REPORT TITLE: 
Zero based budgeting; DOE
DESCRIPTION:
Establishes an omnibus approach to improving department of
education efficiency by requiring zero based budgeting every
three years.

 
HB HMIA 2000-44
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                     A BILL FOR AN ACT

RELATING TO ZERO-BASE BUDGETING FOR PUBLIC EDUCATION.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:


 1              TRUTH IN BUDGETING FOR PUBLIC SCHOOLS.
 
 2 
 
 3      SECTION 1.  Existing law generally requires every state
 
 4 agency to submit to the Department of Budget and Finance, for
 
 5 approval, a complete and detailed budget of proposed expenditures
 
 6 and estimated revenues.
 
 7      This bill would, instead, require that the proposed
 
 8 executive budgets for the department of education, commencing
 
 9 with fiscal year 2001 and continuing thereafter every three
 
10 years, be prepared in accordance with zero-base budgeting
 
11 principles, as specified and developed by the Director of Budget
 
12 and Finance in cooperation with the Department of Education.
 
13      SECTION 2.  There is created a new section to be added to
 
14 the budget law that reads as follows:
 
15      "§     Zero-base budgeting. (a)  Notwithstanding chapter 37,
 
16 Hawaii Revised Statutes, the proposed budget of the Department of
 
17 Education shall be prepared in accordance with zero-base
 
18 budgeting principles, as developed by the Director of the
 
19 Department of Budget and Finance in cooperation with the
 

 
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 1 Department of Education.  Such principles, which shall be applied
 
 2 to the preparation of the proposed budgets, shall include, but
 
 3 need not be limited to, all of the following:  
 
 4      (1)  Identification and description of each program
 
 5 activity.
 
 6      (2)  Statement of objectives of each program activity and
 
 7 output.
 
 8      (3)  Evaluation and ranking of program activities on the
 
 9 basis of a benefit versus cost analysis, and allocation of
 
10 resources to program activities accordingly.
 
11      (4)  Description and evaluation of qualitative and
 
12 quantitative effects or impact on funding the program activity at
 
13 a level of 50 percent, 75 percent, 100 percent, 125 percent, and
 
14 150 percent of the funding level commencing with fiscal year 2001
 
15 and continuing thereafter.
 
16      (5)  Estimation of effects of each such funding level on
 
17 proposed future expenditures and revenues, if any, estimated to
 
18 be generated by the program activity.
 
19      (6)  Identification of effects of each such funding level on
 
20 personnel requirements.
 
21      (b)  Zero-base budgeting principles shall be applied to all
 
22 Department of Education programs and sub-programs, including, but
 
23 not limited to comprehensive school support services,
 

 
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 1 instructional support, state and district administration, school
 
 2 support, school community service, physical plant operations and
 
 3 maintenance, student transportation, public libraries, and
 
 4 budgets commencing with fiscal year 2001 and continuing every
 
 5 three years thereafter.
 
 6      (c)  All information developed for zero-base budgeting
 
 7 pursuant to this section shall be made available to the
 
 8 Legislative Analyst, the Director of Budget and Finance, and the
 
 9 chairpersons of each fiscal committee of the Legislature."
 
10      SECTION 3. New statutory material is underscored.
 
11      SECTION 4. This Act shall take effect upon its approval and
 
12 apply to fiscal years commencing July 1, 2001 and every three
 
13 years thereafter.
 
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16                         INTRODUCED BY:___________________________
 
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HB HMIA 2000-44