HLS 14RS-684 REENGROSSED
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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)(introductory paragraph), (2)(a), (3), and (4)(a) and (B), relative to the3
operating budget; to provide for definitions; to provide for information included in4
the executive budget; to provide for information included in the General5
Appropriation Bill; to provide for information included in the Ancillary6
Appropriation Act; to provide for changes to expenditure category allocations7
included in the General Appropriation Bill; to provide for approval of certain8
changes to expenditure category allocations included in the General Appropriation9
Bill; to provide for an effective date; and to provide for 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)(introductory paragraph), (2)(a), (3), and (4)(a) and (B) are hereby amended and13
reenacted to read as follows: 14
§2. Definitions15
* * *16
(23) "Key objective" means an objective which is designated as such by the17
commissioner of administration and is included in the General Appropriation Act or18
the Ancillary Appropriation Act executive budget or the executive budget supporting19
document.20 HLS 14RS-684 REENGROSSED
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(24) "Key performance indicator" means a performance indicator which is1
designated as such by the commissioner of administration and is included in the2
General Appropriation Act or the Ancillary Appropriation Act executive budget or3
the executive budget supporting document.4
* * *5
(46) "Supporting objective" means an objective which is designated as such6
by the commissioner of administration and is included in the executive budget7
supporting document and not included in the General Appropriation Act or Ancillary8
Appropriation Act executive budget.9
(47) "Supporting performance indicator" means a performance indicator10
which is designated as such by the commissioner of administration and is included11
in the executive budget supporting document and not included in the General12
Appropriation Act or Ancillary Appropriation Act executive budget.13
* * *14
§36. Contents and format of executive budget; supporting document15
A. The executive budget shall present a complete financial and16
programmatic plan for the ensuing year, and it shall be configured in a format so as17
to clearly present and highlight the functions and operations of state government and18
the financial requirements associated with those functions and operations. The19
executive budget shall be a performance-based budget and as such may include key20
objectives and key performance indicators. The commissioner of administration may21
designate key objectives and key performance indicators to be included in the22
executive budget. It Additionally, the executive budget shall include at a minimum23
the following:24
* * *25
§51. General Appropriation Bill; other appropriation bills26
* * *27
C.(1) The General Appropriation Bill shall reflect a performance-based28
budget, with specific appropriations for each agency and its programs to include key29 HLS 14RS-684 REENGROSSED
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objectives and key performance indicators therefor. The General Appropriation Bill1
may also contain provisions for specific rewards or penalties for certain agencies as2
provided in R.S. 39:87.4 and shall include the allocation of expenditures, itemized3
by category for each agency, as recommended for the ensuing fiscal year in the4
supporting document.5
(2) The commissioner of administration is authorized to make adjustments6
to the initial allocation of expenditures by category as provided for in the enacted7
General Appropriation Act without approval of the Joint Legislative Committee on8
the Budget, except when funds are transferred to the personnel services category9
from any other expenditure category or when the personnel services category is10
increased from the initial allocation. No amount shall be transferred to the personnel11
services expenditure category from any other expenditure category, nor shall there12
be an increase in the allocation for the personnel services expenditure category from13
the initial allocation without prior approval of the commissioner of administration14
and the Joint Legislative Committee on the Budget.15
* * *16
§87.2. Performance data; rewards and penalties; modifications to data17
* * *18
B. Key objectives, key performance indicators, and the performance19
standards for such key performance indicators which are may be contained in the20
General Appropriation Act, Ancillary Appropriation Act, or any other appropriation21
act through which an executive branch agency receives an appropriation, shall be22
included in the agency's appropriation executive budget. However, in each fiscal23
year any key objectives and key performance indicators recommended and contained24
in the executive budget supporting document for an agency which are not contained25
in an appropriation act the executive budget, and which are not designated as key26
performance objectives and key performance indicators by the commissioner of27
administration, shall be designated as supporting objectives and supporting28
performance indicators for that fiscal year. The availability of funds appropriated29 HLS 14RS-684 REENGROSSED
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shall be conditioned upon each agency's compliance with the provisions of R.S.1
39:87.3, relative to reporting of performance.2
C.(1) In order to ensure adoption of the most accurate expectations of agency3
performance within the state budget, performance data contained in the adopted4
budget executive budget or the executive budget supporting document may be5
adjusted at the beginning of the fiscal year.6
* * *7
§87.3. Performance progress reports8
A. Each agency receiving an appropriation in the General Appropriation Act9
or the Ancillary Appropriation Act shall produce a series of performance progress10
reports. The reports shall provide the legislature with information on the agency's11
actual progress toward achievement of that year's performance standards for12
performance indicators contained within the General Appropriation Act, the13
Ancillary Appropriation Act, and the executive budget or the executive budget14
supporting document. The Joint Legislative Committee on the Budget or a15
subcommittee thereof, hereinafter referred to in this Section as the "committee", shall16
prescribe the format and the method of transmission of the reports. The reports shall17
be submitted to the committee, the legislative fiscal officer, the legislative auditor,18
and the commissioner of administration, and shall contain data as provided in19
Paragraphs (1) through (4) of this Subsection, as well as any other data required by20
the committee relative to agency performance and accountability. The reporting21
schedule and specific components of each report are as follows:22
* * *23
(2) The Mid-year Performance Progress Report shall be submitted to the24
committee, the legislative fiscal officer, the legislative auditor, and the commissioner25
of administration on or before February eighth of each year, and it shall contain data26
for the period of July through December of the current fiscal year. It shall include:27
(a) For each performance indicator included in the executive budget or28
executive budget supporting document or the General Appropriation Act or the29 HLS 14RS-684 REENGROSSED
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Ancillary Appropriation Act, a comparison of the actual performance with the annual1
performance standard therefor contained in the executive budget supporting2
document or the General Appropriation Act or the Ancillary Appropriation Act,3
including a brief explanation of any variance from the standard which exceeds five4
percent.5
* * *6
(3) The Third Quarter Performance Progress Report shall be submitted to the7
committee, the legislative fiscal officer, the legislative auditor, and the commissioner8
of administration on or before May eighth of each year, and it shall contain data for9
the period of July through March of the current fiscal year. It shall include, for each10
key performance indicator designated as such and contained in the General11
Appropriation Act or the Ancillary Appropriation Act executive budget or the12
executive budget supporting document, a comparison of the actual performance with13
the annual performance standard therefor, including a brief explanation of any14
variance from the standard which exceeds five percent.15
(4) The Year-end Performance Progress Report shall be submitted to the16
committee, the legislative fiscal officer, the legislative auditor, and the commissioner17
of administration on or before September eighth of each year. It shall contain data18
from the immediately preceding fiscal year, and it shall cover the period of July19
through June of that fiscal year, to include:20
(a) For each performance indicator included in the executive budget or21
executive budget supporting document or the General Appropriation Act or the22
Ancillary Appropriation Act, a comparison of the actual performance with the annual23
performance standard therefor contained in the executive budget supporting24
document or the General Appropriation Act or the Ancillary Appropriation Act,25
including a brief explanation of any variance from the standard which exceeds five26
percent.27
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B. The performance progress reports shall be used by the committee in the1
assessment of each agency's progress in achieving the performance standards2
contained in the General Appropriation Act or the Ancillary Appropriation Act and3
the executive budget or executive budget supporting document. Each agency's4
performance progress reports, particularly the Year-end Performance Progress5
Report, shall be reviewed and considered by the committee in the development of6
any recommendation for or the granting of any reward or imposition of any penalty7
authorized under R.S. 39:87.4.8
* * *9
Section 2. This Act shall become effective on July 1, 2014; if vetoed by the governor10
and subsequently approved by the legislature, this Act shall become effective on July 1,11
2014, or on the day following such approval by the legislature, whichever is later.12
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. HLS 14RS-684 REENGROSSED
HB NO. 853
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are additions.
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.
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 the allocation of
expenditures, 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
Act 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
allocation for 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. HLS 14RS-684 REENGROSSED
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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)(intro. para.), (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.
House Floor Amendments to the engrossed bill.
1. Made technical amendments and amendments for clarification.