HLS 14RS-684 ENGROSSED
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Regular Session, 2014
HOUSE BILL NO. 853
BY REPRESENTATIVE HARRIS
BUDGETARY PROCEDURES: Provides for information included in the executive budget
and the General Appropriation Bill
AN ACT1
To amend and reenact R.S. 39:2(23), (24), (46), and (47), 36(A), 51(C), 87.2(B) and (C)(1),2
and 87.3(A), (2)(a), (3), and (4)(a) and (B), relative to the operating budget; to3
provide for definitions; to provide for information included in the executive budget;4
to provide for information included in the General Appropriation Bill; to provide for5
information included in the Ancillary Appropriation Act; to provide for changes to6
expenditure category allocations included in the General Appropriation Bill; to7
provide for approval of certain changes to expenditure category allocations included8
in the General Appropriation Bill; to provide for an effective date; and to provide for9
related matters.10
Be it enacted by the Legislature of Louisiana:11
Section 1. R.S. 39:2(23), (24), (46), and (47), 36(A), 51(C), 87.2(B) and (C)(1), and12
87.3(A), (2)(a), (3), and (4)(a) and (B) are hereby amended and reenacted to read as follows:13
§2. Definitions14
* * *15
(23) "Key objective" means an objective which is designated as such by the16
commissioner of administration and is included in the General Appropriation Act or17
the Ancillary Appropriation Act executive budget or the executive budget supporting18
document.19
(24) "Key performance indicator" means a performance indicator which is20
designated as such by the commissioner of administration and is included in the21 HLS 14RS-684 ENGROSSED
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General Appropriation Act or the Ancillary Appropriation Act executive budget or1
the executive budget supporting document.2
* * *3
(46) "Supporting objective" means an objective which is designated as such4
by the commissioner of administration and is included in the executive budget5
supporting document and not included in the General Appropriation Act or Ancillary6
Appropriation Act executive budget.7
(47) "Supporting performance indicator" means a performance indicator8
which is designated as such by the commissioner of administration and is included9
in the executive budget supporting document and not included in the General10
Appropriation Act or Ancillary Appropriation Act executive budget.11
* * *12
§36. Contents and format of executive budget; supporting document13
A. The executive budget shall present a complete financial and14
programmatic plan for the ensuing year, and it shall be configured in a format so as15
to clearly present and highlight the functions and operations of state government and16
the financial requirements associated with those functions and operations. The17
executive budget shall be a performance-based budget and as such may include key18
objectives and key performance indicators. The commissioner of administration may19
designate key objectives and key performance indicators to be included in the20
executive budget. It Additionally, the executive budget shall include at a minimum21
the following:22
* * *23
§51. General Appropriation Bill; other appropriation bills24
* * *25
C.(1) The General Appropriation Bill shall reflect a performance-based26
budget, with specific appropriations for each agency and its programs to include key27
objectives and key performance indicators therefor. The General Appropriation Bill28
may also contain provisions for specific rewards or penalties for certain agencies as29 HLS 14RS-684 ENGROSSED
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provided in R.S. 39:87.4 and shall include expenditure categories, itemized by1
category for each agency, as recommended for the ensuing fiscal year in the2
supporting document.3
(2) The commissioner of administration is authorized to make adjustments4
to the initial allocation of expenditures by category as provided for in the enacted5
General Appropriation Bill without approval of the Joint Legislative Committee on6
the Budget, except when funds are transferred to the personnel services category7
from any other expenditure category or when the personnel services category is8
increased from the initial allocation. No amount shall be transferred to the personnel9
services expenditure category from any other expenditure category nor shall there10
be an increase in the personnel services expenditure category from the initial11
allocation without prior approval of the commissioner of administration and the Joint12
Legislative Committee on the Budget.13
* * *14
§87.2. Performance data; rewards and penalties; modifications to data15
* * *16
B. Key objectives, key performance indicators, and the performance17
standards for such key performance indicators which are may be contained in the18
General Appropriation Act, Ancillary Appropriation Act, or any other appropriation19
act through which an executive branch agency receives an appropriation, shall be20
included in the agency's appropriation executive budget. However, in each fiscal21
year any key objectives and key performance indicators recommended and contained22
in the executive budget supporting document for an agency which are not contained23
in an appropriation act the executive budget, and which are not designated as key24
performance objectives and key performance indicators by the commissioner of25
administration, shall be designated as supporting objectives and supporting26
performance indicators for that fiscal year. The availability of funds appropriated27
shall be conditioned upon each agency's compliance with the provisions of R.S.28
39:87.3, relative to reporting of performance.29 HLS 14RS-684 ENGROSSED
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C.(1) In order to ensure adoption of the most accurate expectations of agency1
performance within the state budget, performance data contained in the adopted2
budget executive budget or the supporting document may be adjusted at the3
beginning of the fiscal year.4
* * *5
§87.3. Performance progress reports6
A. Each agency receiving an appropriation in the General Appropriation Act7
or the Ancillary Appropriation Act shall produce a series of performance progress8
reports. The reports shall provide the legislature with information on the agency's9
actual progress toward achievement of that year's performance standards for10
performance indicators contained within the General Appropriation Act, the11
Ancillary Appropriation Act, and the executive budget or the executive budget12
supporting document. The Joint Legislative Committee on the Budget or a13
subcommittee thereof, hereinafter referred to in this Section as the "committee", shall14
prescribe the format and the method of transmission of the reports. The reports shall15
be submitted to the committee, the legislative fiscal officer, the legislative auditor,16
and the commissioner of administration, and shall contain data as provided in17
Paragraphs (1) through (4) of this Subsection, as well as any other data required by18
the committee relative to agency performance and accountability. The reporting19
schedule and specific components of each report are as follows:20
* * *21
(2)22
* * *23
(a) For each performance indicator included in the executive budget or24
executive budget supporting document or the General Appropriation Act or the25
Ancillary Appropriation Act, a comparison of the actual performance with the annual26
performance standard therefor contained in the executive budget supporting27
document or the General Appropriation Act or the Ancillary Appropriation Act,28 HLS 14RS-684 ENGROSSED
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including a brief explanation of any variance from the standard which exceeds five1
percent.2
* * *3
(3) The Third Quarter Performance Progress Report shall be submitted to the4
committee, the legislative fiscal officer, the legislative auditor, and the commissioner5
of administration on or before May eighth of each year, and it shall contain data for6
the period of July through March of the current fiscal year. It shall include, for each7
key performance indicator designated as such and contained in the General8
Appropriation Act or the Ancillary Appropriation Act executive budget or the9
executive budget supporting document, a comparison of the actual performance with10
the annual performance standard therefor, including a brief explanation of any11
variance from the standard which exceeds five percent.12
(4)13
* * *14
(a) For each performance indicator included in the executive budget or15
executive budget supporting document or the General Appropriation Act or the16
Ancillary Appropriation Act, a comparison of the actual performance with the annual17
performance standard therefor contained in the executive budget supporting18
document or the General Appropriation Act or the Ancillary Appropriation Act,19
including a brief explanation of any variance from the standard which exceeds five20
percent.21
* * *22
B. The performance progress reports shall be used by the committee in the23
assessment of each agency's progress in achieving the performance standards24
contained in the General Appropriation Act or the Ancillary Appropriation Act and25
the executive budget or executive budget supporting document. Each agency's26
performance progress reports, particularly the Year-end Performance Progress27
Report, shall be reviewed and considered by the committee in the development of28 HLS 14RS-684 ENGROSSED
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any recommendation for or the granting of any reward or imposition of any penalty1
authorized under R.S. 39:87.4.2
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Section 2. This Act shall become effective on July 1, 2014; if vetoed by the governor4
and subsequently approved by the legislature, this Act shall become effective on July 1,5
2014, or on the day following such approval by the legislature, whichever is later.6
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Harris HB No. 853
Abstract: Requires the General Appropriation Bill to include expenditure categories,
itemized by category, for each agency and provides for changes from the initial
allocation of expenditures in each category. Further deletes the requirement that the
General Appropriation Bill or the Ancillary Appropriation Act include key objectives
and key performance indicators and requires them to be included in the executive
budget or the executive budget supporting document.
Present law provides for definitions of key and supporting performance information. Key
objectives and performance indicators are those contained in the General Appropriations Act
or Ancillary Appropriation Act and all other performance information contained in the
executive budget supporting document, but not in the appropriation acts as defined as
supporting objectives and performance indicators.
Proposed law changes the definition of key objective and performance indicator from those
that are found in the General Appropriations Act or Ancillary Appropriation Act to those
designated as such by the commissioner of administration and found in the executive budget
or the executive budget supporting document. Proposed law further changes the definition
of supporting objective and performance indicator from those included in the executive
budget supporting document but not in the appropriation acts to those designated as such by
the commissioner of administration and included in the executive budget supporting
document but not in the executive budget.
Present law provides for the executive budget as a complete financial and programmatic plan
for the ensuing year and requires the executive budget to be a performance-based budget.
Present law further requires certain minimum content to be included in the executive
budget.
Proposed law retains present law and further allows for the executive budget to include key
objectives and key performance indicators and for the commissioner of administration to
designate the key performance information to be included in the executive budget.
Present law relative to the General Appropriation Bill, requires that the bill reflect a
performance-based budget, with specific appropriations for each agency and its programs
to include key objectives and key performance indicators. Present law further allows for the
General Appropriation Bill to contain provisions for specific rewards or penalties for certain
agencies as provided in the Louisiana Government Performance and Accountability Act. HLS 14RS-684 ENGROSSED
HB NO. 853
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Proposed law deletes the requirement that the General Appropriation Bill include key
objectives and key performance indicators. Proposed law further deletes the provisions for
specific rewards or penalties for certain agencies as provided in the Louisiana Government
Performance and Accountability Act.
Proposed law requires the General Appropriation Bill to include expenditure categories,
itemized by category for each agency, as recommended for the ensuing fiscal year in the
supporting document.
Proposed law allows the commissioner of administration to make adjustments to the initial
allocation of expenditures by category as provided for in the enacted General Appropriation
Bill without approval of the Joint Legislative Committee on the Budget, except when funds
are transferred to the personnel services category from any other expenditure category or
when the personnel services category is increased from the initial allocation. Proposed law
further provides that no amount shall be transferred to the personnel services expenditure
category from any other expenditure category nor shall there be an increase in the personnel
services expenditure category from the initial allocation without prior approval of the
commissioner of administration and the Joint Legislative Committee on the Budget.
Present law requires that key objectives, key performance indicators, and the performance
standards for such key performance indicators which are contained in the General
Appropriation Act, Ancillary Appropriation Act, or any other appropriation act, be included
in the agency's appropriation. Present law further requires any key objectives and key
performance indicators recommended in the executive budget that are not contained in an
appropriation act to be designated as supporting objectives and supporting performance
indicators for that fiscal year.
Proposed law changes the documents to which the key objectives and performance indicators
may be contained from the appropriation acts to the executive budget. Proposed law further
provides that performance objectives recommended and contained in the executive budget
supporting document for an agency which are not contained in the executive budget be
designated as supporting objectives and supporting performance indicators by the
commissioner of administration.
Present law provides for performance progress reports on agencies receiving appropriations
in the General Appropriation Act or the Ancillary Appropriation Act. The reports are
required to provide the legislature with information on the performance indicators contained
in the General Appropriation Act, the Ancillary Appropriation Act and the executive budget
supporting document.
Proposed law deletes the General Appropriation Act and the Ancillary Appropriation Act
from the list of instruments to which the performance indicators are included in order to be
reported on.
Effective July 1, 2014.
(Amends R.S. 39:2(23), (24), (46), and (47), 36(A), 51(C), 87.2(B) and (C)(1), and 87.3(A),
(2)(a), (3), and (4)(a) and (B))
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Appropriations to the
original bill.
1. Allowed for an option to include the key performance information in the
executive budget or the executive budget supporting document.