SENATE BILL No. 1051

 

 

June 6, 2018, Introduced by Senator HILDENBRAND and referred to the Committee on Government Operations.

 

 

 

     A bill to amend 1984 PA 431, entitled

 

"The management and budget act,"

 

by amending sections 363, 367, and 447 (MCL 18.1363, 18.1367, and

 

18.1447), section 363 as amended by 1999 PA 8, section 367 as

 

amended by 2016 PA 221, and section 447 as added by 2012 PA 535,

 

and by adding section 495.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 363. (1) Within 30 days after the legislature convenes in

 

regular session, except in a year in which a newly elected governor

 

is inaugurated into office when 60 days shall be allowed, the

 

governor shall transmit to each member of the legislature and the

 

fiscal agencies the budget in detail as provided in this act,

 

accompanied by such explanations and recommendations relative

 

thereto to the budget as the governor considers necessary. At the

 

time the budget is transmitted to the legislature, the director

 

shall transmit line-item appropriation detail to the fiscal

 

agencies using a computer software application that is compatible

 

with the budget tracking computer systems used by the respective

 

fiscal agencies.

 

     (2) The budget transmitted by the governor to the legislature

 

shall be for the upcoming fiscal year and the following fiscal

 

year. At a minimum, the budgets shall consist of all of the

 

following:

 

     (a) Estimates of anticipated revenues by state funds.

 

     (b) Line-item details of proposed expenditures unrolled to

 

show specific spending categories.

 

     (c) Estimates of the year-end unrestricted fund balances for

 

state funds.

 

     (d) Any additional budget detail required by this act.

 

     (3) Each fiscal year, by the deadline established in

 

subsection (1) for the governor to submit a budget to the

 

legislature, the governor shall also present a strategic plan for

 

the state.

 

     (4) The strategic plan shall be published on the state's

 

website.

 

     (5) The strategic plan shall start with the upcoming fiscal

 

year and shall cover the next 5 fiscal years. The strategic plan

 

can be a revised version of a previous strategic plan or a new

 

strategic plan.

 

     (6) The strategic plan shall include the mission, vision,

goals, strategies, and performance measures for each state

 

department, including measures of the department's inputs, outputs,

 

and output measures. The department's balanced scorecard can serve

 

as the department's output measures.

 

     (7) At the governor's discretion, the strategic plan may

 

include inputs, outputs, and output measures for state agencies,

 

bureaus, and divisions within a state department.

 

     Sec. 367. (1) Concurrent with transmitting the state budget to

 

the legislature, the governor shall submit to the legislature and

 

the fiscal agencies for the upcoming fiscal year and the following

 

fiscal year executive budget bills containing itemized statements

 

of estimated state spending to be paid to local units of

 

government; annual required employer contributions toward total

 

unfunded retiree health care and pension legacy costs as determined

 

by the state's consulting actuary for each department and the

 

legislative branch and the judicial branch; individual line item

 

amounts, including the number of FTE positions to be funded by each

 

individual line item amount, for the proposed expenditures; and any

 

necessary bills for additional revenue to provide financing for the

 

proposed expenditures.

 

     (2) One executive budget bill and 1 enacted budget bill shall

 

contain all of the following:

 

     (a) The estimated revenue for each state operating fund in

 

sufficient detail to provide for comparison with actual revenue.

 

     (b) Summary totals for each state operating fund to reflect

 

that recommended expenditures for each fund are within proposed and

 

estimated resources.

     (c) A statement of estimated state spending to be paid to

 

units of local government, total state spending from state sources

 

of financing, and the state-local proportion derived from that

 

data.

 

     Sec. 447. (1) Each fiscal year, by the deadline established in

 

section 363 for the governor to submit a budget to the legislature,

 

each department shall have a strategic mission, vision, goals, plan

 

for its operations, and a balanced scorecard in place. The

 

scorecard shall include at least 1 existing metric or establish at

 

least 1 new metric for each 1-time or ongoing enhancement budget

 

recommendation. Each metric shall be in 1 of the following

 

categories:

 

     (a) Customer service.

 

     (b) Financial.

 

     (c) Internal business process.

 

     (d) Learning and growth.

 

     (2) As used in this section:

 

     (a) "Balanced scorecard" means a management tool that allows

 

managers to lead through monitoring the performance of an

 

organization on the few but vital set of activities and measures

 

that drive enterprise success. It focuses not just on financial

 

dimensions but also other vital areas such as employees, customers,

 

processes, and any other area crucial to the success of the

 

organization.

 

     (b) "Customer service metric" means a standard that measures

 

the value received from the citizen perspective and the scale and

 

quality of the service.

     (c) "Financial metric" means a standard for quantifying the

 

amount that the strategy, implementation, and execution of an

 

enhancement budget recommendation is contributing to the bottom

 

line.

 

     (d) "Internal business process metric" means a standard that

 

measures how well business processes are structured or organized to

 

meet citizen service expectations.

 

     (e) "Learning and growth metric" means a standard that

 

measures how well the people, technology, and climate support the

 

strategy of the enhancement.

 

     Sec. 495. (1) Within 9 months after the end of the fiscal

 

year, the director shall publish on the internet a popular

 

financial report that shall strive to communicate the state's

 

current financial situation in an easy-to-understand report.

 

     (2) At a minimum, the report will contain information on the

 

most recent 5 years of data for each of the following:

 

     (a) Total state revenues and expenditures.

 

     (b) Total general fund/general purpose revenues and

 

expenditures.

 

     (c) Total school aid fund revenues and expenditures.

 

     (d) The unrestricted fund balance for the general fund and

 

school aid fund.

 

     (e) Total outstanding state debt by major type.

 

     (f) Total unfunded pension and other postemployment benefit

 

obligations for each of the following retirement systems:

 

     (i) The state employees' retirement act, 1943 PA 240, MCL 38.1

 

to 38.69.

     (ii) The public school employees retirement act of 1979, 1980

 

PA 300, MCL 38.1301 to 38.1437.

 

     (iii) The judges retirement act of 1992, 1992 PA 234, MCL

 

38.2101 to 38.2670.

 

     (iv) The state police retirement act of 1986, 1986 PA 182, MCL

 

38.1601 to 38.1648.

 

     (v) The Michigan legislative retirement system act, 1957 PA

 

261, MCL 38.1001 to 38.1080.

 

     (g) Total revenues by major source, including taxes and

 

federal grants.

 

     (h) Total expenditures by major spending category.

 

     (i) The number of state employees by department.

 

     (j) Basic economic information for this state, including per-

 

capita income, nonfarm payroll employment, and the unemployment

 

rate.