senate Bill S3946A

Establishes the legislative budget office, enacts a balanced budget requirement and relates to budget reform and enacting performance budgets

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 28 / Feb / 2013
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 08 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 07 / Apr / 2014
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 07 / Apr / 2014
    • PRINT NUMBER 3946A

Summary

Establish the legislative budget office to provide objective, non-partisan and timely analyses of state revenue, expenditures and management practices to members of the legislature for any legislation with fiscal impact or at the request of a leader or a committee; enacts a balanced budget requirement; relates to budget reform and enacting performance budgets.

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Bill Details

Versions:
S3946
S3946A
Legislative Cycle:
2013-2014
Current Committee:
Senate Investigations And Government Operations
Law Section:
Legislative Law
Laws Affected:
Add Art 4-B §§75 & 76, amd §54, Leg L; amd §22, add §28, St Fin L
Versions Introduced in 2011-2012 Legislative Cycle:
S4006A

Sponsor Memo

BILL NUMBER:S3946A

TITLE OF BILL: An act to amend the legislative law, in relation to
establishing the legislative budget office; to amend the state finance
law and the legislative law, in relation to enacting a balanced budget
requirement; and to amend the state finance law, in relation to budget
reform and enacting performance budgets

PURPOSE:

Creates the New York State Independent Budget Office to provide
objective, nonpartisan analyses of state revenues, expenditures and
management practices. Requires the submitted Executive and enacted
budgets be balanced in accordance with generally accepted accounting
principles. Establishes a five-year financial plan. Creates a means of
evaluating the performance of programs in New York, allowing the
Governor and the Legislature to make modifications as necessary to
underperforming programs, and enacts a requirement for performance
budgeting.

SUMMARY OF PROVISIONS:

SECTION 1 : Creates a non-partisan Legislative Budget Office (LBO),
the primary responsibility of which will be to provide individual
members and legislative committees information related to the budget
process. The LBO will be tasked with the following:

*Preparing fiscal impact statements on any bill impacting State
revenues or expenditures;

*Submitting an analysis of the Executive Budget by March 1st of each
year;

*Developing alternative approaches to meet the financial obligations
of the State, including reviewing debt obligations and bond
requirements of the State and public authorities;

*Conducting continuing studies of budgetary matters including a
five-year forecast of State budgetary projections; and

*Publishing documents to enhance official and public understanding of
budget and public finance related matters.

The bill also creates an independent executive director appointed
jointly by both houses for a six-year term. In addition, the bill
creates a board of directors comprised of experts to develop best
practices to be used by the LBO.

SECTION 2: Requires the Executive to submit a balanced budget in
accordance with Generally Accepted Accounting Principles (GAAP).

SECTION 3: Requires the Legislature enact a balanced budget in
accordance with Generally Accepted Accounting Principles (GAAP).

SECTION 4: Requires the Division of Budget to adopt a five-year
financial plan and includes several provisions to ensure agencies are
outlining agency goals and measuring program performance by requiring


agencies to develop five-year strategic plans that provide a
description of the goals and objectives of each agency. Such agencies
will also have to develop and implement performance plans to review
actual program performance and ensure that the goals in the strategic
plans are being met. For the 2016 and 2017 budgets, the bill requires
the Division of Budget to designate at least five agencies as pilot
projects in performance budgeting for those years.

SECTION 5: Sets forth an immediate effective date.

EXISTING LAW:

Currently, there is no legislative budget office, the submitted and
enacted state budgets are not balanced in accordance with GAAP, and
there are no statutory requirements for a five-year financial plan or
performance budgeting.

JUSTIFICATION:

Reform of New York's budget process is long overdue. New York's
budget process and practices have routinely produced late budgets that
include spending that outpaces inflation and revenue growth.

By establishing the LBO, a non-partisan office that is modeled after
the Congressional Budget Office (CBO), this bill ensures legislators
are provided with the objective information needed to make decisions
regarding the budget. Accurate, up-to-date information is a key
ingredient for prudent, timely budgetary and public policy decisions.
This newly created office will provide that information and analysis
to all state lawmakers. Each year, the LBO will provide all members of
the Senate Finance Committee and the Assembly Ways and Means Committee
with analyses of the Executive Budget by March 1st. This provides
ample time for members to review such analyses before the budget
deadline of April 1st.

Because it is non-partisan, members of the Senate and Assembly will
have access to the same data, analyses and information thereby helping
to reduce the yearly struggles that emerge over the disparities in
both revenue and expenditure projections. This should in turn lead to
more timely budgets based on sound fiscal policy. At least 23 other
states including California, Texas, Florida, Connecticut and Vermont
have already established non-partisan budget offices to assist their
legislatures.

In addition, this bill requires the Executive to submit a balanced
budget and the Legislature to enact a balanced budget that is in
accordance with GAAP. This will help prevent budgetary gimmicks that
push obligations into the future and result in structural imbalances.
Similarly, using a five-year financial plan will help monitor the
consequences of current decisions on long-term finances.

Finally, this bill requires agencies to continually assess agency
programs and ensure that programs are actually meeting outlined goals.
Requiring such assessments, as well as introducing a performance
budgeting pilot program, will ensure that State government programs
work and achieve their goals in the most cost-efficient way.


LEGISLATIVE HISTORY:

2011-2012 Session - S. 4006-A, 2011 - Advanced to 3rd Reading and
Committed to Rules;
2012 - Referred to Senate Finance
2013-2014 Session - S.3946, 2013 - Referred to Senate Investigations
and Operations

FISCAL IMPLICATIONS:

To be determined.

EFFECTIVE DATE:

This act shall take effect immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 3946--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 28, 2013
                               ___________

Introduced  by  Sens.  SKELOS, AVELLA -- read twice and ordered printed,
  and when printed to be committed to the  Committee  on  Investigations
  and  Government Operations -- recommitted to the Committee on Investi-
  gations and Government Operations in accordance with  Senate  Rule  6,
  sec.  8  --  committee  discharged, bill amended, ordered reprinted as
  amended and recommitted to said committee

AN ACT to amend the legislative law, in  relation  to  establishing  the
  legislative  budget  office;  to  amend  the state finance law and the
  legislative law, in relation to enacting a  balanced  budget  require-
  ment; and to amend the state finance law, in relation to budget reform
  and enacting performance budgets

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The legislative law is amended by adding a new article  4-B
to read as follows:
                                ARTICLE 4-B
                        LEGISLATIVE BUDGET OFFICE
SECTION 75. POWERS AND DUTIES OF THE LEGISLATIVE BUDGET OFFICE.
        76. DIRECTOR OF THE LEGISLATIVE BUDGET OFFICE.
  S  75. POWERS AND DUTIES OF THE LEGISLATIVE BUDGET OFFICE. THERE SHALL
HEREBY BE ESTABLISHED AN OFFICE OF THE STATE LEGISLATURE TO BE KNOWN  AS
THE  LEGISLATIVE  BUDGET  OFFICE.    1. IT SHALL BE THE PRIMARY DUTY AND
FUNCTION OF THE LEGISLATIVE BUDGET OFFICE TO  PROVIDE  THE  MEMBERS  AND
COMMITTEES  OF  THE  LEGISLATURE WITH INFORMATION WHICH WILL ASSIST SUCH
OFFICIALS AND BODIES IN THE DISCHARGE OF MATTERS WITHIN THEIR  JURISDIC-
TION PERTAINING TO THE BUDGETARY PROCESS INCLUDING:
  (A)  INFORMATION  WITH RESPECT TO THE BUDGET, APPROPRIATIONS BILLS AND
OTHER   BILLS   AUTHORIZING   OR   PROVIDING   FOR   EXPENDITURES   FROM
GOVERNMENT-WIDE  FUNDS  OR  REVENUES TO THOSE FUNDS; INCLUDING ANY BILLS
THAT HAVE A DIRECT OR INDIRECT FISCAL IMPACT IN  TERMS  OF  SPENDING  OR
REVENUE;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09080-03-4

S. 3946--A                          2

  (B)  INFORMATION  WITH RESPECT TO ESTIMATED REVENUES AND RECEIPTS, AND
CHANGING REVENUE CONDITIONS;
  (C)  INFORMATION  WITH RESPECT TO THE PERFORMANCE AND EFFECTIVENESS OF
STATE AGENCIES AND PROGRAMS; AND
  (D) TO THE EXTENT PRACTICABLE, SUCH OTHER INFORMATION OR  ANALYSES  AS
MAY BE REQUESTED BY SUCH OFFICIALS AND BODIES, AND THE GENERAL PUBLIC.
  REQUESTS MADE BY THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF
THE ASSEMBLY, THE CHAIR OF THE SENATE FINANCE COMMITTEE AND THE CHAIR OF
THE ASSEMBLY WAYS AND MEANS COMMITTEE REGARDING THE BUDGET, REVENUES AND
EXPENDITURES SHALL RECEIVE PRIORITY ATTENTION.
  2.    THE  LEGISLATIVE  BUDGET  OFFICE  SHALL COMPLETE A FISCAL IMPACT
STATEMENT: (A) FOR ANY BILL BEING CONSIDERED ON  AN  ASSEMBLY  WAYS  AND
MEANS  COMMITTEE  AGENDA  OR  A  SENATE FINANCE COMMITTEE AGENDA, TO THE
EXTENT POSSIBLE; (B) FOR ANY BILL AT  THE  REQUEST  OF  THE  SPEAKER  OR
MINORITY  LEADER  OF THE ASSEMBLY OR THE TEMPORARY PRESIDENT OR MINORITY
LEADER OF THE SENATE; AND (C) AT THE REQUEST OF  A  COMMITTEE  CHAIR  OR
RANKING  MEMBER OF A COMMITTEE FOR ANY BILL REFERRED TO THEIR RESPECTIVE
COMMITTEE.  FISCAL IMPACT STATEMENTS SHALL ESTIMATE THE IMPACT ON  STATE
REVENUES OR EXPENDITURES.
  3.    THE  LEGISLATIVE  BUDGET  OFFICE SHALL SUBMIT AN ANALYSIS OF THE
EXECUTIVE BUDGET BY MARCH FIRST OF EACH  YEAR  TO  THE  MEMBERS  OF  THE
ASSEMBLY  WAYS AND MEANS COMMITTEE AND THE SENATE FINANCE COMMITTEE, AND
MAKE COPIES OF SUCH ANALYSIS AVAILABLE  TO  ALL  OTHER  MEMBERS  OF  THE
LEGISLATURE  AND  ALL  OTHER INDIVIDUALS, UPON REQUEST.  THE LEGISLATIVE
BUDGET OFFICE SHALL ALSO SUBMIT AN  ANALYSIS  OF  AGENCY  STRATEGIC  AND
PERFORMANCE  PLANS  DEVELOPED  PURSUANT  TO  SECTION TWENTY-EIGHT OF THE
STATE FINANCE LAW.
  4. THE LEGISLATIVE BUDGET OFFICE SHALL,  TO  THE  EXTENT  PRACTICABLE,
DEVELOP  PROPOSALS FOR COST EFFECTIVE ALTERNATIVE APPROACHES TO MEET THE
FINANCIAL OBLIGATIONS OF  THE  STATE,  INCLUDING  BUT  NOT  LIMITED  TO,
REVIEWING BOND REQUIREMENTS AND DEBT OBLIGATIONS OF THE STATE AND PUBLIC
AUTHORITIES.
  5.  THE  LEGISLATIVE BUDGET OFFICE SHALL PUBLISH A REPORT WITH RESPECT
TO THE EXPECTED LEVELS OF STATE REVENUES BY THE FIRST  DAY  OF  JANUARY,
THE FIRST DAY OF APRIL, THE FIRST DAY OF JULY AND THE FIRST DAY OF OCTO-
BER OF EACH YEAR.
  6.  THE  LEGISLATIVE  BUDGET OFFICE SHALL PUBLISH BY DECEMBER FIRST OF
EACH YEAR A REPORT ANALYZING THE FISCAL OUTLOOK OF  THE  STATE  FOR  THE
NEXT FIVE YEARS.
  7.  AT  THE  REQUEST  OF  ANY MEMBER OR COMMITTEE OF THE SENATE OR THE
ASSEMBLY, THE LEGISLATIVE BUDGET OFFICE SHALL, TO THE  EXTENT  PRACTICA-
BLE,  CONSULT  WITH AND ASSIST SUCH COMMITTEE IN ANALYZING THE BUDGETARY
OR FINANCIAL IMPACT OF ANY PROPOSED LEGISLATION THAT MAY HAVE:
  (A) A SIGNIFICANT BUDGETARY IMPACT ON LOCAL OR TRIBAL GOVERNMENTS;
  (B) A SIGNIFICANT FINANCIAL IMPACT ON THE PRIVATE SECTOR; OR
  (C) A SIGNIFICANT EMPLOYMENT IMPACT ON THE PRIVATE SECTOR.
  8. (A) THE DIRECTOR OF THE LEGISLATIVE  BUDGET  OFFICE  SHALL  CONDUCT
CONTINUING  STUDIES  ON FISCAL MATTERS INCLUDING WAYS TO ENHANCE COMPAR-
ISONS OF BUDGET AUTHORITY AND OUTLAYS, DEBT AUTHORITY, AND TAX POLICY.
  (B) (1) AT THE REQUEST OF ANY CHAIR OR RANKING MEMBER OF THE  MINORITY
OF A COMMITTEE OF THE SENATE OR THE ASSEMBLY, THE DIRECTOR SHALL, TO THE
EXTENT PRACTICABLE, CONDUCT A STUDY OF A LEGISLATIVE PROPOSAL CONTAINING
A STATE MANDATE.
  (2)  IN  CONDUCTING  A  STUDY ON INTERGOVERNMENTAL MANDATES UNDER THIS
PARAGRAPH, THE DIRECTOR SHALL:

S. 3946--A                          3

  (I) SOLICIT AND CONSIDER INFORMATION OR COMMENTS  FROM  ELECTED  OFFI-
CIALS  (INCLUDING  THEIR DESIGNATED REPRESENTATIVES) OF STATE, LOCAL, OR
TRIBAL GOVERNMENTS AS MAY PROVIDE HELPFUL INFORMATION OR COMMENTS;
  (II)  CONSIDER  ESTABLISHING  ADVISORY  PANELS OF ELECTED OFFICIALS OR
THEIR DESIGNATED REPRESENTATIVES, OF LOCAL OR TRIBAL GOVERNMENTS IF  THE
DIRECTOR  DETERMINES  THAT  SUCH  ADVISORY  PANELS  WOULD  BE HELPFUL IN
PERFORMING RESPONSIBILITIES OF THE DIRECTOR UNDER THIS SECTION; AND
  (III) IF, AND TO THE EXTENT THAT THE DIRECTOR DETERMINES THAT ACCURATE
ESTIMATES ARE REASONABLY FEASIBLE, INCLUDE ESTIMATES OF:
  (A) THE FUTURE DIRECT COST OF THE STATE MANDATE  TO  THE  EXTENT  THAT
SUCH  COSTS  SIGNIFICANTLY  DIFFER  FROM  OR EXTEND BEYOND THE FIVE-YEAR
PERIOD AFTER THE MANDATE IS FIRST EFFECTIVE; AND
  (B) ANY DISPROPORTIONATE BUDGETARY  EFFECTS  OF  STATE  MANDATES  UPON
PARTICULAR  INDUSTRIES  OR SECTORS OF THE ECONOMY, REGIONS, AND URBAN OR
RURAL OR OTHER TYPES OF COMMUNITIES, AS APPROPRIATE.
  (3) IN CONDUCTING A STUDY ON STATE MANDATES UNDER SUBPARAGRAPH ONE  OF
THIS  PARAGRAPH,  THE  DIRECTOR  SHALL  PROVIDE ESTIMATES, IF AND TO THE
EXTENT THAT THE DIRECTOR DETERMINES THAT SUCH ESTIMATES  ARE  REASONABLY
FEASIBLE, OF:
  (I)  FUTURE  COSTS  OF  STATE  MANDATES ON PRIVATE SECTOR ENTITIES AND
LOCAL GOVERNMENTS TO THE EXTENT THAT SUCH MANDATES DIFFER  SIGNIFICANTLY
FROM  OR EXTEND BEYOND THE FIVE-YEAR TIME PERIOD REFERRED TO IN ITEM (A)
OF CLAUSE (III) OF SUBPARAGRAPH TWO OF THIS PARAGRAPH;
  (II) ANY DISPROPORTIONATE FINANCIAL EFFECTS OF  STATE  PRIVATE  SECTOR
MANDATES  AND  OF  ANY  STATE  FINANCIAL ASSISTANCE IN THE BILL OR JOINT
RESOLUTION UPON ANY PARTICULAR INDUSTRIES OR  SECTORS  OF  THE  ECONOMY,
REGIONS, AND URBAN OR RURAL OR OTHER TYPES OF COMMUNITIES; AND
  (III)  THE EFFECT OF STATE MANDATES IN THE BILL OR JOINT RESOLUTION ON
THE ECONOMY OF THE STATE, INCLUDING THE EFFECT ON PRODUCTIVITY, ECONOMIC
GROWTH, FULL EMPLOYMENT, CREATION OF PRODUCTIVE JOBS,  AND  COMPETITIVE-
NESS OF GOODS AND SERVICES.
  9.  THE  LEGISLATIVE  BUDGET  OFFICE SHALL, FROM TIME TO TIME, PUBLISH
SUCH REPORTS AS MAY BE APPROPRIATE TO ENHANCE THE  OFFICIAL  AND  PUBLIC
UNDERSTANDING OF THE BUDGETARY PROCESS AND OF THE BUDGET DOCUMENTS. SUCH
OFFICE  SHALL,  FROM TIME TO TIME, PUBLISH SUCH REPORTS AS MAY BE NECES-
SARY OR APPROPRIATE TO PROVIDE SUCH INFORMATION, DATA  AND  ANALYSIS  AS
WILL  ENHANCE  OFFICIAL  AND PUBLIC UNDERSTANDING OF MATTERS RELATING TO
STATE REVENUES, EXPENDITURES, MANAGEMENT PRACTICES AND RELATED MATTERS.
  10. ALL INFORMATION, DATA, ESTIMATES AND STATISTICS, AND  ALL  STUDIES
AND  REPORTS  PREPARED  BY  THE  LEGISLATIVE BUDGET OFFICE SHALL BE MADE
AVAILABLE TO THE PUBLIC AND SHALL ALSO BE MADE AVAILABLE  BY  ELECTRONIC
MEANS TO THE EXTENT PRACTICABLE OVER THE INTERNET.
  11.  NOTHING IN THIS SECTION SHALL BE CONSTRUED TO REQUIRE THE DISCLO-
SURE OF INFORMATION THAT IS OTHERWISE PROTECTED AS CONFIDENTIAL BY OTHER
PROVISIONS OF STATE OR FEDERAL LAW.
  S 76.  DIRECTOR OF THE LEGISLATIVE BUDGET OFFICE. 1.  THE  LEGISLATIVE
BUDGET OFFICE SHALL BE HEADED BY A DIRECTOR WHO SHALL BE APPOINTED, FROM
ONE  OR  MORE  CANDIDATES  RECOMMENDED  BY THE LEGISLATIVE BUDGET OFFICE
BOARD OF DIRECTORS (ALSO REFERRED TO IN THIS SECTION AS THE "BOARD"), BY
THE SPEAKER OF THE ASSEMBLY AND THE TEMPORARY PRESIDENT OF  THE  SENATE.
THE  RECOMMENDATIONS  FOR THE INITIAL APPOINTMENT OF SUCH DIRECTOR SHALL
BE MADE NO LATER THAN JANUARY FIFTEENTH, TWO  THOUSAND  FIFTEEN  TO  THE
SPECIAL  COMMITTEE.  SUBSEQUENT  RECOMMENDATIONS  SHALL  BE MADE BETWEEN
JANUARY SECOND AND JANUARY FIFTEENTH EVERY SIXTH  YEAR  THEREAFTER.  THE
SPEAKER  OF  THE  ASSEMBLY  AND  TEMPORARY PRESIDENT OF THE SENATE SHALL
APPOINT THE INITIAL DIRECTOR NO LATER THAN FEBRUARY FIFTEENTH, TWO THOU-

S. 3946--A                          4

SAND FIFTEEN AND SUCH INITIAL DIRECTOR SHALL TAKE OFFICE BEGINNING APRIL
FIRST, TWO THOUSAND FIFTEEN. SUBSEQUENT APPOINTMENTS SHALL  BE  MADE  NO
LATER THAN FEBRUARY FIFTEENTH EVERY SIXTH YEAR THEREAFTER.
  2.  (A)  THERE SHALL BE A LEGISLATIVE BUDGET OFFICE BOARD OF DIRECTORS
CONSISTING OF (1) ONE PERSON APPOINTED BY EACH OF  THE  FOLLOWING  OFFI-
CIALS  AND  WHO SHALL SERVE AT THE PLEASURE OF SUCH OFFICIALS; THE CHAIR
AND RANKING MEMBER OF THE ASSEMBLY WAYS  AND  MEANS  COMMITTEE  AND  THE
CHAIR  AND  RANKING  MEMBER OF THE SENATE FINANCE COMMITTEE, AND (2) SIX
OTHER MEMBERS JOINTLY APPOINTED BY THE SPEAKER OF THE ASSEMBLY  AND  THE
TEMPORARY  PRESIDENT  OF THE SENATE, WHO SHALL SERVE FOR SIX YEAR TERMS,
PROVIDED, HOWEVER THAT OF THE MEMBERS FIRST APPOINTED, TWO  SHALL  SERVE
FOR  TERMS  EXPIRING  ON  MARCH  THIRTY-FIRST, TWO THOUSAND SIXTEEN; TWO
SHALL SERVE FOR TERMS EXPIRING ON MARCH THIRTY-FIRST, TWO THOUSAND EIGH-
TEEN; AND TWO SHALL SERVE FOR TERMS EXPIRING ON MARCH THIRTY-FIRST,  TWO
THOUSAND  TWENTY.  THE  MEMBERS  SHALL ALL BE INDIVIDUALS WITH EXTENSIVE
EXPERIENCE AND KNOWLEDGE IN THE FIELDS OF FINANCE,  ECONOMICS,  ACCOUNT-
ING, PUBLIC ADMINISTRATION AND PUBLIC POLICY ANALYSIS INCLUDING AT LEAST
ONE  NATIONALLY RECOGNIZED EXPERT IN THE FIELDS OF BUDGET THEORY AND THE
BUDGET PROCESS; ONE DEAN OR DIRECTOR OR FORMER DEAN  OR  DIRECTOR  OF  A
GRADUATE  SCHOOL  OF  BUSINESS  ADMINISTRATION, PUBLIC AFFAIRS OR PUBLIC
ADMINISTRATION LOCATED IN THE STATE; ONE OFFICER OR  FORMER  OFFICER  OR
ECONOMIC  ADVISOR  OF  A  LABOR  UNION; ONE OFFICER OR FORMER OFFICER OR
ECONOMIC ADVISOR TO A BUSINESS CORPORATION; ONE OFFICER OR FORMER  OFFI-
CER  OF  A CITY WITH A POPULATION OF ONE MILLION OR MORE; ONE OFFICER OR
FORMER OFFICER OF A COUNTY; AND ONE OFFICER OR FORMER OFFICER OF A CIVIC
OR PUBLIC INTEREST ADVOCACY ORGANIZATION  DIRECTLY  INVOLVED  IN  BUDGET
MATTERS.  NO INDIVIDUAL SHALL SERVE CONSECUTIVE TERMS.
  (B)  THE  LEGISLATIVE  BUDGET  OFFICE BOARD OF DIRECTORS SHALL DEVELOP
GUIDELINES FOR THE BEST PRACTICES OF THE LEGISLATIVE BUDGET OFFICE.  THE
LEGISLATIVE  BUDGET  OFFICE  BOARD OF DIRECTORS SHALL MEET ANNUALLY WITH
THE DIRECTOR  TO  REVIEW  SUCH  GUIDELINES  AND  TO  MAKE  COMMENTS  AND
SUGGESTIONS  ON  THE  OVERALL  PRACTICES  OF THE OFFICE.   IN DEVELOPING
GUIDELINES FOR BEST PRACTICES, SUCH STANDARDS  SHALL  BE  IN  COMPLIANCE
WITH  STANDARDS  PROMULGATED  BY  THE  GOVERNMENTAL ACCOUNTING STANDARDS
BOARD OR ANOTHER COMPARABLE STANDARD SETTING  ENTITY  WHEN  PRACTICABLE.
NOTHING  IN  THIS SECTION SHALL PRECLUDE THE BOARD FROM USING PRONOUNCE-
MENTS; STANDARDS AND OTHER DOCUMENTS DEVELOPED AND PUBLISHED  BY  ORGAN-
IZATIONS  THAT ARE NATIONALLY RECOGNIZED AUTHORITIES IN MATTERS PERTAIN-
ING TO PUBLIC FINANCE EXCEPT THAT THE  BOARD  SHALL  DEVELOP  SUCH  BEST
PRACTICES  WITH THE INTENT OF COMPLYING WITH THE GOVERNMENTAL ACCOUNTING
STANDARDS BOARD WHERE PRACTICABLE AND APPLICABLE.
  (C) MEMBERS OF THE BOARD OF DIRECTORS SHALL  RECEIVE  NO  COMPENSATION
BUT  SHALL  BE REIMBURSED FOR REASONABLE EXPENSES INCURRED IN CONNECTION
WITH THEIR DUTIES.
  3. THE DIRECTOR OF THE LEGISLATIVE BUDGET OFFICE  SHALL  BE  APPOINTED
WITHOUT  REGARD  TO  POLITICAL  AFFILIATION  AND  SOLELY ON THE BASIS OF
FITNESS TO PERFORM THE DUTIES ASSIGNED BY  THIS  ARTICLE.  THE  TERM  OF
OFFICE  OF  THE  DIRECTOR  FIRST  APPOINTED  SHALL  EXPIRE  ON  FEBRUARY
FIFTEENTH, TWO THOUSAND TWENTY-ONE, AND THE TERMS OF OFFICE OF DIRECTORS
SUBSEQUENTLY APPOINTED SHALL EXPIRE ON SUCH  DATE  IN  EACH  SIXTH  YEAR
THEREAFTER.  ANY  INDIVIDUAL  APPOINTED  TO  FILL A VACANCY PRIOR TO THE
EXPIRATION OF A TERM SHALL SERVE ONLY FOR THE UNEXPIRED PORTION OF  SUCH
TERM.  AN  INDIVIDUAL  SERVING AS DIRECTOR AT THE EXPIRATION OF THE TERM
MAY CONTINUE TO SERVE UNTIL A SUCCESSOR  IS  APPOINTED.    ANY  DIRECTOR
SERVING CONSECUTIVE TERMS SHALL BE RECOMMENDED BY THE LEGISLATIVE BUDGET
OFFICE  BOARD  OF DIRECTORS AND APPOINTED BY THE SPEAKER OF THE ASSEMBLY

S. 3946--A                          5

AND THE TEMPORARY PRESIDENT OF THE SENATE FOR THE SECOND TERM. NO DIREC-
TOR SHALL SERVE MORE THAN TWO TERMS CONSECUTIVELY.
  4.  TWENTY  PERCENT  OF THE APPROPRIATIONS MADE TO THE DIVISION OF THE
BUDGET SHALL BE AVAILABLE TO PAY FOR THE  EXPENSES  OF  THE  LEGISLATIVE
BUDGET  OFFICE  DURING  EACH FISCAL YEAR BEGINNING WITH THE FIRST DAY OF
APRIL AFTER THIS SECTION SHALL HAVE BECOME A LAW. THE  DIRECTOR  OF  THE
LEGISLATIVE  BUDGET  OFFICE SHALL APPOINT SUCH PERSONNEL AND PROCURE THE
SERVICES OF SUCH EXPERTS  AND  CONSULTANTS,  WITHIN  THE  APPROPRIATIONS
AVAILABLE  THEREFOR,  AS MAY BE NECESSARY FOR SUCH DIRECTOR TO CARRY OUT
THE DUTIES AND FUNCTIONS  ASSIGNED  PURSUANT  TO  THIS  ARTICLE.    SUCH
PERSONNEL  AND  EXPERTS  SHALL PERFORM SUCH DUTIES AS MAY BE ASSIGNED TO
THEM BY THE DIRECTOR.
  5. THE DIRECTOR MAY BE REMOVED BY EITHER A  JOINT  RESOLUTION  OF  THE
SENATE  AND  ASSEMBLY  OR  BY  A VOTE OF SEVEN OUT OF TEN MEMBERS OF THE
BOARD.
  6. (A) THE DIRECTOR AND DEPUTY DIRECTOR SHALL RECEIVE COMPENSATION  IN
AN  AMOUNT  TO  BE  DETERMINED  PURSUANT TO A CHAPTER OF THE LAWS OF TWO
THOUSAND FOURTEEN.
  (B) THE DIRECTOR SHALL  APPOINT  AND  FIX  THE  COMPENSATION  OF  SUCH
PERSONNEL  AS  MAY BE NECESSARY TO CARRY OUT THE DUTIES AND FUNCTIONS OF
THE OFFICE. ALL PERSONNEL OF  THE  OFFICE  SHALL  BE  APPOINTED  WITHOUT
REGARD TO POLITICAL AFFILIATION AND SOLELY ON THE BASIS OF THEIR FITNESS
TO  PERFORM  THEIR  DUTIES.  THE  DIRECTOR  MAY PRESCRIBE THE DUTIES AND
RESPONSIBILITIES OF THE PERSONNEL OF THE OFFICE, AND  DELEGATE  TO  THEM
AUTHORITY TO PERFORM ANY OF THE DUTIES, POWERS, AND FUNCTIONS IMPOSED ON
THE  OFFICE OR ON THE DIRECTOR. FOR PURPOSES OF PAY AND EMPLOYMENT BENE-
FITS, RIGHTS, AND PRIVILEGES, ALL  PERSONNEL  OF  THE  OFFICE  SHALL  BE
TREATED AS IF THEY WERE EMPLOYEES OF THE STATE.
  7.  THE DIRECTOR OF THE LEGISLATIVE BUDGET OFFICE SHALL HAVE ACCESS AT
ALL REASONABLE TIMES  TO  OFFICES  OF  STATE  DEPARTMENTS,  COMMISSIONS,
BOARDS,  BUREAUS  AND OFFICES, TO INSTITUTIONS AND TO ALL STATE AUTHORI-
TIES AND PUBLIC WORKS OF THE STATE AND THEY  MAY,  FOR  THE  PURPOSE  OF
OBTAINING  INFORMATION AS TO THE METHOD OF OPERATION, GENERAL CONDITION,
MANAGEMENT AND NEEDS THEREOF,  EXAMINE  THE  BOOKS,  PAPERS  AND  PUBLIC
RECORDS  THEREIN.  NOTWITHSTANDING ANY OTHER PROVISION OF LAW SUCH STATE
DEPARTMENTS, COMMISSIONS, BOARDS,  BUREAUS,  DIVISIONS,  OFFICES,  STATE
AUTHORITIES  AND OTHER INSTITUTIONS SHALL, THROUGH THEIR PROPER OFFICERS
OR DEPUTIES, FURNISH TO THE DIRECTOR SUCH DATA,  INFORMATION  OR  STATE-
MENTS  AS  MAY BE NECESSARY FOR THE PROPER EXERCISE OF HIS OR HER POWERS
AND DUTIES AND FOR THE PURPOSE OF CARRYING INTO EFFECT THE PROVISIONS OF
THIS ARTICLE.
  8. FOR THE PURPOSES OF REVENUE LEGISLATION WHICH IS INCOME, ESTATE AND
GIFT, EXCISE, AND PAYROLL TAXES, CONSIDERED OR ENACTED IN ANY SESSION OF
THE LEGISLATURE, THE LEGISLATIVE BUDGET  OFFICE  SHALL  CONSIDER  DURING
THAT LEGISLATIVE SESSION REVENUE ESTIMATES PROVIDED TO IT BY THE DEPART-
MENT OF AUDIT AND CONTROL OR THE STATE COMPTROLLER.  DURING THAT SESSION
OF  THE  LEGISLATURE  SUCH REVENUE ESTIMATES SHALL BE TRANSMITTED BY THE
LEGISLATIVE BUDGET OFFICE TO ANY COMMITTEE OF THE ASSEMBLY OR THE SENATE
REQUESTING SUCH ESTIMATES, AND SHALL  BE  USED  BY  SUCH  COMMITTEES  IN
DETERMINING  SUCH  ESTIMATES.  THE  FISCAL  COMMITTEES OF THE SENATE AND
ASSEMBLY SHALL DETERMINE ALL ESTIMATES WITH RESPECT TO THE EXECUTION  OF
THE  PURPOSES  OF THIS ARTICLE.   THIS SUBDIVISION SHALL NOT REQUIRE NOR
PRECLUDE THE LEGISLATIVE BUDGET OFFICE FROM USING ESTIMATES OF THE STATE
COMPTROLLER IN THE CALCULATION OF THE REVENUE FORECAST AS STIPULATED  IN
SUBDIVISION FIVE OF SECTION SEVENTY-FIVE OF THIS ARTICLE.

S. 3946--A                          6

  S  2.  Section  22 of the state finance law is amended by adding three
new subdivisions 17, 18 and 19 to read as follows:
  17. DEVELOPMENT OF THE EXECUTIVE BUDGET SUBMISSION AND ENACTED BUDGET.
FOR  FISCAL  YEARS  BEGINNING  ON  AND  AFTER  APRIL FIRST, TWO THOUSAND
FIFTEEN, THE EXECUTIVE BUDGET SUBMISSION AND THE ENACTED BUDGET COVERING
ALL EXPENDITURES OTHER THAN CAPITAL ITEMS SHALL BE PREPARED AND BALANCED
SO THE RESULTS THEREOF WOULD NOT SHOW A DEFICIT WHEN REPORTED IN ACCORD-
ANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AS DEFINED IN SECTION
TWO OF THIS CHAPTER.
  18. NOTWITHSTANDING ANY PROVISION OF  LAW  TO  THE  CONTRARY,  BUDGETS
SUBMITTED PURSUANT TO THIS SECTION SHALL INCLUDE:
  A.  A  DESCRIPTION  OF  ALL  OF  THE EXPENDITURES ESTIMATED TO BE MADE
BEFORE THE CLOSE OF THE CURRENT FISCAL YEAR AND ALL OF THE  EXPENDITURES
PROPOSED  TO  BE MADE DURING THE ENSUING FISCAL YEAR, BOTH IN ACCORDANCE
WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AS DEFINED IN SECTION  TWO
OF THIS CHAPTER; AND
  B.  A  DESCRIPTION  OF ALL THE REVENUES ESTIMATED TO ACCRUE BEFORE THE
CLOSE OF THE CURRENT FISCAL YEAR AND DURING  THE  ENSUING  FISCAL  YEAR,
INCLUSIVE OF ANY REVENUES WHICH ARE EXPECTED TO RESULT FROM THE PROPOSED
LEGISLATION  WHICH  THE  GOVERNOR  DEEMS  NECESSARY  TO PROVIDE RECEIPTS
SUFFICIENT TO MEET PROPOSED DISBURSEMENTS, ALL IN ACCORDANCE WITH GENER-
ALLY ACCEPTED ACCOUNTING PRINCIPLES AS DEFINED IN SECTION  TWO  OF  THIS
CHAPTER.
  19.  THE  DIVISION OF THE BUDGET SHALL PREPARE THE REPORTS, SCHEDULES,
AND OTHER INFORMATION DESCRIBED IN THIS SUBDIVISION. TO THE EXTENT PRAC-
TICABLE, SUCH REPORTS, SCHEDULES, AND INFORMATION SHALL BE  IN  A  FORM,
AND  PRESENTED  AT  A LEVEL OF DETAIL, THAT FACILITATES COMPARISON ON AN
ANNUAL BASIS AND AGAINST ACTUAL RESULTS, AS APPROPRIATE, AND IN A MANNER
CONSISTENT WITH THE OTHER  REPORTING  REQUIREMENTS  ENUMERATED  IN  THIS
SECTION.  THE REPORTS, SCHEDULES, AND OTHER INFORMATION REQUIRED BY THIS
SUBDIVISION SHALL BE SUBMITTED  TO  THE  CHAIR  OF  THE  SENATE  FINANCE
COMMITTEE,  THE  CHAIR  OF  THE  ASSEMBLY  WAYS AND MEANS COMMITTEE, THE
MINORITY LEADERS OF BOTH HOUSES, AND THE COMPTROLLER  ACCORDING  TO  THE
SCHEDULES  SET  FORTH  IN  THIS  SUBDIVISION.  IN  DETERMINING THE FINAL
CONTENT AND FORMAT OF THE INFORMATION  REQUIRED  BY  THIS  SECTION,  THE
DIVISION  SHALL  CONSULT  ANNUALLY  WITH THE DIRECTOR OF THE LEGISLATIVE
BUDGET OFFICE, THE DESIGNEES OF THE TEMPORARY PRESIDENT OF  THE  SENATE,
THE  SPEAKER  OF  THE ASSEMBLY, THE MINORITY LEADERS OF BOTH HOUSES, AND
THE COMPTROLLER. ALL INFORMATION DESCRIBED IN THIS SUBDIVISION SHALL  BE
MADE AVAILABLE TO THE PUBLIC.
  A.  THE SUMMARY FINANCIAL PLAN SUBMITTED BY THE GOVERNOR TO THE LEGIS-
LATURE, IN ADDITION TO THE INFORMATION DESCRIBED IN SUBDIVISION  ONE  OF
THIS SECTION, SHALL INCLUDE:
  (1)  A  SCHEDULE  OF  RECEIPTS  FOR  THE PRIOR, CURRENT, AND NEXT FIVE
FISCAL YEARS. SUCH SCHEDULE SHALL PRESENT THE MAJOR REVENUE SOURCES  FOR
EACH  FUND,  INCLUDING DETAIL FOR EACH MAJOR TAX AND MAJOR COMPONENTS OF
MISCELLANEOUS RECEIPTS.
  (2) A DESCRIPTION OF EMPLOYMENT  LEVELS  FOR  EACH  STATE  DEPARTMENT,
DIVISION  OR OFFICE FOR THE PRIOR, CURRENT, AND NEXT ENSUING FISCAL YEAR
CONTAINING (A) SEPARATE SCHEDULES FOR EACH FUND  TYPE  AND  (B)  AN  ALL
FUNDS SUMMARY. SUCH INFORMATION SHALL BE PRESENTED IN A FORM THAT FACIL-
ITATES  COMPARISONS  AMONG  AGENCIES  AND ACROSS FISCAL YEARS, AND SHALL
INCLUDE (I) ACTUAL AND PROJECTED FULL-TIME EQUIVALENTS AND (II) PROPOSED
CHANGES TO THE WORKFORCE IN THE EXECUTIVE BUDGET,  INCLUDING  NEW  POSI-
TIONS,  LAYOFFS,  ATTRITIONS,  AND  CHANGES  IN  FUNDING SOURCES. TO THE
EXTENT PRACTICABLE, THE DIVISION OF  THE  BUDGET  SHALL  FACILITATE  THE

S. 3946--A                          7

PROVISION OF OTHER RELEVANT INFORMATION ON EMPLOYMENT TO THE LEGISLATURE
IN A TIMELY MANNER DURING THE STATE FISCAL YEAR.
  B.  THE EXECUTIVE BUDGET, THE ENACTED BUDGET REPORT AND EACH QUARTERLY
UPDATE TO THE FINANCIAL PLAN SHALL INCLUDE THE FOLLOWING INFORMATION, IN
ADDITION TO THE INFORMATION REQUIRED ELSEWHERE IN THIS SECTION AND OTHER
SECTIONS OF LAW.
  (1) AN UPDATED GENERAL FUND FORECAST OF RECEIPTS AND DISBURSEMENTS FOR
THE CURRENT AND FIVE SUCCEEDING  FISCAL  YEARS.  SUCH  UPDATED  FORECAST
SHALL  CLEARLY  IDENTIFY  AND  EXPLAIN THE REVISIONS TO THE RECEIPTS AND
DISBURSEMENTS PROJECTIONS FROM THE  MOST  RECENT  PRIOR  UPDATE  TO  THE
FINANCIAL  PLAN, AND ANY SIGNIFICANT REVISIONS TO THE UNDERLYING FACTORS
AFFECTING RECEIPTS AND DISBURSEMENTS BY MAJOR FUNCTION, AND MAY INCLUDE,
BUT NOT BE LIMITED TO: CASELOAD, SERVICE, AND UTILIZATION  RATES;  DEMO-
GRAPHIC TRENDS; ECONOMIC VARIABLES; PENSION FUND PERFORMANCE; INCARCERA-
TION   RATES;  PRESCRIPTION  DRUG  PRICES;  HEALTH  INSURANCE  PREMIUMS;
INFLATION; CONTRACTUAL OBLIGATIONS;  LITIGATION;  AND  STATE  EMPLOYMENT
TRENDS.
  (2)  A  REVISED  MONTHLY GENERAL FUND CASH FLOW PROJECTION OF RECEIPTS
AND DISBURSEMENTS FOR THE CURRENT FISCAL YEAR THAT (A)  COMPARES  ACTUAL
RESULTS TO (I) ACTUAL RESULTS THROUGH THE SAME PERIOD FOR THE PRIOR YEAR
AND  (II)  THE MOST RECENT PRIOR UPDATE TO THE FINANCIAL PLAN AND TO THE
ENACTED BUDGET FINANCIAL PLAN, (B) SUMMARIZES THE REASONS FOR ANY  VARI-
ANCES, AND (C) DESCRIBES THE REVISIONS TO THE CASH FLOW PROJECTIONS. THE
MONTHLY GENERAL FUND CASH FLOW PROJECTION SHALL BE STATED BY MAJOR CATE-
GORY OF LOCAL ASSISTANCE, PERSONAL SERVICE, NONPERSONAL SERVICE, GENERAL
STATE CHARGES, AND DEBT SERVICE, AND BY MAJOR CATEGORY OF REVENUE.
  C.  THE  CAPITAL  PROGRAM  AND  FINANCING  PLAN  SUBMITTED PURSUANT TO
SECTION TWENTY-TWO-C OF THIS ARTICLE, AND THE  UPDATE  THERETO  REQUIRED
PURSUANT TO SECTION TWENTY-THREE OF THIS ARTICLE, SHALL INCLUDE A REPORT
ON  THE MANAGEMENT OF STATE-SUPPORTED DEBT. SUCH REPORT MAY INCLUDE, BUT
IS NOT LIMITED TO: (1) AN ASSESSMENT OF THE AFFORDABILITY OF STATE DEBT,
INCLUDING DEBT AS A PERCENT OF PERSONAL INCOME,  DEBT  PER  CAPITA,  AND
DEBT  SERVICE COSTS AS A PERCENT OF THE BUDGET, (2) A SUMMARY AND ANALY-
SIS OF THE INTEREST RATE EXCHANGE AGREEMENTS AND VARIABLE RATE EXPOSURE,
AND (3) AN ASSESSMENT OF FINANCING OPPORTUNITIES RELATED TO THE  STATE'S
DEBT PORTFOLIO.
  S  3.  Paragraph (a) of subdivision 2 of section 54 of the legislative
law, as added by chapter 1 of the laws of 2007, is  amended  and  a  new
paragraph (d) is added to read as follows:
  (a)  The legislature shall enact a budget for the upcoming fiscal year
that it determines is balanced [in the] ON A general fund,  STATE  FUNDS
AND  ALL  FUNDS  BASIS. THE LEGISLATURE SHALL MAKE THIS DETERMINATION IN
ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AS  DEFINED  IN
SECTION TWO OF THE STATE FINANCE LAW.
  (D)  NOTWITHSTANDING  ANY  PROVISION  OF  LAW TO THE CONTRARY, BUDGETS
SUBMITTED PURSUANT TO THIS SECTION SHALL INCLUDE:
  (I) ALL OF THE EXPENDITURES ESTIMATED TO BE MADE BEFORE THE  CLOSE  OF
THE  CURRENT FISCAL YEAR AND ALL OF THE EXPENDITURES PROPOSED TO BE MADE
DURING THE ENSUING  FISCAL  YEAR,  BOTH  IN  ACCORDANCE  WITH  GENERALLY
ACCEPTED  ACCOUNTING  PRINCIPLES  AS DEFINED IN SECTION TWO OF THE STATE
FINANCE LAW; AND
  (II) A DESCRIPTION OF ALL OF THE REVENUES ESTIMATED TO  ACCRUE  BEFORE
THE CLOSE OF THE CURRENT FISCAL YEAR AND DURING THE ENSUING FISCAL YEAR,
INCLUSIVE OF ANY REVENUES WHICH ARE EXPECTED TO RESULT FROM THE PROPOSED
LEGISLATION  WHICH  THE  LEGISLATURE DEEMS NECESSARY TO PROVIDE RECEIPTS
SUFFICIENT TO MEET PROPOSED DISBURSEMENTS, ALL IN ACCORDANCE WITH GENER-

S. 3946--A                          8

ALLY ACCEPTED ACCOUNTING PRINCIPLES AS DEFINED IN  SECTION  TWO  OF  THE
STATE FINANCE LAW.
  S  4.  The  state finance law is amended by adding a new section 28 to
read as follows:
  S 28.  AGENCY STRATEGIC AND PERFORMANCE PLANS AND PERFORMANCE  BUDGET-
ING REQUIREMENTS.  1. DEFINITIONS. WHEN USED IN THIS SECTION:
  (A) "AGENCY" MEANS AND INCLUDES "STATE AGENCY" AND "COVERED AUTHORITY"
AS DEFINED IN SECTION TWO-A OF THIS CHAPTER;
  (B)  "OUTCOME MEASURE" MEANS AN ASSESSMENT OF THE RESULTS OF A PROGRAM
ACTIVITY COMPARED TO ITS INTENDED PURPOSE;
  (C) "OUTPUT MEASURE" MEANS THE TABULATION, CALCULATION,  OR  RECORDING
OF ACTIVITY OR EFFORT AND CAN BE EXPRESSED IN A QUANTITATIVE OR QUALITA-
TIVE MANNER;
  (D)  "PROGRAM  ASSESSMENT  RATING  TOOL" MEANS A TOOL DEVELOPED BY THE
DIVISION OF THE BUDGET TO EVALUATE THE  EFFECTIVENESS  OF  PROGRAMS  AND
PROGRAM ACTIVITY;
  (E)  "PERFORMANCE  GOAL" MEANS A TARGET LEVEL OF PERFORMANCE EXPRESSED
AS A TANGIBLE, MEASURABLE OBJECTIVE, AGAINST  WHICH  ACTUAL  ACHIEVEMENT
CAN  BE COMPARED, INCLUDING A GOAL EXPRESSED AS A QUANTITATIVE STANDARD,
VALUE, OR RATE;
  (F) "PERFORMANCE INDICATOR" MEANS A PARTICULAR VALUE OR CHARACTERISTIC
USED TO MEASURE OUTPUT OR OUTCOME;
  (G) "PROGRAM ACTIVITY" MEANS A SPECIFIC ACTIVITY  OR  PROJECT  OF  THE
PROGRAM  AND  MEANS  AND INCLUDES ANY EXPENDITURE FOR ANY PURPOSE TO ANY
CLASS OR GROUPING OF VENDORS THAT INCLUDES MORE THAN ONE VENDOR; AND
  (H) "PROGRAM EVALUATION" MEANS AN ASSESSMENT, THROUGH OBJECTIVE  MEAS-
UREMENT  AND  SYSTEMATIC  ANALYSIS,  OF  THE  MANNER AND EXTENT TO WHICH
PROGRAMS ACHIEVE INTENDED OBJECTIVES.
  2. STRATEGIC PLAN. (A) NOT LATER THAN THE START  OF  THE  FISCAL  YEAR
BEGINNING IN TWO THOUSAND FIFTEEN EACH AGENCY SHALL SUBMIT TO THE DIREC-
TOR OF THE BUDGET AND TO THE DIRECTOR OF THE LEGISLATIVE BUDGET OFFICE A
STRATEGIC PLAN FOR PROGRAM ACTIVITIES. SUCH PLAN SHALL INCLUDE:
  (1) A COMPREHENSIVE MISSION STATEMENT COVERING THE MAJOR FUNCTIONS AND
OPERATIONS OF THE AGENCY;
  (2)  GENERAL GOALS AND OBJECTIVES, INCLUDING OUTCOME-RELATED GOALS AND
OBJECTIVES, FOR THE MAJOR FUNCTIONS AND OPERATIONS OF THE AGENCY;
  (3) A DESCRIPTION OF HOW THE GOALS AND OBJECTIVES ARE TO BE  ACHIEVED,
INCLUDING  A  DESCRIPTION OF THE OPERATIONAL PROCESSES, SKILLS AND TECH-
NOLOGY,  AND  THE  HUMAN,  CAPITAL,  INFORMATION,  AND  OTHER  RESOURCES
REQUIRED TO MEET THOSE GOALS AND OBJECTIVES;
  (4)  A  DESCRIPTION  OF  HOW  THE  PERFORMANCE  GOALS  INCLUDED IN THE
PERFORMANCE PLAN REQUIRED BY THIS SECTION SHALL BE RELATED TO THE GENER-
AL GOALS AND OBJECTIVES IN THE STRATEGIC PLAN;
  (5) AN IDENTIFICATION OF KEY FACTORS EXTERNAL TO THE AGENCY AND BEYOND
ITS CONTROL THAT COULD  SIGNIFICANTLY  AFFECT  THE  ACHIEVEMENT  OF  THE
GENERAL GOALS AND OBJECTIVES; AND
  (6)  A  DESCRIPTION OF THE PROGRAM EVALUATIONS USED IN ESTABLISHING OR
REVISING GENERAL GOALS  AND  OBJECTIVES,  WITH  A  SCHEDULE  FOR  FUTURE
PROGRAM EVALUATIONS.
  (B)  THE  STRATEGIC  PLAN  SHALL  COVER A PERIOD OF NOT LESS THAN FIVE
YEARS FORWARD FROM THE FISCAL YEAR IN WHICH IT IS SUBMITTED,  AND  SHALL
BE UPDATED AND REVISED AT LEAST EVERY THREE YEARS.
  (C)  WHEN  DEVELOPING  A STRATEGIC PLAN, THE AGENCY SHALL CONSULT WITH
THE APPROPRIATE COMMITTEE OR COMMITTEES OF  THE  LEGISLATURE,  INCLUDING
COMMITTEES  WHICH  OVERSEE  THEIR AREA OF OPERATIONS PROGRAMMATICALLY OR

S. 3946--A                          9

FISCALLY, AND SHALL SOLICIT AND CONSIDER THE VIEWS  OF  ENTITIES  POTEN-
TIALLY AFFECTED BY OR INTERESTED IN SUCH A PLAN.
  3.  PERFORMANCE  PLANS  AND  REPORTS.   (A) ANY OTHER PROVISION OF ANY
OTHER LAW TO THE CONTRARY NOTWITHSTANDING, BEGINNING  WITH  FISCAL  YEAR
TWO  THOUSAND  FIFTEEN,  THE  DIRECTOR  OF  THE  BUDGET  SHALL INCLUDE A
PERFORMANCE PLAN AS PART OF THE BUDGET SUBMITTED ANNUALLY BY THE  GOVER-
NOR  TO THE LEGISLATURE, IN ACCORDANCE WITH ARTICLE SEVEN OF THE CONSTI-
TUTION. IN SUCH SUBMISSION, THE DIRECTOR SHALL REPORT  TO  THE  GOVERNOR
AND  THE LEGISLATURE CONCERNING ANY SIGNIFICANT DIFFICULTIES EXPERIENCED
BY AGENCIES IN PREPARING PLANS AND REPORTS AND SET FORTH ANY RECOMMENDED
CHANGES IN THE REQUIREMENTS OF THIS SECTION. THE DIRECTOR OF THE  BUDGET
MAY  EXEMPT  FROM  THE  REQUIREMENTS  OF THIS SECTION ANY AGENCY WITH AN
ALL-FUNDS ANNUAL BUDGET OF TEN MILLION DOLLARS OR LESS.
  (B) THE PERFORMANCE PLAN SUBMITTED BY EACH AGENCY SHALL BE  CONSISTENT
WITH  THE AGENCY'S STRATEGIC PLAN. A PERFORMANCE PLAN MAY NOT BE SUBMIT-
TED FOR A FISCAL YEAR NOT COVERED BY A CURRENT STRATEGIC PLAN UNDER THIS
SECTION. IN ADDITION TO ANY OTHER  REQUIREMENTS  OF  THIS  SECTION,  THE
PERFORMANCE  PLAN SHALL USE THE PROGRAM ASSESSMENT RATING TOOL TO EVALU-
ATE ITS PROGRAMS.
  (C) ON AND AFTER FISCAL YEAR TWO THOUSAND FIFTEEN, THE DIRECTOR OF THE
BUDGET SHALL REQUIRE EACH AGENCY TO PREPARE AN ANNUAL  PERFORMANCE  PLAN
COVERING  EACH  PROGRAM ACTIVITY SET FORTH IN THE BUDGET OF SUCH AGENCY.
SUCH PLAN SHALL:
  (1) ESTABLISH PERFORMANCE GOALS TO DEFINE THE LEVEL OF PERFORMANCE  TO
BE ACHIEVED BY A PROGRAM ACTIVITY;
  (2)  EXPRESS  SUCH GOALS IN AN OBJECTIVE, QUANTIFIABLE, AND MEASURABLE
FORM UNLESS AUTHORIZED TO BE IN AN ALTERNATIVE  FORM  PURSUANT  TO  THIS
SUBDIVISION;
  (3) BRIEFLY DESCRIBE THE OPERATIONAL PROCESSES, SKILLS AND TECHNOLOGY,
AND THE HUMAN, CAPITAL, INFORMATION, OR OTHER RESOURCES REQUIRED TO MEET
THE PERFORMANCE GOALS;
  (4)  ESTABLISH  PERFORMANCE  INDICATORS  TO  BE  USED  IN MEASURING OR
ASSESSING THE RELEVANT OUTPUTS, SERVICE LEVELS,  AND  OUTCOMES  OF  EACH
PROGRAM ACTIVITY;
  (5)  PROVIDE  A  BASIS  FOR  COMPARING ACTUAL PROGRAM RESULTS WITH THE
ESTABLISHED PERFORMANCE GOALS; AND
  (6) DESCRIBE THE MEANS TO BE USED  TO  VERIFY  AND  VALIDATE  MEASURED
VALUES.
  (D)  IF  AN  AGENCY,  IN CONSULTATION WITH THE DIRECTOR OF THE BUDGET,
DETERMINES THAT IT IS NOT FEASIBLE TO EXPRESS THE PERFORMANCE GOALS  FOR
A PARTICULAR PROGRAM ACTIVITY IN AN OBJECTIVE, QUANTIFIABLE, AND MEASUR-
ABLE FORM, THE DIRECTOR MAY AUTHORIZE AN ALTERNATIVE FORM. SUCH ALTERNA-
TIVE SHALL BE IN A FORM AUTHORIZED BY THE DIRECTOR, AND
  (1)  SHALL HAVE SUFFICIENT PRECISION AND BE IN TERMS THAT ALLOW FOR AN
ACCURATE, INDEPENDENT DETERMINATION OF WHETHER  THE  PROGRAM  ACTIVITY'S
PERFORMANCE MEETS THE CRITERIA OF THE DESCRIPTION; OR
  (2)  BE  A STATEMENT AS TO WHY IT IS INFEASIBLE OR IMPRACTICAL FOR THE
AGENCY TO EXPRESS A PERFORMANCE GOAL IN ANY FORM FOR THE PROGRAM  ACTIV-
ITY.
  (E)  FOR  THE  PURPOSE  OF  COMPLYING WITH THIS SECTION, AN AGENCY MAY
AGGREGATE, DISAGGREGATE, OR CONSOLIDATE PROGRAM ACTIVITIES, EXCEPT  THAT
ANY  AGGREGATION  OR  CONSOLIDATION MAY NOT OMIT OR MINIMIZE THE SIGNIF-
ICANCE OF ANY PROGRAM ACTIVITY CONSTITUTING A MAJOR FUNCTION  OR  OPERA-
TION FOR THE AGENCY.
  (F)  ON  A  DATE  SET BY THE DIRECTOR OF THE BUDGET, EACH AGENCY SHALL
PREPARE AND SUBMIT TO THE DIRECTOR A REPORT ON PROGRAM  PERFORMANCE  FOR

S. 3946--A                         10

THE  PREVIOUS  FISCAL  YEAR  FOR INCLUSION IN THE STATE BUDGET SUBMITTED
ANNUALLY BY THE GOVERNOR TO THE LEGISLATURE, IN ACCORDANCE WITH  ARTICLE
SEVEN OF THE CONSTITUTION.
  (G)  EACH  PROGRAM  PERFORMANCE REPORT SHALL SET FORTH THE PERFORMANCE
INDICATORS ESTABLISHED IN THE AGENCY PERFORMANCE PLAN,  ALONG  WITH  THE
ACTUAL  PROGRAM PERFORMANCE ACHIEVED COMPARED WITH THE PERFORMANCE GOALS
EXPRESSED IN THE PLAN FOR THE PRECEDING FISCAL YEAR.
  (H) IF PERFORMANCE GOALS ARE  SPECIFIED  IN  AN  ALTERNATIVE  FORM  AS
AUTHORIZED  BY  THIS  SECTION,  THE  RESULTS  OF  SUCH  PROGRAM SHALL BE
DESCRIBED IN RELATION TO SUCH SPECIFICATIONS.
  (I) THE REPORT FOR FISCAL YEAR  TWO  THOUSAND  FIFTEEN  SHALL  INCLUDE
ACTUAL RESULTS FOR THE PRECEDING FISCAL YEAR, THE REPORT FOR FISCAL YEAR
TWO  THOUSAND SIXTEEN SHALL INCLUDE ACTUAL RESULTS FOR THE TWO PRECEDING
FISCAL YEARS, AND THE REPORT FOR FISCAL YEAR TWO THOUSAND SEVENTEEN  AND
ALL  SUBSEQUENT  REPORTS  SHALL  INCLUDE  ACTUAL  RESULTS  FOR THE THREE
PRECEDING FISCAL YEARS.
  4. EACH REPORT SHALL: (A) REVIEW THE SUCCESS OF ACHIEVING THE PERFORM-
ANCE GOALS OF THE FISCAL YEAR;
  (B) EVALUATE THE PERFORMANCE PLAN FOR THE CURRENT FISCAL YEAR RELATIVE
TO THE PERFORMANCE ACHIEVED TOWARD THE PERFORMANCE GOALS IN  THE  FISCAL
YEAR COVERED BY THE REPORT;
  (C)  EXPLAIN  AND  DESCRIBE, WHERE A PERFORMANCE GOAL HAS NOT BEEN MET
WHY THE GOAL WAS NOT MET, PLANS AND SCHEDULES FOR ACHIEVING  THE  ESTAB-
LISHED  PERFORMANCE  GOAL, AND IF THE PERFORMANCE GOAL IS IMPRACTICAL OR
INFEASIBLE, WHY THAT IS THE CASE AND WHAT ACTION IS RECOMMENDED; AND
  (D)  INCLUDE  THE  SUMMARY  FINDINGS  OF  THOSE  PROGRAM   EVALUATIONS
COMPLETED DURING THE FISCAL YEAR COVERED BY THE REPORT.
  5.  MANAGERIAL ACCOUNTABILITY AND FLEXIBILITY. (A) ANY OTHER PROVISION
OF ANY OTHER LAW TO  THE  CONTRARY  NOTWITHSTANDING,  PERFORMANCE  PLANS
REQUIRED  HEREUNDER MAY INCLUDE PROPOSALS TO WAIVE ADMINISTRATIVE PROCE-
DURAL REQUIREMENTS AND CONTROLS IN RETURN  FOR  SPECIFIC  INDIVIDUAL  OR
ORGANIZATION  ACCOUNTABILITY TO ACHIEVE A PERFORMANCE GOAL. IN PREPARING
AND SUBMITTING THE PERFORMANCE PLAN THE DIRECTOR  OF  THE  BUDGET  SHALL
REVIEW  AND MAY APPROVE ANY PROPOSED WAIVERS. A WAIVER SHALL TAKE EFFECT
AT THE BEGINNING OF THE FISCAL YEAR FOR WHICH THE WAIVER IS APPROVED.
  (B) ANY SUCH  PROPOSAL  FOR  WAIVER  SHALL  DESCRIBE  THE  ANTICIPATED
EFFECTS  ON  PERFORMANCE  RESULTING FROM GREATER MANAGERIAL OR ORGANIZA-
TIONAL FLEXIBILITY, DISCRETION, AND AUTHORITY, AND  SHALL  QUANTIFY  THE
EXPECTED  IMPROVEMENTS  IN  PERFORMANCE  RESULTING  FROM ANY WAIVER. THE
EXPECTED IMPROVEMENTS SHALL BE COMPARED TO CURRENT  ACTUAL  PERFORMANCE,
AND  TO  THE PROJECTED LEVEL OF PERFORMANCE THAT WOULD BE ACHIEVED INDE-
PENDENT OF ANY WAIVER.
  (C) A PROPOSED WAIVER OF PROCEDURAL REQUIREMENTS OR  CONTROLS  IMPOSED
SHALL NOT BE INCLUDED IN A PERFORMANCE PLAN UNLESS IT IS ENDORSED BY THE
AGENCY THAT ESTABLISHED THE REQUIREMENT, AND THE ENDORSEMENT INCLUDED IN
THE PROPOSING AGENCY'S PERFORMANCE PLAN.
  (D)  A  WAIVER SHALL BE IN EFFECT FOR ONE OR TWO YEARS AS SPECIFIED BY
THE DIRECTOR OF THE BUDGET IN APPROVING THE  WAIVER.  A  WAIVER  MAY  BE
RENEWED  FOR  A  SUBSEQUENT  YEAR. AFTER A WAIVER HAS BEEN IN EFFECT FOR
THREE CONSECUTIVE YEARS, THE PERFORMANCE PLAN MAY PROPOSE THAT A  WAIVER
BE MADE PERMANENT.
  (E)  THE  DIRECTOR  SHALL  NOT  BE  EMPOWERED  TO  WAIVE ANY STATUTORY
REQUIREMENT, BUT MAY SUBMIT LEGISLATION WITH  THE  BUDGET  ALLOWING  FOR
SUCH WAIVER.
  6.  PERFORMANCE  BUDGETING.  (A)  THE  DIRECTOR  OF  THE BUDGET, AFTER
CONSULTATION WITH EACH AGENCY AND THE DIRECTOR OF THE LEGISLATIVE BUDGET

S. 3946--A                         11

OFFICE, SHALL DESIGNATE NOT LESS THAN FIVE AGENCIES AS PILOT PROJECTS IN
PERFORMANCE BUDGETING FOR FISCAL YEARS  TWO  THOUSAND  SIXTEEN  AND  TWO
THOUSAND  SEVENTEEN.   THE AGENCIES SHALL REFLECT A REPRESENTATIVE RANGE
OF  GOVERNMENT  FUNCTIONS  AND  CAPABILITIES  IN MEASURING AND REPORTING
PROGRAM PERFORMANCE.
  (B) PILOT PROJECTS IN THE DESIGNATED AGENCIES SHALL COVER THE PREPARA-
TION OF PERFORMANCE BUDGETS.   SUCH BUDGETS SHALL PRESENT,  FOR  ONE  OR
MORE  OF  THE  MAJOR FUNCTIONS AND OPERATIONS OF THE AGENCY, THE VARYING
LEVELS OF PERFORMANCE, INCLUDING OUTCOME-RELATED PERFORMANCE, THAT WOULD
RESULT FROM DIFFERENT BUDGETED AMOUNTS.
  (C) THE DIRECTOR OF THE BUDGET SHALL INCLUDE, AS AN ALTERNATIVE BUDGET
PRESENTATION IN THE  BUDGET  SUBMITTED  FOR  FISCAL  YEAR  TWO  THOUSAND
SIXTEEN,  THE  PERFORMANCE  BUDGETS  OF THE DESIGNATED AGENCIES FOR THIS
FISCAL YEAR.
  (D) NO LATER THAN MARCH  THIRTY-FIRST,  TWO  THOUSAND  SEVENTEEN,  THE
DIRECTOR  OF  THE  BUDGET  SHALL  TRANSMIT A REPORT TO THE GOVERNOR, THE
LEGISLATURE AND THE LEGISLATIVE BUDGET OFFICE ON PERFORMANCE  BUDGETING.
SUCH REPORT SHALL:
  (1) ASSESS THE FEASIBILITY AND ADVISABILITY OF INCLUDING A PERFORMANCE
BUDGET AS PART OF THE ANNUAL BUDGET;
  (2)  DESCRIBE  ANY DIFFICULTIES ENCOUNTERED IN PREPARING A PERFORMANCE
BUDGET;
  (3) RECOMMEND WHETHER LEGISLATION REQUIRING PERFORMANCE BUDGETS SHOULD
BE PROPOSED AND THE GENERAL PROVISIONS OF ANY LEGISLATION; AND
  (4) SET FORTH ANY RECOMMENDED CHANGES IN  THE  OTHER  REQUIREMENTS  OF
THIS SECTION.
  7.  REPORT BY THE DIVISION OF THE BUDGET.  THE DIRECTOR OF THE BUDGET,
AFTER CONSULTATION WITH EACH AGENCY, SHALL ESTABLISH  TIMELINES,  PROCE-
DURES, FORMS AND OTHER NECESSARY MEASUREMENTS AND DOCUMENTATION REQUIRED
BY  THIS  SECTION NOT LATER THAN SEPTEMBER FIRST, TWO THOUSAND FOURTEEN,
AND SHALL SHARE SUCH SCHEDULES AND DATA WITH THE  FISCAL  COMMITTEES  OF
THE  LEGISLATURE  AND  THE  LEGISLATIVE BUDGET OFFICE. SUCH REPORT SHALL
INCLUDE THE PROGRAM ASSESSMENT RATING TOOL.
  8. TRAINING. THE DIRECTOR OF THE BUDGET, AFTER CONSULTATION  WITH  THE
OFFICE  OF  EMPLOYEE RELATIONS, THE DEPARTMENT OF CIVIL SERVICE, AND THE
DEPARTMENT OF LABOR, SHALL DEVELOP A STRATEGIC PLANNING AND  PERFORMANCE
MEASUREMENT  TRAINING  COMPONENT  FOR  MANAGEMENT  TRAINING PROGRAMS AND
OTHERWISE PROVIDE MANAGERS WITH AN ORIENTATION ON  THE  DEVELOPMENT  AND
USE OF STRATEGIC PLANNING AND PROGRAM PERFORMANCE MEASUREMENT.
  9.  APPLICATION.  NO PROVISION OR AMENDMENT MADE BY THIS SECTION SHALL
BE CONSTRUED AS CREATING ANY RIGHT, PRIVILEGE, BENEFIT,  OR  ENTITLEMENT
FOR  ANY PERSON WHO IS NOT AN OFFICER OR EMPLOYEE OF THE STATE ACTING IN
SUCH CAPACITY, AND NO PERSON WHO IS NOT AN OFFICER OR  EMPLOYEE  OF  THE
STATE  ACTING  IN  SUCH  CAPACITY  SHALL HAVE STANDING TO FILE ANY CIVIL
ACTION IN A COURT OF THIS STATE TO ENFORCE ANY  PROVISION  OR  AMENDMENT
MADE BY THIS SECTION.
  S 5. This act shall take effect immediately.

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