House File 352 - Introduced HOUSE FILE 352 BY COMMITTEE ON STATE GOVERNMENT (SUCCESSOR TO HF 1) A BILL FOR An Act requiring the budget submissions of state agencies to 1 utilize a zero-base approach. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1110HV (1) 86 tm/rj

H.F. 352 Section 1. Section 8.23, subsection 1, paragraph a, Code 1 2015, is amended to read as follows: 2 a. The estimates of expenditure requirements shall be 3 based upon seventy-five percent of the funding provided for 4 the current fiscal year accounted for by program reduced by 5 the historical employee vacancy factor in form specified 6 by the director and the remainder of the estimate of 7 expenditure requirements prioritized by program utilize a 8 zero-base approach of providing sufficient supporting data and 9 explanations to justify each expenditure as though it were a 10 new expenditure . The estimates shall include a prioritization 11 of each expenditure in relation to the other expenditures 12 transmitted. The estimates shall be accompanied with by 13 performance measures for evaluating the effectiveness of the 14 program. 15 Sec. 2. Section 602.1301, subsection 2, paragraph a, 16 unnumbered paragraph 1, Code 2015, is amended to read as 17 follows: 18 As early as possible, but not later than December 1, the 19 supreme court shall submit to the legislative services agency 20 the annual budget request and detailed supporting information 21 for the judicial branch. The submission shall be designed 22 to assist the legislative services agency in its preparation 23 for legislative consideration of the budget request. The 24 information submitted shall contain and be arranged in a 25 format substantially similar to the format specified by 26 the director of management and used by all departments and 27 establishments in transmitting to the director estimates of 28 their expenditure requirements pursuant to section 8.23 , except 29 the estimates of expenditure requirements shall be based 30 upon one hundred percent of funding for the current fiscal 31 year accounted for by program, and using the same line item 32 definitions of expenditures as used for the current fiscal 33 year’s budget request, and the remainder of the estimate of 34 expenditure requirements prioritized by program by utilizing 35 -1- LSB 1110HV (1) 86 tm/rj 1/ 3

H.F. 352 a zero-base approach of providing sufficient supporting 1 data and explanations to justify each expenditure as though 2 it were a new expenditure . The estimates shall include a 3 prioritization of each expenditure in relation to the other 4 expenditures submitted. The supreme court shall also make 5 use of the department of management’s automated budget system 6 when submitting information to the director of the department 7 of management to assist the director in the transmittal of 8 information as required under section 8.35A . The supreme court 9 shall budget and track expenditures by the following separate 10 organization codes: 11 EXPLANATION 12 The inclusion of this explanation does not constitute agreement with 13 the explanation’s substance by the members of the general assembly. 14 This bill requires the budget submissions of executive 15 branch departments and the judicial branch to utilize a 16 zero-base approach. 17 Currently, under Code section 8.23, the executive branch 18 departments’ estimates of expenditure requirements are based 19 upon 75 percent of the funding provided for the current fiscal 20 year as adjusted by the historical employee vacancy factor. 21 The remaining expenditure requirements are prioritized by 22 program. Under the bill’s zero-base approach, the expenditure 23 requirements must provide sufficient supporting data and 24 explanations to justify each expenditure as though it were a 25 new expenditure. The estimates are also required to include 26 a prioritization of each expenditure in relation to the other 27 expenditures transmitted. 28 Currently, under Code section 602.1301, unlike the 29 requirement of the executive branch, the supreme court must 30 submit an annual operating budget for the judicial branch 31 that is based upon 100 percent of the funding provided for 32 the previous fiscal year. As with the executive branch 33 departments, the bill replaces the 100 percent requirement with 34 a zero-base approach requiring data and explanations for each 35 -2- LSB 1110HV (1) 86 tm/rj 2/ 3

H.F. 352 expenditure and a prioritization of the expenditures. 1 -3- LSB 1110HV (1) 86 tm/rj 3/ 3