Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Transportation, Military Affairs and Government Operations, to which was referred S.B. No. 571 entitled:

begs leave to report as follows:

The purpose of this measure is to require the director of finance to develop and oversee the implementation of a performance-based budgeting system for executive branch agencies that focuses on performance outcomes and end results.

Your Committee received testimony from the Department of Budget and Finance supporting the intent of this measure.

Your Committee finds that a performance-based budgeting system would effectively coordinate the budgetary allotment of an agency with its productivity. Although the current Planning, Program, and Budgeting System is partially based on performance objectives, your Committee finds that the criteria enumerated in this measure would most effectively align executive branch agency budgets and results.

The legislature is responsible for allocating public funds among executive branch agencies and departments in the most efficient manner possible. Your Committee finds that a performance-based budgeting system would not only enhance the relative productivity of our government, it would enable the public and the legislature to more easily gauge the progress of each agency receiving public funds.

As affirmed by the record of votes of the members of your Committee on Transportation, Military Affairs and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 571 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.