First Regular Session

Sixty-first General Assembly

LLS NO. 97­0283.01 JY SENATE BILL 97­062

STATE OF COLORADO

BY SENATOR Matsunaka

FINANCE

APPROPRIATIONS

A BILL FOR AN ACT

CONCERNING THE CREATION OF A STATE PERFORMANCE­BASED BUDGETING PILOT PROGRAM.

Bill Summary

"Performance­Based Budgeting"

(Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments which may be subsequently adopted.)

Creates a state performance­based budgeting pilot program, including a state budget policy. Allows state agencies to participate in the pilot program on a voluntary basis. Requires that public meetings be held by November 1, 1997, to establish benchmarks as critical areas for state focus in enhancing its economy and quality of life. Based on such public meetings, requires the office of state planning and budgeting to establish the specific benchmarks for the state for the next 5 years. Requires the legislative council staff to schedule and staff such meetings and to compile by December 1, 1997, a report outlining the benchmarks established. Requires participating state agencies to develop performance measures consistent with and aimed at achieving such benchmarks. Allows the general assembly to award certain incentives to participating state agencies. Designates the office of state planning and budgeting as the administrator of the program.

For budget years commencing on and after July 1, 2000, requires the office of state planning and budgeting and the governor, in preparing the budget, and the joint budget committee, in implementing a zero­based budgeting program, to ensure that state government plans, policies, and programs of agencies participating in the performance­based budgeting pilot program are directed toward achieving such benchmarks. Requires the office of state planning and budgeting to determine whether state agency activities and programs are conducive to performance­based budgeting, to prepare an annual report that measures how participating agencies are performing, and to evaluate the existing benchmarks beginning January 1, 2004, and every 5 years thereafter.

In conducting performance postaudits, requires the state auditor to determine whether the plans, policies, and programs of all state departments, institutions, and agencies participating in the performance­based budgeting pilot program are directed towards achieving the established benchmarks. Upon request of the joint budget committee, requires state agencies to include in their zero­based budgeting analysis a statement outlining those programs that have been successful in achieving the goals and objectives under the performance­based budgeting pilot program and any applicable benchmarks.

Be it enacted by the General Assembly of the State of Colorado:

SECTION 1.  Title 24, Colorado Revised Statutes, 1988 Repl. Vol., as amended, is amended BY THE ADDITION OF A NEW ARTICLE to read:

ARTICLE 38

Performance­based Budgeting Pilot Program

24­38­101.  Legislative declaration. (1)  THE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES THAT:

(a)  STATE AGENCIES SHOULD BE GRANTED SUFFICIENT AUTHORITY AND FLEXIBILITY TO IDENTIFY THEIR GOALS AND OBJECTIVES AND ESTABLISH PRIORITIES IN THE MOST EFFICIENT MANNER IN ORDER TO BETTER SERVE THE CITIZENS OF THE STATE OF COLORADO THROUGH THE EFFICIENT DELIVERY OF SERVICES AND PRODUCTS AND THE EFFECTIVE ADMINISTRATION OF GOVERNMENTAL PROGRAMS;

(b)  STATE AGENCIES SHOULD BE HELD ACCOUNTABLE FOR THE SERVICES AND PRODUCTS THEY DELIVER AND EACH STATE AGENCY'S MISSION, GOALS, AND OBJECTIVES SHOULD BE CLEARLY DEFINED;

(c)  PERFORMANCE MEASURES FOR EVALUATING PERFORMANCE AND ASSESSING PROGRESS IN ACHIEVING SUCH GOALS AND OBJECTIVES SHOULD BE DEVELOPED, INTEGRATED INTO THE STATE PLANNING AND BUDGETING PROCESS, AND MAINTAINED ON AN ONGOING BASIS;

(d)  STATE AGENCIES SHOULD HAVE THEIR PERFORMANCE PROGRAMS MEASURED AND EVALUATED IN AN EFFORT TO IMPROVE PROGRAM COORDINATION, ELIMINATE DUPLICATIVE PROGRAMS OR ACTIVITIES, AND PROVIDE BETTER INFORMATION TO THE GOVERNOR, THE GENERAL ASSEMBLY, AND OTHER STATE AGENCIES; AND

(e)  STATE AGENCIES SHOULD STRIVE TO KEEP THE CITIZENS OF THIS STATE INFORMED OF THE PUBLIC BENEFITS DERIVED FROM THE DELIVERY OF STATE AGENCY SERVICES AND PRODUCTS AND OF THE PROGRESS THE AGENCIES ARE MAKING WITH REGARD TO IMPROVING PERFORMANCE.

24­38­102.  Definitions. AS USED IN THIS ARTICLE, UNLESS THE CONTEXT OTHERWISE REQUIRES:

(1)  "AGENCY" MEANS EVERY AGENCY IN THE EXECUTIVE BRANCH OF STATE GOVERNMENT THAT IS REQUIRED BY THE CONSTITUTION OR STATUTES OF THE STATE TO EXERCISE DISCRETION OR TO PERFORM JUDICIAL OR QUASI­JUDICIAL FUNCTIONS. THE TERM INCLUDES, BUT IS NOT LIMITED TO, ANY BOARD, BUREAU, COMMISSION, DEPARTMENT, INSTITUTION, DIVISION, SECTION, OR OFFICE OF THE STATE.

(2)  "BENCHMARKS" MEANS THE MISSIONS, GOALS, AND OBJECTIVES OF THE STATE OF COLORADO THAT ARE DIRECTED TOWARDS ACHIEVING SUSTAINED ECONOMIC PROSPERITY WHILE ENHANCING THE STATE'S QUALITY OF LIFE.

(3)  "PERFORMANCE MEASURE" MEANS A QUANTITATIVE OR QUALITATIVE INDICATOR USED TO ASSESS AGENCY PERFORMANCE.

24­38­103.  Benchmarks ­ adoption. (1)  A SERIES OF PUBLIC HEARINGS SHALL BE CONDUCTED BY NOVEMBER 1, 1997, FOR THE PURPOSE OF ESTABLISHING BENCHMARKS AS CRITICAL AREAS FOR ATTENTION AND FOCUS FOR THE STATE OVER THE NEXT FIVE YEARS. A PERSON REPRESENTING THE OFFICE OF STATE PLANNING AND BUDGETING SHALL BE PRESENT AT ANY MEETING HELD PURSUANT TO THIS SUBSECTION (1). BASED ON THE TESTIMONY PRESENTED AT SUCH PUBLIC MEETINGS, THE OFFICE OF STATE PLANNING AND BUDGETING SHALL BE RESPONSIBLE FOR ESTABLISHING THE SPECIFIC BENCHMARKS FOR THE STATE AS CRITICAL AREAS FOR ATTENTION AND FOCUS OVER THE NEXT FIVE YEARS.

(2)  THE BENCHMARKS SHALL INCLUDE BUT SHALL NOT BE LIMITED TO:

(a)  ACHIEVING THE STATE'S LONG­RANGE GOALS FOR BECOMING EXCEPTIONAL STATE CITIZENS;

(b)  ACHIEVING THE STATE'S LONG­RANGE GOALS FOR QUALITY OF LIFE;

(c)  ACHIEVING THE STATE'S LONG­RANGE GOALS FOR THE ECONOMY; AND

(d)  ACHIEVING KEY LONG­TERM OBJECTIVES FOR THE STATE OF COLORADO.

(3)  THE LEGISLATIVE COUNCIL STAFF SHALL SCHEDULE AND STAFF THE PUBLIC MEETINGS REQUIRED PURSUANT TO SUBSECTION (1) OF THIS SECTION AND SHALL COMPILE A REPORT CONTAINING THE BENCHMARKS ESTABLISHED BY THE OFFICE OF STATE PLANNING AND BUDGETING AS A RESULT OF SUCH PUBLIC MEETINGS. THE LEGISLATIVE COUNCIL STAFF SHALL SUBMIT THE REPORT TO THE LEGISLATIVE COUNCIL ON OR BEFORE DECEMBER 1, 1997.

24­38­104.  Performance­based budgeting pilot program. (1)  THERE IS HEREBY CREATED THE PERFORMANCE­BASED BUDGETING PILOT PROGRAM. THE OFFICE OF STATE PLANNING AND BUDGETING, IN CONSULTATION WITH THE JOINT BUDGET COMMITTEE AND THE LEGISLATIVE AUDIT COMMITTEE, SHALL IMPLEMENT AND COORDINATE THE PILOT PROGRAM AND SHALL CONSULT WITH ALL PARTICIPATING AGENCIES TO ENSURE THAT THE PILOT PROGRAM IS ADMINISTERED PURSUANT TO THE PROVISIONS OF THIS ARTICLE.

(2)  ANY AGENCY MAY PARTICIPATE IN THE PILOT PROGRAM, ON A VOLUNTARY BASIS, BY SUBMITTING AN APPLICATION TO THE OFFICE OF STATE PLANNING AND BUDGETING ON OR BEFORE JANUARY 1, 1999. THE HEAD OF AN AGENCY PARTICIPATING IN THE PILOT PROGRAM IS RESPONSIBLE FOR IMPLEMENTING THE PILOT PROGRAM IN THAT AGENCY.

24­38­105.  Performance measures. (1)  AGENCIES PARTICIPATING IN THE PERFORMANCE­BASED BUDGETING PILOT PROGRAM ARE RESPONSIBLE FOR DEVELOPING PERFORMANCE MEASURES CONSISTENT WITH AND AIMED AT ACHIEVING THE BENCHMARKS ESTABLISHED PURSUANT TO SECTION 24­38­103. BY OCTOBER 1, 1999, AND EVERY YEAR THEREAFTER, EACH PARTICIPATING AGENCY SHALL:

(a)  IDENTIFY THE MISSIONS, GOALS, AND OBJECTIVES OF THE AGENCY AND ANY APPLICABLE BENCHMARKS TO WHICH THE GOALS ARE DIRECTED;

(b)  DEVELOP WRITTEN DEFINED PERFORMANCE MEASURES THAT QUANTIFY DESIRED ORGANIZATION OUTPUTS, RESPONSIBILITIES, RESULTS, PRODUCTS, AND SERVICES AND, WHERE POSSIBLE, DEVELOP UNIT COST MEASURES FOR EVALUATING THE PROGRAM EFFICIENCY;

(c)  INVOLVE AGENCY MANAGERS, SUPERVISORS, AND EMPLOYEES IN THE IDENTIFICATION AND DEVELOPMENT OF THE INFORMATION REQUIRED IN PARAGRAPHS (a) AND (b) OF THIS SUBSECTION (1) AND ESTABLISH TEAMS COMPOSED OF AGENCY MANAGERS, SUPERVISORS, AND EMPLOYEES TO IMPLEMENT AGENCY GOALS, OBJECTIVES, AND PERFORMANCE MEASURES;

(d)  USE PERFORMANCE MEASURES TO WORK TOWARD THE ACHIEVEMENT OF IDENTIFIED MISSIONS, GOALS, AND OBJECTIVES AND ANY APPLICABLE BENCHMARKS; AND

(e)  REVIEW AGENCY PERFORMANCE MEASURES WITH THE APPROPRIATE LEGISLATIVE COMMITTEE, AS DETERMINED BY THE PRESIDENT OF THE SENATE AND THE SPEAKER OF THE HOUSE OF REPRESENTATIVES, DURING EACH REGULAR LEGISLATIVE SESSION BEGINNING WITH THE SECOND REGULAR SESSION OF THE SIXTY­SECOND GENERAL ASSEMBLY.

24­38­106.  Incentives for participation. (1)  NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, IN ORDER TO ENCOURAGE PARTICIPATION IN THE PERFORMANCE­BASED BUDGETING PILOT PROGRAM, THE GENERAL ASSEMBLY, UPON CONSULTATION WITH THE OFFICE OF STATE PLANNING AND BUDGETING AND THE JOINT BUDGET COMMITTEE, IS AUTHORIZED TO AWARD THE FOLLOWING INCENTIVES TO PARTICIPATING AGENCIES:

(a)  LUMP­SUM APPROPRIATIONS THAT SUPPORT PARTICULAR AGENCY PROGRAMS IN ORDER TO GIVE AGENCIES THE FLEXIBILITY TO USE FUNDS IN SUPPORT OF SPECIFIC PROGRAM GOALS;

(b)  REINVESTMENT AND TRANSFER AUTHORITY TO SHIFT BUDGET RESOURCES AMONG LINE ITEMS AND PROGRAMS, INCLUDING THE REINVESTMENT ALTERNATIVE SET FORTH IN SUBSECTION (2) OF THIS SECTION;

(c)  PERFORMANCE PAY AND OTHER MONETARY INCENTIVES TO PROVIDE A DIRECT REWARD FOR PERFORMANCE UNDER THE PILOT PROGRAM; AND

(d)  EXEMPTIONS FROM REGULATIONS THAT ARE VIEWED AS IMPEDIMENTS TO EFFICIENT PERFORMANCE UNDER THE PILOT PROGRAM BY MEANS OF A JOINT RESOLUTION ADOPTED BY EACH HOUSE OF THE GENERAL ASSEMBLY AND PRESENTED TO THE GOVERNOR THAT SPECIFIES THE PARTICIPATING AGENCY AND THE REGULATION TO BE EXEMPTED.

(2) (a)  IN ADDITION TO THE INCENTIVES SET FORTH IN SUBSECTION (1) OF THIS SECTION, THE GENERAL ASSEMBLY MAY ALSO APPROPRIATE REVENUES DERIVED FROM THE COST SAVINGS OF ANY AGENCY THAT IS ATTRIBUTABLE TO ITS PARTICIPATION IN THE PERFORMANCE­BASED BUDGETING PILOT PROGRAM AS PROVIDED IN THIS SUBSECTION (2). THE GENERAL ASSEMBLY MAY APPROPRIATE UP TO FIFTY PERCENT OF SUCH REVENUES TO THE AGENCY FOR EXPENDITURE BY THAT AGENCY AND UP TO FIFTY PERCENT OF SUCH REVENUES FOR DEPOSIT INTO A TECHNOLOGY BANK ADMINISTERED BY A PRIVATE SECTOR BOARD OF DIRECTORS. THE PURPOSE OF THE BANK IS TO CREATE A PRIVATE SECTOR ORIENTED, PUBLICLY FINANCED SOURCE OF REVENUE FOR AGENCIES IN NEED OF TECHNOLOGICAL ENHANCEMENTS TO IMPLEMENT PROCESS IMPROVEMENTS WITHIN THEIR PROGRAMS.

(b)  IF THE GENERAL ASSEMBLY AWARDS TO ANY AGENCY THE INCENTIVE SET FORTH IN PARAGRAPH (a) OF THIS SUBSECTION (2), THE FOLLOWING REQUIREMENTS APPLY:

(I)  THE GOVERNOR SHALL APPOINT, AT THE GOVERNOR'S DISCRETION, AN APPROPRIATE NUMBER OF PRIVATE SECTOR CITIZENS HAVING INVESTMENT BANKING EXPERIENCE TO SERVE ON THE PRIVATE SECTOR BOARD OF DIRECTORS ON A VOLUNTARY BASIS.

(II)  THE BOARD OF DIRECTORS SHALL OPERATE A TECHNOLOGY BANK TO BE USED TO FINANCE TECHNOLOGY ENHANCEMENTS. IN OPERATING SUCH BANK, THE BOARD SHALL ESTABLISH LOAN CRITERIA, DETERMINE LOAN VOLUME, AND APPROVE ALL LOAN APPLICATIONS. SUBJECT TO ANNUAL APPROPRIATION, AGENCIES SHALL REPAY LOANS WITH INTEREST FROM THE SAVINGS GENERATED THROUGH THE INSTALLATION OF NEW TECHNOLOGY. EACH AGENCY SHALL COMMIT TO ALLOCATING SUFFICIENT FUNDS TO REPAY SUCH LOANS, CONSISTENT WITH THE TERMS AND CONDITIONS OF THE LOAN AGREEMENT. ANY LOAN PAYMENTS, ALONG WITH THE INTEREST PROCEEDS, SHALL BE DEPOSITED INTO THE TECHNOLOGY BANK.

(c)  AGENCIES PARTICIPATING IN THE PERFORMANCE­BASED BUDGETING PILOT PROGRAM MAY SUBMIT PROPOSALS FOR TECHNOLOGY­BASED PROJECTS THAT WOULD RESULT IN ACTUAL COST SAVINGS. EACH PROPOSAL SHALL CONTAIN A DESCRIPTION OF THE REQUESTED TECHNOLOGY ENHANCEMENT, A DESCRIPTION OF THE PROCESS IMPROVEMENT OR REDESIGN THAT CREATES THE NEED FOR NEW TECHNOLOGY, A REPAYMENT PLAN, AND A SIGN­OFF FROM THE INFORMATION MANAGEMENT COMMISSION (IMC). THE PROJECT DESCRIPTION SHALL INCLUDE WHAT THE PROJECT ENTAILS, WHY IT IS NEEDED, WHO BENEFITS, AND HOW THE PROJECT WOULD BE COMPLETED, INCLUDING AN IMPLEMENTATION PLAN AND A TIME LINE.

(3)  THE GENERAL ASSEMBLY IS AUTHORIZED TO REMOVE ANY INCENTIVE GRANTED TO A PARTICULAR AGENCY PURSUANT TO THIS SECTION IF THE GENERAL ASSEMBLY DETERMINES THAT THE AGENCY IS NO LONGER PERFORMING WITHIN THE STANDARDS FOR THE PERFORMANCE­BASED BUDGETING PILOT PROGRAM SET FORTH IN THIS ARTICLE.

24­38­107.  Budget policy ­ legislative declaration. (1)  THE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES THAT THE STATE OF COLORADO MUST ALLOCATE ITS RESOURCES FOR EFFECTIVE AND EFFICIENT DELIVERY OF PUBLIC SERVICES BY:

(a)  CLEARLY IDENTIFYING DESIRED RESULTS;

(b)  SETTING PRIORITIES;

(c)  ASSIGNING ACCOUNTABILITY; AND

(d)  MEASURING, REPORTING, AND EVALUATING OUTCOMES TO DETERMINE FUTURE ALLOCATION.

(2)  THE GENERAL ASSEMBLY FURTHER FINDS AND DECLARES THAT, IN ORDER TO ACHIEVE THE GOALS SET FORTH IN SUBSECTION (1) OF THIS SECTION, IT IS THE BUDGET POLICY OF THIS STATE TO CREATE AND ADMINISTER PROGRAMS AND SERVICES DESIGNED TO ATTAIN SOCIETAL OUTCOMES, SUCH AS THE COLORADO BENCHMARKS ESTABLISHED PURSUANT TO SECTION 24­38­103 AND TO PROMOTE THE EFFICIENT AND MEASURED USE OF RESOURCES.

(3)  TO EFFECT THE BUDGET POLICY STATED IN SUBSECTION (2) OF THIS SECTION, STATE GOVERNMENT SHALL:

(a)  ALLOCATE RESOURCES TO ACHIEVE DESIRED OUTCOMES;

(b)  EXPRESS PROGRAM OUTCOMES IN MEASURABLE TERMS;

(c)  MEASURE PROGRESS TOWARD DESIRED OUTCOMES;

(d)  ENCOURAGE SAVINGS;

(e)  PROMOTE INVESTMENTS THAT REDUCE OR AVOID FUTURE COSTS;

(f)  PLAN FOR THE SHORT TERM AND THE LONG TERM USING CONSISTENT ASSUMPTIONS FOR MAJOR DEMOGRAPHIC AND OTHER TRENDS; AND

(g)  REQUIRE ACCOUNTABILITY AT ALL LEVELS OF STATE GOVERNMENT FOR MEETING PROGRAM OUTCOMES.

SECTION 2.  2­3­103 (1), Colorado Revised Statutes, 1980 Repl. Vol., as amended, is amended to read:

2­3­103.  Duties of state auditor. (1) (a)  It is the duty of the state auditor to conduct or cause to be conducted postaudits of all financial transactions and accounts kept by or for all departments, institutions, and agencies of the state government, including educational institutions, and the judicial and legislative branches, to conduct performance postaudits thereof, and to perform similar or related duties with respect to such political subdivisions of the state as may be required by law. Postaudits of all financial transactions and accounts may be conducted on a biennial basis.

(b)  IF A DEPARTMENT, INSTITUTION, OR AGENCY IS PARTICIPATING IN THE PERFORMANCE­BASED BUDGETING PILOT PROGRAM UNDER ARTICLE 38 OF TITLE 24, C.R.S., THE STATE AUDITOR, IN CONDUCTING THE PERFORMANCE POSTAUDITS IN PARAGRAPH (a) OF THIS SUBSECTION (1), SHALL DETERMINE WHETHER THE PLANS, POLICIES, AND PROGRAMS OF SUCH DEPARTMENT, INSTITUTION, OR AGENCY ARE DIRECTED TOWARD ACHIEVING THE BENCHMARKS ESTABLISHED PURSUANT TO SECTION 24­38­103, C.R.S.

SECTION 3.  2­3­203 (1) (a), Colorado Revised Statutes, 1980 Repl. Vol., is amended to read:

2­3­203.  Powers and duties of the joint budget committee. (1)  The committee has the following powers and duties:

(a)  To study the management, operations, programs, and fiscal needs of the agencies and institutions of Colorado state government AND, IF THE AGENCY OR INSTITUTION IS PARTICIPATING IN THE PERFORMANCE­BASED BUDGETING PILOT PROGRAM UNDER ARTICLE 38 OF TITLE 24, C.R.S., TO CONSIDER WHETHER THE PLANS, POLICIES, AND PROGRAMS OF PARTICIPATING STATE AGENCIES AND INSTITUTIONS ARE DIRECTED TOWARD ACHIEVING THE BENCHMARKS ESTABLISHED PURSUANT TO SECTION 24­38­103, C.R.S.;

SECTION 4.  2­3­207, Colorado Revised Statutes, 1980 Repl. Vol., as amended, is amended BY THE ADDITION OF A NEW SUBSECTION to read:

2­3­207.  Implementation of a zero­base budgeting program. (1.5)  IN IMPLEMENTING THE ONGOING REVIEW PROCEDURE IN SUBSECTION (1) OF THIS SECTION, THE JOINT BUDGET COMMITTEE SHALL RECOGNIZE AND APPLY THE STATE BUDGETING POLICY SET FORTH IN THE PERFORMANCE­BASED BUDGETING PILOT PROGRAM UNDER ARTICLE 38 OF TITLE 24, C.R.S., AND SHALL CONSIDER WHETHER THE EXISTING PROGRAMS OF STATE AGENCIES AND INSTITUTIONS PARTICIPATING IN THE PERFORMANCE­BASED BUDGETING PILOT PROGRAM ARE DIRECTED TOWARD ACHIEVING THE BENCHMARKS ESTABLISHED PURSUANT TO SECTION 24­38­103, C.R.S.

SECTION 5.  2­3­207 (3), Colorado Revised Statutes, 1980 Repl. Vol., is amended BY THE ADDITION OF A NEW PARAGRAPH to read:

2­3­207.  Implementation of a zero­base budgeting program. (3)  A zero­base budgeting analysis required by subsection (2) of this section shall include, but not be limited to, the following:

(h)  A STATEMENT OUTLINING THOSE PROGRAMS THAT HAVE BEEN SUCCESSFUL IN ACHIEVING THE IDENTIFIED MISSIONS, GOALS, AND OBJECTIVES IDENTIFIED IN SECTION 24­38­105, C.R.S., AND ANY APPLICABLE BENCHMARKS ESTABLISHED PURSUANT TO SECTION 24­38­103, C.R.S.

SECTION 6.  24­37­301, Colorado Revised Statutes, 1988 Repl. Vol., is amended to read:

24­37­301.  Executive budget responsibility. The governor, as chief executive, shall annually evaluate the plans, policies, and programs of all departments of the state government AND ENSURE THAT STATE GOVERNMENT PLANS, POLICIES, AND PROGRAMS OF DEPARTMENTS PARTICIPATING IN THE PERFORMANCE­BASED BUDGETING PILOT PROGRAM UNDER ARTICLE 38 OF THIS TITLE ARE DIRECTED TOWARD ACHIEVING THE BENCHMARKS ADOPTED BY THE GENERAL ASSEMBLY IN SECTION 24­38­103. He THE GOVERNOR shall direct the formulation of his THE GOVERNOR'S decisions into a financial plan encompassing all sources of revenue and expenditure. He THE GOVERNOR shall propose this plan for the consideration of the general assembly in the form of an annual executive budget consisting of operating expenditures, capital construction expenditures, estimated revenues, and special surveys. Proposed expenditures in the budget shall not exceed estimated moneys available. After legislative review and modification, if any, of the budget and appropriation of the moneys therefor, the governor shall administer the budget.

SECTION 7.  The introductory portion to 24­37­302 (1), Colorado Revised Statutes, 1988 Repl. Vol., as amended, is amended, and the said 24­37­302 (1) is further amended BY THE ADDITION OF THE FOLLOWING NEW PARAGRAPHS, to read:

24­37­302.  Responsibilities of the office of state planning and budgeting ­ repeal. (1)  The office shall assist the governor in his THE GOVERNOR'S responsibilities pertaining to the executive budget. Specifically, it shall:

(m.1)  ENSURE THAT STATE AGENCY PLANS, POLICIES, AND PROGRAMS OF AGENCIES PARTICIPATING IN THE PERFORMANCE­BASED BUDGETING PILOT PROGRAM UNDER ARTICLE 38 OF THIS TITLE ARE DIRECTED TOWARD ACHIEVING THE BENCHMARKS ESTABLISHED BY THE OFFICE AS A RESULT OF PUBLIC MEETINGS PURSUANT TO SECTION 24­38­103. THE OFFICE SHALL:

(I)  EVALUATE STATE AGENCY MISSIONS, GOALS, OBJECTIVES, AND PERFORMANCE MEASURES IDENTIFIED IN SECTION 24­38­105;

(II)  CONTINUALLY REVIEW, MONITOR PROGRESS, IDENTIFY BARRIERS, AND RECOMMEND REVISIONS OF THE PLANS, POLICIES, AND PROGRAMS OF STATE AGENCIES;

(III)  PROPOSE ALTERNATIVE METHODS FOR ATTAINING THE BENCHMARKS AND ACCOMPLISHING THE OBJECTIVES OF STATE PLANS, POLICIES, AND PROGRAMS;

(IV)  ASSURE THE DEVELOPMENT OF A STATEWIDE SYSTEM OF PERFORMANCE MEASURES DESIGNED TO INCREASE THE EFFICIENCY AND EFFECTIVENESS OF STATE PLANS, POLICIES, AND PROGRAMS;

(V)  PROVIDE AGENCIES WITH DIRECTION ON THE APPROPRIATE FORMAT FOR REPORTING PERFORMANCE MEASURES TO ASSURE CONSISTENCY ACROSS AGENCIES;

(VI)  CONSULT WITH THE STATE AUDITOR AND THE JOINT BUDGET COMMITTEE FOR ASSISTANCE IN DEVISING A SYSTEM OF PERFORMANCE MEASURES;

(VII)  FACILITATE THE DEVELOPMENT OF PERFORMANCE MEASURES IN THOSE INSTANCES WHERE BENCHMARKS INVOLVE MORE THAN ONE STATE AGENCY;

(VIII)  PRIOR TO THE DEVELOPMENT OF THE EXECUTIVE BUDGET AND THE FORMAL ADOPTION OF A PERFORMANCE MEASUREMENT SYSTEM, CONSULT WITH THE JOINT BUDGET COMMITTEE; AND

(IX)  DEVELOP AND IMPLEMENT, IN COORDINATION WITH THE CONTROLLER, A SYSTEM FOR EVALUATING THE RESULTS OF AND MEASURING THE EFFECTIVENESS OF GOVERNMENTAL EXPENDITURES;

(m.2)  DETERMINE WHETHER STATE AGENCY ACTIVITIES AND PROGRAMS ARE CONDUCIVE TO PERFORMANCE­BASED PROGRAM BUDGETING;

(m.3)  PREPARE A REPORT ON AN ANNUAL BASIS THAT MEASURES HOW STATE AGENCIES PARTICIPATING IN THE PERFORMANCE­BASED BUDGETING PILOT PROGRAM UNDER ARTICLE 38 OF THIS TITLE ARE PERFORMING ON THE BENCHMARKS ESTABLISHED PURSUANT TO SECTION 24­38­103 AND SUBMIT THE REPORT TO THE GOVERNOR AND THE JOINT BUDGET COMMITTEE NO LATER THAN OCTOBER 1, 2001, AND EACH YEAR THEREAFTER;

(m.4)  BEGINNING JANUARY 1, 2004, AND EVERY FIVE YEARS THEREAFTER, EVALUATE THE BENCHMARKS ESTABLISHED PURSUANT TO SECTION 24­38­103 AND DETERMINE WHETHER THE ADOPTION OF NEW BENCHMARKS OR THE ELIMINATION OF EXISTING BENCHMARKS IS NECESSARY IN ACHIEVING THE STATE'S GOAL OF SUSTAINED ECONOMIC PROSPERITY AND ENHANCED QUALITY OF LIFE;

SECTION 8.  Effective date ­ applicability.  This act shall take effect upon passage and shall apply to budget years beginning on and after July 1, 2000.

SECTION 9.  Safety clause.  The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.