New Mexico Accountability in Government Act

6-3A-1. Short title.

Sections 1 through 8 [6-3A-1 to 6-3A-8 NMSA 1978] of this act may be cited as the "Accountability in Government Act".

6-3A-2. Findings and purpose.

A. The legislature finds that agencies should:

1.      be granted sufficient statutory authority and flexibility to use their resources in the best possible way in order to better serve the citizens of New Mexico through the efficient delivery of services and products and the effective administration of governmental programs;

2.      be held accountable for the services and products they deliver in accordance with clearly defined missions, goals and objectives;

3.      develop performance measures for evaluating performance and assessing progress in achieving goals and objectives, and those measures should be integrated into the planning and budgeting process and maintained on an ongoing basis;

4.      have incentives to deliver services and products in the most efficient and effective manner and, if appropriate, recommend the restructuring of ineffective programs or the elimination of unnecessary programs;

5.      have their performance in achieving desired outputs and outcomes and in efficiently operating programs measured and evaluated in an effort to improve program coordination, eliminate duplicate programs or activities and provide better information to the governor, the legislature and the public; and

6.      strive to keep the citizens of this state informed of the public benefits derived from the delivery of agency services and products and of the progress agencies are making with regard to improving performance.

B.     The purpose of the Accountability in Government Act [6-3A-1 to 6-3A-8 NMSA 1978] is to provide for more cost-effective and responsive government services by using the state budget process and defined outputs, outcomes and performance measures to annually evaluate the performance of state government programs.

6-3A-3. Definitions.

As used in the Accountability in Government Act [6-3A-1 to 6-3A-8 NMSA 1978]:

1. "agency" means a branch, department, institution, board, bureau, commission, district or committee of the state;
2. "approved program" means a program included in an approved list of programs issued by the division pursuant to Section 4 [6-3A-4 NMSA 1978] of the Accountability in Government Act;
3. "baseline data" means the current level of a program's performance measures established pursuant to guidelines established by the division in consultation with the committee;
4. "committee" means the legislative finance committee;
5. "division" means the state budget division of the department of finance and administration;
6. "outcome" means the measurement of the actual impact or public benefit of a program;
7. "performance-based program budget" means a budget that identifies a total allowed expenditure for a program and includes performance measures, performance standards and program evaluations;
8. "performance measure" means a quantitative or qualitative indicator used to assess the output or outcome of an approved program;
9. "performance standard" means a targeted level of an output or outcome as indicated by performance measures; and
10. "program" means a set of activities undertaken in accordance with a plan of action organized to realize identifiable goals and objectives based on legislative authorization.

6-3A-4. Program identification.

A.     Prior to May 1 of each year, each agency that is required to submit a performance-based program budget request in the subsequent fiscal year shall identify and submit to the division and committee a list of agency programs. The division, in consultation with the committee and the agency, shall review the list, make any necessary changes and issue an approved list within thirty days of receipt. The division shall send a copy of the approved list to the committee.

B. The program list submitted by an agency shall be accompanied by:

1. the constitutional or statutory direction and authority for each program;
2. identification of the users of each program;
3. the purpose of each program or the benefit derived by the users of the program; and
4. other financial information as required by the division in consultation with the committee.

6-3A-5. Performance measures.

1. Prior to June 1 of each year, the division, in consultation with the committee, shall develop instructions for the development of performance measures for evaluating approved programs.
2. Prior to July 1 of each year, each agency required to submit a performance-based budget request in the subsequent fiscal year shall submit to the division the proposed performance measures for each approved program. The agency shall identify the outputs produced by each program, the outcomes resulting from each program and baseline data associated with each performance measure. The division, in consultation with the committee and the agency, shall review the proposed performance measures, make necessary changes and issue approved performance measures within thirty days of receipt. The division shall send a copy of the approved performance measures to the committee.

6-3A-6. Schedule for submission of performance-based program budget requests.

1. State agencies shall submit performance-based program budget requests pursuant to a schedule to be developed by the division, in consultation with the committee. No later than September 1, 1999 and each September 1 thereafter, the agencies shall submit performance-based program budget requests for the subsequent fiscal year to the division and to the committee based on that schedule.
2. The division shall develop the state agency schedule so that all agencies, including the judicial branch of government and institutions of higher education, are implementing performance-based program budgeting by the end of fiscal year 2004.

6-3A-7. Performance-based program budget requests.

1. The division, in consultation with the committee, shall develop instructions for those agencies required to submit performance-based program budget requests. The instructions shall be sent to the agencies on or before July 1 of each year and shall be in addition to any other forms required by Section 6-3-18 NMSA 1978. The instructions shall require that performance-based program budget requests contain the following:

1. a summary of each approved program, including a justification for the program;
2. for each approved program, an evaluation of the agency's progress in meeting the performance standards. The evaluation shall be developed as prescribed in the budget instructions;
3. or each approved program, the outputs, outcomes, baseline data, performance measures and historic and proposed performance standards;
4. if a performance audit has been conducted on an approved program during either the present or any of the immediately preceding two fiscal years, any responses that the agency may have to the audit and any actions that the agency has taken as a result of the audit; and
5. any other information that the division believes may be useful to the division or the legislature in developing a budget for the agency.

B. On or before September 1 of each year, each agency required to submit a performance-based program budget request shall submit the request to the division and the committee in the form and manner prescribed in the budget instructions. Budget requests submitted pursuant to this section shall be in lieu of those required by Section 6-3-19 NMSA 1978.

6-3A-8. Performance-based program budgets.

1. For each agency required to submit a performance-based program budget request, the governor's proposed budget submitted pursuant to Section 6-3-21 NMSA 1978 and the committee's budget recommendation pursuant to Section 2-5-4 NMSA 1978 shall contain:

1. a budget recommendation for each approved program;
2. a summary, including the outputs and outcomes, of each approved program;
3. performance measures and performance standards for each approved program;
4. an evaluation of the performance of each approved program; and
5. any other criteria deemed relevant by the governor or the committee.

2. For each agency required to submit a performance-based program budget request, the governor's proposed budget submitted pursuant to Section 6-3-21 NMSA 1978 and the committee's budget recommendation pursuant to Section 2-5-4 NMSA 1978 may contain recommendations regarding incentives or disincentives for agency performance. Incentives or disincentives may apply to all or part of an agency and may apply to any or all of an agency's approved programs.
3. Pursuant to Section 6-3-7 NMSA 1978, the division shall prescribe forms and approve operating budgets for agencies funded by performance-based program budgets; however, the division shall not take any action that hinders an agency from operating under a performance-based appropriation or that is otherwise inconsistent with the purposes of the Accountability in Government Act [6-3A-1 to 6-3A-8 NMSA 1978]. Notwithstanding the provisions of Sections 6-3-23 through 6-3-25 NMSA 1978, and absent specific authorization in the general appropriation act or other act of the legislature, no funds may be transferred either into or out of a performance-based program budget.
4. No later than July 1 of the year in which a state agency begins operating under a performance-based program budget, the agency shall develop, in consultation with the division, a plan for monitoring and reviewing the agency's programs to ensure that performance data are maintained and supported by agency records.