SB 869- This act would transform Missouri's appropriation methods into a performance based budgeting process.

Agencies would be required to base all budget requests on a stated strategic plan that establishes quantifiable measurable outcomes the agency must achieve. Levels of funding could then be tied to the agency's performance relative to its stated objectives.

Implementation of the new process would initiate during FY 98-99 with the Office of Administration conducting statewide public meetings to ascertain citizens' reactions to current agency programs. The results of the meetings must be reported to the Governor and General Assembly on or before October 1, 1999.

In 1999, agencies have several conversion deadlines. By January 1, a draft strategic plan must be developed. By September 30, agencies must submit a budget request for at least one program incorporating measurable objectives, and must formulate a joint interagency budget request for a policy area that impacts more than one agency.

The State Budget Director and the Appropriations Committees have until December 31, 1999, to develop a plan to group agencies by policy areas with common goals and objectives. Thereafter, beginning September 30, 2000, all budget requests must be submitted by interagency policy area. By September 30, 2001, all budget requests must include, and make reference to, strategic plans and measurable objectives.

Despite these stated deadlines, workforce development is required to be the subject of a joint strategic plan developed by the departments of Elementary and Secondary Education, Coordinating Board for Higher Education, Economic Development, Social Services, Mental Health and Labor and Industrial Relations. The plan is due by October 1, 1999.

Beginning October 1, 2001, the Office of Administration is required to conduct a detail base review evaluation of agencies' success in achieving stated objectives. The commissioner is authorized to contract this responsibility to a non-governmental entity to insure the completion of an independent review.
DENISE GARNIER