As was discussed in the previous edition of OPLA~Notes, the Legislature has embarked on a new strategic planning and performance budgeting process designed to improve the direction and operations of state agencies. The law calls for full implementation of performance budgeting by the FY 2000-2001 biennium. Because the legislation provides for policy committees to play a crucial role in reviewing and shaping strategic plans of agencies, members of the Office of Policy and Legal Analysis and the Office of Fiscal and Program Review conducted an orientation session for all legislators on February 13, 1997. This orientation reviewed the general principles of strategic planning, the legal requirements and timeline for implementation, the role of policy committees, and the characteristics of a performance budget.
The performance budgeting law required agencies to file their strategic plans and pilot performance budgets by February 1, 1997. To date, 28 executive agencies and 19 non-executive agencies have prepared their final strategic plans. The policy committees are reviewing agency strategic plans this session.
LD 430: "An Act to Clarify the Provisions that Implement Performance Budgeting in State Government"
Legislation was filed this session to amend the performance budgeting law. LD 430, "An Act to Clarify the Provisions that Implement Performance Budgeting in State Government," was enacted by the House and Senate on May 6, 1997 and signed by the Governor on May 15, 1997. This legislation makes technical amendments to PL 1996, chapter 705, the law that provides the framework for Maine's performance budgeting process.
The following provides an overview of how LD 430 amends Maine's performance budgeting process:
Section 2 of the bill exempts public instrumentalities from the requirements of performance budgeting. These public instrumentalities include the Maine Sardine Council, the Lobster Promotion Council, the Potato Board, the Blueberry Commission, the Dairy Promotion Board and Dairy Nutrition Council.
Section 4 of the bill adds a member of the Judicial Department to the Commission on Performance Budgeting. It also extends the term of initial commission members by six months. Current members of the commission were appointed in August 1995 and their terms are extended to January 1998.
Section 5 of the bill clarifies the duties of the Commission on Performance Budgeting. Under the current law, the commission is charged with providing guidance and advice to the Legislature and the Governor regarding performance budgeting in state government. LD 430 adds language that charges the commission with providing guidance and advice on the methods and strategies for implementing performance budgeting.
Section 6 of the bill adds a provision that the chair of the commission can call meetings. Currently, meetings of the commission can be called only by a majority vote of the commission.
Section 7 of the bill clarifies that the State Planning Office is to receive copies of both final strategic plans and pilot budget proposals.
Section 8 of the bill clarifies that pilot performance budgets will not be the basis for appropriations or allocations. It further clarifies that the pilot budgets would be used for purposes of designing and evaluating the performance budgeting system.
Section 9 of the bill clarifies that legislative oversight committees be consulted in the development of joint goals and objectives for interagency strategic planning. Under the current law, agencies are required to consult legislative policy committees in the development of their strategic plan. However, there is no language that applies to the interagency selection of policy areas.
Section 10 of the bill clarifies that "job training" is not a policy area, but a strategy for which joint goals and objectives are to be developed. It requires the Department of Labor, the Department of Education, the Department of Human Services, the Department of Mental Health, Mental Retardation and Substance Abuse Services and the Maine Technical College System to develop common goals and objectives and that they coordinate the development of job training strategies for achieving these goals and objectives.
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OPLA~Notes
Nonpartisian Quarterly Newsletter
Spring 1997
Maine State Legislature
Publication of the Office of Policy and Legal Analysis
Volume 1, Issue 2