Title: An act relating to establishing a process for reporting, reviewing, and collecting data on performance measures.

Brief Description: Using performance measures for budgeting decisions.

Sponsors: House Committee on Appropriations (originally sponsored by Representatives McIntire, Anderson, Kessler, Conway, Fromhold, Clements, Kagi, Linville, Jarrett, Hunter, Tom, Hinkle, Upthegrove, Kilmer, Wood and Santos).

Brief History: Passed House: 3/14/05, 97-0.

Committee Activity: Ways & Means: 3/30/05.

SENATE COMMITTEE ON WAYS & MEANS

Staff: Paula Faas (786-7449)

Background: The Budget and Account Act provides the guidelines used by agencies, the Office of Financial Management, and legislative fiscal committees in developing, implementing, and monitoring the state budget.

Agencies establish program objectives for each major program in the budget, expressed in outcome-based, objective, and measurable forms. The agencies also adopt procedures for self-assessment of each program and activity, using the mission, goals, objectives, and measurements of the agency. Finally, agencies are to link the budget proposals to the agency's stated mission, program goals, and objectives.

The Budget and Accounting Act establishes various requirements for the budget documents that the Governor submits to the Legislature before each regular session. The required documents include: the Governor's budget message, which explains the budget and outlines proposed fiscal policies for the period covered by the budget; the budget bill; and other supporting information.

Summary of Bill: State agencies establish performance measures, rather than program objectives, for each major activity in their budget. The total number of measures submitted by all state agencies should range between 100 and 200.

The Office of Financial Management (OFM) submits proposed priority measures to the Legislature by October 1 of each odd-numbered year, beginning in 2005. The Legislature, including policy and fiscal committees, review the measures. During each even-numbered-year session, beginning in 2006, the legislative fiscal committees adopt these measures and forward them to the OFM, which reports back on changes made.

The Legislative Evaluation and Accountability Program (LEAP) compiles and validates a database of priority performance measures data, including historical information.

The Governor's budget documents must include a list of all performance measures, priority performance measures, and any new or revised priority performance measures proposed by the Governor.

Appropriation: None.

Fiscal Note: Available.

Committee/Commission/Task Force Created: No.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Testimony For: This bill helps identify the type of performance expected from budgets adopted by the Legislature. Currently, the executive uses over 1400 performance measures. It is a lot and hard to focus on. This bill requests the Governor report to the Legislature the top priority measures, 100 to 200, to be used in determining the budget. Each house in the legislature would examine the measures and indicate their priorities as well.

Testimony Against: None.

Who Testified: PRO: Representative McIntire, prime sponsor.