An Act Concerning Performance-informed Budget Review.
This legislation, once enacted, will transform how state budgets are prepared by requiring a systematic analysis of program effectiveness and cost-benefit ratios for state-funded programs. The bill aims to foster a results-oriented budgeting approach, which will allow state legislators to make informed decisions that affect funding for various services and programs. Agencies, particularly those involved in health and social services, will have a structured framework for assessing the performance of their initiatives, potentially leading to the elimination of underperforming programs and the expansion of successful ones.
House Bill 5484, titled 'An Act Concerning Performance-informed Budget Review,' intends to update the process used by state agencies for budget preparation and program evaluations. The bill emphasizes the importance of utilizing evidence-based approaches in fiscal planning to ensure that public funds are allocated effectively. It mandates agencies to compile comprehensive inventories of their programs, highlighting which are evidence-based and defining the outcomes they aim to achieve. This is intended to promote transparency and accountability in government spending decisions.
While HB 5484 is poised to enhance budgetary processes, it has faced some opposition regarding the feasibility and resource allocation for implementing the required program inventories. Critics may argue that the burden of compliance could strain smaller agencies that may lack the necessary infrastructure for extensive data collection and analysis. Nevertheless, the need for effective fiscal management is a fundamental justification that supports the bill, indicating that the long-term benefits of informed budgeting practices could outweigh initial challenges.