State Budget.

(1) The California Constitution requires the Governor to submit annually to the Legislature a budget itemizing state expenditures and estimating state revenues and requires the Legislature to pass the Budget Bill by midnight on June 15. This bill would require that the budget submitted by the Governor to the Legislature for the 2013–14 fiscal year and each fiscal year thereafter, as specified in a plan developed by the Department of Finance and distributed to the appropriate committees of the Legislature by August 1, 2012, be developed pursuant to performance-based budgeting, as defined, for each state agency. (2) Under existing law, a state agency for which an appropriation is made is generally required to submit to the Department of Finance for approval a complete and detailed budget setting forth all proposed expenditures and estimated revenues for the ensuing fiscal year. The bill would require the budget of a state agency, as defined, submitted to the department as specified in the plan developed by the department, to utilize performance-based budgeting for all programs, as defined to include those performed not only by state agencies, but by local agencies, contractors, or others that have a material relationship with the state, or its authorities and activities. For those programs not administered by the state, but which confer a benefit that would not otherwise be conferred but for the action of state government, state departments would be required to develop a process for consulting with responsible local agencies, contractors or other responsible entities, and stakeholders to develop information related to performance standards and program performance. The bill would require the department to include specified performance-based budgeting information in the Governor's Budget proposal and to post that information on the department's Internet Web site. Implementation of the requirement to use performance-based budgeting for departments and programs would be contingent on an appropriation of funding for that requirement in the annual Budget Act.