House Bill 271

AN ACT TO REQUIRE EACH STATE AGENCY TO DESIGNATE THE RELATIVE NEED FOR EACH PROGRAM OR ITEM IN ITS BUDGET REQUEST TO THE JOINT LEGISLATIVE BUDGET COMMITTEE USING SPECIFIED CATEGORIES, AND TO RANK ITS PRIORITY OF EACH PROGRAM OR ITEM WITHIN EACH CATEGORY USING A NUMERICAL RANKING; TO REQUIRE EACH STATE AGENCY, AFTER THE JOINT LEGISLATIVE BUDGET COMMITTEE HAS PREPARED ITS OVERALL BUDGET AND SPECIFIED THE AMOUNT OF FUNDS RECOMMENDED FOR THE PROPOSED BUDGETS OF THE INDIVIDUAL STATE AGENCIES, TO SPECIFY THE PROGRAMS OR ITEMS THAT IT INTENDS TO IMPLEMENT USING THE TOTAL AMOUNT OF FUNDS RECOMMENDED FOR THE AGENCY'S PROPOSED BUDGET, TO DESIGNATE THE RELATIVE NEED FOR EACH OF THOSE PROGRAMS OR ITEMS USING THE SPECIFIED CATEGORIES, TO RANK THE AGENCY'S PRIORITY OF EACH PROGRAM OR ITEM WITHIN EACH CATEGORY USING A NUMERICAL RANKING, AND TO PROVIDE THAT INFORMATION TO THE LEGISLATURE IN SUCH FORM AS SPECIFIED BY THE LEGISLATIVE BUDGET OFFICE; TO AMEND SECTION 27-103-129, MISSISSIPPI CODE OF 1972, TO CONFORM TO THE PRECEDING PROVISIONS; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) (a) Each state agency shall designate the relative need for each program or item for which funds are requested in its budget request using the following categories:

(i) Immediate need programs or items: These programs or items are essential for the agency to carry out its basic mission and duties at an adequate level of performance. Funding of these programs or items is essential for the next fiscal year.

(ii) Secondary need programs or items: These programs or items would enhance the ability of the agency to carry out its basic mission and duties at a higher level of performance or in a more efficient or productive manner. Funding of these programs or items is desired, but is not essential, for the next fiscal year.

(iii) Long range need programs or items: These programs or items would expand the basic mission and duties of the agency by providing for services or functions that the agency is not currently performing, or by significantly expanding any existing services or functions of the agency. Funding of these programs or items is requested for the next fiscal year, but could be deferred to a later year.

(b) In addition to designating the relative need for the programs or items in the categories specified in paragraph (a), the state agency shall rank its priority of each program or item within each category using a numerical ranking from the highest to the lowest priority.

(2) After the Joint Legislative Budget Committee has prepared its overall budget and specified the amount of funds recommended for the proposed budgets of the individual state agencies, each state agency shall:

(a) Specify the programs or items that it intends to implement using the total amount of funds recommended for the agency's proposed budget;

(b) Designate the relative need for each of those programs or items using the categories specified in subsection (1)(a);

(c) Rank the agency's priority of each program or item within each category using a numerical ranking from the highest to the lowest priority; and

(d) Provide the information required by paragraphs (a) through (c) to the Legislature before the third Monday in January, in such form as specified by the Legislative Budget Office.

SECTION 2. Section 27-103-129, Mississippi Code of 1972, is amended as follows:

27-103-129. (1) To enable the Legislative Budget Office to prepare the overall budget, it shall have full and plenary power and authority to require all general-fund and special-fund agencies and the Mississippi Department of Transportation and the Division of State Aid Road Construction of the Mississippi Department of Transportation to file a budget request with such information and in such form and in such detail as it may deem necessary and advisable. The Legislative Budget Office shall have the further power and authority to reduce or eliminate any item or items of requested appropriation by any state agency in the Legislative Budget Office's recommended budget to the Legislature. However, where any item of requested appropriation shall be so reduced or eliminated, the head of the agency involved shall have the right to appear before the appropriate legislative committee to urge a revision of the budget to restore the item reduced or eliminated.

(2) The budget requests shall include a definition of the mission of the agency, a description of the duties and responsibilities of the agency, financial data relative to the various programs operated by the agency and performance measures associated with each program of the agency. The performance measures to be contained within the agency budget request shall be developed by cooperative efforts of the Legislative Budget Office, the Department of Finance and Administration and the agency itself and shall be approved jointly by the Legislative Budget Office and the Department of Finance and Administration prior to inclusion within the agency budget request.

(3) The budget requests shall also include in an addendum format a five-year strategic plan for the agency which shall include, but not be limited to, the following items of information: (a) a comprehensive mission statement, (b) performance effectiveness objectives for each program of the agency for each of the five (5) years covered by the plan, (c) a description of significant external factors which may affect the projected levels of performance, (d) a description of the agency's internal management system utilized to evaluate its performance achievements in relationship to the targeted performance levels, (e) an evaluation by the agency of the agency's performance achievements in relationship to the targeted performance levels for the two (2) preceding fiscal years for which accounting records have been finalized.

(4) The budget requests also shall include the agency's designation of the relative need for each program or item for which funds are requested in its budget request using the specified categories, and the agency's numerical ranking of the priority of each program or item within each category, as required by Section 1 of this act.

SECTION 3. This act shall take effect and be in force from and after July 1, 2002.