Senate Bill 0824

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    Florida Senate - 1998                                   SB 824

    By Senator Williams





    4-650-98

  1                      A bill to be entitled

  2         An act relating to state planning and

  3         budgeting; amending s. 216.011, F.S.; defining

  4         the terms "disincentive" and "incentive" for

  5         purposes of budgeting and state fiscal affairs;

  6         amending s. 216.0166, F.S.; revising guidelines

  7         and requirements for state agencies to submit

  8         performance-based budget requests; providing

  9         for inclusion of incentives and disincentives

10         in budget documentation; amending s. 216.0172,

11         F.S.; revising the schedule for submission of

12         performance-based program budget legislative

13         budget requests; amending s. 216.0235, F.S.;

14         requiring additional information to be included

15         in program budget instructions; amending s.

16         216.031, F.S.; revising information to be

17         contained in legislative budget requests;

18         amending s. 216.163, F.S.; prescribing

19         additional incentives and disincentives that

20         may be included in the Governor's recommended

21         budget; amending s. 186.021, 186.022, F.S.;

22         revising requirements for state agency

23         strategic plans; amending s. 121.051, F.S.;

24         conforming a cross-reference to changes made by

25         the act; repealing s. 186.031, F.S., relating

26         to the annual report by the Governor in his

27         capacity as chief planning and budgeting

28         officer of the state; providing an effective

29         date.

30

31  Be It Enacted by the Legislature of the State of Florida:

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  1         Section 1.  Subsection (1) of section 216.011, Florida

  2  Statutes, is amended to read:

  3         216.011  Definitions.--

  4         (1)  For the purpose of fiscal affairs of the state,

  5  appropriations acts, legislative budgets, and approved

  6  budgets, each of the following terms has the meaning

  7  indicated:

  8         (a)  "Annual salary rate" means the salary estimated to

  9  be paid or actually paid a position or positions on an

10  annualized basis.  In calculating salary rate, a vacant

11  position shall be calculated at the minimum of the pay grade

12  for that position.

13         (b)  "Appropriation" means a legal authorization to

14  make expenditures for specific purposes within the amounts

15  authorized in the appropriations act.

16         (c)  "Appropriations act" means the authorization of

17  the Legislature, based upon legislative budgets or based upon

18  legislative findings of the necessity for an authorization

19  when no legislative budget is filed, for the expenditure of

20  amounts of money by an agency, the judicial branch, and the

21  legislative branch for stated purposes in the performance of

22  the functions it is authorized by law to perform.

23         (d)  "Authorized position" means a position included in

24  an approved budget.  In counting the number of authorized

25  positions, part-time positions shall be converted to full-time

26  equivalents.

27         (e)  "Budget entity" means a unit or function at the

28  lowest level to which funds are specifically appropriated in

29  the appropriations act.

30         (f)  "Consultation" means to deliberate and seek advice

31  in an open and forthright manner with the full committee, a

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  1  subcommittee thereof, the chair, or the staff as deemed

  2  appropriate by the chair of the respective appropriations

  3  committee.

  4         (g)  "Continuing appropriation" means an appropriation

  5  automatically renewed without further legislative action,

  6  period after period, until altered or revoked by the

  7  Legislature.

  8         (h)  "Data processing services" means electronic data

  9  processing services provided by or to state agencies or the

10  judicial branch, which services include, but are not limited

11  to, systems design, software development, or time-sharing by

12  other governmental units or budget entities.

13         (i)  "Disbursement" means the payment of an

14  expenditure.

15         (j)  "Disincentive" means a mechanism, as described in

16  s. 216.163, for deterring agency failure to meet required

17  performance standards.

18         (k)(j)  "Established position" means an authorized

19  position which has been classified in accordance with a

20  classification and pay plan as provided by law.

21         (l)(k)  "Expenditure" means the creation or incurring

22  of a legal obligation to disburse money.

23         (m)(l)  "Expense" means the usual, ordinary, and

24  incidental expenditures by an agency or the judicial branch,

25  including, but not limited to, such items as contractual

26  services, commodities, and supplies of a consumable nature,

27  current obligations, and fixed charges, and excluding

28  expenditures classified as operating capital outlay.  Payments

29  to other funds or local, state, or federal agencies are

30  included in this budget classification of expenditures.

31

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  1         (n)(m)  "Fiscal year of the state" means a period of

  2  time beginning July 1 and ending on the following June 30,

  3  both dates inclusive.

  4         (o)(n)  "Fixed capital outlay" means real property

  5  (land, buildings, including appurtenances, fixtures and fixed

  6  equipment, structures, etc.), including additions,

  7  replacements, major repairs, and renovations to real property

  8  which materially extend its useful life or materially improve

  9  or change its functional use and including furniture and

10  equipment necessary to furnish and operate a new or improved

11  facility, when appropriated by the Legislature in the fixed

12  capital outlay appropriation category.

13         (p)(o)  "Full-time position" means a position

14  authorized for the entire normally established work period,

15  daily, weekly, monthly, or annually.

16         (q)(p)  "Grants and aids" means contributions to units

17  of governments or nonprofit organizations to be used for one

18  or more specified purposes, activities, or facilities.  Funds

19  appropriated under this category may be advanced.

20         (r)  "Incentive" means a mechanism, as described in s.

21  216.163, for motivating agencies to achieve required

22  performance standards.

23         (s)(q)  "Independent judgment" means an evaluation of

24  actual needs made separately and apart from the legislative

25  budget request of any other agency or of the judicial branch,

26  or any assessments by the Governor.  Such evaluation shall not

27  be limited by revenue estimates of the Revenue Estimating

28  Conference.

29         (t)(r)  "Judicial branch" means all officers,

30  employees, and offices of the Supreme Court, district courts

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  1  of appeal, circuit courts, county courts, and the Judicial

  2  Qualifications Commission.

  3         (u)(s)  "Legislative branch" means the various

  4  officers, committees, and other units of the legislative

  5  branch of state government.

  6         (v)(t)  "Legislative budget" means a request to the

  7  Legislature, filed pursuant to s. 216.023, or supplemental

  8  detailed requests filed with the Legislature, for the amounts

  9  of money such agency or branch believes will be needed in the

10  performance of the functions that it is authorized, or which

11  it is requesting authorization by law, to perform.

12         (w)(u)  "Lump-sum appropriation" means funds

13  appropriated to accomplish a specific activity or project

14  which must be transferred to one or more appropriation

15  categories for expenditure.

16         (x)(v)  "Operating capital outlay" means equipment,

17  fixtures, and other tangible personal property of a

18  nonconsumable and nonexpendable nature, the value or cost of

19  which is $500 or more and the normal expected life of which is

20  1 year or more, and hardback-covered bound books that are

21  circulated to students or the general public, the value or

22  cost of which is $25 or more, and hardback-covered bound

23  books, the value or cost of which is $100 or more.

24         (y)(w)  "Original approved budget" means the approved

25  plan of operation of an agency or of the judicial branch

26  consistent with the General Appropriations Act or special

27  appropriations acts.

28         (z)(x)  "Other personal services" means the

29  compensation for services rendered by a person who is not a

30  regular or full-time employee filling an established position.

31  This definition includes, but is not limited to, services of

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  1  temporary employees, student or graduate assistants, persons

  2  on fellowships, part-time academic employees, board members,

  3  and consultants and other services specifically budgeted by

  4  each agency, or by the judicial branch, in this category.

  5         1.  In distinguishing between payments to be made from

  6  salaries appropriations and other-personal-services

  7  appropriations, those persons filling established positions

  8  shall be paid from salaries appropriations and those persons

  9  performing services for a state agency or for the judicial

10  branch, but who are not filling established positions, shall

11  be paid from other-personal-services appropriations.

12         2.  It is further intended that those persons paid from

13  salaries appropriations shall be state officers or employees

14  and shall be eligible for membership in a state retirement

15  system and those paid from other-personal-services

16  appropriations shall not be eligible for such membership.

17         (aa)(y)  "Part-time position" means a position

18  authorized for less than the entire normally established work

19  period, daily, weekly, monthly, or annually.

20         (bb)(z)  "Pay plan" means a document which formally

21  describes the philosophy, methods, procedures, and salary

22  schedule for compensating employees for work performed.

23         (cc)(aa)  "Perquisites" means those things, or the use

24  thereof, or services of a kind which confer on the officers or

25  employees receiving same some benefit that is in the nature of

26  additional compensation, or which reduces to some extent the

27  normal personal expenses of the officer or employee receiving

28  the same, and shall include, but not be limited to, such

29  things as quarters, subsistence, utilities, laundry services,

30  medical service, use of state-owned vehicles for other than

31

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  1  state purposes, servants paid by the state, and other similar

  2  things.

  3         (dd)(bb)  "Position" means the work, consisting of

  4  duties and responsibilities, assigned to be performed by an

  5  officer or employee.

  6         (ee)(cc)  "Position number" means the identification

  7  number assigned to an established position.

  8         (ff)(dd)  "Program component" means an aggregation of

  9  generally related objectives which, because of their special

10  character, related workload, and interrelated output, can

11  logically be considered an entity for purposes of

12  organization, management, accounting, reporting, and

13  budgeting.

14         (gg)(ee)  "Proviso" means language that qualifies or

15  restricts a specific appropriation and which can be logically

16  and directly related to the specific appropriation.

17         (hh)(ff)  "Reclassification" means changing an

18  established position in one class in a series to the next

19  higher or lower class in the same series or to a class in a

20  different series which is the result of a natural change in

21  the duties and responsibilities of the position.

22         (ii)(gg)  "Revolving fund" means a cash fund maintained

23  within or outside of the State Treasury and established from

24  an appropriation, to be used by an agency or the judicial

25  branch in making authorized expenditures.

26         (jj)(hh)  "Salary" means the cash compensation for

27  services rendered for a specific period of time.

28         (kk)(ii)  "Salary schedule" means an official document

29  which contains a complete list of classes and their assigned

30  salary ranges.

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  1         (ll)(jj)  "Special category" means amounts appropriated

  2  for a specific need or classification of expenditures.

  3         (mm)(kk)  "State agency" or "agency" means any

  4  official, officer, commission, board, authority, council,

  5  committee, or department of the executive branch of state

  6  government.  For purposes of this chapter and chapter 215,

  7  "state agency" or "agency" includes state attorneys, public

  8  defenders, the Capital Collateral Representative, and the

  9  Justice Administrative Commission.

10         (nn)(ll)  "State revenue sharing" means statutory or

11  constitutional distributions to local units of government.

12         (oo)(mm)  "Title of position," or "class of positions"

13  means the official name assigned to a position or class of

14  positions.

15         (pp)(nn)  "Grants and Aids to Local Governments and

16  Nonprofit Organizations-Fixed Capital Outlay" means that

17  appropriation category which includes:

18         1.  Grants to local units of governments and nonprofit

19  organizations for the acquisition of real property (land,

20  buildings, including appurtenances, fixtures and fixed

21  equipment, structures, etc.); additions, replacements, major

22  repairs, and renovations to real property which materially

23  extend its useful life or materially improve or change its

24  functional use; and operating capital outlay necessary to

25  furnish and operate a new or improved facility; and

26         2.  Grants to local units of government for their

27  respective infrastructure and growth management needs related

28  to local government comprehensive plans.

29

30  Funds appropriated under this category may be advanced in part

31  or in whole.

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  1         (qq)(oo)  "Baseline data" means indicators of a state

  2  agency's current performance level, pursuant to guidelines

  3  established by the Executive Office of the Governor, in

  4  consultation with legislative appropriations and appropriate

  5  substantive committees.

  6         (rr)(pp)  "Outcome" means an indicator of the actual

  7  impact or public benefit of a program.

  8         (ss)(qq)  "Output" means the actual service or product

  9  delivered by a state agency.

10         (tt)(rr)  "Performance-based program budget" means a

11  budget that incorporates approved programs and performance

12  measures.

13         (uu)(ss)  "Performance measure" means a quantitative or

14  qualitative indicator used to assess state agency performance.

15         (vv)(tt)  "Program" means a set of activities

16  undertaken in accordance with a plan of action organized to

17  realize identifiable goals and objectives based on legislative

18  authorization.

19         (ww)(uu)  "Standard" means the level of performance of

20  an outcome or output.

21         Section 2.  Section 216.0166, Florida Statutes, is

22  amended to read:

23         216.0166  Submission by state agencies of

24  performance-based budget requests, programs, and performance

25  measures.--

26         (1)  Prior to November 1 October 15 of the fiscal year

27  prior to in which a state agency is required to submit a

28  performance-based program budget request pursuant to s.

29  216.0172, such state agency shall identify and submit to the

30  Executive Office of the Governor a list of proposed state

31  agency programs and performance measures. The agency may also

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  1  provide a list of statutes or rules affecting its performance

  2  which may be addressed as incentives or disincentives for the

  3  performance-based program budget.  The list should be

  4  accompanied by recommended legislation to implement the

  5  requested changes for potential incentives. Such

  6  identification shall be conducted after discussion with

  7  legislative appropriations and appropriate substantive

  8  committees and the Office of Program Policy Analysis and

  9  Government Accountability and shall be approved by the

10  Executive Office of the Governor. State agencies selected by

11  the Governor pursuant to s. 216.0172(1) shall submit such

12  lists prior to May 15, 1994. The Executive Office of the

13  Governor, after discussion with legislative appropriations and

14  appropriate substantive committees and the Office of Program

15  Policy Analysis and Government Accountability, shall review

16  the list of programs and performance measures, may make any

17  changes or require the agency to resubmit the list, and shall

18  make a final recommendation of programs and associated

19  performance measures to the Legislature approve or disapprove

20  a list within 60 30 days after of receipt, to be used in the

21  preparation and submission of the state agency's final

22  legislative budget request pursuant to s. 216.023(5). After

23  discussion with legislative appropriations and substantive

24  committees, the Executive Office of the Governor may also

25  recommend legislation to implement any or all of the proposed

26  incentives.  Agencies continuing under performance-based

27  program budgeting may provide as part of their legislative

28  budget request a list of statutes or rules affecting their

29  program performance which may be addressed as incentives or

30  disincentives for the performance-based program budget.  The

31

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  1  Executive Office of the Governor shall provide the approved

  2  program list to the Legislature.

  3         (2)  The following documentation shall accompany the

  4  list of proposed programs and measures submitted by the state

  5  agency:

  6         (a)  The constitutional or statutory direction and

  7  authority for each program.

  8         (b)  Identification of the customers, clients, and

  9  users of each program.

10         (c)  The purpose of each program or the benefit derived

11  by the customers, clients, and users of the program.

12         (d)  Direct and indirect costs of each program.

13         (e)  Information on fees collected and the adequacy of

14  those fees in funding each program for which the fees are

15  collected.

16         (e)(f)  An assessment of whether each program is

17  conducive to performance-based program budgeting.

18         (f)(g)  An assessment of the time needed to develop

19  meaningful performance measures for each program.

20         (g)(f)  Any proposed legislation necessary to implement

21  the incentives or disincentives requested pursuant to this

22  subsection.

23         (h)(g)  A comparison of the agency's existing budget

24  structure to the proposed budget structure.

25         (i)(h)  A description of the use of performance

26  measures in agency decisionmaking, agency actions to allocate

27  funds and manage programs, and the agency strategic plan.

28         (3)  The Executive Office of the Governor, after

29  discussion with legislative appropriations committees,

30  appropriate substantive committees, and the Legislative

31  Auditing Committee, shall jointly develop instructions for the

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  1  development of performance measures for each program on the

  2  list approved pursuant to this section and shall submit such

  3  instructions to the state agencies prior to December 1 of the

  4  fiscal year preceding the year in which a state agency is

  5  required to submit a performance-based program budget request

  6  pursuant to s. 216.0172.

  7         (4)  Prior to June 1, each state agency is required to

  8  submit to the executive Office of the Governor performance

  9  measures for each program on the approved list required

10  pursuant to subsection (1). State agencies shall also identify

11         (j)(i)  The outputs produced by each approved program,

12  the outcomes resulting from each approved program, and

13  baseline data associated with each performance measure.

14  Performance measures shall be reviewed, after discussion with

15  legislative appropriations and appropriate substantive

16  committees and the Office of Program Policy Analysis and

17  Government Accountability, revised as necessary, and approved

18  or disapproved by the Executive Office of the Governor within

19  30 days of receipt. For those state agencies selected by the

20  Governor pursuant to s. 216.0172(1), performance measures,

21  outputs, outcomes, and baseline data shall be submitted prior

22  to July 1, 1994.

23         (3)(5)  Notwithstanding the programs, performance

24  measures, and standards requested in each state agency's final

25  legislative budget request or the Governor's budget

26  recommendations, the Legislature shall have final approval of

27  all programs, performance measures, and standards through the

28  General Appropriations Act or legislation implementing the

29  General Appropriations Act. It is the intent that the

30  Legislature approve programs and performance measures along

31  with any associated incentives or disincentives and

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  1  implementing legislation before agency development of a

  2  performance-based program budget legislative budget request.

  3  Unless notice is provided by the Legislature before completion

  4  of the official annual legislative session preceding the

  5  agency's required submittal of a performance-based program

  6  budget legislative budget request pursuant to s. 216.0172, the

  7  agency shall use the programs and performance measures

  8  approved by the Executive Office of the Governor and any

  9  incentives or disincentives that do not require amendments to

10  the statutes and have been approved by the Executive Office of

11  the Governor when submitting its legislative budget request.

12         (4)(6)  Each state agency in consultation with its

13  inspector general shall submit documentation to the Executive

14  Office of the Governor regarding the validity, reliability,

15  and appropriateness of each performance measure. In addition,

16  each state agency shall indicate how the performance measure

17  relates to its strategic plan and how it is used in management

18  decisionmaking and other agency processes.

19         (5)(7)  Annually, no later than 45 days after the

20  General Appropriations Act becomes law, state agencies may

21  submit to the Executive Office of the Governor any adjustments

22  to their performance standards based on the amounts

23  appropriated for each program by the Legislature. When such

24  adjustment is made, all performance standards, including any

25  adjustments made, shall be submitted to and reviewed and

26  revised as necessary by the Executive Office of the Governor,

27  and, upon approval, submitted to the Legislature pursuant to

28  the review and approval process provided in s. 216.177. The

29  Executive Office of the Governor shall maintain the official

30  record of adjustments to the performance standards as part of

31  the agency's approved operating budget.

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  1         (6)(8)  A state agency operating under a

  2  performance-based program budget pursuant to s. 216.0172 shall

  3  not have the authority to amend or establish programs or

  4  performance measures. However, a state agency may propose a

  5  revision to the list of approved programs or performance

  6  measures used in its legislative budget request. Such revision

  7  is subject to review and approval by the Executive Office of

  8  the Governor and the Legislature after consultation with the

  9  Office of Program Policy Analysis and Government

10  Accountability and shall be  submitted to the Executive Office

11  of the Governor prior to April 15 of the year in which the

12  state agency intends to incorporate these changes into its

13  legislative budget request. The Executive Office of the

14  Governor shall have 30 days to act on the proposed revisions.

15  Revised performance measures, standards, and baseline data

16  shall be submitted along with the preliminary legislative

17  budget request.

18         Section 3.  Section 216.0172, Florida Statutes, is

19  amended to read:

20         216.0172  Schedule for submission of performance-based

21  program budgets.--In order to implement the provisions of

22  chapter 94-249, Laws of Florida, state agencies shall submit

23  performance-based program budget legislative budget requests

24  budgets for programs approved pursuant to s. 216.0166 to the

25  Executive Office of the Governor and the Legislature based on

26  the following schedule:

27         (1)  By September 1, 1994, for the 1995-1996 fiscal

28  year, two state agencies selected by the Governor, subject to

29  the review and approval process pursuant to s. 216.177.

30         (2)  By September 1, 1995, for the 1996-1997 fiscal

31  year:

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  1         (a)  Department of Education (Community Colleges).

  2         (b)  Department of Health and Rehabilitative Services

  3  (Alcohol, Drug Abuse, Mental Health).

  4         (c)  Department of Labor and Employment Security.

  5         (d)  Department of Law Enforcement.

  6         (e)  Department of Management Services.

  7         (f)  Division of Retirement.

  8         (3)  By September 1, 1996, for the 1997-1998 fiscal

  9  year, by the following:

10         (a)  Agency for Health Care Administration.

11         (b)  Department of Education (State University System).

12         (c)  Game and Fresh Water Fish Commission.

13         (d)  Department of Highway Safety and Motor Vehicles.

14         (e)  Department of Revenue.

15         (f)  Department of State.

16         (g)  Department of Transportation.

17         (4)  By September 1, 1997, for the 1998-1999 fiscal

18  year, by the following:

19         (a)  Department of Banking and Finance.

20         (b)  Department of Corrections.

21         (c)  Department of Education (Public Schools).

22         (d)  Department of Environmental Protection.

23         (e)  Executive Office of the Governor.

24         (f)  Department of Children and Family Health and

25  Rehabilitative Services.

26         (g)  Department of Legal Affairs.

27         (h)  Department of Juvenile Justice.

28         (5)  By September 1, 1998, for the 1999-2000 fiscal

29  year, by the following:

30         (a)  Department of Agriculture and Consumer Services.

31         (b)  Department of Commerce.

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  1         (b)(c)  Department of Elderly Affairs.

  2         (c)  Department of Education.

  3         (d)  Department of the Lottery.

  4         (e)  Department of Military Affairs.

  5         (6)  By September 1, 1999, for the 2000-2001 fiscal

  6  year, by the following:

  7         (a)  Division of Administrative Hearings.

  8         (b)  Department of Business and Professional

  9  Regulation.

10         (c)  Parole and Probation Commission.

11         (d)  Public Service Commission.

12         (e)  Department of Health.

13         (f)  Department of the Lottery.

14         (g)  Department of Military Affairs.

15         (7)  By September 1, 2000, for the 2001-2002 fiscal

16  year, by the following:

17         (a)  Department of Citrus.

18         (b)  Department of Community Affairs.

19         (c)  Department of Insurance.

20         (d)  Department of Veterans' Affairs.

21         (e)  State attorneys, public defenders, the Justice

22  Administrative Commission, and capital collateral counsel.

23         (8)  The schedule set forth in subsections (2) through

24  (7) may be amended by the Legislative Auditing Committee, the

25  General Appropriations Act, or upon the recommendation of the

26  Governor, which recommendation is subject to the review and

27  approval process provided in s. 216.177.

28         (9)  Beginning in fiscal year 1998-1999, all agencies

29  must complete implementation of performance-based program

30  budgeting, excluding administrative service functions, within

31  3 fiscal years after the initial fiscal year provided by the

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  1  schedule set forth in this section, except as specifically

  2  authorized by the Legislature. For any agency that fails to

  3  complete performance-based program budgeting within this time,

  4  the Executive Office of the Governor shall develop programs

  5  and performance measures for the agency's programs after

  6  discussion with legislative appropriations and substantive

  7  committees and the Office of Program Policy Analysis and

  8  Government Accountability.

  9         Section 4.  Subsection (3) of section 216.0235, Florida

10  Statutes, is amended to read:

11         216.0235  Performance-based legislative program budget

12  requests to be furnished by agencies.--

13         (3)  The Executive Office of the Governor and the

14  legislative appropriations committees shall jointly develop

15  legislative program budget instructions from which each agency

16  that has an approved program and the judicial branch, pursuant

17  to ss. 216.0166 and 216.043, shall prepare its legislative

18  program budget request. The program budget instructions must

19  be consistent with s. 216.141 and must be transmitted to each

20  agency and to the judicial branch no later than June 15 of

21  each year. The budget instructions must also include

22  instructions for agencies in submitting performance measures

23  and standards as required by s. 216.0166. In the event that

24  agreement cannot be reached between the Executive Office of

25  the Governor and the legislative appropriations committees

26  regarding legislative program budget instructions, the issue

27  shall be resolved by the Governor, the President of the

28  Senate, and the Speaker of the House of Representatives.

29         Section 5.  Subsection (11) of section 216.031, Florida

30  Statutes, is amended to read:

31

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  1         216.031  Budgets for operational expenditures.--A

  2  legislative budget request, reflecting the independent

  3  judgment of the head of the state agency, and of the Chief

  4  Justice of the Supreme Court, with respect to the needs of the

  5  agency and the judicial branch for operational expenditures

  6  during the next fiscal year, shall be submitted by each head

  7  of a state agency and by the Chief Justice of the Supreme

  8  Court and shall contain the following:

  9         (11)  The baseline data, outcome measures outcomes,

10  output performance measures, and standards for current

11  programs, including justification for those programs in the

12  format approved pursuant to s. 216.0166.

13

14  Either chair of a legislative appropriations committee, or the

15  Executive Office of the Governor for state agencies, may

16  require the agency or the Chief Justice to address major

17  issues separate from those outlined in s. 216.023, this

18  section, and s. 216.043 for inclusion in the requests of the

19  agency or of the judicial branch.  The issues shall be

20  submitted to the agency no later than July 30 of each year and

21  shall be displayed in its requests as provided in the budget

22  instructions.  The Executive Office of the Governor may

23  request an agency, or the chair of the appropriations

24  committees of the Senate or House of Representatives may

25  request any agency or the judicial branch, to submit no later

26  than September 15 of each year a budget plan with respect to

27  targets established by the Governor or either chair. The

28  target budget shall require each entity to establish an order

29  of priorities for its budget issues and may include requests

30  for multiple options for the budget issues.  The target budget

31  may also require each entity to submit a program budget or a

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  1  performance-based budget in the format prescribed by the

  2  Executive Office of the Governor or either chair; provided,

  3  however, the target budget format shall be compatible with the

  4  planning and budgeting system requirements set out in s.

  5  216.141.  Such a request shall not influence the agencies' or

  6  judicial branch's independent judgment in making legislative

  7  budget requests, as required by law.

  8         Section 6.  Subsection (4) of section 216.163, Florida

  9  Statutes, is amended to read:

10         216.163  Governor's recommended budget; form and

11  content; declaration of collective bargaining impasses.--

12         (4)  The Executive Office of the Governor shall review

13  the evaluation report required by s. 216.031(10) and the

14  findings of the Office of Program Policy Analysis and

15  Government Accountability, to the extent they are available,

16  request any reports or additional analyses as necessary, and

17  submit a recommendation pursuant to paragraph (2)(g) which may

18  include a recommendation regarding incentives or disincentives

19  for agency performance. Incentives or disincentives may apply

20  to all or part of a state agency.

21         (a)  Incentives may include, but are not limited to:

22         1.  Additional flexibility in budget management, such

23  as, but not limited to, the use of lump sums or special

24  categories, consolidation of budget entities and program

25  components, consolidation of appropriation categories, and

26  increased agency transfer authority between appropriation

27  categories or budget entities.

28         2.  Additional flexibility in salary rate and position

29  management.

30         3.  Retention of up to 50 percent of all unexpended and

31  unencumbered balances of appropriations, excluding special

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  1  categories and grants and aids, which may be used for

  2  nonrecurring purposes including, but not limited to, lump-sum

  3  bonuses, employee training, or productivity enhancements,

  4  including technology and other improvements.

  5         4.  Additional funds to be used for, but not limited

  6  to, lump-sum bonuses, employee training, or productivity

  7  enhancements, including technology and other improvements.

  8         5.  Additional funds to be released to an agency

  9  quarterly or incrementally contingent upon the accomplishment

10  of units of output or outcome specified in the General

11  Appropriations Act.

12         (b)  Disincentives may include, but are not limited to:

13         1.  Mandatory quarterly reports to the Executive Office

14  of the Governor and the Legislature on the agency's progress

15  in meeting performance standards.

16         2.  Mandatory quarterly appearances before the

17  Legislature, the Governor, or the Governor and Cabinet to

18  report on the agency's progress in meeting performance

19  standards.

20         3.  Elimination or restructuring of the program, which

21  may include, but not be limited to transfer of the program or

22  outsourcing all or a portion of the program.

23         4.  Reduction of total positions for a program.

24         5.  Restriction on or reduction of the spending

25  authority provided in s. 216.292(2)(c).

26         6.  Reduction of managerial salaries.

27         7.  Reduction of funds to an agency quarterly or

28  incrementally contingent upon the accomplishment of or failure

29  to accomplish units of output or outcome specified in the

30  General Appropriations Act.

31

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  1         Section 7.  Subsection (2) of section 186.022, Florida

  2  Statutes, is amended to read:

  3         186.022  State agency strategic plans; preparation,

  4  form, and review.--

  5         (2)  Each agency strategic plan must be in a form and

  6  manner prescribed in written instructions prepared by the

  7  Executive Office of the Governor after consultation with the

  8  President of the Senate and the Speaker of the House of

  9  Representatives.  Each agency strategic plan must identify the

10  specific legislative authority necessary to implement the

11  provisions of the plan.  An agency may only implement those

12  portions of its strategic plan that are consistent with

13  existing statutory or constitutional authority and for which

14  funding, if needed, is available consistent with the

15  provisions of chapter 216.  An agency's budget request

16  prescribed in s. 216.023(1) shall identify the financial

17  resources necessary to further the provisions of the agency's

18  strategic plan. State agency program performance measures, as

19  defined in s. 216.011, and requested by the agency pursuant to

20  s. 216.0166(1) and 216.0172 must be consistent with the

21  objectives in the draft agency strategic plan and shall

22  represent 1-year implementation efforts necessary to meet the

23  5-year agency strategic plan objectives.  State agency

24  strategic plans shall be amended by the agency, as necessary,

25  to ensure consistency with the legislative actions prior to

26  the effective date of the agency strategic plan.

27         Section 8.  Subsection (5) of section 186.021, Florida

28  Statutes, is repealed.

29         Section 9.  Subsection (8) of section 121.051, Florida

30  Statutes, is amended to read:

31         121.051  Participation in the system.--

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  1         (8)  DIVISION OF REHABILITATION AND LIQUIDATION

  2  EMPLOYEES MEMBERSHIP.--Effective July 1, 1994, the regular

  3  receivership employees of the Division of Rehabilitation and

  4  Liquidation who are assigned to established positions and are

  5  subject to established rules and regulations regarding

  6  discipline, pay, classification, and time and attendance are

  7  hereby declared to be state employees within the meaning of

  8  this chapter and shall be compulsory members in compliance

  9  with this chapter, the provisions of s. 216.011(1)(z)2. s.

10  216.011(1)(x)2., notwithstanding. Employment performed before

11  July 1, 1994, as such a receivership employee may be claimed

12  as creditable retirement service upon payment by the employee

13  or employer of contributions required in s. 121.081(1), as

14  applicable for the period claimed.

15         Section 10.  Section 186.031, Florida Statutes, is

16  repealed.

17         Section 11.  This act shall take effect upon becoming a

18  law.

19

20            *****************************************

21                          SENATE SUMMARY

22    Revises various provisions relating to state budgeting,
      generally providing for greater use of performance
23    measures and performance incentives and disincentives in
      performance-based budgets and budget requests.  Provides
24    for agencies and the Executive Office of the Governor to
      request legislation to implement incentives and
25    disincentives.  Revises the schedule for agencies to
      submit performance-based program budgets. Repeals the
26    requirement that the Governor present an annual report in
      his capacity as chief planning and budget officer of the
27    state.

28

29

30

31

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