HB 618-FN – AS INTRODUCED
2011 SESSION
05/09
HOUSE BILL 618-FN
AN ACT requiring state agencies to submit an efficiency level expenditure estimate to the commissioner of administrative services as part of the biennial budget process.
SPONSORS: Rep. Cebrowski, Hills 18; Rep. Major, Rock 8; Rep. K. Roberts, Ches 3; Rep. Belvin, Hills 6; Rep. Kurk, Hills 7; Sen. White, Dist 9; Sen. Boutin, Dist 16; Sen. Bradley, Dist 3
This bill requires state agencies to submit an efficiency level expenditure estimate to the commissioner of administrative services as part of the biennial budget process.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
11-0168
05/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eleven
AN ACT requiring state agencies to submit an efficiency level expenditure estimate to the commissioner of administrative services as part of the biennial budget process.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Requests for Appropriations and Statement of Objectives; Efficiency Level Expenditure Estimate. RSA 9:4 is repealed and reenacted to read as follows:
9:4 Requests for Appropriations and Statement of Objectives; Efficiency Level Expenditure Estimate.
I. On or before January 2 prior to each biennial legislative session, all departments of the state shall transmit to the commissioner of administrative services, on forms to be furnished by the commissioner, an estimate of their expenditure requirements for each fiscal year of the following biennium for administration, operation, and program services, including costs for workers’ compensation and unemployment compensation. The estimate of expenditure requirements shall also be posted on the state website within a week of being transmitted to the commissioner of administrative services.
II. The primary objective of this efficiency estimate of expenditure requirements is to provide increased quality and value of services to the citizenry of New Hampshire for the expenditures recommended. Additional objectives of this estimate of expenditure requirements are to encourage innovation, improve the efficiency of state government operations, embed a culture of measurable continuous improvement, reduce spending, promote inter-departmental cooperation, and provide the governor, department heads, and legislature with a fiscal management product that is decidedly useful.
(a) The efficiency level expenditure estimate shall include:
(1) An estimate for the first year of the next biennium. Within the meaning of this paragraph the governor shall provide a total expenditure target on or before November 15 to each department where that target is a percentage of the actual expenses of the first year of the current biennium. The targets will have as their basis for the first year of the next biennium, current law, the state’s financial condition, and revenue estimates for the state. The targets shall be available to the public. All proposed fees, taxes, and other revenue changes shall be identified and included in the revenue estimate as additions to the base estimates.
(2) An estimate for the second year of the next biennium. Within the meaning of this paragraph the governor shall provide a total expenditure target on or before November 15 for each department where that target is a percentage of the adjusted authorized budget for the second year of the current biennium. The adjusted authorized budget is the level of funding for the second year of the current operating budget including footnote adjustments, executive orders, chapter law adjustments, and additional appropriations from legislation outside of the operating budget. The targets will have as their basis, for the second year of the next biennium, current law, the state’s financial condition, and revenue estimates for the state. The targets shall be available to the public. All proposed fees and taxes and other revenue changes must be identified and included in the revenue estimate as additions to the base estimates.
(b) Revenue estimates used to formulate the targets under this section shall be provided by the commissioner of administrative services under RSA 9:5 and shall be available to the public.
(c) This efficiency level expenditure estimate shall incorporate recommendations for any necessary changes to state statutes and administrative rules which are barriers to enabling delivery of improved quality of services cost effectively.
(d) This efficiency level expenditure estimate shall specify priorities in each year and shall also indicate how performance in the execution of those priorities shall be measured.
III. In this section, “efficiency level expenditure” means:
(a) The cost of providing the services authorized and funded in the preceding fiscal years, considering and incorporating changes in the population and other factors outside the control of the department, consistent with the objectives in paragraph II. The governor shall provide parameters for the development of efficiency level expenditures which shall include, but are not be limited to, the following which are within the control of the department:
(1) Recognition of both increases and decreases in the cost of purchased goods or services due to actual or estimated price changes or fee changes from providers.
(2) Salary steps within grade.
(3) Identification of necessary operating costs associated with previously authorized capital improvement projects to be completed during the biennium.
(4) Identification of cost savings as a result of processes and management practices that may be improved, streamlined, and made more efficient.
(5) Discovery of savings as a result of modifying consumption and utilization practices.
(6) Reorganization initiatives based on structural changes, the expansion of position responsibilities, shifting or combining of position responsibilities, the elimination of levels, or the elimination of positions.
(7) Seeking best practices from other public or private entities and implementing them for both operational and fiscal benefit.
(8) Outsourcing of services to New Hampshire businesses previously executed within the department where the tasks may be more economically executed and with measurable improvement in quality.
(9) Pursuit of less costly alternative sources of goods or services purchased.
(10) Reduction or elimination of services rendered for which demand has been shown to be decreasing or need can be met in an alternative manner.
(11) Increased use of competitive bids particularly for goods or services not previously put out to bid.
(12) The renegotiation of rents, leases, or contracts, as permitted.
(13) Relocation of offices or facilities where the objectives of this estimate can be met.
(14) The closing of facilities where work is reasonably transferable to other locations.
(15) The sharing of facilities, resources, or materials with other departments.
(16) Expanded participation in group or bulk-buying consortia in conjunction with other departments or as a single agency, and potentially integrate counties, cities, and towns.
(17) The application of information technology and other technologies for which the net effect is reduced labor and material costs, reduced consumption costs, improved process execution, and improved quality of the deliverable.
(18) Consolidation of certain business functions with other departments in order to eliminate or minimize redundancies and duplicative business processes.
(19) Consolidation and/or elimination of boards, committees, commissions, or task forces.
(20) Investments in staff training consistent with the objectives of this efficiency level budget and exhibiting demonstrable and measureable payback during the next biennium.
(21) Targeted use of external and internal consultants to accelerate process improvements, savings, and improved outcomes.
(22) Investments in materials and/or equipment consistent with the objectives of this efficiency level budget and exhibiting demonstrable and measureable payback during the next biennium.
(b) Within the meaning of this section, the governor shall make the final determination as to whether a particular cost shall be deemed to be an efficiency level expenditure.
(c) The efficiency level expenditure shall not include new programs which are at the agency’s discretion.
(d) The efficiency level expenditure may include changes in the format, amount, and delivery of service of existing programs when the change is at the agency’s discretion or is the result of changes in federal or state law or regulation. The rationale, benefits, and implications of such changes, and any necessary statute or administrative rules changes must be explained.
IV. If any department fails to submit such estimates within the time specified, the commissioner of administrative services shall cause to be prepared such estimates for the department as in the commissioner’s opinion are reasonable and proper.
V. Upon completion, estimates submitted pursuant to this section shall be publicly available under RSA 91-A.
2 Effective Date. This act shall take effect July 1, 2012.
LBAO
11-0168
Revised 08/23/11
HB 618 FISCAL NOTE
AN ACT requiring state agencies to submit an efficiency level expenditure estimate to the commissioner of administrative services as part of the biennial budget process.
FISCAL IMPACT:
The Office of Legislative Budget Assistant is awaiting information from the Department of Administrative Services relative to the potential fiscal impact of this bill. The Department was initially contacted on 01/10/11 and most recently contacted on 06/12/11.