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PRINTER'S NO. 2023
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
1341
Session of
2015
INTRODUCED BY MENSCH, WAGNER, RESCHENTHALER, BARTOLOTTA,
EICHELBERGER, RAFFERTY, AUMENT, GREENLEAF, VULAKOVICH,
FOLMER, WHITE, HUTCHINSON, STEFANO, VOGEL, SMUCKER, BROOKS,
ALLOWAY, ARGALL AND WARD, JULY 11, 2016
REFERRED TO APPROPRIATIONS, JULY 11, 2016
AN ACT
Providing for performance-based budgeting; establishing the
Performance-based Budget Board and providing for its powers
and duties; and conferring powers and imposing duties on the
Independent Fiscal Office.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Performance-
based Budgeting Act.
Section 2. Findings.
The General Assembly finds and declares as follows:
(1) The traditional method of budget development, which
relies upon incremental adjustments to expenditures made in
the previous financial period, insulates governmental
activities from the thorough fiscal review expected by
taxpaying citizens.
(2) New and changing demands for public services are met
through excessive budget growth rather than by pruning
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obsolete programs and redirecting existing funds. Some
programs were established so long ago that the original
statutory basis has either been forgotten or is out of date.
In time, the budget is driven by inertia rather than by clear
and defensible purposes.
(3) Performance-based budgeting is an effective method
to counter the tendency toward perpetuation of outmoded State
programs.
Section 3. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Board." The Performance-based Budget Board established
under this act.
Section 4. Performance-based Budget Board.
(a) Establishment.--The Performance-based Budget Board is
established as an independent board to review the performance-
based budget plans of State agencies and make recommendations on
how each agency's programs may be made more transparent,
effective and efficient.
(b) Members.--The board shall consist of the following
members:
(1) The Secretary of the Budget.
(2) The chairperson of the Appropriations Committee of
the Senate.
(3) The minority chairperson of the Appropriations
Committee of the Senate.
(4) The chairperson of the Appropriations Committee of
the House of Representatives.
(5) The minority chairperson of the Appropriations
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Committee of the House of Representatives.
Section 5. Budget review.
(a) Board.--The following shall apply:
(1) The board shall review each State agency's
performance-based budget plan submitted under paragraph (2)
and make recommendations on making the programs administered
by the agency more transparent, effective and efficient. The
board shall submit its recommendations to the Independent
Fiscal Office for review.
(2) The following shall apply:
(i) Except as otherwise provided under subparagraph
(ii), each time a State agency is under review by the
board, the board shall notify the agency and require the
agency to prepare and submit a performance-based budget
plan in addition to any other information that may be
required by statute, rule or directive. At a minimum, the
plan shall contain the following information:
(A) A description of those discrete activities
that comprise the agency and a justification for the
existence of each activity by reference to statute or
other legal authority.
(B) For each activity, a quantitative estimate
of any adverse impacts that could reasonably be
expected should the activity be discontinued,
together with a full description of the methods by
which the adverse impact is estimated.
(C) For each activity, an itemized account of
expenditures that would be required to maintain the
activity at the minimum level of service required by
the statutory authority, together with a concise
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statement of the quantity and quality of services
required at that minimum level.
(D) For each activity, an itemized account of
expenditures required to maintain the activity at
current levels of service, together with a concise
statement of the quantity and quality of services
being provided.
(E) A ranking of all activities that shows the
relative contribution of each activity to the overall
goals and purposes of the agency at current service
levels.
(F) A mission statement on how the agency is
accountable to taxpayers.
(ii) In 2016, the Governor shall submit a
performance-based budget plan to the board for agencies
with cumulative total expenditures of at least 8% of the
General Fund budget.
(3) Each agency shall receive a performance-based budget
review no less often than once every five years. In order to
implement this schedule, beginning in 2018, approximately 20%
of agencies shall be subject to performance-based budget plan
review each year.
(b) Independent Fiscal Office.--Within 30 days of receipt of
the board's recommendations, the Independent Fiscal Office shall
review the recommendations and prepare a report that approves or
disapproves the recommendations. The report shall be issued to
the Governor, the President pro tempore of the Senate, the
Minority Leader of the Senate, the Speaker of the House of
Representatives, the Minority Leader of the House of
Representatives, the chairperson of the Appropriations Committee
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of the Senate and the chairperson of the Appropriations
Committee of the House of Representatives.
Section 6. Effective date.
This act shall take effect in 60 days.
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