House of Representatives

HB 2251

state budget reform; omnibus

Sponsors: Representatives Knaperek, Blendu, Gray et al

X	Committee on Appropriations
	Caucus and COW	This bill as introduced contains an Appropriation clause.
	As Passed the House

HB 2251 authorizes the use of a special auditing team, supervised by the Auditor General, for emergency fiscal audits of state agencies, requires state agencies to report additional information on their expenditures of federal funds, requires the inclusion of certain performance measures within the Governor’s budget report and the Sunset Review process, reduces the standard Sunset Review timeframe down from 10 years to 8 years, and includes other miscellaneous budget reform provisions.

Provisions

· Allows the Joint Legislative Audit Committee (JLAC), in consultation with the Chair and Vice-Chair of the Joint Legislative Budget Committee (JLBC), to order emergency investigations of agencies and programs conducted by a team of auditors from the Auditor General’s Office to be completed within a period of thirty days and subsequently reported to the Committee. The bill further requires an audit of the special audit team every four years, and requires that the results of the audit be provided to the Speaker and the President.

· Requires all state agencies, boards, commissions and departments to report to the JLBC before spending federal monies in excess of the amount spent during the previous fiscal year. The report must indicate whether those new federal monies are derived from an increased and ongoing source of revenue.

· Requires the Governor’s Office of Strategic Planning and Budgeting (OSPB) to include the following performance information within the performance measures detailed for each agency in the Executive Budget Recommendation.

1. The number of people served.

2. Data on the population served.

3. Timelines of service.

4. The measure of client satisfaction.

5. Collections and expenditures.

6. Outcome measures.

· Mandates that any legislation creating a new program include a requirement of a report on the same performance measures required of the Executive Budget recommendation, as added by the bill. The legislation must also include a time limit in which to submit that report.

· Requires that by November 1 of each year, the OSPB must submit for JLBC review a report detailing all programs and sub-programs providing health care and social services to children within the following agencies in a manner is consistent with the 1997 Master List of State Government Programs:

1. Department of Economic Services.

2. Department of Health Services.

3. Arizona Department of Education.

4. Department of Juvenile Corrections.

5. Administrative Office of the Courts.

6. Arizona Health Care Cost Containment System.

· Requires the JLBC to approve any transfer of spending authority from one agency line-item to another. (Under current law, only certain line-item transfers require JLBC review.)

· Requires budget units subject to a Strategic Program Area Review (SPAR) to meet with the Chairs of both the House and Senate Appropriations committees prior to undergoing a SPAR.

· Reduces the standard Sunset Audit review process timeline from 10 to 8 years.

· Makes technical and conforming changes.

· Makes an unspecified general fund appropriation to the Auditor General’s Office in fiscal year 2001-2002 for the purposes of funding the emergency audit team authorized by the bill. The appropriation is non-lapsing.

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44th Legislature

Second Regular Session 2 February 25, 2001

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