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PRINTER'S NO. 254
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
201
Session of
2017
INTRODUCED BY GROVE, RYAN, TALLMAN, ORTITAY, GREINER, FEE,
BLOOM, BARRAR, KAUFFMAN, PHILLIPS-HILL, B. MILLER, WARD,
SACCONE, SIMMONS, METCALFE, IRVIN, GABLER, McGINNIS, DIAMOND,
ELLIS, JAMES, CUTLER, KNOWLES, KEEFER, GILLEN, WARNER,
SCHEMEL, COX AND DUSH, FEBRUARY 1, 2017
REFERRED TO COMMITTEE ON APPROPRIATIONS, FEBRUARY 1, 2017
AN ACT
Amending Title 72 (Taxation and Fiscal Affairs) of the
Pennsylvania Consolidated Statutes, providing for preliminary
provisions, for taxation, for fiscal affairs and for
Commonwealth budget procedures; establishing the Taxpayers
Savings Account; and making related repeals.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 72 of the Pennsylvania Consolidated
Statutes is amended by adding parts to read:
PART I
PRELIMINARY PROVISIONS
(RESERVED)
PART II
TAXATION
Chapter
17. (Reserved)
CHAPTER 17
(RESERVED)
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PART III
FISCAL AFFAIRS
Chapter
100. Commonwealth Budget Procedures
CHAPTER 100
COMMONWEALTH BUDGET PROCEDURES
Subchapter
A. General Provisions
B. Office of the Budget
C. Budget Procedures
D. Performance, Transparency and Accountability-Based Budgeting
E. Expenditures and Lapsed Funds
F. Cost Savings and Taxpayers Savings Account
G. Contract Transparency
H. Implementation
SUBCHAPTER A
GENERAL PROVISIONS
Sec.
10001. Scope of chapter.
10002. Definitions.
10003. Applicability.
§ 10001. Scope of chapter.
The chapter relates to State measurement for accountable,
responsive and transparent (SMART) budgeting for the
Commonwealth.
§ 10002. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Continuous improvement process system." A system that may
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involve any of the following strategies:
(1) Developing a process map that describes the lean
government principles or another widely accepted business
process improvement system by which an executive agency
engages in specific activities that have the purpose of
increasing efficiency and eliminating waste in the processes
used to deliver goods and services to taxpayers and customers
of the Commonwealth. The term includes the measurement of the
outcomes regarding increased efficiency and the elimination
of waste and procedures by which the executive agency
produces goods or serves its customers.
(2) Engaging in specific activities to rapidly improve
the executive agency's processes that will increase value or
decrease staff time, inventory, defects, overproduction,
complexity, delays or excessive movement.
(3) Involving executive agency employees at all levels
to map the executive agency's processes and recommend
improvements, with specific importance placed on the
involvement of executive agency employees closest to the
customer or end user of the State government product or
service.
(4) Providing the means to measure each process in order
to demonstrate the effectiveness of each process or process
improvement.
(5) Training executive agency employees to mentor and
train other executive agency employees in continuous
improvement process system methodologies.
"Designated member of the General Assembly." Any of the
following:
(1) The President pro tempore of the Senate.
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(2) The Majority Leader of the Senate.
(3) The Minority Leader of the Senate.
(4) The chairperson of the Appropriations Committee of
the Senate.
(5) The minority chairperson of the Appropriations
Committee of the Senate.
(6) The Speaker of the House of Representatives.
(7) The Majority Leader of the House of Representatives.
(8) The Minority Leader of the House of Representatives.
(9) The chairperson of the Appropriations Committee of
the House of Representatives.
(10) The minority chairperson of the Appropriations
Committee of the House of Representatives.
"Executive agency." Any of the following:
(1) The Governor's Office.
(2) A department, board, commission, authority or other
agency of the Commonwealth that is subject to the policy
supervision and control of the Governor.
(3) The Office of Lieutenant Governor.
(4) An independent department.
(5) An independent agency.
"Fiscal year." The period beginning on July 1 of each
calendar year and ending on June 30 of the next calendar year.
"Independent agency." A board, commission, authority or
other agency of the Commonwealth that is not subject to the
policy supervision and control of the Governor. The term does
not include:
(1) a court or agency of the unified judicial system; or
(2) the General Assembly or an agency of the General
Assembly.
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"Independent department." Any of the following:
(1) The Department of the Auditor General.
(2) The Treasury Department.
(3) The Office of Attorney General.
(4) A board or commission of an entity under paragraph
(1), (2) or (3).
"Performance evaluation." A regular review of an executive
agency's outcomes compared to its published performance goals. A
performance evaluation shall be based on actual historical
information.
"Performance goal." A specific, quantifiable goal related to
a performance measure adopted by an executive agency.
"Performance management system." A formal system of managing
the processes and operations of executive agencies.
"Performance measure." A quantitative indicator used to
assess the operational performance of an executive agency under
a published performance plan. A performance measure must:
(1) Apply to activities directly under the influence of
the executive agency.
(2) Demonstrate the executive agency's efficiency and
effectiveness in delivering goods or services to customers
and taxpayers.
(3) Be reasonably understandable to the public.
"Performance plan." A document prepared by an executive
agency as part of a performance management system. A performance
plan must incorporate the impact of management strategies and
continuous improvement process system activities on the costs
and efficiency of delivering goods and services to taxpayers and
customers of the State government.
"Political subdivision." A county, city, borough,
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incorporated town, township, school district or county
institution district.
"Process map." A written or visual presentation that
describes the steps involved in producing a product or service
from beginning to end.
"Regulatory agenda." A document prepared by each executive
agency and submitted to the Independent Regulatory Review
Commission and the General Assembly. A regulatory agenda must
contain the following information:
(1) A list of any new or revised rule, regulation,
standard, order or procedure that the executive agency
anticipates proposing during the next fiscal year.
(2) The statutory or other basis for any proposed new or
revised rule, regulation, standard, order or procedure.
(3) The purpose of any proposed new or revised rule,
regulation, standard, order or procedure.
(4) The contemplated schedule for adoption of any
proposed new or revised rule, regulation, standard, order or
procedure.
(5) The identification of any person or class of persons
that may be affected positively or negatively by any proposed
new or revised rule, regulation, standard, order or
procedure.
(6) Anticipated costs regarding any proposed new or
revised rule, regulation, standard, order or procedure.
(7) Anticipated economic impact regarding any proposed
new or revised rule, regulation, standard, order or
procedure.
"Secretary." The Secretary of the Budget.
§ 10003. Applicability.
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This chapter shall not apply to any of the following:
(1) A court or agency of the unified judicial system.
(2) The General Assembly or an agency of the General
Assembly.
(3) A political subdivision.
(4) A municipal authority or other local authority.
(5) An agency of an entity under paragraph (3) or (4).
SUBCHAPTER B
OFFICE OF THE BUDGET
Sec.
10011. Administration of office.
10012. Duties of office generally.
10013. Appointment of secretary.
10014. Salary of secretary.
§ 10011. Administration of office.
The Office of the Budget shall be an administrative agency
within the Governor's Office.
§ 10012. Duties of office generally.
The Office of the Budget shall:
(1) Continue to exercise the powers and perform the
duties vested in and imposed upon the Secretary of the
Budget.
(2) Be centrally concerned with the development of the
budget request of the Governor and with the decisions
necessary to allocate revenues among the various Commonwealth
programs.
§ 10013. Appointment of secretary.
The Governor shall appoint a Secretary of the Budget to serve
at the pleasure of the Governor.
§ 10014. Salary of secretary.
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(a) Amount.--The annual salary of the Secretary of the
Budget shall be $160,000 or at such higher level as is
established by the Governor with the approval of the Executive
Board.
(b) Definition.--As used in this section, the term
"Executive Board" is as described in section 204 of the act of
April 9, 1929 (P.L.177, No.175), known as The Administrative
Code of 1929.
SUBCHAPTER C
BUDGET PROCEDURES
Sec.
10021. Submission of budget information.
10022. Presentation of budget.
10023. Performance hearing.
10024. Regulatory agenda.
10025. Annual performance plans.
10026. Fiscal note.
10027. Revenue estimates.
§ 10021. Submission of budget information.
(a) Commencement.--On July 1 of each year, the secretary
shall begin the process of obtaining and preparing the pertinent
financial and program information regarding the next fiscal year
for review by the Governor and the General Assembly.
(b) Request for information.--
(1) No later than August 1 of each year, the secretary
shall distribute the proper instructions and blanks necessary
to the preparation of the budget requests.
(2) The request for information under paragraph (1)
shall contain a notice that the blanks shall be returned with
the information desired, not later than October 1 of the same
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year.
(3) The request for information under paragraph (1)
shall be distributed to the following:
(i) Each executive agency.
(ii) The Chief Clerk of the Senate.
(iii) The Chief Clerk of the House of
Representatives.
(iv) The State court administrator.
(v) Each institution or other agency that desires
State appropriations.
(c) Return of information.--
(1) The information requested by the secretary under
subsection (b) shall be returned no later than October 1 of
the same year that the request was made.
(2) An executive agency and the State court
administrator shall designate a person to return the
information.
(3) An executive agency and the State court
administrator shall provide the same information submitted to
the secretary to a designated member of the General Assembly.
(d) Additional information.--In addition to the other
information submitted under this section, an executive agency
shall also submit the following to the secretary and a
designated member of the General Assembly:
(1) A performance plan.
(2) An update on its continuous improvement process
system, including a detailed report on anticipated savings.
(3) Its anticipated regulatory agenda for the next
fiscal year.
(4) A written statement that describes the following:
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(i) The purposes of each program to be funded.
(ii) The expected levels of activity of each program
to be funded.
(iii) The expected levels of accomplishment
regarding each program to be funded.
(iv) The measures to be used to determine the extent
that each program to be funded has achieved its stated
purposes.
(e) Publication of information.--Upon receipt of a
performance plan of an executive agency, the secretary shall
make the performance plan readily accessible on the publicly
accessible Internet website of the Office of the Budget.
(f) Further inquiry and investigation.--The secretary may
make further inquiries and investigations regarding the
financial needs, expenditures, revenues, expected levels of
program activities and accomplishments or other relevant matters
of any entity receiving money from the State Treasury.
(g) Determination by Governor.--After providing an entity
the opportunity to be heard regarding the information submitted
under this section, the Governor may approve, disapprove or
alter a budget request.
(h) Basis for appropriations.--Before December 16 of each
year, the secretary shall submit to the Governor in writing the
information provided under this section, along with any
additional information requested by the Governor, as the basis
for the Governor's requests for appropriations for the next
fiscal year.
§ 10022. Presentation of budget.
(a) Review.--No later than December 16 of each year, the
Governor and secretary shall provide the members of the General
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Assembly with a review on the budget for the current fiscal
year. This review shall include, but is not limited to, the
following:
(1) Changes in current revenue projections from the
enactment of the General Appropriations Act for the
immediately prior fiscal year.
(2) State expenditures for the current fiscal year and
anticipated overages and lapses from the enactment of the
General Appropriation Act for the immediately prior fiscal
year.
(b) Briefing by Governor.--
(1) In December of each year, the Governor shall meet
with the following:
(i) The chairperson and minority chairperson of the
Appropriations Committee of the Senate.
(ii) The chairperson and minority chairperson of the
Appropriations Committee of the House of Representatives.
(iii) The officers of the General Assembly.
(2) During the meeting under this subsection, the
Governor shall brief the individuals under paragraph (1) on
the issues foreseen as being imminent in the budget for the
next fiscal year. The Governor and individuals shall exchange
views on the issues before the budget is formally presented
to the General Assembly. The individuals shall also inform
the Governor of financial matters which should be considered
in the budget.
(3) Discussions under this subsection shall specifically
include the following:
(i) Major anticipated increases or decreases in
programs.
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(ii) The results or anticipated results of employee
union negotiations for salaries, wages and other
benefits.
(iii) The statistics involved in preliminary
forecasts of the major programs mandated by statute,
including, but not limited to, education subsidies,
public assistance programs, debt service and forecasts of
revenue.
(iv) Other appropriate budget information.
(c) Program evaluation.--The budget shall include the
results of any program evaluation report completed by the Office
of the Budget in the fiscal year preceding the year in which the
budget request is made. The results of any evaluation report and
its recommendations shall be concisely summarized and included
in the budget documentation.
(d) Documentation.--Upon the request of the chairperson of
the Appropriations Committee of the Senate or the chairperson of
the Appropriations Committee of the House of Representatives, an
executive agency shall provide documentation of any budget
request, including revenue estimates upon which the budget
estimate is based.
(e) Contents of submission.--Subject to subsection (f), the
Governor shall submit to the General Assembly copies of original
agency budget requests, all subsequent revised agency budget
requests, a State budget and program and financial plans that
include the following:
(1) Subject to subsection (g), a balanced operating
budget for the next fiscal year setting forth the following
in detail:
(i) The amounts recommended by the Governor to be
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appropriated to the General Assembly, the Judicial
Department, each executive agency and institutions and
other agencies within this Commonwealth, and for all
public purposes, classified by department or agency and
by program.
(ii) The estimated revenues or receipts from each
source and an estimated amount to be raised by taxation
or otherwise, including proposals for new revenues and
receipts.
(2) A capital budget for the next fiscal year setting
forth capital projects to be financed from the proceeds of
obligations of the Commonwealth or its agencies or
authorities or from operating funds.
(3) Program and financial plans for not less than the
immediately prior fiscal year, the current fiscal year and
the next four fiscal years, which shall include the following
for each fiscal year:
(i) Actual or estimated operating expenditures
classified by department or agency and by program, in
reasonable detail, and actual or estimated revenue by
major categories from existing and additional sources.
(ii) Clearly stated purposes of each program in
terms of desired accomplishments.
(iii) Measures used to determine to what extent each
program has achieved its stated purposes.
(iv) Actual or estimated levels of accomplishment
for each program and actual or estimated levels of
program activities and their associated costs.
(v) Clearly stated purposes for each recommended new
or revised program, measures to be used to determine
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whether each new or revised program has achieved its
purpose, estimated levels of additional or new
accomplishment of each new or revised program, estimated
levels of additional activities for each program and
their associated costs.
(vi) Use of Federal funds, including requirements by
the Federal Government attached to those funds, the use
of Federal funds during the immediately prior fiscal year
and recommendations to mitigate Federal mandates that
State appropriations are being used to match Federal
funds.
(f) Timeliness of submission.--The submission under
subsection (a) shall occur:
(1) Subject to paragraph (2), as soon as possible after
the organization of the General Assembly, but not later than
the first full week in February of each year.
(2) No later than the first full week in March of the
first year of the first term of the Governor after the
gubernatorial election.
(g) Rebase of prior year budget.--In each proposed budget,
the Governor shall reduce all State expenditures by 15% from the
immediate prior fiscal year and may increase the expenditures by
the following criteria:
(1) Mandated expenses.
(2) Performance criteria for executive agency programs.
(3) Requests of executive agencies that have been
provided to the General Assembly in requested budget
documentation.
(4) New priorities of the Governor.
(h) Limit on increase in expenditures.--Any increase in
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expenditures for the Governor's proposed budget in the total
operating budget shall not exceed the prior fiscal year's
expenditures multiplied by the index established under the act
of June 27, 2006 (1st Sp.Sess., P.L.1873, No.1), known as the
Taxpayer Relief Act.
(i) New or expanded programs.--
(1) When the secretary identifies a new or expanded
program by criteria used in the budget instructions, the new
or expanded program shall be displayed and justified as a
separate item in the Governor's budget request.
(2) A new program shall not be considered to be enacted
by the General Assembly in its first year unless it is
specifically referred to or displayed as a line item in an
appropriation bill.
(3) A detailed cost-benefit analysis shall be provided
for each new or expanded program.
(j) Public relations.--
(1) The budget shall include for each executive agency a
single, separate line item listing the amount that the
Governor recommends to be appropriated for the next fiscal
year for public relations. This line item shall include:
(i) All compensation, including fringe benefits.
(ii) All travel, meals, lodging and similar
expenses.
(iii) The cost of purchasing new equipment and
supplies.
(iv) The cost of leasing offices and equipment.
(v) The cost of purchasing material, including
newspapers, magazines, movies, films and tapes.
(vi) The cost of using wire service equipment.
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(vii) All other similar public relations
expenditures.
(2) For the purposes of paragraph (1), "public
relations" shall include the preparation, presentation and
distribution of advertising, publications, radio tapes,
television films and tapes and media releases.
§ 10023. Performance hearing.
(a) Applicability.--This section relates to a performance
hearing by a standing committee to review an executive agency's
proposed appropriation for the next fiscal year.
(b) Frequency.--Each standing committee shall conduct at
least one hearing between October 1 and May 15.
(c) Purpose.--Each standing committee shall hear a
presentation from each executive agency that is assigned to that
standing committee that includes, but is not limited to, the
executive agency's performance plan and regulatory agenda for
the next fiscal year.
(d) Public testimony.--Each standing committee shall allow
for written public testimony regarding the presentation by an
executive agency.
(e) Liaison.--The head of an executive agency shall serve as
liaison or designate an individual within the executive agency
to serve as liaison with a standing committee. The liaison shall
inform the committee of the executive agency's performance
management system and performance plan.
§ 10024. Regulatory agenda.
(a) Distribution.--By October 1, 2018, and by each October 1
thereafter, each executive agency shall file a regulatory agenda
with the Independent Regulatory Review Commission, the President
pro tempore of the Senate and the Speaker of the House of
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Representatives. The President pro tempore of the Senate and the
Speaker of the House of Representatives shall distribute the
regulatory agenda to the respective standing committee as
determined under section 10023(b) (relating to performance
hearing).
(b) Posting.--By October 1, 2018, and by each October 1
thereafter, each executive agency shall post its regulatory
agenda on the executive agency's publicly accessible Internet
website.
§ 10025. Annual performance plans.
(a) Transmittal.--Following the presentation of the budget
under section 10022 (relating to presentation of budget), each
executive agency shall transmit its annual performance report
for the current fiscal year to all of the following:
(1) The chairperson and minority chairperson of the
standing committee conducting the performance hearing under
section 10023 (relating to performance hearing) for the
executive agency.
(2) The chairperson and minority chairperson of the
Appropriations Committee of the Senate.
(3) The chairperson and minority chairperson of the
Appropriations Committee of the House of Representatives.
(b) Posting.--After transmitting the annual performance
report under subsection (a), each executive agency shall post
the annual performance report on the executive agency's publicly
accessible Internet website.
(c) Contents.--An annual performance report must include all
of the following:
(1) A summary of the executive agency's submitted
performance plan.
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(2) A brief summary of the executive agency's budget
request.
(3) Performance measurements on how the executive agency
has moved toward meeting performance goals for the current
fiscal year.
(4) Performance measurements for the executive agency's
regulatory agenda for the immediately prior fiscal year and
current fiscal year.
(5) Continuous improvement process system efforts from
the current fiscal year and a detailed analysis of cost
savings and service improvement.
§ 10026. Fiscal note.
(a) Preparation.--The Office of the Budget shall prepare a
fiscal note for regulatory actions and administrative procedures
of each executive agency receiving money from the State
Treasury. The fiscal note shall state whether the proposed
action or procedure causes a loss of revenue or an increase in
the cost of programs to the Commonwealth or its political
subdivisions.
(b) Publication.--Any regulatory action or administrative
procedure that requires a fiscal note shall be published in the
Pennsylvania Bulletin at the same time that the proposed change
is advertised.
(c) Contents.--A fiscal note shall provide the following
information:
(1) The designation of the fund out of which the
appropriation providing for expenditures for the action or
procedure shall be made.
(2) The projected cost of the action or procedure during
the fiscal year in which it is implemented and for each of
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the five succeeding fiscal years.
(3) The projected loss of revenue associated with the
action or procedure during the fiscal year in which it is
implemented and for each of the five succeeding fiscal years.
(4) The fiscal history of the action or procedure for
which expenditures are to be made.
(5) The line item, if any, of the General Appropriation
Act or other appropriation act out of which expenditures or
losses of Commonwealth funds shall occur as a result of the
action or procedure.
(6) Any recommendation of the secretary and the reason
for the recommendation.
§ 10027. Revenue estimates.
(a) Duty.--In conjunction with the secretary, the Department
of Revenue shall make revenue estimates for the use of the
Governor in preparing the budget with periodic revisions until
the final estimate is signed by the Governor no later than 24
hours before enactment of the current General Appropriation Act.
(b) Preparation.--The revenue estimates shall be prepared in
a way that they are subject to complete and thorough oversight
by the Appropriations Committee of the Senate and the
Appropriations Committee of the House of Representatives with
full knowledge of all data, assumptions and econometric models
that were used to develop the projections and any subsequent
revisions of these projections.
(c) Revenue estimate committee.--
(1) A committee is established to oversee the
development, maintenance and use of an econometric model that
may be applied to forecast State revenues.
(2) The revenue estimate committee shall consist of:
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(i) The Governor.
(ii) The secretary.
(iii) The Secretary of Revenue.
(iv) The chairperson and minority chairperson of the
Appropriations Committee of the Senate.
(v) The chairperson and minority chairperson of the
Appropriations Committee of the House of Representatives.
(d) Model.--A model shall be developed to forecast State
revenues. The following shall apply:
(1) The Governor's Office shall:
(i) maintain and update the model or appoint an
appropriate agency to do so; and
(ii) inform the revenue estimate committee of any
changes or updates to be made to the model.
(2) The equations of the model and any historical
databases related to the model shall be available, upon
request at any time and for any reason, to a member of the
revenue estimate committee.
(3) The individuals under paragraph (2) may request the
Governor's Office or the appropriate agency to run the model
for any purpose, including to test new equations or produce
forecasts.
(4) A forecast produced by the model and any related
forecasted database shall be kept confidential by the
Governor's Office and the appropriate agency producing the
forecast unless the individual requesting the forecast waives
confidentiality. This paragraph shall not be construed to
prevent access by the Appropriations Committees of the Senate
or the Appropriations Committee of the House of
Representatives to a forecast used in the preparation of the
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Governor's revenue estimates after the presentation of the
budget.
(e) Revision.--Notwithstanding any other provisions of this
chapter to the contrary, in conjunction with the secretary and
within 60 days of the effective date of this subsection, the
Department of Revenue may revise the official revenue estimates
for the Commonwealth to account for additional revenues
projected to be generated by actions taken and finalized prior
to the revision regarding increasing regulatory fee rates,
revising pricing policies or transferring retained earnings.
(f) Contents.--The revenue estimates used to sign any
appropriations bill shall show separately State revenues,
Federal funds, and, if specifically appropriated, funds from
other sources.
(g) Duty of Governor.--Prior to signing an appropriations
bill or allowing an appropriations bill to become law without
the signature of the Governor, the Governor shall line item veto
any part of an appropriations bill that causes total
appropriations to exceed the official estimates plus any
unappropriated surplus. No changes in the revenue estimates
shall be made thereafter unless changes in statutes affecting
revenues and receipts are enacted.
SUBCHAPTER D
PERFORMANCE, TRANSPARENCY AND
ACCOUNTABILITY-BASED BUDGETING
Sec.
10031. Performance management systems.
10032. Performance plans.
10033. Performance evaluations.
10034. Performance audits.
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10035. Online Commonwealth checkbook.
10036. Estimates of current expenditures by certain executive
agencies.
10037. Estimates of current expenditures by independent
departments.
10038. Books and accounts.
10039. Audit of Auditor General records.
§ 10031. Performance management systems.
(a) Development.--
(1) The Governor shall develop components of a
performance management system for managing executive agencies
through instructions issued by the secretary.
(2) The Judicial Department shall develop components of
a performance management system for managing the judicial
branch through instructions issued by the Administrative
Office of Pennsylvania Courts.
(b) Contents.--A performance management system under this
section must address all of the following:
(1) Strategic goals and priorities that are consistent
with the charge of the respective executive agency or entity
within the Judicial Department.
(2) Strategies for enhancing productivity, improving
efficiency, reducing costs and eliminating waste in the
processes and operations that deliver goods and services to
taxpayers and customers of State government.
(3) Parameters for the development of performance plans.
(4) A continuous improvement process system.
(5) Elements to ensure that employees are appropriately
trained to implement the components under this subsection.
(c) Publication.--By July 1, 2018, and by each July 1
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thereafter:
(1) The Governor shall publish the components under
subsection (a)(1).
(2) The Judicial Department shall publish the components
under subsection (a)(2).
(d) Posting.--The secretary and the Administrative Office of
Pennsylvania Courts shall post the instructions under subsection
(a) on its publicly accessible Internet website.
§ 10032. Performance plans.
(a) Development.--By August 1, 2018, and by each August 1
thereafter, each executive agency and the Administrative Office
of Pennsylvania Courts shall develop a performance plan in
accordance with the developed performance management system.
(b) Purpose.--A performance plan shall serve as a guide to
the major functions of an executive agency or the Judicial
Department and as a tool to evaluate performance goals over
time.
(c) Contents.--At a minimum, a performance plan must include
the following components regarding the executive agency or
entity within the Judicial Department:
(1) A statement of its mission or vision.
(2) A description of its major functions.
(3) Performance measures for its major functions. If
reasonable and appropriate, performance measures shall be
developed with the input of its employees or certified
employee organizations.
(4) Performance goals that correspond to its performance
measures and extend to at least three years into the future.
(5) A narrative description of the strategies necessary
to meet the performance goals.
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(6) A summary of its most recent performance evaluation.
(d) Revisions.--
(1) An executive agency or the Administrative Office of
Pennsylvania Courts may further refine a performance plan in
the performance management system published under section
10031 (relating to performance management systems).
(2) The secretary or another individual within the
Office of the Budget may not edit a transmitted performance
plan or any information related to the performance plan.
(e) Transmittal.--By August 1, 2018, and by each August 1
thereafter, each completed performance plan shall be transmitted
to all of the following:
(1) The secretary.
(2) The Governor's Office.
(3) The chairperson and minority chairperson of the
Appropriations Committee of the Senate.
(4) The chairperson and minority chairperson of the
Appropriations Committee of the House of Representatives.
(5) The chairperson and minority chairperson of the
standing committee conducting the performance hearing under
section 10023 (relating to performance hearing) for the
executive agency.
(f) Posting.--By August 1, 2018, and by each August 1
thereafter, each executive agency and the Administrative Office
of Pennsylvania Courts shall post the completed performance plan
on its publicly accessible Internet website and on the publicly
accessible Internet website of the Office of the Budget.
(g) Retirement systems.--The Public School Employees'
Retirement System and the State Employees' Retirement System
shall comply with the requirements of this section.
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§ 10033. Performance evaluations.
(a) Distribution.--An executive agency shall conduct a
performance evaluation and distribute it to each designated
member of the General Assembly.
(b) Frequency.--A performance evaluation shall be
distributed at least twice each calendar year as defined in the
published performance management system.
§ 10034. Performance audits.
(a) Frequency.--The Department of the Auditor General shall,
within existing resources, conduct or cause to be conducted
performance audits of one or more specific programs or services
in at least two executive agencies on an annual basis during the
regular audit of the executive agency.
(b) Selection considerations.--In selecting an executive
agency and a specific program or service for a performance
audit, the Department of the Auditor General shall consider
risk, audit coverage, resources required to conduct the
performance audit and the impact of the audited program or
service on the executive agency's performance-based goals.
(c) Review.--A performance audit of a program or service
selected for audit may include, but is not limited to, a review
of all of the following:
(1) The integrity of the performance measures audited.
(2) The accuracy and validity of reported results.
(3) The overall cost and effectiveness of the audited
program or service in achieving legislative intent and the
performance goals.
(d) Transmittal.--The Department of the Auditor General
shall transmit each performance audit report for the immediately
prior fiscal year to the chairperson and minority chairperson of
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the standing committees with jurisdiction over the executive
agency.
(e) Other reports.--The Department of the Auditor General
shall transmit any other audit report regarding an executive
agency that is deemed relevant for review by a standing
committee with jurisdiction over the executive agency.
§ 10035. Online Commonwealth checkbook.
(a) Website.--The Office of Administration, in conjunction
with the secretary and the State Treasurer, shall develop and
maintain a publicly accessible Internet website with a ledger of
the financial transactions of the Commonwealth, including the
following information:
(1) The t otal operating budget expenditures and
available balance of the Commonwealth.
(2) The delineated expenditures for each Commonwealth
fund, including restricted funds and corresponding account
balances.
(3) The delineated expenditures for each executive
agency, including corresponding line items and Commonwealth
funds from which the expenditures were made.
(4) The expenditures within the General Fund delineated
by executive agency, line item and corresponding account
balance.
(5) The source of revenue for each Commonwealth fund,
including money appropriated by the Federal Government.
(6) Payments from the State Employees' Retirement Fund
and the overall funding status of the State Employees'
Retirement Fund.
(7) Payments from the Public School Employees'
Retirement Fund and the overall funding status of the Public
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School Employees' Retirement Fund.
(8) Any i nformation on contracted expenditures within
executive agencies and the revenue used to pay for the
expenditures.
(b) Confidential information.--In order to protect sensitive
material, any confidential information shall be redacted from
the ledger , except that any redacted information shall be made
available to any of the following:
(1) The President pro tempore of the Senate.
(2) The Majority Leader and Minority Leader of the
Senate.
(3) T he chairperson and minority chairperson of the
Appropriations Committee of the Senate.
(4) The Speaker of the House of Representatives.
(5) The Majority Leader and Minority Leader of the House
of Representatives.
(6) T he chairperson and minority chairperson of the
Appropriations Committee of the House of Representatives.
(c) Update.-- The Office of Administration, in conjunction
with the secretary, shall develop and maintain a comprehensive
and uniform computer-based ledger system so that each executive
agency can easily update the online ledger in real time.
§ 10036. Estimates of current expenditures by certain executive
agencies.
(a) Preparation.--Each executive agency, other than an
independent department, shall, from time to time, as requested
by the Governor or a designated member of the General Assembly,
prepare an estimate of the amount of money required and the
levels of activity and accomplishment for each program carried
on by the executive agency, during the next month, quarter or
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other period as the Governor or designated member of the General
Assembly shall prescribe.
(b) Inclusion of other funds.--All available Federal funds
and funds from other sources shall be characterized as such and
included in the estimate under subsection (a) before any
expenditures shall be made.
(c) Submittal.--The estimate under this section shall be
submitted to the secretary for approval or disapproval and the
Appropriations Committee of the Senate and the Appropriations
Committee of the House of Representatives.
(d) Revision.--If the secretary does not approve an estimate
under this section, the estimate shall be revised as necessary
and resubmitted for approval.
(e) Personnel complement level.--The secretary may establish
an authorized personnel complement level in conjunction with the
approved estimate under this section.
(f) Prohibited spending.--After the approval of the estimate
under this section, the executive agency submitting the estimate
may not expend all or part of any appropriation, Federal funds
or funds from other sources except in accordance with the
estimate and any authorized complement level, unless the
estimate is revised with the approval of the secretary and
within the limits appropriated by the General Assembly.
(g) Failure to comply.--
(1) If an executive agency to which this section applies
fails or refuses to submit to the secretary an estimate under
this section, the Governor may notify the State Treasurer in
writing of the failure or refusal.
(2) After receipt of the notice under paragraph (1), the
State Treasurer may not draw any warrant in favor of the
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executive agency until the Governor notifies the State
Treasurer in writing that the delinquent executive agency has
furnished the Governor with, and the Governor has approved,
the required estimate.
(h) Disapproval or reduction of appropriated amounts.--
(1) The secretary may not, under the authority granted
under this section, disapprove or reduce any amount
appropriated by the General Assembly for grants or subsidies
without the approval of the Appropriations Committee of the
Senate and the Appropriations Committee of the House of
Representatives.
(2) If the secretary favors the disapproval or reduction
under paragraph (1), the secretary shall give at least 10
days' prior notice to the chairperson and minority
chairperson of the Appropriations Committee of the Senate and
the chairperson and minority chairperson of the
Appropriations Committee of the House of Representatives.
(3) The notice under paragraph (2) must include all of
the following:
(i) The amount of the appropriation to be
disapproved or reduced.
(ii) The reasons that the appropriation should be
disapproved or reduced.
(iii) The estimated impact of the disapproval or
reduction on the programs, services or purposes for which
the appropriation is provided.
(4) Disapproval or reduction under this subsection may
only occur by a majority vote of the Appropriations Committee
of the Senate and the Appropriations Committee of the House
of Representatives.
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§ 10037. Estimates of current expenditures by independent
departments.
(a) Preparation.--Each independent department shall, from
time to time, as requested by the Governor, prepare an estimate
of the amount of money required for each activity or function to
be carried on by the independent department during the next
month, quarter or other period as the Governor shall prescribe.
(b) Submittal.--The estimate under this section shall be
submitted to the secretary for approval or disapproval and to
the Appropriations Committee of the Senate and the
Appropriations Committee of the House of Representatives.
§ 10038. Books and accounts.
All books and accounts kept by each executive agency shall be
kept on a fiscal year basis.
§ 10039. Audit of Auditor General records.
The Auditor General and the Department of the Auditor General
shall submit to any accountants appointed by the Governor for
the purpose of making an audit of the affairs of the Auditor
General and the Department of the Auditor General all books,
papers and other records that in any way pertain to that
position and department.
SUBCHAPTER E
EXPENDITURES AND LAPSED FUNDS
Sec.
10041. Unexpended appropriations.
10042. Carryover appropriations.
10043. Budget implementation data.
10044. Revenue data.
10045. Lapsed funds.
10046. Disposition of Commonwealth assets.
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10047. Tax expenditures.
10048. Reappropriation of certain lapsed money.
10049. Federal funds.
§ 10041. Unexpended appropriations.
(a) Report.--By May 15 of each year, the Governor shall
provide the General Assembly with a detailed report on all
potential unexpended appropriations for that fiscal year.
(b) Account and subsequent appropriations.--At the end of
the fiscal year, all unexpended appropriations shall be placed
into a restricted account and appropriated during the next
fiscal year by the General Assembly.
§ 10042. Carryover appropriations.
(a) Report.--By May 15 of each year, the Governor shall
provide the General Assembly with a detailed report of specific
appropriations of the current fiscal year that may need to be
carried over to the next fiscal year.
(b) Limitation.--A carryover of an appropriated amount for a
fiscal year may not extend past October 31 of the next fiscal
year.
§ 10043. Budget implementation data.
(a) Duty.--The Governor, the Auditor General, the State
Treasurer and the Attorney General shall make monthly
expenditure data available to each designated member of the
General Assembly.
(b) Timeliness.--Monthly data shall be provided within 15
days after the end of each month.
(c) Presentation.--
(1) Monthly data shall be:
(i) prepared in such a way that the last monthly
submission is a summary inclusive of the preceding months
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of the fiscal year; and
(ii) able to establish a history of expenditure
file.
(2) At the discretion of the chairperson and minority
chairperson of the Appropriations Committee of the Senate and
the chairperson and minority chairperson of the
Appropriations Committee of the House of Representatives,
monthly data may be provided in a finished report or in a
computer file.
(3) Monthly data shall be provided by fund,
appropriation, department and organization within each
department and include all of the following:
(i) The number and costs of filled personnel
positions.
(ii) Itemized personnel vacancies and their costs.
(iii) New positions created and their costs.
(iv) Wage and overtime costs.
(v) Allotments and expenditures for itemized
personnel expenses.
(vi) Allotments and expenditures for itemized
operating expenses.
(vii) Allotments and expenditures for itemized fixed
assets.
(viii) The rate of expenditures in appropriations
for major subsidy and grant programs during the month.
(d) Other budgetary data.--Upon the request of a designated
member of the General Assembly, the Governor, the Auditor
General, the State Treasurer and the Attorney General shall make
available to that member any other budgetary data as may be
requested from time to time.
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§ 10044. Revenue data.
(a) Duty.--The Governor shall make monthly revenue reports
to each designated member of the General Assembly.
(b) Contents of report.--A revenue report shall show the
actual collection of revenue itemized by source and a comparison
of the actual collections with estimated collections for each
month. The comparison shall be accompanied by an analysis
indicating any change in collection patterns that will cause a
shortfall or overrun on the annual estimates of more than one
percent.
(c) Other revenue data.--Upon the request of a designated
member of the General Assembly, the Governor shall make
available to that member any other revenue data as may be
requested from time to time.
§ 10045. Lapsed funds.
(a) Encumbrances generally.--
(1) Each action regarding the encumbrance of funds shall
be supported by complete documentation.
(2) Each procurement document must have a specified
delivery date.
(3) Encumbrances shall be expended as provided under
this section.
(b) Personnel services.--Payments for personnel services
shall be charged to the fiscal year in which the expense was
incurred or the liability accrued.
(c) Operational expenses.--Payments for operational
expenses, grants or subsidies shall be charged as follows:
(1) Purchases of supplies shall be charged to the fiscal
year in which the actual expenses or commitment to purchase
was incurred.
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(2) Contracted services and rentals, excluding rentals
regarding the Department of General Services, shall be
charged to the fiscal year in which the service was provided
or rental occurred.
(3) Contracted repairs shall be charged to the fiscal
year in which the encumbrance was created.
(4) Grants and subsidies shall be charged to the fiscal
year in which funds were appropriated, encumbered or
allocated for their designated purpose.
(5) Except as otherwise provided in this section, no
encumbrance for operational expenses and grants or subsidies
shall be made after May 31 in the fiscal year to which the
encumbrance is charged.
(6) Encumbrances for operational expenses and grants and
subsidies made because of purchase orders issued from
purchase requisitions or because of an emergency may be
created subsequent to May 31 but not later than June 30.
(7) Encumbrances for economic development grants or
projects may be retained until the close of the second fiscal
year following the fiscal year in which the original grants
or projects were encumbered.
(d) Fixed assets.--Fixed assets shall be charged as follows:
(1) Purchase or cost of fixed assets shall be charged to
the fiscal year in which the encumbrance was created.
(2) Except as otherwise provided in this section, no
encumbrance for fixed assets shall be made after May 31 in
the fiscal year to which the encumbrance is charged.
(3) Encumbrances for fixed assets made because of
purchase orders issued from purchase requisitions or because
of an emergency may be created subsequent to May 31 but not
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later than June 30.
(e) Prior year encumbrance.--Outstanding prior year
encumbrances shall be canceled as of October 31, except for
those involving construction, repairs and improvements or items
being litigated.
(f) Available balance.--An available balance created by the
liquidation or cancellation of an encumbrance from a prior
fiscal year shall be lapsed. The balance may not be transferred
between major categories of expenditures and may not be used to
create any new obligation.
(g) Limitation on holding encumbrance.--Except as a result
of litigation, an encumbrance may not be held past October 31 of
the next complete fiscal year.
(h) Limitation on transfer.--In no case shall there be a
transfer of funds from an encumbrance in one major category of
expenditure to an encumbrance in another major category of
expenditure.
(i) Deadline.--A deadline for creating an encumbrance shall
be extended when the encumbrance applies to an appropriation
received after the deadline under this section.
(j) Time limitation.--In no case shall an encumbrance be
created after June 30 of the fiscal year in which the
appropriation was made.
(k) Report on encumbered funds.--By November 30 of each
year, the secretary shall provide the Governor and the General
Assembly a detailed report on the disposition of encumbered
funds.
(l) Waiver.--
(1) The secretary may request a waiver for any provision
of this section upon the written request of an executive
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agency justifying an exception to the provision. If the
secretary decides to approve the request, the secretary shall
submit the request along with the secretary's written fiscal
analysis and detailed justification for the waiver of the
provision to the chairperson and minority chairperson of the
Appropriations Committee of the Senate and the chairperson
and minority chairperson of the Appropriations Committee of
the House of Representatives for their review.
(2) Approval of the waiver may occur only by majority
vote in both the Appropriations Committee of the Senate and
the Appropriations Committee of the House of Representatives.
(m) Definitions.--The following words and phrases when used
in this section shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"Contracted repairs." All repairs, including costs that will
restore an asset to the condition that will permit the effective
use of the asset up to but not beyond its previously determined
useful life, to buildings, grounds, roads, fixed and movable
equipment and furniture, excluding maintenance and repair work
performed by State employees.
"Economic development." A program to maximize employment
opportunities, economic growth and development of communities
and the overall economic development of this Commonwealth
through industrial development, employability development,
community development, resource development, labor-management
relations and job training.
"Emergency." A situation or circumstance that threatens the
continued operation of government or the health, safety or lives
of the residents of this Commonwealth.
"Encumbrance." An obligation or commitment in the form of
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