Finds that although state agencies have established missions, goals, and objectives to aid in self-assessment and budget development, this process requires further priority setting. First, state agencies must provide policymakers with focus on the agencies' priority performance measures. Second, legislators require the opportunity to review agencies' proposed priority performance measures in light of the state's priorities and the statutory purposes and policy goals of the programs. Third, legislative and executive policymakers require quantifiable, objective data that are measurable over time in order to gauge whether progress is being made toward agencies' goals. Specifically, budget managers and the legislature must have the data to move toward better statewide results that produce the intended public benefit.

Declares that, by compiling reliable data on valid performance measures for the state's policy priorities, legislative and executive policymakers will be able to make better budgeting decisions.

Provides that, by October 1st of each odd-numbered year, beginning in 2005, the office of financial management must submit proposed priority performance measures to the legislative fiscal committees under RCW 43.88.030. The proposed priority performance measures are subject to legislative review as provided in this act.

(1) Upon receipt of the governor's proposed priority performance measures, the legislative fiscal committees shall distribute the measures among the appropriate legislative committees for those committees' review.

(2) The legislative committees shall review the proposed priority performance measures for policy and program priority, measurability, specificity, objectivity, and conformance with statutes and legislative intent.

(3) The legislative committees shall recommend any revisions to the proposed priority performance measures to the legislative fiscal committees. The legislative fiscal committees must consider the proposed revisions and may adopt different or additional revisions, based on the state's policy and program priorities and fiscal constraints.

(4) The legislative fiscal committees, individually or jointly during the regular session in each even-numbered year, beginning in 2006, shall adopt priority performance measures during an executive session and shall forward these to the office of financial management for inclusion in the biennial budget process. By July 1st of each even-numbered year, the office of financial management shall report to the legislative fiscal committees regarding any changes the office makes to the priority performance measures adopted by the legislative fiscal committees under this provision.

Provides that the joint legislative evaluation and accountability program committee, in consultation with the joint legislative audit and review committee, shall compile, validate, and create a data base of historical information on priority performance measures established under RCW 43.88.090(3).

Provides that the office of financial management shall compile data on agencies' progress toward meeting priority performance measures. The office of financial management shall report the data to the legislative evaluation and accountability program committee on a semiannual basis.