STRATEGIC PLANS FOR STATE AGENCIES

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SENATE BILL NO. 37

IN THE LEGISLATURE OF THE STATE OF ALASKA

THIRTY-FOURTH LEGISLATURE - FIRST SESSION

BY SENATORS KAUFMAN, Yundt, Hughes, Myers, Cronk, Shower

Introduced: 1/22/25
Referred: State Affairs, Finance

A BILL

FOR AN ACT ENTITLED

"An Act relating to the Executive Budget Act; relating to strat egic plans, mission 1
statements, performance plans, a nd financial plans for executiv e branch agencies; and 2
providing for an effective date." 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 4
* Section 1. AS 16.05.110(b) is amended to read: 5
(b) Except for money received as fisheries fines or forfeiture s in settlement of 6
a claim or loss caused by damage to the fish resources of the s tate that is appropriated 7
to or through the division of commercial fisheries management a nd development, 8
appropriations of money from the fish and game fund and of mone y received by the 9
state under the federal aid acts described under AS 16.05.140 s hall be made to the 10
division of wildlife conservation or the division of sport fish . The division of wildlife 11
conservation or the division of sport fish may use money approp riated under this 12
subsection to acquire administra tive and other services from ot her agencies if the 13
division acquires the services t hrough reimbursable services ag reements. The division 14
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of wildlife conservation and the division of sport fish shall i nclude as part of their 1
budgets prepared under AS 37.07.085 [AS 37.07.050] 2
(1) a listing of the reimbursable services agreements that are to be 3
funded with money appropriated under this subsection; 4
(2) a description of the services to be provided under those 5
agreements; and 6
(3) a listing of the entities that are parties to those agreements. 7
* Sec. 2. AS 37.07.010 is amended to read: 8
Sec. 37.07.010. Statement of policy. It is the purpose of this chapter to 9
establish a comprehensive system f o r s t a t e p r o g r a m a n d f i n a n c i al management that 10
furthers the capacity of the gov ernor and legislature to plan a nd finance the services 11
that they determine the state will provide for its citizens. Th e system must include 12
procedures for 13
(1) the orderly establishment, continuing review, and periodic revision 14
of the strategic plans, program goals , and policies of state a gencies and financial 15
goals and policies of the state; 16
(2) the development, coordination, and review of long-range pr ogram 17
and financial plans that will implement established state strategies, g o a l s, and 18
policies; 19
(3) the preparation, coordinati on, analysis, and enactment of a budget 20
that is organized to focus on the services provided by state ag encies and on the cost of 21
those services and that provides for implementation of policies and plans [,] in the 22
succeeding budget periods [PERIOD]; 23
(4) the evaluation of alternatives to existing strategies, policies, plans, 24
and procedures that offer potential for more efficient state services; 25
(5) the regular appraisal and reporting of program performance; 26
(6) public participation in the development of the annual budg et, 27
including opportunity for the public to review and comment on [UPON] the plans and 28
programs of the Office of the Governor and all state agencies i n the executive branch, 29
the legislature, the judicial system, the University of Alaska, and the public 30
corporations of the state. 31
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* Sec. 3. AS 37.07.014(a) is amended to read: 1
(a) To carry out its legislative power under art. II, sec. 1, Constitution of the 2
State of Alaska, and to promote results-based government, the l egislature shall review 3
and analyze [ISSUE A] mission statements and performance plans issued by the 4
governor [STATEMENT FOR EACH AGENCY AND THE DESIRED RESULTS 5
THE AGENCY SHOULD ACHIEVE. THE LEGISLATURE MAY ISSUE A 6
SEPARATE MISSION STATEMENT FOR A SUBUNIT OF AN AGENCY]. A 7
mission statement and performance plan [AND DESIRED RESULTS] should 8
promote the efficient, measured use of the state's resources. A mission statement and 9
performance plan [AND DESIRED RESULTS] constitute policy under which an 10
agency shall operate, and, where appropriate, the mission state m e n t m a y b e 11
implemented by statute. 12
* Sec. 4. AS 37.07.014(b) is amended to read: 13
(b) The leg islature shall provide for a budget review function that promotes 14
results-based government. The [LEGISLATURE SHALL ADOPT A METHOD O F 15
MEASURING RESULTS FOR EACH AGENCY, AND MEASUREMENTS SHALL 16
BE REPORTED SEMI-ANNUALLY BY EACH AGENCY TO THE 17
LEGISLATURE. THE REPORTS SHALL BE USED BY THE] legislature shall use 18
t h e i n f o r m a t i o n r e p o r t e d b y a s t a t e e n t i t y u n d e r ( f ) o f t h i s s ection to evaluate 19
whether the strategic plan and mission [AND DESIRED RESULTS] for that state 20
entity [AGENCY OR SUBUNIT OF THE AGENCY] are being achieved. 21
* Sec. 5. AS 37.07.014(c) is amended to read: 22
(c) The legislature shall analyze the strategic plans issu ed by the governor 23
and the comprehensive [OPERATING AND] capital improvements programs an d 24
financial plans recommended by the governor. 25
* Sec. 6. AS 37.07.014(d) is amended to read: 26
(d) To foster results-based government, to implement the strategic plans, 27
and to carry out the mission statements, [AND TO OBTAIN DESIRED RESUL TS,] 28
the legislature shall authorize the comprehensive [OPERATING AN D] capital 29
improvements programs and financial plans necessary to implement state entity 30
performance plans . The legislature shall allocate the state's resources for effe ctive 31
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and efficient delivery of public services by 1
(1) r e v i e w i n g a n d a n a l y z i n g t h e s t r a t e g i c p l a n s a n d m i s s i o n 2
statements [CLEARLY IDENTIFYING DESIRED RESULTS]; 3
(2) assessing how performance plans and financial plans 4
contribute to progress toward the strategic plans and mission s tatements 5
[SETTING PRIORITIES]; 6
(3) assigning accountability; and 7
(4) reviewing financial plans [USING METHODS FOR 8
MEASURING, REPORTING, AND EVALUATING RESULTS]. 9
* Sec. 7. AS 37.07.014(f) is amended to read: 10
(f) To help fulfill the legisl ature's responsibilities under t his section and 11
achieve results-based government, each state entity [AGENCY] shall 12
(1) allocate resources to implement the strategic plan and achieve 13
the mission issued by the governor [AND DESIRED RESULTS ESTABLISHED 14
BY THE LEGISLATURE]; 15
(2) express its program [DESIRED] results [ESTABLISHED BY 16
THE LEGISLATURE AND OTHER PROGRAM RESULTS] in measurable terms; 17
(3) measure progress t o w a r d t h e s t r a t e g i c p l a n a n d [ T O W A R D S ] 18
mission statements issued by the governor [AND DESIRED RESULTS 19
ESTABLISHED BY THE LEGISLATURE] and other results; 20
(4) promote activities consistent with the strategic plan and mission 21
statements issued by the governor [AND DESIRED RESULTS ESTABLISHED BY 22
THE LEGISLATURE] that reduce or avoid future costs; 23
(5) plan for the short-term and the long-term using consistent 24
assumptions for major demographic and other trends; [AND] 25
(6) require accountability a t all levels for meeting the strategic plan 26
and program mission statements issued by the governor; and 27
(7) report quarterly to the office its progress toward the 28
performance plan required under AS 37.07.085 [AND DESIRED RESULTS 29
ESTABLISHED BY THE LEGISLATURE]. 30
* Sec. 8. AS 37.07.014 is amended by adding a new subsection to read: 31
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(g) In this section, "state entit y" means each department in t he executive 1
branch and the University of Alaska. 2
* Sec. 9. AS 37.07.016 is amended to read: 3
Sec. 37.07.016. Governor's use of st rategic plans, mission stat ements, and 4
performance plans. To carry out the executive power under art. III, secs. [SE C. ] 1 5
and [SEC.] 16, Constitution of the State of Alaska, the governo r shall review the 6
strategic plans, mission statements, and performance plans comp iled and 7
submitted by the office under AS 37.07.040(12) and (13). The go vernor may 8
approve, or require the office to revise, the strategic plans, mission statements, 9
and performance plans, in whol e or in part. Once the governor a pproves the 10
strategic plans and mission s tatements, the governor shall use the strategic plans 11
and mission statements [AND DESIRED RESULTS ISSUED BY THE 12
LEGISLATURE AS A GUIDE] to implement and execute the law. Once the 13
governor approves the performance plans, the [THE] governor shall use the 14
performance plans to ensure [ASSURE] that each agency complies with [THE 15
MISSION STATEMENT] and achieves the desired results of the strategic plan and 16
mission statements approved by the governor for that agency [IDENTIFIED BY 17
THE LEGISLATURE]. 18
* Sec. 10. AS 37.07.020(a) is amended to read: 19
(a) The governor shall prepare a budget for the succeeding fis cal year that 20
must cover all estimated receipts, including all grants, loans, and money received from 21
the federal government and all proposed expenditures of the sta te government. The 22
budget shall be organized so that the proposed expenditures for each agency are 23
presented separately. The budget m ust be accompanied by the inf ormation required 24
under AS 37.07.050, 37.07.055, and 37.07.085 and by the following separate bills: (1) 25
an appropriation bill authorizing the operating and capital exp enditures of the state's 26
integrated comprehensive mental health program under AS 37.14.0 03(a); (2) an 27
appropriation bill authorizing state operating expenditures other than those included in 28
the state's integrated comprehensive mental health program; (3) an appropriation bill 29
authorizing capital expenditures other than those included in t he state's integrated 30
comprehensive mental health program; and (4) a bill or bills co vering 31
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recommendations, if any, in the budget for new or additional re venue. The budget for 1
the succeeding fiscal year and each of the bills shall become p ublic information on 2
December 15 at which time the gove rnor shall submit copies to t he legislature and 3
make copies available to the public. The bills, identical in co ntent to the copies 4
released on December 15, shall be delivered to the rules commit tee of each house 5
before the fourth legislative day of the next regular session for introduction. 6
* Sec. 11. AS 37.07.040 is amended to read: 7
Sec. 37.07.040. Office of management and budget. The Alaska office of 8
management and budget shall 9
(1) assist the governor in mee ting the requirements of AS 37.0 7.020, 10
including the coordination and analysis of state agency goals and objectives, strategic, 11
performance, and other plans, and budget requests; 12
(2) prepare for submission to the governor an annually updated s i x -13
year capital improvements program and the proposed capital impr ovements budget for 14
the coming fiscal year, the la tter to include individual projec t justification with 15
documentation of estimated project cost; 16
(3) develop procedures to produce the information needed for e ffective 17
policy decision making, including procedures to provide for the dissemination of 18
information about plans, program s, and budget requests to be in cluded in the annual 19
budget and opportunity for public r eview and comment during the period of budget 20
preparation; 21
(4) assist state agencies in developing and updating strategic plans, 22
mission statements, performance plans, financial plans [THEIR STATEMENT OF 23
GOALS AND OBJECTIVES TO ACHIEVE, AMONG OTHER THINGS, THE 24
LEGISLATURE'S MISSION AND DESIRED RESULTS, PREPARATION OF 25
PLANS, ASSESSMENTS OF THE EXTENT TO WHICH MISSIONS AND 26
DESIRED RESULTS HAVE BEEN ACHIEVED], budget requests, and repor ting of 27
program performance; all documents forwarded by the office to a state agency 28
containing instructions for the p reparation of program plans an d budget requests and 29
the reporting of program perform ance are public information aft er the date they are 30
forwarded; 31
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(5) administer its responsibilities under the program executio n 1
provisions of this chapter so that the policy decisions and bud get determinations of the 2
governor and the legislature are implemented; 3
(6) provide the legislative finance division with the budget i nformation 4
it may request; 5
(7) provide the legislative finance division with an advance copy of the 6
governor's budget workbooks at least seven days before the legi slature convenes in a 7
regular session; 8
(8) prepare the proposed capita l improvements budget for the c oming 9
fiscal year evaluating both state and local requests from the s tandpoint of need, equity, 10
and priorities of the jurisdiction; other factors, including [SUCH AS] project amounts, 11
population, local financial match, federal funds being used for local match, 12
municipality or unincorporated community acceptance of the faci lity, and all 13
associated costs of the facility, may be considered; 14
(9) for each department in the executive branch, report to the 15
legislature by the 45th day of each regular session the amount of money appropriated 16
to the department that is expected to lapse into the general fu nd at the end of the 17
current fiscal year; 18
(10) [ESTABLISH AND ADMINISTER A STATE AGENCY 19
PROGRAM PERFORMANCE MANAGEMENT SYSTEM INVOLVING 20
PLANNING, PERFORMANCE BUDGETING, PERFORMANCE 21
MEASUREMENT, AND PROGRAM EVALUATION; THE OFFICE SHALL 22
ENSURE THAT INFORMATION GENERATED UNDER THIS SYSTEM IS 23
USEFUL FOR MANAGING AND IMPROVING THE EFFICIENCY AND 24
EFFECTIVENESS OF AGENCY OPERATIONS; 25
(11)] by January 15, list each lease-purchase agreement entered into by 26
an agency during the immediately preceding fiscal year for the acquisition of 27
equipment or other personal prope rty, together with a descripti on of the property 28
acquired and financial details, including the purchase price, the term for payments, the 29
amount of each payment, and the amount of interest or financing charges paid; 30
(11) [(12)] work with state agencie s to develop a standardized 31
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methodology to collect and store energy consumption and expense data; 1
(12) compile the strategic plans and mission statements submit ted 2
to the office under AS 37.07.050(a) a nd submit the strategic pl ans and mission 3
statements to the governor for the governor's consideration; 4
(13) compile the performance plans submitted to the office und er 5
AS 37.07.085 and submit the performance plans to the governor f or the 6
governor's consideration; 7
(14) maintain the strategic, performance, and financial plans and 8
mission statements submitted to the office under AS 37.07.050(a ) and 37.07.085 9
on a publicly available Internet website; 10
(15) compile the quarterly reports submitted to the office und er 11
AS 37.07.014(f) and submit the reports to the senate secretary and the chief clerk 12
of the house of representatives and notify the legislature that t h e r e p o r t s a r e 13
available. 14
* Sec. 12. AS 37.07.050 is repealed and reenacted to read: 15
Sec. 37.07.050. Strategic plan s; mission statements. ( a ) E a c h s t a t e e n t i t y 16
shall develop and submit to the office in an electronic format a comprehensive 17
strategic plan for the state entity and mission statements for the divisions of that state 18
entity consistent with the statutory authority of the state ent ity and the governor's 19
statewide priorities. The strategic plan must cover the following four fiscal years. Each 20
state entity shall update its str ategic plan and mission statem ents at the beginning of 21
each gubernatorial term and at least once every two years after the beginning of the 22
gubernatorial term, and shall submit the updated plan and missi on statements to the 23
office. A plan must, at a minimum, 24
(1) describe the strategic plan of the state entity and a miss ion 25
statement for each division within the state entity; a mission statement must concisely 26
state the fundamental public purpose of the division and its pr ograms and describe the 27
services provided and activities conducted by the division, including an explanation of 28
why and for whom those services and activities are provided or conducted; 29
(2) identify three to six goals for the state entity; 30
(3) identify specific, measurable, realistic, and timely objec tives 31
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related to each goal that the sta te entity will use to achieve its goals based on the 1
recommendations of the division directors of the state entity; 2
(4) describe any user group surveys or other methods of gather ing user 3
group opinions the state entity has used to identify ways to improve its program; 4
(5) describe the population served by the state entity and maj or trends 5
affecting that population, including relevant state or national trends; 6
(6) identify key factors external to and outside the control o f the state 7
entity that could significantly affect the achievement of the g oals and objectives 8
identified in the strategic plan; and 9
(7) identify legislation and re gulatory changes required to im plement 10
the proposed strategic plan. 11
(b) The office shall 12
(1) review each strategic plan and mission statement submitted to the 13
office under (a) of this section to determine whether each plan and mission statement 14
is consistent with the executive decisions and statewide priori ties of the governor, 15
appropriations by the legislature, and other provisions of law, whether each plan 16
reflects proper planning and ef ficient management methods, and whether the planning 17
is consistent with the strategic plans and mission statements issued by the governor; 18
(2) approve the strategic plan and mission statement if satisfied that the 19
plan and mission statement meet t he requirements under (1) of t his subsection; 20
otherwise, the office shall require the state entity to revise the strategic plan or mission 21
statement, in whole or in part; 22
(3) review each performance p lan submitted to the office under 23
AS 37.07.085 to determine whether the plan is consistent with t he statewide priorities, 24
strategic plans, and mission statements issued by the governor; 25
(4) approve the performance plan if satisfied that the plan me ets the 26
requirements under (3) of this s ubsection; otherwise, the offic e shall require the state 27
entity to revise the performance plan, in whole or in part. 28
(c) If a state entity fails to transmit the information as req uired under (a) of 29
this section by the specified date, the office may prepare the information. 30
(d) All strategic plans, missi on statements, and other documen ts forwarded to 31
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the office by a state entity under this section are public info rmation after the date they 1
are forwarded. 2
(e) In this section, "state entity" has the meaning given in AS 37.07.014(g). 3
* Sec. 13. AS 37.07 is amended by adding a new section to read: 4
Sec. 37.07.055. Boards and commission s: programs; operations an d 5
financial plans. (a) Each board and commission shall prepare and compile a fina ncial 6
plan and shall, on or before December 15 of each year, submit t he plan to the office, 7
the legislative finance division, the senate secretary, and the chief clerk of the house of 8
representatives and notify the legislature that the plan is available. The plan must 9
(1) include 10
(A) the budget requested to ca rry out the proposed plans of th e 11
board or commission in the succeeding fiscal year; 12
(B) the expenditures made during the preceding fiscal year; 13
(C) the expenditures authorized for the current fiscal year; 14
(D) the expenditures proposed for the succeeding fiscal year; 15
(E) an explanation of the ser vices to be provided in the 16
succeeding fiscal year, including the need for the services and the cost of the 17
services; 18
(F) the number of total positions for all persons employed or 19
under contract by the board or commission for personal services , including 20
those rendered for capital improvement projects; and 21
(G) other information requested by the office; 22
(2) include a report of receipts of the board or commission fo r 23
expenditures made during the preceding fiscal year, an estimate of receipts for 24
expenditures to be made during the current fiscal year, and an estimate of receipts for 25
expected expenditures for the succeeding fiscal year; and 26
(3) identify legislation require d to implement the proposed fi nancial 27
plans. 28
(b) Each board and commission shall prepare an annual plan for the operation 29
of each of its assigned programs except for programs that are e xempted from this 30
requirement by the office. The operations plan shall be prepare d in the form and 31
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content and be transmitted on the date prescribed by the office. The office shall 1
(1) review each operations plan to determine whether the plan is 2
consistent with the executive decisions of the governor, approp riations by the 3
legislature, and other provisions of law, whether the plan refl ects proper planning and 4
efficient management methods, a nd whether appropriations have b een made for the 5
legislatively established purpose and will not be exhausted bef ore the end of the fiscal 6
year; 7
(2) approve the operations plan if satisfied that the plan mee ts the 8
requirements under (1) of this s ubsection; otherwise, the office shall require the board 9
or commission to revise the operations plan, in whole or in part. 10
(c) The office shall assist boards and commissions in the prep aration of their 11
financial plan under (a) of this section. This assistance may i nclude technical 12
assistance, organization of materials, centrally collected acco unting, budgeting and 13
personnel information, standards and guidelines formulation, po pulation and other 14
required data, and any other assistance that will help the boar ds and commissions 15
produce the information necessary for efficient management and effective decision-16
making by the governor and the legislature. 17
(d) If a board or commission fails to transmit the plan as req uired under (a) or 18
(b) of this section by the specified date, the office may prepare the plan. 19
(e) The office shall compile and submit to the governor-elect in any year when 20
a new governor has been elected, not later than December 15, a summary of the 21
financial plan prepared by boards and commissions under (a) of this section. 22
(f) All goals and objectives, plans, programs, estimates, budg e t s , a n d o t h e r 23
documents forwarded to the office by a board or commission unde r this section are 24
public information after the date they are forwarded. 25
(g) Budget requests for boards and commissions and for those a gency 26
programs for the fiscal year following termination under AS 44. 66 shall be prepared 27
and submitted. The recommended appropriation request must include 28
(1) an identification of the obj ectives intended for the progr am and the 29
problem or need that the activities and operations of the board , commission, or 30
program is intended to address; 31
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(2) an assessment of the degr ee to which the original objectiv es of the 1
program have been achieved expressed in terms of performance, e ffects, or 2
accomplishments of the program and of the program or need the o bjective was 3
intended to address; 4
(3) a statement of the performance and accomplishments of the 5
program in each of the last four completed fiscal years and of the costs incurred in the 6
operation of the program; 7
(4) a statement of the number and types of persons affected by 8
operation of the program; 9
( 5 ) a s u m m a ry s t a t e me n t , f o r e a c h o f t h e la s t th r e e c o m p l e t e d fiscal 10
years, of the number of personnel employed in carrying out the program and a 11
summary of the cost of personnel employed under contract in car rying out the 12
program; 13
(6) an assessment of the effect of the program on the economy of the 14
state; 15
( 7 ) a n a s s e s s m e n t o f t h e d e g ree to which the overall policies of the 16
program, as expressed in regulations adopted by the agency, board, or commission and 17
its decisions, meet the objectives of the legislature in establishing the program; 18
(8) an analysis of the services and performance estimated to b e 19
achieved if the life of the agency, board, or commission were to be continued; 20
(9) a prioritized list of the activities the agency, board, or commission 21
would be expected to perform if the life of the agency, board, or commission were to 22
be continued, from the most important to the least important. 23
(h) Each board and commission shall, with participation of its employees, 24
develop methods for measuring results. A group or committee est ablished by a board 25
or commission to develop methods of measuring results shall inc lude a representative 26
of each of the bargaining units that represents employees of the board or commission. 27
(i) The office shall report quarterly to the governor and the legislature on the 28
operations of each board and commission, relating actual accomp lishments to those 29
planned and modifying, if necessary, the operations plan of any board or commission 30
for the balance of the fiscal year. 31
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* Sec. 14. AS 37.07.060(a) is amended to read: 1
(a) The governor shall identify three to five statewide priorities and shall 2
formulate the operating and capital budget, capital improvement s program, and fiscal 3
plan required to be recommende d to the legislature by AS 37.07. 020 after considering 4
the information provided under AS 37.07.040, 37.07.050, 37.07.055, and 37.07.085 5
[STATE AGENCY PROPOSED PROGRAM AND FINANCIAL PLANS 6
PREPARED IN ACCORDANCE WITH A S 37.07.050], and other programs a nd 7
alternatives that the governor considers appropriate. The plans must include the 8
governor's statewide priorities, strategic plans, mission statements, perf ormance 9
plans [RECOMMENDED MISSIONS AND RESULTS, RECOMMENDED 10
STRATEGIES TO IMPLEMENT THE MISSIONS AND RESULTS, 11
RECOMMENDED MEASURES FOR DETERMINING WHETHER THE 12
MISSIONS AND DESIRED RESULTS ARE ACHIEVED, INCLUDING AN 13
ASSESSMENT OF WHETHER PRIOR YEAR MISSIONS AND DESIRED 14
RESULTS HAVE BEEN ACHIEVED], recommended operating program for the 15
succeeding fiscal year, recommended capital improvements progra m for the 16
succeeding six fiscal years, recommended programs for the upgra ding of public 17
buildings and facilities prepared in accordance with AS 35.10.0 15, and recommended 18
revenue measures to support the programs. 19
* Sec. 15. AS 37.07.060 is amended by adding a new subsection to read: 20
(c) The governor shall present t he governor's strategic plans and mission 21
statements in a message to a joint session of the legislature a t the same time the 22
governor presents the governor's message under (b) of this section. The message under 23
this subsection must be accompanied by an explanatory report th at identifies the 24
governor's statewide priorities and summarizes the strategic pl ans and mission 25
statements. The governor may not update the strategic plans, mi ssion statements, or 26
explanatory report after the 30th legislative day following the convening of the 27
legislature in regular session. 28
* Sec. 16. AS 37.07.070 is amended to read: 29
Sec. 37.07.070. Legislative review. The legislature shall consider the 30
governor's statewide priorities, strategic plans, mission statements, fina ncial 31
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plans, performance plans, proposed comprehensive operating and capital 1
improvements programs, and fisc al plan if it is required under AS 37.07.020(b), 2
evaluate alternatives to the plans, make program selections amo ng the various 3
alternatives, and determine, subject to available revenue [REVENUES], the level of 4
funding required to support authorized state services. The pres iding officer of each 5
house may refer the fiscal plan to one or more committees. If t he fiscal plan is 6
referred, the first committee of referral shall hold at least o ne hearing on it. The 7
operating and capital budgets of each agency shall be separatel y reviewed. During 8
each regular session of the legislature, legislative review of the governor's 9
supplemental appropriation bills and the governor's budget amen dments are governed 10
by the following time limits: 11
(1) requests by the governor f or supplemental appropriations f or state 12
agency operating and capital budgets for the current fiscal yea r may be introduced by 13
the rules committee only through the 15th legislative day; 14
(2) requests by the governor for budget amendments to state ag ency 15
budgets for the budget fiscal year may be received and reviewed by the finance 16
committees only through the 30th legislative day. 17
* Sec. 17. AS 37.07.080(a) is amended to read: 18
(a) Except as limited by executive decisions of the governor, the strategic 19
plans and mission statements [AND DESIRED RESULTS] issued by the governor 20
[LEGISLATURE], appropriations by the legislature, and other pro visions of law, 21
[THE SEVERAL] state agencies have full authority for administer ing their program 22
service assignments and are responsible for their proper management. 23
* Sec. 18. AS 37.07.080(d) is amended to read: 24
(d) A state agency may not increase the salaries of its employ ees, employ 25
additional employees, or expend money or incur obligations except in accordance with 26
law and a properly approved strategic, performance, or operations plan , as 27
applicable. 28
* Sec. 19. AS 37.07 is amended by adding a new section to read: 29
Sec. 37.07.085. Performance plan and financial plan. ( a ) E a c h s ta te e n tity 30
shall annually establish a perform ance plan and a financial pla n that are consistent 31
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with the state entity strategic plan and submitted in a format and by a date prescribed 1
b y t h e o f f i c e . T h e o f f i c e s h a l l , o n o r b e f o r e D e c e m b e r 1 5 o f e ach year, submit the 2
performance plan and the financial plan to the legislative fina nce division, the senate 3
secretary, and the chief clerk of the house of representatives and notify the legislature 4
that the plans are available. 5
(b) The performance plan must 6
(1) describe the program structure of the state entity and any proposed 7
changes to its current program structure; 8
(2) identify each program of the state entity and, for each pr ogram, 9
provide 10
(A) the constitutional or statutory authority for the program; 11
and 12
(B) a single statement identifying 13
(i) the services provided and customers served by the 14
program; and 15
(ii) the benefit to the public or intended outcome of the 16
program; 17
(3) identify performance measures that clearly assess and capt ure the 18
progress made by the state entity in meeting the goals and obje ctives of its divisions 19
and core functions of the state entity stated in the strategic plan required under 20
AS 37.07.050(a); 21
(4) identify the goals and objectives defined in the state ent ity strategic 22
plan that correspond to each performance measure identified und e r ( 3 ) o f t h i s 23
subsection; 24
(5) identify results for each performance measure for the prio r four 25
fiscal years and, if historical d ata is not available, indicate whether the absence of 26
historical data is because a new performance measure is being used; and 27
(6) identify performance targets for each performance measure for the 28
succeeding fiscal year. 29
(c) The financial plan must include the following information: 30
(1) for the prior four fiscal years, identify revenue and expenditures for 31
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the state entity and for each program of the state entity by fiscal year; 1
(2) breakdowns of the revenue a nd expenditures identified in ( 1) of 2
this subsection that list amounts received by each different re venue source and 3
amounts expended on each type of expenditure; 4
(3) estimates of revenue and expenditures for the current and 5
succeeding fiscal year; 6
(4) the budget requested to carry out the proposed plans of th e state 7
entity in the succeeding fiscal year; 8
(5) the expenditures authorized for the current fiscal year; 9
(6) the expenditures proposed for the succeeding fiscal year; 10
(7) the number of total positions for all persons employed or under 11
contract by the state entity for personal services, including t hose rendered for capital 12
improvement projects; 13
(8) the cost of the services provided by each program identifi ed under 14
(b)(2) of this section; 15
(9) a report of receipts of the state entity for expenditures made during 16
the preceding fiscal year, an es timate of receipts for expendit ures to be made during 17
the current fiscal year, and an estimate of receipts for expect ed expenditures for the 18
succeeding fiscal year; 19
(10) identification of legisla tion required to implement the p roposed 20
financial plan; and 21
(11) other financial information requested by the office. 22
(d) The office shall assist state entities in the preparation of their performance 23
plans and financial plans require d by (a) - (c) of this section . This assistance may 24
include technical assistance, organization of materials, centra lly collected accounting, 25
budgeting and personnel informa tion, standards and guidelines f ormulation, 26
population and other required data , and any other assistance th at will help the state 27
entities produce the information n ecessary for efficient state entity management and 28
effective decision-making by the governor and the legislature. 29
(e) If any state entity fails to transmit the performance plan or financial plan 30
required by (a) - (c) of this section by the date prescribed by the office, the office may 31
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prepare the information. 1
(f) Once each calendar quarter, each state entity shall prepar e a performance 2
report updating the performance information required under (b)(3) - (5) of this section 3
and present its performance report to the office in a format prescribed by the office. 4
(g) All performance plans, financ ial plans, reports, and other documents 5
forwarded to the office by a state entity under this section ar e public information after 6
the date they are forwarded. The office shall publish the plans and reports required 7
under this section on a publicly available Internet website. 8
(h) Each state entity shall develop its performance plan with the participation 9
of its employees. A group or committee established by a state e ntity to develop a 10
performance plan shall include a representative of each of the bargaining units that 11
represent employees of the state entity. 12
(i) In this section, "state entity" has the meaning given in AS 37.07.014(g). 13
* Sec. 20. AS 37.07.120 is amended by adding new paragraphs to read: 14
(11) "goal" means a broad statement generally describing a des ired 15
outcome for a state entity or a program of the state entity; 16
(12) "objective" means a measurable target that describes the end 17
result that a service or program is expected to accomplish in a given amount of time; 18
(13) "performance measure" mean s a quantifiable and enduring 19
measure of an outcome, output, efficiency, or effectiveness; 20
(14) "strategic plan" means a strategic plan developed under 21
AS 37.07.050. 22
* Sec. 21. AS 44.66.050(a) is amended to read: 23
(a) Before the termination, dissolution, continuation, or rees tablishment of a 24
board or commission under AS 08.03.010 or AS 44.66.010, a commi ttee of reference 25
of each house, which shall be the standing committee of legisla tive jurisdiction as 26
provided in the Uniform Rules o f the Legislature, shall hold on e or more hearings to 27
receive testimony from the public, the commissioner of the depa rtment having 28
administrative responsibility for each named board or commissio n, and the members 29
of the board or commission involved. The hearings may be joint hearings. The 30
committee shall also consider the proposed budget of the board or commission 31
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prepared in accordance with AS 37.07.055(g) [AS 37.07.050(f)] and the performance 1
audit of the activities of the board or commission prepared by the legislative audit 2
division as prescribed in A S 24.20.271(1). The committee may co n s i d e r a n y o t h e r 3
report of the activitie s of the board or commission, including annual reports, 4
summaries prepared by the Legislative Affairs Agency, and any e valuation or general 5
report of the manner of conduct of activities of the board or c ommission prepared by 6
the office of the ombudsman. 7
* Sec. 22. AS 37.07.080(b) and 37.07.080(c) are repealed. 8
* Sec. 23. This Act takes effect July 1, 2025. 9