HB 0174

This bill establishes a pilot program for the development of a performance measurement system in the department of health and human services. The bill requires all agencies to develop performance measurement systems by December 21, 2010.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 New Chapter; State Performance Measurement System. Amend RSA by inserting after chapter 21-R the following new chapter:

I. “End outcome indicators” shall be designed to evaluate an agency’s progress toward the achievement of the agency’s objectives and the fulfillment of its mission statement. End outcome indicators normally focus on the consequences of program implementation and the effect of the program on those served. Because one program may have several different objectives, several different end outcome indicators may be necessary so that each objective is measured.

II. “Input indicators” measure the amount of resources applied, and, when related to output or outcome information, provide indicators of efficiency and productivity.

III. “Intermediate outcome indicators” are events or results that are expected to lead to the end outcomes, but are not themselves the end result. They may include service quality indicators that refer to citizen satisfaction levels.

IV. “Mission statement” means a succinct definition of purpose to clarify the intended results.

V. “Objectives” further define the mission with specific goal statements and lead naturally to defining outcomes and outcome measurers.

VI. “Output indicators” measure the quantity of work completed by the program. Outputs are expected to lead to desired outcomes, but by themselves do not describe anything about the outcomes.

21-S:2 Pilot Program to Establish Performance Measurement System. There is hereby established in the department of health and human services a pilot program for the development and adoption of a performance measurement system. The performance measures to be developed shall include both process and end outcome indicators. Process indicators shall include, but not be limited to input, intermediate outcome, and output indicators. The performance measurement system shall be developed at the departmental level and shall serve as a model for program level performance measurement. Notwithstanding RSA 21-S:5, the department of health and human services shall develop and adopt a performance measurement system as provided for in this chapter on or before July 1, 2010.

21-S:3 Interim and Final Report. The department of health and human services shall submit an interim and a final report on the development and adoption of a performance measurement system. The interim report shall be filed on or before December 31, 2009, and the final report shall be filed on or before July 1, 2010. The report shall specifically identify the performance measures developed pursuant to RSA 21-S:2 and shall report on those measures to the extent of the available data. Copies of both the interim and the final report shall be forwarded to the speaker of the house of representatives, the president of the senate, the governor, the chairperson of the house executive departments and administration committee, the house clerk, the senate clerk, and the state library.

21-S:4 Development of Performance Measurement System by Agencies. On or before July 1, 2009, each agency, as defined in RSA 21-G:5, III, shall provide to the department of health and human services a contact person within the agency who shall be responsible for providing the department of health and human services with information as to that agency’s readiness to adopt the performance measurement system provided for in RSA 21-S:5. Each such agency shall cooperate with the department of health and human services and shall provide the required information in a timely manner so that the information can be included with the reports submitted pursuant to RSA 21-S:3.

21-S:5 Adoption of Performance Measurement System by Agencies. Beginning December 31, 2010, every agency, as defined in RSA 21-G:5, III, shall adopt a performance measurement system for each of its programs that includes: a mission statement, the outcomes the program seeks to achieve, and the specific outcome indicators that the program intends to use to track performance.

The Department of Administrative Services states this bill, as amended by the House (Amendment #2009-0322h), may increase state expenditures by an indeterminable amount in FY 2009 and each year thereafter. This bill will have no fiscal impact on state, county and local revenues or county and local expenditures.

The Department of Administrative Services states this bill may require large agencies to designate one full-time position to administer the program and require part time for various personnel at smaller agencies. The Department estimates the cost to a single large agency for continued administrative oversight needed once the program is adopted to be as follows:

Salary And Benefits Costs:	FY 2010	FY 2011	FY 2012	FY 2013
Salary Total (LG 29)	$53,138	$55,497	$57,935	$60,567
Total Benefits	$23,907	$25,621	$27,459	$29,462
Other Costs Per Position	$28,500	$23,600	$23,600	$23,600
Total Costs	$105,545	$104,718	$108,994	$113,629

The overall cost which all agencies will be required to absorb is not determinable at this time.

The Department of Health and Human Services (DHHS) states this bill will require the Department to develop and adopt a performance measurement system and to produce interim and final reports on performance measures. This bill also requires all state agencies to adopt performance measurement systems for each program and requires the agencies to provide to the DHHS information regarding agency readiness to adopt the system for inclusion in DHHS reports. The DHHS states the Department is already actively engaged in the development of performance measures for the Department and anticipates the responsibilities added by this bill can be absorbed by existing staff.

This bill does not include an appropriation or establish positions.