCW to read as follows:

SUBMITTAL OF AGENCY BUDGETS. Notwithstanding RCW 43.88.030, the transportation agencies are exempt from providing agency-request budgets with tabulations showing expenditures classified by object.