2012 -- S 2794

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LC02190

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO PUBLIC FINANCE - STATE BUDGET

     Introduced By: Senators Sheehan, DiPalma, Nesselbush, Sosnowski, and Ottiano

     Date Introduced: March 21, 2012

     Referred To: Senate Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 35-3-24.1 of the General Laws in Chapter 35-3 entitled "State

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Budget" is hereby amended to read as follows:

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     35-3-24.1. Program performance measurement. -- (a) Beginning with the fiscal year

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ending June 30, 1997, the governor shall submit, as part of each budget submitted to the general

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assembly pursuant to section 35-3-7, performance objectives for each program in the budget for

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the ensuing fiscal year, estimated performance data for the fiscal year in which the budget is

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submitted, and actual performance data for the preceding two (2) completed fiscal years.

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Performance data shall include efforts at achieving equal opportunity hiring goals as defined in

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the department's annual affirmative action plan. The governor shall, in addition, recommend

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appropriate standards against which to measure program performance. Performance in prior years

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may be used as a standard where appropriate. These performance standards shall be stated in

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terms of results obtained.

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      (b) The governor may submit, in lieu of any part of the information required to be

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submitted pursuant to subsection (a), an explanation of why the information cannot, as a practical

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matter be submitted.

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     (c)(1) The office of management and budget shall be responsible for managing and

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collecting program performance measures on behalf of the governor. The office is authorized to

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conduct performance reviews and audits of agencies to determine progress towards achieving

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performance objectives for programs.

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     (2) In order to collect performance measures from agencies, review performance and

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provide recommendations the office of budget and management is authorized to conduct audits of

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any state department, state agency, or private entity that is a recipient of state funding or state

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grants. As deemed necessary or expedient by the office, audits may be made with respect to the

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financial affairs or the economy and efficiency of management of each department and agency.

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The office shall determine which such audits shall be performed in accordance with a risk-based

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evaluation.

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     (3) In years where performance standards were not achieved in the prior fiscal year, the

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department or agency shall outline specific steps to be taken to meet the performance standards in

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the next fiscal year and these steps shall be submitted with the governor’s budget.

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     (d) Notwithstanding any other provision of the general or public laws to the contrary,

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including any provision exempting any entity from the requirements of this chapter, all public

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corporations as defined in subsection 35-20-5(4) and quasi-public agencies, shall be subject to the

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terms of this section.

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     SECTION 2. This act shall take effect upon passage.

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LC02190

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO PUBLIC FINANCE - STATE BUDGET

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     This act would require the office of management and budget to manage and collect

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program performance measures on behalf of the governor. This act would also authorize the

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office of management and budget to conduct performance reviews and audits of state agencies,

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public corporations and quasi-public agencies to determine progress towards achieving

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performance goals and objectives.

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     This act would take effect upon passage.

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LC02190

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