This measure would state the intent of the Legislature to incorporate the findings of the statewide mission-based review project being conducted by the Department of Finance into its oversight and review process and to use a zero-based budgeting approach for preparing the state budget, as specified. The measure would also require the Department of Finance and other departments to report on the status and outcome of the reviews during legislative budget hearings.

This measure would state the intent of the Legislature to incorporate the findings of the statewide mission-based review project being conducted by the Department of Finance into its oversight and review process and to use a zero-based budgeting approach for preparing the state budget, as specified. The measure would also require the Department of Finance and other departments to report on the status and outcome of the reviews during legislative budget hearings.

WHEREAS, Article IV of the California Constitution provides that it is the responsibility of the Legislature to oversee the operations of the executive branch and its various agencies and departments; and

WHEREAS, Article IV of the California Constitution further provides that it is the responsibility of the Legislature to develop a budget for the State of California; and

WHEREAS, A zero-based budgeting approach is one in which agency and department budgets are evaluated on program-level efficiencies, instead of only marginal changes; and

WHEREAS, In recent years, the National Conference of State Legislatures has reported that 17 states have used zero-based budgeting in some form and several more have made serious efforts to do so; and

WHEREAS, The National Conference of State Legislatures indicates that states such as Idaho have successfully used zero-based budgeting as a management tool as well as a budgetary tool; and

WHEREAS, The State of Washington, among others, successfully used a variant of zero-based budgeting starting in 2002 to align expenditures with desired outcomes and balanced the budget of the State of Washington without tax increases; and

WHEREAS, The elected representatives of the Legislature have a duty to guard taxpayer dollars against waste, fraud, and abuse; and

WHEREAS, On December 8, 2011, Governor Brown issued Executive Order B-13-11 that directed the Department of Finance to establish a new budget process to increase efficiency and focus on accomplishing program goals; and

WHEREAS, The 201617 state budget included $1 million $500,000 for the Department of Finance to invest in a zero-based budgeting effort; and

WHEREAS, The Department of Finance has begun the statewide mission-based review project to review state departments over the next five years; now, therefore, be it

Resolved by The Assembly of The State of California, The Senate thereof concurring, That the Legislature intends to incorporate the statewide mission-based review project into its budget oversight and review efforts; and be it further

Resolved, That the Legislature intends to use a zero-based budgeting approach during this review; and be it further

Resolved, That the Legislature will request a scope of work from the Department of Finance that will identify the departments that will be reviewed by the statewide mission-based review project and the timeline for the review over the next two years; and be it further

Resolved, That the budget committees of the Legislature will provide feedback to the Department of Finance on the departments and timing of the review to correspond to oversight priorities of the Legislature; and be it further

Resolved, That the Legislature will require the Department of Finance and other departments to report on the status and outcome of the reviews during legislative budget hearings; and be it further

Resolved, That the Chief Clerk of the Assembly transmit copies of this resolution to the author for appropriate distribution.

WHEREAS, Article IV of the California Constitution provides that it is the responsibility of the Legislature to oversee the operations of the executive branch and its various agencies and departments; and

WHEREAS, Article IV of the California Constitution further provides that it is the responsibility of the Legislature to develop a budget for the State of California; and

WHEREAS, A zero-based budgeting approach is one in which agency and department budgets are evaluated on program-level efficiencies, instead of only marginal changes; and

WHEREAS, In recent years, the National Conference of State Legislatures has reported that 17 states have used zero-based budgeting in some form and several more have made serious efforts to do so; and

WHEREAS, The National Conference of State Legislatures indicates that states such as Idaho have successfully used zero-based budgeting as a management tool as well as a budgetary tool; and

WHEREAS, The State of Washington, among others, successfully used a variant of zero-based budgeting starting in 2002 to align expenditures with desired outcomes and balanced the budget of the State of Washington without tax increases; and

WHEREAS, The elected representatives of the Legislature have a duty to guard taxpayer dollars against waste, fraud, and abuse; and

WHEREAS, On December 8, 2011, Governor Brown issued Executive Order B-13-11 that directed the Department of Finance to establish a new budget process to increase efficiency and focus on accomplishing program goals; and

WHEREAS, The 201617 state budget included $1 million for the Department of Finance to invest in a zero-based budgeting effort; and

WHEREAS, The Department of Finance has begun the statewide mission-based review project to review state departments over the next five years; now, therefore, be it

Resolved by The Assembly of The State of California, The Senate thereof concurring, That the Legislature intends to incorporate the statewide mission-based review project into its budget oversight and review efforts; and be it further

Resolved, That the Legislature intends to use a zero-based budgeting approach during this review; and be it further

Resolved, That the Legislature will request a scope of work from the Department of Finance that will identify the departments that will be reviewed by the statewide mission-based review project and the timeline for the review over the next two years; and be it further

Resolved, That the budget committees of the Legislature will provide feedback to the Department of Finance on the departments and timing of the review to correspond to oversight priorities of the Legislature; and be it further

Resolved, That the Legislature will require the Department of Finance and other departments to report on the status and outcome of the reviews during legislative budget hearings; and be it further

Resolved, That the Chief Clerk of the Assembly transmit copies of this resolution to the author for appropriate distribution.

ASSEMBLY THIRD READING

ATR Bill Id:ACR 40

Author:(Ting, et al.)

As Amended Ver:April 17, 2017

Majority

SUMMARY: Expresses Legislative Intent to use Zero-Based Budgeting and Mission-Based Budgeting in budget oversight efforts.

FISCAL EFFECT: None

COMMENTS: This resolution reflects the continued efforts by the Assembly Budget Committee to improve oversight efforts by adopting alternative budgeting practices to enhance the accountability of state programs. As stated in the resolution, 17 states currently use a zero-based budgeting effort as a management and budgetary tool. The Assembly has piloted a zero-based budgeting effort in 2016 with some success. This resolution intends to take these efforts to scale by making this review more systematic so that all major departments are subject to review over time.

The Department of Finance has begun a mission-based budget review project to continue their process of looking at department programs in-depth to compliment the review they currently undertake during the normal budget process. As this effort gets underway, this resolution contemplates leveraging that effort as part of the Assembly's oversight effort—either by using the information from the review reports for oversight directly, or complementing this review with additional zero-based budgeting analysis.

Analysis Prepared by: Christian Griffith / BUDGET / (916) 319-2099 FN: 0000174

Date of Hearing: April 24, 2017

ASSEMBLY COMMITTEE ON BUDGET

Philip Y. Ting, Chair

ABPCA Bill Id:ACR 40 (

Author:Ting) – As Amended Ver:April 17, 2017

SUBJECT: Legislature: state budget: zero-based budgeting

SUMMARY: Expresses Legislative Intent to use Zero-Based Budgeting and Mission-Based Budgeting in budget oversight efforts.

FISCAL EFFECT: None

COMMENTS: This resolution reflects the continued efforts by the Assembly Budget Committee to improve oversight efforts by adopting alternative budgeting practices to enhance the accountability of state programs. As stated in the resolution, 17 states currently use a zero-based budgeting effort as a management and budgetary tool. The Assembly has piloted a zero-based budgeting effort in 2016 with some success. This resolution intends to take these efforts to scale by making this review more systematic so that all major departments are subject to review over time.

The Department of Finance has begun a mission-based budget review project to continue their process of looking at department programs in-depth to compliment the review they currently undertake during the normal budget process. As this effort gets underway, this resolution contemplates leveraging that effort as part of the Assembly's oversight effort—either by using the information from the review reports for oversight directly, or complementing this review with additional zero-based budgeting analysis.

REGISTERED SUPPORT / OPPOSITION:

Support

None on file.

Opposition

None on file.

Analysis Prepared by: Christian Griffith / BUDGET / (916) 319-2099

Date of Hearing: April 5, 2017

ASSEMBLY COMMITTEE ON BUDGET

Philip Ting, Chair

ABPCA Bill Id:ACR 40 (

Author:Ting) – As Introduced Ver:March 21, 2017

SUBJECT: Legislative oversight of state agency budgets: zero-based budgeting

SUMMARY: Expresses Legislative Intent to use Zero-Based Budgeting and Mission-Based Budgeting in budget oversight efforts.

FISCAL EFFECT: None.

COMMENTS: This resolution reflects the continued efforts by the Assembly Budget Committee to improve oversight efforts by adopting alternative budgeting practices to enhance the accountability of state programs. As stated in the resolution, 17 states currently use a zero-based budgeting effort as a management and budgetary tool. The Assembly has piloted a zero-based budgeting effort in 2016 with some success. This resolution intends to take these efforts to scale by making this review more systematic so that all major departments are subject to review over time.

The Department of Finance has begun a mission-based budget review project to continue their process of looking at department programs in-depth to compliment the review they currently undertake during the normal budget process. As this effort gets underway, this resolution contemplates leveraging that effort as part of the Assembly's oversight effort—either by using the information from the review reports for oversight directly, or complementing this review with additional zero-based budgeting analysis.

REGISTERED SUPPORT / OPPOSITION:

Support

None on file.

Opposition

None on file.

Analysis Prepared by: Christian Griffith / BUDGET /