Bill Text: PA HB726 | 2011-2012 | Regular Session | Amended

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Bill Title: Providing for accountability in Commonwealth agency program performance.

Spectrum: Strong Partisan Bill (Republican 45-4)

Status: (Introduced - Dead) 2012-09-24 - Laid on the table [HB726 Detail]

Download: Pennsylvania-2011-HB726-Amended.html

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PRIOR PRINTER'S NO. 739 PRINTER'S NO. 3649
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 726 Session of2011
INTRODUCED BY SAYLOR, GROVE, STEVENSON, DENLINGER, GINGRICH, GRELL, PICKETT, PYLE, REICHLEY, SONNEY, AUMENT, BLOOM, BOBACK, BOYD, CLYMER, D. COSTA, CUTLER, DUNBAR, EVANKOVICH, EVERETT, GABLER, GEIST, GIBBONS, GILLEN, GILLESPIE, GOODMAN, HARRIS, HESS, HICKERNELL, HUTCHINSON, KAUFFMAN, KNOWLES, KOTIK, METCALFE, MILLER, MILNE, MURT, OBERLANDER, RAPP, ROAE, SCHRODER, TALLMAN, TAYLOR, TOEPEL, VULAKOVICH, WATSON, BROOKS, SIMMONS AND FARRY, FEBRUARY 16, 2011
AS REPORTED FROM COMMITTEE ON STATE GOVERNMENT, HOUSE OF REPRESENTATIVES, AS AMENDED, JUNE 5, 2012
AN ACT
Providing for accountability in Commonwealth agency program
performance.
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,
Accountability and Results Act.
Section 2. Legislative intent and purpose.
(a) Declaration.--The General Assembly finds and declares
that accountability in program performance is vital to effective
and efficient delivery of governmental services and to maintain
public confidence and trust in government. To maximize
accountability, a system of strategic planning, performance-
based budgeting and performance audits should be implemented to
measure the effectiveness and efficiency of governmental
services. It is of paramount public importance that this system
encourages full and candid participation throughout State
government. This system will generate information necessary for
the public to be informed fully and for the General Assembly to
make informed and meaningful decisions about the allocation of
resources in meeting vital needs.
(b) Purpose.--The purposes of this act are to do all of the
following:
(1) Begin to provide a new approach to the planning,
budgeting and accountability processes within State
government rather than an addition to existing procedures.
(2) Improve the confidence of Pennsylvania citizens and <--
taxpayers in the capability of the government, by
systematically holding Commonwealth agencies accountable for
achieving program results.
(3) Improve Commonwealth program effectiveness and
public accountability by promoting a new focus on results,
service quality and customer satisfaction.
(4) Help agency managers improve service delivery, by
requiring that they plan for meeting program objectives and
by providing them with information about program results and
service quality.
(5) Improve legislative decision making by providing
more objective information on achieving statutory objectives,
and on the relative effectiveness and efficiency of
Commonwealth programs and spending.
(6) Improve internal management of the Commonwealth
government.
Section 3. Definitions.
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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:
"Administrative Code of 1929." The act of April 9, 1929
(P.L.177, No.175), known as The Administrative Code of 1929.
"Agency." A Commonwealth agency.
"Commonwealth agency." A department of the executive branch.
"Goal." A statement of result that is intended to be
achieved and which may be defined as either:
(1) A general goal, which is a general statement of
result that does not include a measurable target level of
performance or other objective indicator of success.
(2) A performance measure, which is a specific statement
of result that includes a measurable target level of
performance or other objective indicator of success.
"Independent Fiscal Office." The office established and
provided for in 71 Pa.C.S. Ch. 41 (relating to Independent
Fiscal Office).
"Outcome measure." An assessment A qualitative indicator of <--
the results of a program activity compared to its intended
purpose and of the public benefit derived from the program <--
activity, often used as a measure of effectiveness.
"Output measure." The tabulation, calculation or recording <--
of activity or effort which can be expressed in a quantitative
or qualitative manner, often used as a measure of the direct
result of activity. A quantitative indicator of goods or <--
services that an agency produces.
"Performance indicator." A particular value or
characteristic used to quantitatively and effectively measure <--
program activity and performance in a qualitative or <--
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quantitative manner. A performance indicator shall be structured
as an outcome measure or output measure.
"Program activity." A specific activity or project as listed
in the annual budget of the Commonwealth.
"Program evaluation." An assessment, through objective
measurement and systemic analysis, of the manner and extent to
which programs achieve intended goals.
"Secretary." The Secretary of the Budget of the
Commonwealth.
"Performance target." The measurable level of activity,
output or outcome. When a performance indicator showing what
will be measured is combined with a numerical target showing how
much will be achieved, a measurable goal has been defined.
"Strategic plan." A plan developed under section 4.
Section 4. Strategic planning.
(a) Submittal.--In compliance with section 11 and not later
than September 30, 2012 2013, the head of each agency shall <--
submit to the secretary and to the General Assembly a strategic
plan for program activities, delivering the services and
achieving the objectives required under the laws of this
Commonwealth and any Federal program in which the Commonwealth
participates. The plan shall include all of the following:
(1) The statutory and constitutional objectives of the
agency.
(2) A comprehensive mission statement covering the major
functions and operations of the agency.
(3) General goals and performance measures, including
outcome-related goals and measures, for the major functions
and operations of the agency.
(4) A hierarchy of outcome, output and program activity
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goals and measures whereby the goals at the mid-level and
lower levels of the agency shall include the performance
indicators that define the outputs that support the agency
outcomes. This hierarchy shall clearly link each goal to the
next lower level goals in the hierarchy that support its
accomplishment.
(5) Descriptions of the strategies for how the goals are
to be achieved, including all of the following:
(i) The operational processes, skills and
technology, and the human, capital, information and other
resources required to meet those goals.
(ii) Any new initiative or program activity.
(iii) Any new approaches or methods to operational
processes that will be adopted or revised.
(iv) The means of avoiding unnecessary costs and
expenditures.
(v) The means of addressing any change in objectives
or services since the previous strategic plan.
(6) A description of any program evaluations used in
assessing the effectiveness of the programs in achieving
their goals, with a schedule for future program evaluations.
(b) Coverage.--The strategic plan shall cover a period of <--
not less than four years forward from the fiscal year in which
it is submitted and shall be updated and revised at least every
three years. Each agency shall submit a strategic plan that has
been updated or revised to the Governor and the General
Assembly. The submission shall occur no later than the date by
which the Governor submits copies of original agency budget
requests, all subsequent revised agency budget requests and a
State budget, program and financial plan under section 613 of
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the Administrative Code of 1929.
(b) Coverage.--The strategic plan shall do the following: <--
(1) Cover a period of not less than four years forward
from the fiscal year in which it is submitted and shall be
updated and revised at least every three years.
(2) Include a projection of the information enumerated
in subsection (a)(1), (2), (3), (4) and (5) for the tenth
year following the fiscal year in which it is submitted and
for the 20th year in which it is submitted.
(c) Consistency.--The performance-based performance budget <--
required under section 5 shall be consistent with the agency's
strategic plan. A performance plan budget may not be submitted <--
for a fiscal year not covered by a current strategic plan under
this section.
(d) Governmental functions.--The functions and activities of
this section shall be considered to be inherently governmental
functions. The drafting of strategic plans under this act shall
be performed only by Commonwealth employees, while assistance in
guiding the development of the plan may be provided by an
outside source.
Section 5. Performance-based budgeting.
(a) Submission Submittal.--In compliance with section 11 and <--
beginning with submissions in calendar year 2013 2014 for fiscal <--
year 2013-2014 2014-2015, in addition to the budget <--
implementation procedures provided for in Article VI the
Administrative Code of 1929, the secretary shall submit to the
General Assembly and the Legislative Budget and Finance <--
Committee Independent Fiscal Office agency performance budgets <--
as required under this section. The submission of agency
performance budgets shall occur no later than the date by which <--
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the Governor submits copies of original agency budget requests,
all subsequent revised agency budget requests and a State
budget, program and financial plan under section 613 of the
Administrative Code of 1929 January 1 of the calendar year in <--
which the fiscal year begins. Nothing in this section shall be
construed as limiting or reducing the budget implementation
procedures set forth under Article VI of the Administrative Code
of 1929.
(b) Agency performance budgets.--In carrying out the
provisions of this section, the secretary shall require each
agency to prepare an agency performance budget covering each
program activity set forth in the budget of the agency.
(c) Structure and contents.--Each agency performance budget
required to be submitted under this section shall include all of
the following:
(1) A hierarchy of outcome, output and activity goals
and measures whereby the goals at the mid-level and lower
levels of the agency define the activities and their outputs
that support the intended agency outcomes. The hierarchy
shall clearly link each goal to the next lower level goals in
the hierarchy that support its accomplishment.
(2) Planned outcomes expressed as either general goals
or outcome measures and planned outputs expressed as output
measures, which shall include a performance indicator for
each general goal and both a performance indicator and a
performance target for each outcome or output measure.
(3) The measures of activity, level of effort, output
and outcome generated or supported by each program activity.
(4) A per-unit form of each activity, level of effort
and the resulting output for each program activity.
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(5) The cost of achieving the level of effort quantity
target for each program activity which is sufficient to
support the planned levels of output and outcome.
(6) The actual outputs and outcomes achieved for each
program activity in each the agency and their actual costs, <--
showing past performance for the most recent year for which
results are available and planned performance for each
subsequent year.
(7) A recommended funding level for each program
activity within each the agency necessary to achieve the <--
planned level of program output, which shall be not greater <--
than the funding level for the program activity for the
immediately preceding fiscal year, adjusted by one of the
following factors, whichever is less:
(i) The change in the Consumer Price Index for All
Urban Consumers from the immediately preceding fiscal
year, if expressed as a positive number.
(ii) The change in the rate of population growth in
this Commonwealth from the immediately preceding fiscal
year, if expressed as a positive number.
(8) Additional recommendations regarding the funding,
the performance, the feasibility and the sustainability of a
program activity that is not meeting the desired outputs or
outcomes.
(9) Summary descriptions of the strategies for how the
goals and output and outcome measures are to be achieved,
including all of the following:
(i) The major operational processes to be used, the
key skills and technology to be deployed and the human,
capital, information and other resources that will be
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required to meet those goals.
(ii) Any new initiatives that will be undertaken or
activities that will be engaged in.
(iii) Any new approaches or methods that will be
adopted or revised.
(10) A description of the means to be used to verify and
validate the reported results for each measured value.
(d) Governmental functions.--The functions and activities of
this section shall be considered to be inherently governmental
functions. The drafting of performance budgets under this
section shall be performed only by Commonwealth employees, while
assistance in guiding the development of the performance budget
may be provided by an outside source with expertise in
performance-based budgeting.
Section 6. Independent Fiscal Office.
(a) Commonwealth performance budget.--
(1) The Independent Fiscal Office shall receive agency
performance budgets and performance reports submitted from
the head of each agency under sections 5(a) and 7(a) no later <--
than the respective deadlines established in sections 5(a)
and 7(a).
(2) The Independent Fiscal Office shall utilize the
agency performance budgets and reports and the information
contained therein, in addition to State appropriation
information, to craft a Commonwealth performance budget that
includes each agency required to submit agency performance
budgets under section 5(a).
(3) The Commonwealth performance budget required under
this subsection shall be submitted to the Governor and to the
General Assembly by June 1, 2014 March 15, 2015, and each <--
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June 1 March 15 thereafter. <--
(4) To aid in its preparation of a performance budget,
the Independent Fiscal Office shall:
(i) Establish a performance-based budget division
staffed with persons knowledgeable and proficient in
performance-based budgeting, budget analysis and budget
preparation.
(ii) Gather testimony and other data from officers
and employees of each agency as deemed necessary to carry
out the provisions of this act.
(b) Performance-based budgeting.--The Commonwealth
performance budget shall include all of the following:
(1) A hierarchy of outcome, output and program activity
goals and measures whereby the goals at the mid-level and
lower levels of each agency defines define the activities and <--
their outputs that support the intended agency outcomes. The
hierarchy shall clearly link each goal to the next lower
level goals in the hierarchy that support its accomplishment.
(2) Planned outcomes expressed as either general goals
or performance measures and planned outputs expressed as
performance measures, which shall include a performance
indicator for each general goal, and both a performance
indicator and a performance target for each performance
measure.
(3) The measures of activity, level of effort, output
and outcome generated or supported by each program activity.
(4) A per-unit form of each activity, level of effort
and the resulting output for each program activity.
(5) The cost of achieving the level of effort quantity
target for each program activity which is sufficient to
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support the planned levels of output and outcome.
(6) The actual outputs and outcomes achieved for each
program activity in each agency and their actual costs,
showing past performance for the most recent year for which
results are available and planned performance for each
subsequent year.
(7) An independent recommended The Independent Fiscal <--
Office's recommendation regarding the funding level for each
program activity within each agency necessary to achieve each
performance target.
(8) Additional independent Independent Fiscal Office <--
recommendations regarding the funding, performance,
feasibility and sustainability of a program activity that is
not meeting the desired outputs or outcomes.
(9) If an agency did not meet one or more of the goals <--
of a program activity for the immediately preceding fiscal
year, one of the following:
(i) A recommended reduction in the funding for the
program activity calculated by applying a rate equal to
the percentage of goals of a program activity that were
missed in the immediately preceding fiscal year to the
funding level for the immediately preceding fiscal year
and subtracting the product from the funding level for
the immediately preceding fiscal year.
(ii) A recommended alteration of the program to
address the deficiency.
(iii) A recommendation that the program be
terminated.
(c) Auditor General assistance.--The Independent Fiscal
Office or the General Assembly, by concurrent resolution, may <--
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request the Auditor General to conduct a performance audit of
any agency program or agency performance report. The Independent
Fiscal Office shall notify the Governor and the General Assembly
within five days of the request.
(d) Report.--Not before January 1, 2015 2016, and not later <--
than March 1, 2015 2016, the Independent Fiscal Office shall <--
transmit a report to the Governor and to the General Assembly on
the status of the implementation of this act. The report shall
do all of the following:
(1) Assess the feasibility and advisability of including <--
agency and Commonwealth performance budgets as part of the
annual budget submitted under section 613 of the
Administrative Code of 1929.
(2) (1) Describe any difficulties encountered by the <--
agencies or the Independent Fiscal Office in preparing
performance budgets.
(3) (2) Recommend whether any additional legislation <--
requiring performance budgets should be proposed and the
general provisions of any legislation.
(4) (3) Set forth any recommended changes in the other <--
requirements of this act.
(e) Specification.--After receipt of the report under <--
subsection (d), the General Assembly may specify that
performance budgets be submitted as part of the annual budget
submitted by the Governor under section 613 of the
Administrative Code of 1929.
Section 7. Annual performance reports.
(a) Submittal.--By March 1, 2015 January 1, 2016, and each <--
March 1 January 1 thereafter, the head of each agency shall <--
prepare and submit to the Governor and the Independent Fiscal
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Office a report on program performance for the previous fiscal
year.
(b) Goals and measures.--Each program performance report
shall set forth the goals and measures established in the agency
performance budget under section 5(c), along with the actual
program performance achieved compared with the goals and
performance measures expressed in the plan for that fiscal year.
(c) Contents.--The report submitted in calendar year 2015 <--
2016 shall include planned results for the current fiscal year, <--
the report submitted in calendar year 2016 2017 shall include <--
planned results for the current and actual results for the
preceding fiscal year and the report submitted in calendar year
2017 2018 and all subsequent reports shall include actual <--
results for the two preceding fiscal years and planned results
for the current fiscal year.
(d) Requirements.--Each report shall do all of the
following:
(1) Review the success of achieving the performance
measures of the fiscal year.
(2) Evaluate the performance plan budget for the current <--
fiscal year relative to the performance achieved toward the
performance measures in the fiscal year covered by the
report.
(3) Explain and describe if a performance measure has
not been met. The explanation and description shall include
one of the following:
(i) why the measure was not met;
(ii) (A) the plans and schedules for achieving the
established performance measure; or
(B) if the performance measure is impractical or
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infeasible, reasons why that is the case and what
action is recommended.
(4) Include the summary findings of the program
evaluations completed during the fiscal year covered by the
report.
(e) Financial statement.--An agency head may include all
program performance information required annually under this
section in an annual financial statement required under section
613 of the Administrative Code of 1929, if the statement is
submitted to the General Assembly no later than the date by
which the Governor submits copies of original agency budget
requests and all subsequent revised agency budget requests and a
State budget and program and financial plan under section 613 of
the Administrative Code of 1929 for the applicable fiscal year.
(f) Governmental functions.--The functions and activities of
this section shall be considered to be inherently governmental
functions. The drafting of program performance reports under
this section shall be performed only by Commonwealth employees.
Section 7.1. Progress reports. <--
No later than March 1 of any year in which an agency submits
a performance report under section 7, the agency shall submit a
progress report for the first six months of the current fiscal
year, which includes goals and measures established in the
agency performance budget for the fiscal year under section 5(c)
and program performance achieved toward performance measures
during the six-month period.
Section 8. Auditor General.
(a) Authority.--In addition to the powers and duties
prescribed to the Auditor General under Article IV of the act of
April 9, 1929 (P.L.343, No.176), known as The Fiscal Code, the
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Auditor General is vested with the authority to conduct
performance audits of any agency required to submit a
performance report under section 7.
(b) Request.--The Auditor General shall receive and consider <--
comply with any request from the Independent Fiscal Office or <--
the General Assembly under section 6(c).
(c) Performance audit.--If the Auditor General declines to <--
conduct a performance audit in response to a request made under
section 6(c), the Auditor General shall notify the Governor and
the General Assembly of the decision within 30 days of the
request.
(d) (c) Report.--The Auditor General shall report the <--
results of any performance audit to the Governor and the General
Assembly upon completion of the performance audit.
Section 9. Legislative oversight and legislation.
Nothing in this act shall be construed as limiting the
ability of the General Assembly to establish, amend, suspend or
annul a goal or performance indicator. Any such action shall
have the effect of superseding the goal or performance indicator
in the plan submitted under section 5(b).
Section 10. Training.
The Office of Administration shall, in consultation with the
secretary and the Auditor General, develop a strategic planning
and performance measurement training component for its
management training program and provide managers with an
orientation on the development and use of strategic planning and
program performance measurement.
Section 11. Pilot projects.
There shall be a pilot project in strategic planning under
section 4, and performance-based budgeting under section 5,
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conducted by at least two five agencies for fiscal year <--
2011-2012 and by at least three agencies for fiscal year <--
2012-2013 2013-2014. <--
Section 12. Open records. <--
All records produced and maintained under this act shall be
subject to the act of February 14, 2008 (P.L.6, No.3), known as
the Right-to-Know Law.
Section 13. Annual budget to contain agency performance
budgets.
Beginning with budget submission in calendar year 2014 for
fiscal year 2014-2015, the agency performance budgets prepared
under section 5 shall be incorporated into the annual budget
submitted by the Governor under section 613 of the
Administrative Code of 1929.
Section 20. Effective date.
This act shall take effect as follows:
(1) Sections 6(a)(2), (3) and (4)(ii) and (c) and 8
shall take effect January 1, 2014 2015. <--
(2) The remainder of this act shall take effect
immediately.
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