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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| 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, J. TAYLOR, TOEPEL, VULAKOVICH, WATSON AND BROOKS, FEBRUARY 16, 2011 |
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| REFERRED TO COMMITTEE ON STATE GOVERNMENT, FEBRUARY 16, 2011 |
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| AN ACT |
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1 | Providing for accountability in Commonwealth agency program |
2 | performance. |
3 | The General Assembly of the Commonwealth of Pennsylvania |
4 | hereby enacts as follows: |
5 | Section 1. Short title. |
6 | This act shall be known and may be cited as the Performance, |
7 | Accountability and Results Act. |
8 | Section 2. Legislative intent and purpose. |
9 | (a) Declaration.--The General Assembly finds and declares |
10 | that accountability in program performance is vital to effective |
11 | and efficient delivery of governmental services and to maintain |
12 | public confidence and trust in government. To maximize |
13 | accountability, a system of strategic planning, performance- |
14 | based budgeting and performance audits should be implemented to |
15 | measure the effectiveness and efficiency of governmental |
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1 | services. It is of paramount public importance that this system |
2 | encourages full and candid participation throughout State |
3 | government. This system will generate information necessary for |
4 | the public to be informed fully and for the General Assembly to |
5 | make informed and meaningful decisions about the allocation of |
6 | resources in meeting vital needs. |
7 | (b) Purpose.--The purposes of this act are to do all of the |
8 | following: |
9 | (1) Begin to provide a new approach to the planning, |
10 | budgeting and accountability processes within State |
11 | government rather than an addition to existing procedures. |
12 | (2) Improve the confidence of Pennsylvania citizens in |
13 | the capability of the government, by systematically holding |
14 | Commonwealth agencies accountable for achieving program |
15 | results. |
16 | (3) Improve Commonwealth program effectiveness and |
17 | public accountability by promoting a new focus on results, |
18 | service quality and customer satisfaction. |
19 | (4) Help agency managers improve service delivery, by |
20 | requiring that they plan for meeting program objectives and |
21 | by providing them with information about program results and |
22 | service quality. |
23 | (5) Improve legislative decision making by providing |
24 | more objective information on achieving statutory objectives, |
25 | and on the relative effectiveness and efficiency of |
26 | Commonwealth programs and spending. |
27 | (6) Improve internal management of the Commonwealth |
28 | government. |
29 | Section 3. Definitions. |
30 | The following words and phrases when used in this act shall |
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1 | have the meanings given to them in this section unless the |
2 | context clearly indicates otherwise: |
3 | "Administrative Code of 1929." The act of April 9, 1929 |
4 | (P.L.177, No.175), known as The Administrative Code of 1929. |
5 | "Agency." A Commonwealth agency. |
6 | "Commonwealth agency." A department of the executive branch. |
7 | "Goal." A statement of result that is intended to be |
8 | achieved and which may be defined as either: |
9 | (1) A general goal, which is a general statement of |
10 | result that does not include a measurable target level of |
11 | performance or other objective indicator of success. |
12 | (2) A performance measure, which is a specific statement |
13 | of result that includes a measurable target level of |
14 | performance or other objective indicator of success. |
15 | "Independent Fiscal Office." The office established and |
16 | provided for in 71 Pa.C.S. Ch. 41 (relating to Independent |
17 | Fiscal Office). |
18 | "Outcome measure." An assessment of the results of a program |
19 | activity compared to its intended purpose, often used as a |
20 | measure of effectiveness. |
21 | "Output measure." The tabulation, calculation or recording |
22 | of activity or effort which can be expressed in a quantitative |
23 | or qualitative manner, often used as a measure of the direct |
24 | result of activity. |
25 | "Performance indicator." A particular value or |
26 | characteristic used to quantitatively and effectively measure |
27 | program activity and performance. A performance indicator shall |
28 | be structured as an outcome measure or output measure. |
29 | "Program activity." A specific activity or project as listed |
30 | in the annual budget of the Commonwealth. |
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1 | "Program evaluation." An assessment, through objective |
2 | measurement and systemic analysis, of the manner and extent to |
3 | which programs achieve intended goals. |
4 | "Secretary." The Secretary of the Budget of the |
5 | Commonwealth. |
6 | "Performance target." The measurable level of activity, |
7 | output or outcome. When a performance indicator showing what |
8 | will be measured is combined with a numerical target showing how |
9 | much will be achieved, a measurable goal has been defined. |
10 | "Strategic plan." A plan developed under section 4. |
11 | Section 4. Strategic planning. |
12 | (a) Submittal.--In compliance with section 11 and not later |
13 | than September 30, 2012, the head of each agency shall submit to |
14 | the secretary and to the General Assembly a strategic plan for |
15 | program activities, delivering the services and achieving the |
16 | objectives required under the laws of this Commonwealth and any |
17 | Federal program in which the Commonwealth participates. The plan |
18 | shall include all of the following: |
19 | (1) The statutory and constitutional objectives of the |
20 | agency. |
21 | (2) A comprehensive mission statement covering the major |
22 | functions and operations of the agency. |
23 | (3) General goals and performance measures, including |
24 | outcome-related goals and measures, for the major functions |
25 | and operations of the agency. |
26 | (4) A hierarchy of outcome, output and program activity |
27 | goals and measures whereby the goals at the mid-level and |
28 | lower levels of the agency shall include the performance |
29 | indicators that define the outputs that support the agency |
30 | outcomes. This hierarchy shall clearly link each goal to the |
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1 | next lower level goals in the hierarchy that support its |
2 | accomplishment. |
3 | (5) Descriptions of the strategies for how the goals are |
4 | to be achieved, including all of the following: |
5 | (i) The operational processes, skills and |
6 | technology, and the human, capital, information and other |
7 | resources required to meet those goals. |
8 | (ii) Any new initiative or program activity. |
9 | (iii) Any new approaches or methods to operational |
10 | processes that will be adopted or revised. |
11 | (iv) The means of avoiding unnecessary costs and |
12 | expenditures. |
13 | (v) The means of addressing any change in objectives |
14 | or services since the previous strategic plan. |
15 | (6) A description of any program evaluations used in |
16 | assessing the effectiveness of the programs in achieving |
17 | their goals, with a schedule for future program evaluations. |
18 | (b) Coverage.--The strategic plan shall cover a period of |
19 | not less than four years forward from the fiscal year in which |
20 | it is submitted and shall be updated and revised at least every |
21 | three years. Each agency shall submit a strategic plan that has |
22 | been updated or revised to the Governor and the General |
23 | Assembly. The submission shall occur no later than the date by |
24 | which the Governor submits copies of original agency budget |
25 | requests, all subsequent revised agency budget requests and a |
26 | State budget, program and financial plan under section 613 of |
27 | the Administrative Code of 1929. |
28 | (c) Consistency.--The performance-based budget required |
29 | under section 5 shall be consistent with the agency's strategic |
30 | plan. A performance plan may not be submitted for a fiscal year |
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1 | not covered by a current strategic plan under this section. |
2 | (d) Governmental functions.--The functions and activities of |
3 | this section shall be considered to be inherently governmental |
4 | functions. The drafting of strategic plans under this act shall |
5 | be performed only by Commonwealth employees, while assistance in |
6 | guiding the development of the plan may be provided by an |
7 | outside source. |
8 | Section 5. Performance-based budgeting. |
9 | (a) Submission.--In compliance with section 11 and beginning |
10 | with submissions in calendar year 2013 for fiscal year |
11 | 2013-2014, in addition to the budget implementation procedures |
12 | provided for in Article VI the Administrative Code of 1929, the |
13 | secretary shall submit to the General Assembly and the |
14 | Legislative Budget and Finance Committee agency performance |
15 | budgets as required under this section. The submission of agency |
16 | performance budgets shall occur no later than the date by which |
17 | the Governor submits copies of original agency budget requests, |
18 | all subsequent revised agency budget requests and a State |
19 | budget, program and financial plan under section 613 of the |
20 | Administrative Code of 1929. Nothing in this section shall be |
21 | construed as limiting or reducing the budget implementation |
22 | procedures set forth under Article VI of the Administrative Code |
23 | of 1929. |
24 | (b) Agency performance budgets.--In carrying out the |
25 | provisions of this section, the secretary shall require each |
26 | agency to prepare an agency performance budget covering each |
27 | program activity set forth in the budget of the agency. |
28 | (c) Structure and contents.--Each agency performance budget |
29 | required to be submitted under this section shall include all of |
30 | the following: |
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1 | (1) A hierarchy of outcome, output and activity goals |
2 | and measures whereby the goals at the mid-level and lower |
3 | levels of the agency define the activities and their outputs |
4 | that support the intended agency outcomes. The hierarchy |
5 | shall clearly link each goal to the next lower level goals in |
6 | the hierarchy that support its accomplishment. |
7 | (2) Planned outcomes expressed as either general goals |
8 | or outcome measures and planned outputs expressed as output |
9 | measures, which shall include a performance indicator for |
10 | each general goal and both a performance indicator and a |
11 | performance target for each outcome or output measure. |
12 | (3) The measures of activity, level of effort, output |
13 | and outcome generated or supported by each program activity. |
14 | (4) A per-unit form of each activity, level of effort |
15 | and the resulting output for each program activity. |
16 | (5) The cost of achieving the level of effort quantity |
17 | target for each program activity which is sufficient to |
18 | support the planned levels of output and outcome. |
19 | (6) The actual outputs and outcomes achieved for each |
20 | program activity in each agency and their actual costs, |
21 | showing past performance for the most recent year for which |
22 | results are available and planned performance for each |
23 | subsequent year. |
24 | (7) A recommended funding level for each program |
25 | activity within each agency necessary to achieve the planned |
26 | level of program output. |
27 | (8) Additional recommendations regarding the funding, |
28 | the performance, the feasibility and the sustainability of a |
29 | program activity that is not meeting the desired outputs or |
30 | outcomes. |
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1 | (9) Summary descriptions of the strategies for how the |
2 | goals and output and outcome measures are to be achieved, |
3 | including all of the following: |
4 | (i) The major operational processes to be used, the |
5 | key skills and technology to be deployed and the human, |
6 | capital, information and other resources that will be |
7 | required to meet those goals. |
8 | (ii) Any new initiatives that will be undertaken or |
9 | activities that will be engaged in. |
10 | (iii) Any new approaches or methods that will be |
11 | adopted or revised. |
12 | (10) A description of the means to be used to verify and |
13 | validate the reported results for each measured value. |
14 | (d) Governmental functions.--The functions and activities of |
15 | this section shall be considered to be inherently governmental |
16 | functions. The drafting of performance budgets under this |
17 | section shall be performed only by Commonwealth employees, while |
18 | assistance in guiding the development of the performance budget |
19 | may be provided by an outside source with expertise in |
20 | performance-based budgeting. |
21 | Section 6. Independent Fiscal Office. |
22 | (a) Commonwealth performance budget.-- |
23 | (1) The Independent Fiscal Office shall receive agency |
24 | performance budgets and performance reports submitted from |
25 | the head of each agency under sections 5(a) and 7(a). |
26 | (2) The Independent Fiscal Office shall utilize the |
27 | agency performance budgets and reports and the information |
28 | contained therein, in addition to State appropriation |
29 | information, to craft a Commonwealth performance budget that |
30 | includes each agency required to submit agency performance |
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1 | budgets under section 5(a). |
2 | (3) The Commonwealth performance budget required under |
3 | this subsection shall be submitted to the Governor and to the |
4 | General Assembly by June 1, 2014, and each June 1 thereafter. |
5 | (4) To aid in its preparation of a performance budget, |
6 | the Independent Fiscal Office shall: |
7 | (i) Establish a performance-based budget division |
8 | staffed with persons knowledgeable and proficient in |
9 | performance-based budgeting, budget analysis and budget |
10 | preparation. |
11 | (ii) Gather testimony and other data from officers |
12 | and employees of each agency as deemed necessary to carry |
13 | out the provisions of this act. |
14 | (b) Performance-based budgeting.--The Commonwealth |
15 | performance budget shall include all of the following: |
16 | (1) A hierarchy of outcome, output and program activity |
17 | goals and measures whereby the goals at the mid-level and |
18 | lower levels of each agency defines the activities and their |
19 | outputs that support the intended agency outcomes. The |
20 | hierarchy shall clearly link each goal to the next lower |
21 | level goals in the hierarchy that support its accomplishment. |
22 | (2) Planned outcomes expressed as either general goals |
23 | or performance measures and planned outputs expressed as |
24 | performance measures, which shall include a performance |
25 | indicator for each general goal, and both a performance |
26 | indicator and a performance target for each performance |
27 | measure. |
28 | (3) The measures of activity, level of effort, output |
29 | and outcome generated or supported by each program activity. |
30 | (4) A per-unit form of each activity, level of effort |
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1 | and the resulting output for each program activity. |
2 | (5) The cost of achieving the level of effort quantity |
3 | target for each program activity which is sufficient to |
4 | support the planned levels of output and outcome. |
5 | (6) The actual outputs and outcomes achieved for each |
6 | program activity in each agency and their actual costs, |
7 | showing past performance for the most recent year for which |
8 | results are available and planned performance for each |
9 | subsequent year. |
10 | (7) An independent recommended funding level for each |
11 | program activity within each agency necessary to achieve each |
12 | performance target. |
13 | (8) Additional independent recommendations regarding the |
14 | funding, performance, feasibility and sustainability of a |
15 | program activity that is not meeting the desired outputs or |
16 | outcomes. |
17 | (c) Auditor General assistance.--The Independent Fiscal |
18 | Office may request the Auditor General to conduct a performance |
19 | audit of any agency program or agency performance report. The |
20 | Independent Fiscal Office shall notify the Governor and the |
21 | General Assembly within five days of the request. |
22 | (d) Report.--Not before January 1, 2015, and not later than |
23 | March 1, 2015, the Independent Fiscal Office shall transmit a |
24 | report to the Governor and to the General Assembly on the status |
25 | of the implementation of this act. The report shall do all of |
26 | the following: |
27 | (1) Assess the feasibility and advisability of including |
28 | agency and Commonwealth performance budgets as part of the |
29 | annual budget submitted under section 613 of the |
30 | Administrative Code of 1929. |
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1 | (2) Describe any difficulties encountered by the |
2 | agencies or the Independent Fiscal Office in preparing |
3 | performance budgets. |
4 | (3) Recommend whether any additional legislation |
5 | requiring performance budgets should be proposed and the |
6 | general provisions of any legislation. |
7 | (4) Set forth any recommended changes in the other |
8 | requirements of this act. |
9 | (e) Specification.--After receipt of the report under |
10 | subsection (d), the General Assembly may specify that |
11 | performance budgets be submitted as part of the annual budget |
12 | submitted by the Governor under section 613 of the |
13 | Administrative Code of 1929. |
14 | Section 7. Annual performance reports. |
15 | (a) Submittal.--By March 1, 2015, and each March 1 |
16 | thereafter, the head of each agency shall prepare and submit to |
17 | the Governor and the Independent Fiscal Office a report on |
18 | program performance for the previous fiscal year. |
19 | (b) Goals and measures.--Each program performance report |
20 | shall set forth the goals and measures established in the agency |
21 | performance budget under section (5)(c), along with the actual |
22 | program performance achieved compared with the goals and |
23 | performance measures expressed in the plan for that fiscal year. |
24 | (c) Contents.--The report submitted in calendar year 2015 |
25 | shall include planned results for the current fiscal year, the |
26 | report submitted in calendar year 2016 shall include planned |
27 | results for the current and actual results for the preceding |
28 | fiscal year and the report submitted in calendar year 2017 and |
29 | all subsequent reports shall include actual results for the two |
30 | preceding fiscal years and planned results for the current |
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1 | fiscal year. |
2 | (d) Requirements.--Each report shall do all of the |
3 | following: |
4 | (1) Review the success of achieving the performance |
5 | measures of the fiscal year. |
6 | (2) Evaluate the performance plan for the current fiscal |
7 | year relative to the performance achieved toward the |
8 | performance measures in the fiscal year covered by the |
9 | report. |
10 | (3) Explain and describe if a performance measure has |
11 | not been met. The explanation and description shall include |
12 | one of the following: |
13 | (i) why the measure was not met; |
14 | (ii) (A) the plans and schedules for achieving the |
15 | established performance measure; or |
16 | (B) if the performance measure is impractical or |
17 | infeasible, reasons why that is the case and what |
18 | action is recommended. |
19 | (4) Include the summary findings of the program |
20 | evaluations completed during the fiscal year covered by the |
21 | report. |
22 | (e) Financial statement.--An agency head may include all |
23 | program performance information required annually under this |
24 | section in an annual financial statement required under section |
25 | 613 of the Administrative Code of 1929, if the statement is |
26 | submitted to the General Assembly no later than the date by |
27 | which the Governor submits copies of original agency budget |
28 | requests and all subsequent revised agency budget requests and a |
29 | State budget and program and financial plan under section 613 of |
30 | the Administrative Code of 1929 for the applicable fiscal year. |
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1 | (f) Governmental functions.--The functions and activities of |
2 | this section shall be considered to be inherently governmental |
3 | functions. The drafting of program performance reports under |
4 | this section shall be performed only by Commonwealth employees. |
5 | Section 8. Auditor General. |
6 | (a) Authority.--In addition to the powers and duties |
7 | prescribed to the Auditor General under Article IV of the act of |
8 | April 9, 1929 (P.L.343, No.176), known as The Fiscal Code, the |
9 | Auditor General is vested with the authority to conduct |
10 | performance audits of any agency required to submit a |
11 | performance report under section 7. |
12 | (b) Request.--The Auditor General shall receive and consider |
13 | any request from the Independent Fiscal Office under section |
14 | 6(c). |
15 | (c) Performance audit.--If the Auditor General declines to |
16 | conduct a performance audit in response to a request made under |
17 | section 6(c), the Auditor General shall notify the Governor and |
18 | the General Assembly of the decision within 30 days of the |
19 | request. |
20 | (d) Report.--The Auditor General shall report the results of |
21 | any performance audit to the Governor and the General Assembly |
22 | upon completion of the performance audit. |
23 | Section 9. Legislative oversight and legislation. |
24 | Nothing in this act shall be construed as limiting the |
25 | ability of the General Assembly to establish, amend, suspend or |
26 | annul a goal or performance indicator. Any such action shall |
27 | have the effect of superseding the goal or performance indicator |
28 | in the plan submitted under section 5(b). |
29 | Section 10. Training. |
30 | The Office of Administration shall, in consultation with the |
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1 | secretary and the Auditor General, develop a strategic planning |
2 | and performance measurement training component for its |
3 | management training program and provide managers with an |
4 | orientation on the development and use of strategic planning and |
5 | program performance measurement. |
6 | Section 11. Pilot projects. |
7 | There shall be a pilot project in strategic planning under |
8 | section 4, and performance-based budgeting under section 5, |
9 | conducted by at least two agencies for fiscal year 2011-2012 and |
10 | by at least three agencies for fiscal year 2012-2013. |
11 | Section 20. Effective date. |
12 | This act shall take effect as follows: |
13 | (1) Sections 6(a)(2), (3) and (4)(ii) and (c) and 8 |
14 | shall take effect January 1, 2014. |
15 | (2) The remainder of this act shall take effect |
16 | immediately. |
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