Finds that the highest priority functions of state government serve the following objectives: (1) Improve student achievement;

(2) Improve the quality and productivity of, and respect for, the state's public workforce;

(3) Improve the value of a state college or university education;

(4) Improve the health of citizens;

(5) Improve the security of vulnerable children and adults;

(6) Improve the economic vitality of businesses and individuals;

(7) Improve statewide mobility of people, goods, information, and energy;

(8) Improve the safety of people and property;

(9) Improve the quality of natural resources; and

(10) Improve cultural and recreational opportunities.

Requires the joint legislative audit and review committee to select one of the priority functions of government and determine the relative priority of each program and activity based on the program or activity's contribution to the overall objectives of the function.

Requires the state auditor to conduct activity assessments of, and performance audits on, those identified agencies, programs, and activities.

Provides funding for the assessments and audits.