HOUSE CONCURRENT RESOLUTION NO. 97

    (By Delegates Manchin, Anderson, Ashley, T. Campbell,

    Caputo, Doyle, Iaquinta, Kominar, Longstreth, Miley,

     Morgan, D. Poling, M. Poling, Reynolds, Stowers, Varner,

                    Walters and White)

Requesting that the Joint Committee on Government and Finance authorize a broad study of budgeting, including budget formats, approaches, processes, procedures and controls; administration of fiscal notes; revenue estimating; performance accountability and incentives; mechanisms for proposing a legislative budget; and additional resources for budget analysis, research and oversight.

    Whereas, The citizens demand and deserve that their government be transparent, responsive, proactive, accountable, efficient and effective and by it being so, will enjoy greater prosperity, jobs, safety, welfare, and trust in their government; and

    Whereas, The State’s line-item budget format predates the ratification of the Modern Budget Amendment of 1968; and

    Whereas, The line-item budget format inadequately supports the decision making by policymakers due to the commingling of programs within spending unit line-items; and

    Whereas, Over time the line-item budget has seen substantial consolidation within the “unclassified” and other less restrictive line-items of appropriation; and

    Whereas, The current line-item budget format contains no mechanisms to limit employment, establish goals and objectives or link performance to spending authority and provides no basis for performance measurement and accountability; and

    Whereas, Strict control of the line-item format has not been maintained over the decades to limit certain types of spending to corresponding budget line-items, also known as “activities”, fundamental to its original design, such as confining personal services spending to “personal services” activities, employee benefits to “employee benefit” activities; and

    Whereas, Spending units have found creative ways to avoid fund expirations and otherwise manipulate the budget process; and

    Whereas, The past decades have witnessed innovations in budget types and approaches with performance-based budgeting, zero-based budgeting and program-based budgeting approaches pushing out line-item budgeting in many other states and political subdivisions across the nation; and

    Whereas, The state is currently undertaking procurement of a new enterprise resource planning solution which will be capable of facilitating changes in the state’s budgeting and accountability systems; and

    Whereas, Relying on state agencies to provide fiscal notes on legislative proposals often yields unsatisfactory results, whether for a lack of fiscal note dedicated staff, skills, time or priority by executive or judicial branch entities or because of political, organizational or personal bias or perceived bias on the part of legislators; and

    Whereas, The topics of some fiscal notes and research questions do not fit within the jurisdiction of any existing state office or may not concern the expenditure of state funds but rather the impact upon private markets; and

    Whereas, The Legislature currently has no means of developing its own, joint, nonpartisan revenue estimates which could bring the Executive to public account; and

    Whereas, Unlike some states, West Virginia has no “legislative budget commission” or legislative entity responsible for the proposal of a legislative budget prior to the creation of the executive budget proposal which would provide another point of reference as work on the executive budget proposal commences; and

    Whereas, In addition to the finance committee staff of the respective houses, which serve the committee and its chair in the development, research and analysis of appropriation and policy bills, many states maintain joint legislative budget offices with budget specialists charged with very focused areas of responsibility and content knowledge rivaling that of cabinet secretaries and directors, serving all members and committees and consulting throughout the budget process and making reports; and

    Whereas, As a part-time Legislature, a full-time budget office could be especially helpful in monitoring budget activities and agency performance on a year-round basis; and

    Whereas, There has long been a casual dialog regarding the Legislature’s need to produce its own fiscal notes and the need for a legislative budget office but never an intensive study to weigh potential benefits against likely costs; and

    Whereas, The citizens demand and deserve that their elected officials be prudent in levying and maintaining taxes and parsimonious in spending the proceeds thereof; therefore, be it

    Resolved by the Legislature of West Virginia:

    That the Joint Committee on Government and Finance is hereby requested to authorize a broad study of budgeting, including budget formats, approaches, processes, procedures and controls; administration of fiscal notes; revenue estimating; performance accountability and incentives; mechanisms for proposing a legislative budget; and additional resources for analysis, research and oversight; and, be it

    Further Resolved, That the Joint Committee on Government and Finance report to the regular session of the Legislature, 2012, on its findings, conclusions and recommendations, together with drafts of any legislation necessary to effectuate its recommendations; and, be it

    Further Resolved, That the Legislative expenses necessary to conduct this study, to prepare a report and to draft necessary legislation be paid from legislative appropriations to the Joint Committee on Government and Finance.