HB1616 (2006) Detail

Establishing a performance measurement system for state agencies.


HB 1616-FN – AS INTRODUCED

2006 SESSION

06-2946

05/03

HOUSE BILL 1616-FN

AN ACT establishing a performance measurement system for state agencies.

SPONSORS: Rep. Moran, Hills 18; Rep. Kurk, Hills 7; Rep. Itse, Rock 9; Rep. McRae, Hills 7; Rep. M. Smith, Straf 7

COMMITTEE: Finance

ANALYSIS

This bill establishes a performance measurement system that requires state agencies to identify program objectives and to measure program outcomes.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

06-2946

05/03

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Six

AN ACT establishing a performance measurement system for state agencies.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 New Chapter; Performance Measurement System. Amend RSA by inserting after chapter 21-Q the following new chapter:

CHAPTER 21-R

PERFORMANCE MEASUREMENT SYSTEM

21-R:1 Definitions. In this chapter:

I. “End outcome indicators” are the consequences of what the program did, not what the program itself did. Outcomes normally happen to those served, not to the organization providing the services. An outcome indicator is intended to measure what a program is doing, not how it is doing it. Because one program may have several different objectives, several different outcome indicators may be necessary so that each objective is measured.

II. “Input indicators” measure the amount of resources applied, and, when related to output or outcome information, provide indicators of efficiency and productivity.

III. “Intermediate outcome indicators” are events or results that are expected to lead to the end outcomes, but are not themselves the end result. They may include service quality indicators that refer to citizen satisfaction levels.

IV. “Mission statement” means a succinct definition of purpose to clarify the intended results.

V. “Objectives” further define the mission with specific goal statements and lead naturally to defining outcomes and outcome measurers.

VI. “Output indicators” measure the quantity of work completed by the program. Outputs are expected to lead to desired outcomes, but by themselves do not describe anything about the outcomes.

21-R:2 Performance Measurement System. Beginning January 1, 2007, every agency, as defined in RSA 21-G:5, III, shall adopt a performance measurement system for each of its programs that includes: a mission statement, the outcomes the program seeks to achieve, and the specific outcome indicators that the program intends to use to track performance. The agency shall:

I. Provide performance data for each program that is significant on output indicators, intermediate outcome indicators, end outcome indicators, and efficiency. The agency shall, for each indicator, develop scores that reflect normal or expected performance. In developing these indicators, the agency shall consult the appropriate legislative policy committee. In presenting these indicators, the agency shall group the indicators by category.

II. Keep the number of key indicators and total indicators for any one program to a reasonable number. The agency shall maintain a full list of performance indicators that it is tracking at any one time and shall make such information available upon request of the legislature.

III. Report performance data quarterly in a year-to-date form that includes a comparison with the same period in the prior year.

21-R:3 Reporting Requirement; Website.

I. Each agency shall submit the information required under RSA 21-R:2 to the department of administrative services beginning on January 1, 2007, and on a quarterly basis thereafter. The department shall periodically review each agency’s performance data for quality and accuracy and shall report unexpectedly high or low data, as reflected in substantial deviations from the scores established pursuant to RSA 21-R:2, I, to the agency, the legislative budget assistant, and the relevant legislative policy committee.

II. The department of administrative services, in consultation with the office of the legislative budget assistant, shall make the information submitted under paragraph I available to the public through an interactive website that permits data comparisons by performance measure, geographic location, and demographic group. The website shall provide data for at least 2 prior years for each performance indicator so that comparisons may be made and trends identified.

21-R:4 Rulemaking. The commissioner of the department of administrative services, in consultation with the legislative budget assistant, shall adopt administrative rules relative to the performance measurement system required under RSA 21-R:2, including:

I. Identification of objectives.

II. Assessment of input and output indicators.

III. Reporting requirements.

2 Effective Date. This act shall take effect 60 days after its passage.

LBAO

06-2946

11/15/05

HB 1616-FN - FISCAL NOTE

AN ACT establishing a performance measurement system for state agencies.

FISCAL IMPACT:

      The Department of Administrative Services states this bill will increase state expenditures by an indeterminable amount in FY 2006 and each year thereafter. There will be no fiscal impact on state, county, and local revenue or county and local expenditures.

METHODOLOGY:

    The Department states this bill will require State agencies to develop a performance measurement system that will track performance data related to specific program outcome indicators. These indicators will be established by the agencies after consultation with their appropriate legislative policy committee. This bill further requires the agencies to report to the Department on January 1, 2007 and quarterly thereafter, performance data in a year to date format with a comparison versus the same period of the prior year. These reports shall be made available to the public through an interactive website that permits data comparisons by performance measures, geographic location, and demographic group with data for at least two years for each of the performance indicators so that comparisons can be made. The Department estimates that the cost for the preparation of the performance factors, the measurement indicators, and the reporting of the results of the agency performance detail can be absorbed by the State agencies. Costs resulting from time and programming necessary to create the interactive website that can incorporate the performance measurement factors, which will permit data comparisons across geographical locations and demographic groups, cannot be determined at this time.