BILL ANALYSIS �
SB 14
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SENATE THIRD READING
SB 14 (Wolk, DeSaulnier, and Huff)
As Amended August 25, 2011
Majority vote
SENATE VOTE :Vote not relevant
BUDGET 25-0
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|Ayes:|Blumenfield, Nielsen, | | |
| |Alejo, Allen, Bill | | |
| |Berryhill, Buchanan, | | |
| |Butler, Cedillo, Chesbro, | | |
| |Dickinson, Feuer, Gordon, | | |
| |Harkey, Huffman, | | |
| |Jeffries, Jones, Logue, | | |
| |Mansoor, Mitchell, | | |
| |Monning, Morrell, | | |
| |Nestande, Swanson, | | |
| |Valadao, Wagner | | |
| | | | |
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SUMMARY : Creates a statewide performance-based budget process.
Specifically, this bill :
1)Requires the establishment of performance-based budgeting for all
state departments and agencies. Statewide the implementation
of performance-based budgeting would occur concurrently with
the new start of the new budget process that will be developed
as part of the Financial Information System for California
(Fi$Cal) accounting system project. As part of the Governor's
budget submission, each department would be required to
provide the following information in the budget:
a) The mission and goals of each agency;
b) The activities and programs of the agency;
c) Performance measures that reflect the desired outcomes
of the agency and a targeted performance level of the
following year;
d) Prior-year performance data; and,
SB 14
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e) A description of the impacts to current beneficiaries of
a program proposed for modification or elimination.
2)Requires the Department of Finance (DOF) to develop an
implementation plan, by August 1, 2012, that articulates how
the state will achieve full statewide implementation of
performance-based budgeting.
3)Implements the new performance-based budgeting requirements
subject to appropriation in the budget, but requires the DOF
to begin performance-based budgeting in the 2013-14 budget
process with programs and departments identified in the
implementation plan.
EXISTING LAW : Article IV, Section 12 of California's
Constitution requires the Governor to submit a balanced budget
to the Legislature by January 10th of each year. Government
Code Section 13308 requires the submission of the budget trailer
bill language by February 1st of each year.
FISCAL EFFECT : Small absorbable costs for DOF to provide the
plan for implementation. Additional costs will depend upon the
extent to which DOF believes it can leverage existing resources
and the Fi$Cal project to develop performance-based budgeting,
and would be subject to appropriation in the budget.
COMMENTS : The bill establishes a statewide performance-based
budgeting process that would be rolled out over a five-year
period. Subject to appropriation in the budget, some
departments and programs would begin to be performance-based in
2013-14, with additional implementation detailed in a timeline
outlined by the DOF in a report to the Legislature. The DOF
plan will detail the path to full implementation across all
state departments by 2018-19, when the Fi$Cal accounting system
is implemented. Fi$Cal will integrate the state's accounting,
budgeting, cash management, and procurement operations into one
single system. It is anticipated that this new system will
result in changes to the mechanics and process that the
administration uses to develop the budget. By correlating the
implementation of performance-based budgeting with the
implementation of the new Fi$Cal budget component, the costs for
implementing the new performance-based budget process will be
reduced.
SB 14
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Analysis Prepared by : Christian Griffith / BUDGET / (916)
319-2099
FN: 0002145