Senate Bill S4006A

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

                                 4006--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             March 12, 2011
                               ___________

Introduced  by  Sen.  SKELOS -- read twice and ordered printed, and when
  printed to be committed to  the  Committee  on  Finance  --  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 New
  York  state  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

  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
                NEW YORK STATE LEGISLATIVE BUDGET OFFICE
SECTION  75. POWERS  AND DUTIES OF THE NEW YORK STATE LEGISLATIVE BUDGET
              OFFICE.
        76. DIRECTOR OF THE NEW YORK STATE LEGISLATIVE BUDGET OFFICE.
  S 75. POWERS AND DUTIES OF  THE  NEW  YORK  STATE  LEGISLATIVE  BUDGET
OFFICE.  THERE  SHALL  HEREBY  BE  ESTABLISHED AN OFFICE OF THE NEW YORK
STATE LEGISLATURE TO BE KNOWN AS THE NEW YORK STATE  LEGISLATIVE  BUDGET
OFFICE.    1.  IT SHALL BE THE PRIMARY DUTY AND FUNCTION OF THE NEW YORK
STATE 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 JURISDICTION 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.
                                                           LBD10223-04-1
              

S. 4006--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. 4006--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  HEREIN  SHALL  BE CONSTRUED TO REQUIRE THE DISCLOSURE OF
INFORMATION  THAT  IS  OTHERWISE  PROTECTED  AS  CONFIDENTIAL  BY  OTHER
PROVISIONS OF STATE OR FEDERAL LAW.
  S  76.    DIRECTOR OF THE NEW YORK STATE LEGISLATIVE BUDGET OFFICE. 1.
THE NEW YORK STATE LEGISLATIVE BUDGET OFFICE SHALL BE HEADED BY A DIREC-
TOR WHO SHALL BE APPOINTED, FROM ONE OR MORE CANDIDATES  RECOMMENDED  BY
THE  LEGISLATIVE  BUDGET  OFFICE  BOARD  OF  DIRECTORS (ALSO REFERRED TO
INTERCHANGEABLY 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  TWELVE  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

S. 4006--A                          4

LATER  THAN  FEBRUARY  FIFTEENTH,  TWO  THOUSAND TWELVE AND SUCH INITIAL
DIRECTOR SHALL TAKE OFFICE BEGINNING APRIL FIRST, TWO  THOUSAND  TWELVE.
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 THIRTEEN; TWO
SHALL SERVE FOR TERMS  EXPIRING  ON  MARCH  THIRTY-FIRST,  TWO  THOUSAND
FIFTEEN;  AND  TWO SHALL SERVE FOR TERMS EXPIRING ON MARCH THIRTY-FIRST,
TWO THOUSAND SEVENTEEN. THE MEMBERS SHALL ALL BE INDIVIDUALS WITH EXTEN-
SIVE EXPERIENCE AND KNOWLEDGE  IN  THE  FIELDS  OF  FINANCE,  ECONOMICS,
ACCOUNTING,  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 NEW YORK 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  OFFICER  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 OTHER DOCUMENTS DEVELOPED AND PUBLISHED BY
ORGANIZATIONS THAT ARE  NATIONALLY  RECOGNIZED  AUTHORITIES  IN  MATTERS
PERTAINING  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 EIGHTEEN, 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

S. 4006--A                          5

OFFICE  BOARD  OF DIRECTORS AND APPOINTED BY THE SPEAKER OF THE ASSEMBLY
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 ELEVEN.
  (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 NEW YORK 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 OFFICE
OF 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  ESTI-
MATES,  AND  SHALL  BE USED BY SUCH COMMITTEES IN DETERMINING SUCH ESTI-
MATES. 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  LEGISLA-
TIVE  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. 4006--A                          6

  S 2. Section 22 of the state finance law is amended by adding two  new
subdivisions 17 and 18 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
TWELVE, 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.
  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 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.
  S 4. Subdivision 2 of section 54 of the legislative law is amended  by
adding a new paragraph (d) to read as follows:
  (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-
ALLY ACCEPTED ACCOUNTING PRINCIPLES AS DEFINED IN  SECTION  TWO  OF  THE
STATE FINANCE LAW.
  S  5.  Section  22 of the state finance law is amended by adding a new
subdivision 19 to read as follows:
  19. THE DIVISION OF THE BUDGET SHALL PREPARE THE  REPORTS,  SCHEDULES,
AND OTHER INFORMATION DESCRIBED BELOW IN THIS SUBDIVISION. TO THE EXTENT
PRACTICABLE,  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

S. 4006--A                          7

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
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

S. 4006--A                          8

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 6. 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 TWELVE 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.

S. 4006--A                          9

  (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
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 TWELVE, THE DIRECTOR OF THE BUDGET SHALL INCLUDE A PERFORM-
ANCE  PLAN  AS  PART OF THE BUDGET SUBMITTED ANNUALLY BY THE GOVERNOR TO
THE LEGISLATURE, IN ACCORDANCE WITH ARTICLE SEVEN OF  THE  CONSTITUTION.
IN  SUCH  SUBMISSION,  THE DIRECTOR SHALL REPORT TO THE GOVERNOR AND THE
LEGISLATURE CONCERNING ANY SIGNIFICANT DIFFICULTIES EXPERIENCED BY AGEN-
CIES IN PREPARING PLANS AND REPORTS AND SET FORTH ANY RECOMMENDED CHANG-
ES 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 TWELVE, 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-

S. 4006--A                         10

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
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 TWELVE SHALL INCLUDE ACTU-
AL RESULTS FOR THE PRECEDING FISCAL YEAR, THE REPORT FOR FISCAL YEAR TWO
THOUSAND THIRTEEN SHALL INCLUDE ACTUAL RESULTS  FOR  THE  TWO  PRECEDING
FISCAL  YEARS,  AND THE REPORT FOR FISCAL YEAR TWO THOUSAND FOURTEEN 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.

S. 4006--A                         11

  (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
OFFICE, SHALL DESIGNATE NOT LESS THAN FIVE AGENCIES AS PILOT PROJECTS IN
PERFORMANCE BUDGETING FOR FISCAL YEARS TWO  THOUSAND  THIRTEEN  AND  TWO
THOUSAND FOURTEEN.  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 THIR-
TEEN, THE PERFORMANCE BUDGETS OF THE DESIGNATED AGENCIES FOR THIS FISCAL
YEAR.
  (D) NO LATER THAN  MARCH  THIRTY-FIRST,  TWO  THOUSAND  FOURTEEN,  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 ELEVEN, 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 OF NEW
YORK ACTING IN SUCH CAPACITY, AND NO PERSON WHO IS  NOT  AN  OFFICER  OR
EMPLOYEE  OF  THE  STATE  OF NEW YORK 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 7. This act shall take effect immediately.