SB42 - Revises provisions of the State Budget Act. (BDR 31-278)

S.B. 42 - *SB42* SENATE BILL NO. 42–COMMITTEE ON GOVERNMENT AFFAIRS (ON BEHALF OF THE OFFICE OF FINANCE IN THE OFFICE OF THE GOVERNOR) PREFILED NOVEMBER 18, 2024 ____________ Referred to Committee on Government Affairs SUMMARY—Revises provisions of the State Budget Act. (BDR 31-278) FISCAL NOTE: Effect on Local Government: No. Effect on the State: No. ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. AN ACT relating to state financial administration; removing requirements to include certain information relating to performance goals and objectives in the proposed budget for the Executive Department of State Government; removing the requirement for the Chief of the Budget Division of the Office of Finance in the Office of the Governor to establish the schedule for the analysis of incentives for economic development performed by certain agencies; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law prescribes the contents of the proposed budget of the Executive 1 Department of State Government. (NRS 353.205) Existing law requires each 2 proposed budget to include: (1) an identification of each long-term performance 3 goal of the Executive Department for core governmental functions and other 4 governmental services; (2) an identification of each intermediate objective for the 5 next 2 fiscal years toward achieving those goals; and (3) an explanation of the 6 means by which the proposed budget will provide adequate funding for those 7 functions and services so that those intermediate objectives will be met and 8 progress will be made towards achieving those goals. (NRS 353.205) The proposed 9 budget must also include a mission statement articulating the intermediate 10 objectives and long-term performance goals each department, institution or other 11 agency of the Executive Department is tasked with achieving and the measurement 12 indicators that will be used to determine whether the department, institution or 13 other agency is successful in achieving those objectives and goals. (NRS 353.205) 14 – 2 – - *SB42* Section 1 of this bill eliminates the requirement for each proposed budget to 15 include: (1) an explanation of the means by which the proposed budget will provide 16 adequate funding for core government functions and other governmental services 17 such that the intermediate objectives will be met and progress will be made toward 18 achieving the long-term performance goals for such functions and services; and (2) 19 the mission statement articulating the intermediate objectives and long-term 20 performance goals of each department, institution or other agency and the 21 measurement indicators for measuring the success of each department, institution or 22 other agency in achieving those objectives and goals. 23 Section 1 eliminates the requirement for the Budget Division of the Office of 24 Finance in the Office of the Governor to post on its Internet website, as soon as 25 practicable after the Governor transmits the proposed budget to the Legislature: (1) 26 the information required to be included in the proposed budget regarding the 27 identification of the long-term performance goals of the Executive Department for 28 core governmental functions and other governmental services and the intermediate 29 objectives toward achieving those goals for the next 2 fiscal years; and (2) certain 30 additional information which section 1 eliminates from inclusion in the proposed 31 budget. 32 Existing law requires the Chief of the Division to require the Office of 33 Economic Development and the Office of Energy to each periodically conduct an 34 analysis of the costs and benefits of each incentive for economic development 35 previously approved by the respective office and in effect during the immediately 36 preceding 2 fiscal years and to report the result of the analysis to the Chief. (NRS 37 353.207) Existing law requires the result of each such analysis to be included in the 38 proposed budget for the Executive Department. (NRS 353.205) Section 2 of this 39 bill maintains the requirement to conduct and report this analysis but eliminates the 40 requirement for the Chief to establish a schedule for performing and reporting 41 the results of the analyses to ensure that the results of the analyses are included in 42 the proposed budget. 43 On or before September 1 of each even-numbered year, existing law requires 44 the departments, institutions and other agencies of the Executive Department to 45 submit to the Chief estimates of the expenditure requirements of the department, 46 institution or agency for the next 2 fiscal years, together with all anticipated income 47 from fees and other sources. (NRS 353.210) Section 3 of this bill makes a 48 conforming change by removing the requirement for these estimates to include a 49 mission statement and measurement indicators in adequate detail to comply with 50 certain provisions regarding the contents of the proposed budget removed by 51 section 1. 52 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. NRS 353.205 is hereby amended to read as follows: 1 353.205 1. The proposed budget for the Executive 2 Department of the State Government for each fiscal year must be set 3 up in four parts: 4 (a) Part 1 must consist of a budgetary message by the Governor 5 which includes: 6 (1) A general summary of the long-term performance goals 7 of the Executive Department of the State Government for: 8 – 3 – - *SB42* (I) Core governmental functions, including the education 1 of pupils in kindergarten through grade 12, higher education, human 2 services and public safety and health; and 3 (II) Other governmental services; 4 (2) [An explanation of the means by which the proposed 5 budget will provide adequate funding for those governmental 6 functions and services such that ratable progress will be made 7 toward achieving those long-term performance goals; 8 (3)] An outline of any other important features of the 9 financial plan of the Executive Department of the State Government 10 for the next 2 fiscal years; and 11 [(4)] (3) A general summary of the proposed budget setting 12 forth the aggregate figures of the proposed budget in such a manner 13 as to show the balanced relations between the total proposed 14 expenditures and the total anticipated revenues, together with the 15 other means of financing the proposed budget for the next 2 fiscal 16 years, contrasted with the corresponding figures for the last 17 completed fiscal year and fiscal year in progress. The general 18 summary of the proposed budget must be supported by explanatory 19 schedules or statements, classifying the expenditures contained 20 therein by organizational units, objects and funds, and the income 21 by organizational units, sources and funds. The organizational units 22 may be subclassified by functions and by agencies, bureaus or 23 commissions, or in any other manner determined by the Chief. 24 (b) Part 2 must embrace the detailed budgetary estimates both of 25 expenditures and revenues as provided in NRS 353.150 to 353.246, 26 inclusive. The information must be presented in a manner which sets 27 forth separately the cost of continuing each program at the same 28 level of service as the current year and the cost, by budgetary issue, 29 of any recommendations to enhance or reduce that level of service. 30 Revenues must be summarized by type, and expenditures must be 31 summarized by program or budgetary account and by category of 32 expense. Part 2 must include: 33 (1) The identification of each long-term performance goal of 34 the Executive Department of the State Government for: 35 (I) Core governmental functions, including the education 36 of pupils in kindergarten through grade 12, higher education, human 37 services, and public safety and health; and 38 (II) Other governmental services, 39  and of each intermediate objective for the next 2 fiscal years 40 toward achieving those goals. 41 (2) [An explanation of the means by which the proposed 42 budget will provide adequate funding for those governmental 43 functions and services such that those intermediate objectives will 44 – 4 – - *SB42* be met and progress will be made toward achieving those long-term 1 performance goals. 2 (3) A mission statement and measurement indicators for each 3 department, institution and other agency of the Executive 4 Department of the State Government, which articulate the 5 intermediate objectives and long-term performance goals each such 6 department, institution and other agency is tasked with achieving 7 and the particular measurement indicators tracked for each such 8 department, institution and other agency to determine whether the 9 department, institution or other agency is successful in achieving its 10 intermediate objectives and long-term performance goals, provided 11 in sufficient detail to assist the Legislature in performing an analysis 12 of the relative costs and benefits of program budgets and in 13 determining priorities for expenditures. If available, information 14 regarding such measurement indicators must be provided for each of 15 the previous 4 fiscal years. If a new measurement indicator is being 16 added, a rationale for that addition must be provided. If a 17 measurement indicator is being modified, information must be 18 provided regarding both the modified indicator and the indicator as 19 it existed before modification. If a measurement indicator is being 20 deleted, a rationale for that deletion and information regarding the 21 deleted indicator must be provided. 22 (4)] Statements of the bonded indebtedness of the State 23 Government, showing the requirements for redemption of debt, the 24 debt authorized and unissued, and the condition of the sinking 25 funds. 26 [(5)] (3) Any statements relative to the financial plan which 27 the Governor may deem desirable, or which may be required by the 28 Legislature. 29 (c) Part 3 must set forth, for the Office of Economic 30 Development and the Office of Energy, the results of the analyses 31 conducted by those offices and reported to the Chief pursuant to 32 NRS 353.207 for the immediately preceding 2 fiscal years. 33 (d) Part 4 must include a recommendation to the Legislature for 34 the drafting of a general appropriation bill authorizing, by 35 departments, institutions and agencies, and by funds, all 36 expenditures of the Executive Department of the State Government 37 for the next 2 fiscal years, and may include recommendations to the 38 Legislature for the drafting of such other bills as may be required to 39 provide the income necessary to finance the proposed budget and to 40 give legal sanction to the financial plan if adopted by the 41 Legislature. 42 2. Except as otherwise provided in NRS 353.211, as soon as 43 each part of the proposed budget is prepared, a copy of the part must 44 – 5 – - *SB42* be transmitted to the Fiscal Analysis Division of the Legislative 1 Counsel Bureau for confidential examination and retention. 2 3. Except for the information provided to the Fiscal Analysis 3 Division of the Legislative Counsel Bureau pursuant to NRS 4 353.211, parts 1 and 2 of the proposed budget are confidential until 5 the Governor transmits the proposed budget to the Legislature 6 pursuant to NRS 353.230, regardless of whether those parts are in 7 the possession of the Executive or Legislative Department of the 8 State Government. Part 4 of the proposed budget is confidential 9 until the bills which result from the proposed budget are introduced 10 in the Legislature. [As soon as practicable after the Governor 11 transmits the proposed budget to the Legislature pursuant to NRS 12 353.230, the information required to be included in the proposed 13 budget pursuant to subparagraphs (1), (2) and (3) of paragraph (b) of 14 subsection 1 must be posted on the Internet websites maintained by 15 the Budget Division of the Office of Finance.] 16 Sec. 2. NRS 353.207 is hereby amended to read as follows: 17 353.207 1. The Chief shall: 18 (a) Require the Office of Economic Development and the Office 19 of Energy each periodically to conduct an analysis of the relative 20 costs and benefits of each incentive for economic development 21 previously approved by the respective office and in effect during the 22 immediately preceding 2 fiscal years, including, without limitation, 23 any abatement of taxes approved by the Office of Economic 24 Development pursuant to NRS 274.310, 274.320, 274.330, 360.750, 25 360.753, 360.754, 360.890, 360.950, 361.0687, 374.357 or 26 701A.210, to assist the Governor and the Legislature in determining 27 whether the economic benefits of the incentive have accomplished 28 the purposes of the statute pursuant to which the incentive was 29 approved and warrant additional incentives of that kind; and 30 (b) Require each office to report in writing to the Chief the 31 results of the analysis conducted by the office pursuant to paragraph 32 (a) . [; and 33 (c) Establish a schedule for performing and reporting the results 34 of the analysis required by paragraph (a) which ensures that the 35 results of the analysis reported by each office are included in the 36 proposed budget prepared pursuant to NRS 353.205, as required by 37 that section.] 38 2. Each report prepared for the Chief pursuant to this section is 39 a public record and is open to inspection pursuant to the provisions 40 of NRS 239.010. 41 Sec. 3. NRS 353.210 is hereby amended to read as follows: 42 353.210 1. Except as otherwise provided in subsections 6 and 43 7, on or before September 1 of each even-numbered year, all 44 departments, institutions and other agencies of the Executive 45 – 6 – - *SB42* Department of the State Government, and all agencies of the 1 Executive Department of the State Government receiving state 2 money, fees or other money under the authority of the State, 3 including those operating on money designated for specific purposes 4 by the Nevada Constitution or otherwise, shall prepare, on blanks 5 furnished them by the Chief, and submit to the Chief: 6 (a) The number of full-time equivalent positions within the 7 department, institution or agency. 8 (b) [Text truncated for display. Full text available on LegiScan.]