HF 1599

as introduced - 87th Legislature (2011 - 2012) Posted on 04/28/2011 09:54am

A bill for an act
relating to state government; creating the Minnesota Northstar Council; requiring
a state strategic plan and agency strategic plans; proposing coding for new law
as Minnesota Statutes, chapter 15D.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [15D.01] PURPOSE.
new text end

new text begin The Minnesota action/accountability plan recognizes that the long-term success and
high quality of life of Minnesota will depend on a dynamic approach to governance that
brings public officials and citizens together to set a clear vision for the state's future built
on a shared vision that is based upon a foundation of planning, performance management,
accountability, and empowerment. This requires that the state: (1) creates a strategic
plan; (2) innovates in the delivery of public services; and (3) measures its success in
producing superior results for the citizens of the state. The provisions of this chapter shall
be accomplished by the state legislature, the Office of the Governor, and state agencies
within existing appropriations.
new text end

Sec. 2.

new text begin [15D.02] MINNESOTA NORTHSTAR COUNCIL.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner of management and budget must
establish and convene the Minnesota Northstar Council to develop a state strategic plan
which will include: (1) a mission statement for the state; (2) up to ten policy goals; and (3)
up to 100 strategic performance measures.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin (a) The Minnesota Northstar Council shall consist of 17
members and shall be led by an executive committee made up of the following members:
new text end

new text begin (1) two members appointed by the governor;
new text end

new text begin (2) one member appointed by the speaker of the house;
new text end

new text begin (3) one member appointed by the minority leader of the house of representatives;
new text end

new text begin (4) one member appointed by the majority leader of the senate; and
new text end

new text begin (5) one member appointed by the minority leader of the senate.
new text end

new text begin (b) The executive committee must appoint one member representing each of the
following:
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new text begin (1) private business;
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new text begin (2) organized labor;
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new text begin (3) nonprofit organizations;
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new text begin (4) foundations;
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new text begin (5) counties;
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new text begin (6) cities;
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new text begin (7) townships;
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new text begin (8) school boards;
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new text begin (c) The executive committee shall also appoint one member each:
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new text begin (1) having expertise in performance measurement;
new text end

new text begin (2) having expertise in redesign and planning; and
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new text begin (3) representing Minnesota youth.
new text end

new text begin (d) The following are nonvoting members of the council:
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new text begin (1) the commissioner of management and budget or the commissioner's designee;
new text end

new text begin (2) a member appointed by the Board of Regents of the University of Minnesota;
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new text begin (3) the state demographer; and
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new text begin (4) the state economist.
new text end

new text begin (e) The governor shall designate one of the members of the council to serve as
chair. The commissioner of management and budget shall provide staff assistance and
administrative support to the council.
new text end

new text begin (f) Members serve at the pleasure of the appointing authority. Members may be
reimbursed for expenses as provided in section 15.059.
new text end

new text begin (g) All actions of the council must be approved by a majority vote of a quorum
of members appointed under paragraphs (a), (b), and (c) who are present at a meeting.
The state strategic plan must be approved by an affirmative vote of at least nine voting
members of the council, including at least four members of the executive committee.
new text end

Sec. 3.

new text begin [15D.03] STATE STRATEGIC PLAN; STRATEGIC PERFORMANCE
MEASURES.
new text end

new text begin Subdivision 1. new text end

new text begin Development. new text end

new text begin (a) The council, with advice from state departments
and agencies and aligned legislative committee chairs and ranking minority caucus
members, shall develop a state strategic plan which must include: (1) a mission
statement for the state; (2) up to ten policy goals; and (3) up to 100 outcome-based
strategic performance measures. Strategic performance measures are defined as a
level of achievement by which the state and its departments can measure their own
progress against internal or external standards. Strategic performance measures must be
outcome-based measures.
new text end

new text begin (b) In developing the state strategic plan, the council shall solicit, gather, and
coordinate citizen input from citizens across the state. The council may consider the work
and process of the Minnesota Milestones under the Department of Administration and
Minnesota Compass, led by Wilder Research in developing the strategic plan and in the
council's other work. The council must consider the use of social media to solicit input.
new text end

new text begin (c) The council must complete the initial state strategic plan by August 1, 2012.
The council shall review and approve changes to the strategic plan by January of each
even-numbered year. The strategic plan shall undergo continuous review and improvement
by the Northstar Council, and the council shall review each of the ten goal areas and
aligned strategic measures at least once every ...................
new text end

new text begin Subd. 2. new text end

new text begin Strategic performance measures. new text end

new text begin The council or Minnesota Management
and Budget must designate an owner for each strategic performance measure that the
council establishes as a means of measuring progress toward accomplishment of the
public policy goals established by the council. The owner is responsible for the tracking
of the measures, the results of the strategic performance measures, and the strategies
implemented to improve performance.
new text end

new text begin Subd. 3. new text end

new text begin Performance improvement plans. new text end

new text begin (a) Upon request of the commissioner
of management and budget, the head of an executive agency must develop a new, or
review an existing, performance improvement plan for each relevant public policy goal
and related aligned strategic performance measures. The performance improvement plan
must propose actions for achieving the goals and measurements created by the Northstar
Council and must include input from aligned legislative committees and their chairs and
the Department of Management and Budget. In addition, the performance improvement
plan may include a description of how volunteer, service, nonprofit, and business sectors
will be engaged in improving the strategic performance measurement.
new text end

new text begin (b) The department or agency officer in charge of a strategic performance
measurement may designate an existing working group or create a new working group
in order to receive feedback, develop the performance improvement plan, and carry out
the performance improvement plan. Working groups may include members from the
public and private sectors but shall not include vendors that would directly benefit from
contracts with this department or agency.
new text end

Sec. 4.

new text begin [15D.04] AGENCY STRATEGIC PLANS; PERFORMANCE
MANAGEMENT SYSTEMS.
new text end

new text begin Subdivision 1. new text end

new text begin Development of strategic plan. new text end

new text begin Each state agency and department
listed in section 15.06 must work with the aligned legislative committees and their
chairs and the Department of Management and Budget to prepare a strategic plan using
an outcome-based approach for the agency or department under the commissioner's
jurisdiction.
new text end

new text begin Subd. 2. new text end

new text begin Required content. new text end

new text begin Each agency strategic plan must be aligned with the
state strategic plan and must identify key strategic outcomes as priorities for the next
two bienniums and must include:
new text end

new text begin (1) a mission statement for the agency or department;
new text end

new text begin (2) outcome-based strategic performance measures within the state strategic plan
that fall under the jurisdiction of the agency or department;
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new text begin (3) quality and productivity department or agency performance measures for
determining performance for each major activity within the agency's or department's
budget, and that measure the performance of state-mandated services or operations. All
budget items must be assigned an outcome-based goal within the state strategic plan;
new text end

new text begin (4) the methodology used to create the metrics to measure the performance measures;
new text end

new text begin (5) the goal level of performance for each performance measure;
new text end

new text begin (6) if progress has been made from the previous year on each performance measure;
new text end

new text begin (7) a method by which the success or failure to achieve the outcome will be
measured;
new text end

new text begin (8) the executive official or owner responsible for achieving each performance
measure;
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new text begin (9) the agency's or department's plans to achieve the goals and improve the
department's performance within the department or agency plan; and
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new text begin (10) the projected costs for achieving the department's or agency's strategic plan.
new text end

new text begin Subd. 3. new text end

new text begin Private sector engagement. new text end

new text begin Notwithstanding any other law to the
contrary, the department or agency may collaborate with the volunteer, nonprofit, service,
and business sectors to develop the department's or agency's strategic plan and work with
the council to support stakeholder agencies to separately or jointly seek and receive funds
to provide expert technical assistance to the department, agency, council, participating
counties, and any work groups or groups formed to execute the provisions of sections
15D.01 to 15D.07, including funding to develop the information resources infrastructure
and to assist counties to design, implement, evaluate, and improve the innovations under
section XXX.XX for MAGIC waivers.
new text end

new text begin Subd. 4. new text end

new text begin Performance improvement plans. new text end

new text begin Upon request of the commissioner
of the agency or department of the aligned strategic plan, employees must develop
a performance improvement plan for each performance measure. The performance
improvement plan must include proposals and actions for achieving the goals and
measurements. In addition, the performance improvement plan may include a description
of how the volunteer, service, nonprofit, and business sectors will be engaged in improving
performance in that area. The department or agency officer in charge of this performance
measurement may designate an existing working group or create a new working group
in order to receive feedback, develop the performance improvement plan, and carry out
the performance improvement plan. Working groups may include members from the
public and private sectors but shall not include vendors that would directly benefit from
contracts with this department or agency.
new text end

new text begin Subd. 5. new text end

new text begin Northstar Council review. new text end

new text begin The Northstar Council must review each
department and agency strategic plan developed under this section. The head of each
agency or department must designate a key contact for each strategic performance
measure. The key contact is responsible for tracking the results of the performance
measure. The council may make suggestions to the governor on alignment between the
state's and departments' strategic plans.
new text end

new text begin Subd. 6. new text end

new text begin Technical assistance. new text end

new text begin The Department of Management and Budget
shall provide technical assistance to departments or agencies in the development of the
department or agency plans, performance measures, and outcome-based budgeting. The
Office of Enterprise Technology shall provide technological support in order to track
performance and make information available to the public and shall review the feasibility
of utilizing Minnesota Compass led by Wilder Research, and its professional and technical
infrastructure, for information resource development to meet the purposes of sections
15D.01 to 15D.07.
new text end

Sec. 5.

new text begin [15D.05] IMPROVING AGENCY OPERATIONS AND PRODUCTIVITY.
new text end

new text begin Subdivision 1. new text end

new text begin Employee objectives and learning. new text end

new text begin Each state department and
agency listed in section 15.06 must align all employee objectives and learning to the state
and agency strategic plans, performance measures, and improvement plans.
new text end

new text begin Subd. 2. new text end

new text begin Report. new text end

new text begin Each state department and agency listed in section 15.06 shall
recommend to the governor and the legislature by January 15 of each even-numbered year
any statutory changes that will improve performance measures.
new text end

new text begin Subd. 3. new text end

new text begin Performance objectives. new text end

new text begin All state managers must set performance
objectives for their units annually to be used in the annual performance appraisals of
their employees. Each employee must have a learning and development plan. The
commissioner of management and budget must conduct annual employee surveys to
gather employee input on how agencies can improve performance.
new text end

new text begin Subd. 4. new text end

new text begin Governor review of agency performance. new text end

new text begin The governor shall hold an
annual performance review with all of the state departments and agencies listed in section
15.06 to ensure that they are making progress in implementing their strategic plans,
performance measures, and improvement plans.
new text end

Sec. 6.

new text begin [15D.06] PUBLIC REPORT CARD ON STATE PERFORMANCE.
new text end

new text begin (a) Minnesota Management and Budget shall propose the form of a Minnesota
state performance report card to the council for approval. The report card shall be made
public by January 15, 2013, and be updated each year. the report card must be in a format
easily understood by the public and include: (1) state policy goals; (2) the strategic
performance measures; (3) the methodology used to create the metrics to measure the
strategic performance measures; (4) the goal level of performance for each performance
measure determined by the Northstar Council; (5) whether progress has been made
from the previous year on each performance measure; (6) a statement of value to the
taxpayer when possible; (7) a statement relating if the value has gone down or up from the
previous year based on an indexed rate of change when possible; (8) the executive official
responsible for achieving each performance measure; and (9) the legislative committee
that has jurisdiction for the department or agency.
new text end

new text begin (b) The commissioner of management and budget shall conduct an annual citizen
survey to determine citizen perception of achievement of the state's goals and performance
measures where applicable.
new text end

Sec. 7.

new text begin [15D.07] BUDGETING BASED ON STATE STRATEGIC PLAN.
new text end

new text begin (a) The governor shall propose a budget based on the state strategic plan. The
commissioner of management and budget must work with state departments and agencies
in developing their budgets based on the ten public goals in the state's strategic plan as well
as the department and agency strategic plans, performance measures, and improvement
plans. The governor's budget proposal must indicate the impact on achieving the state's
goals. The budget must be presented by department or by goal achievement as outlined in
the state's strategic plan.
new text end

new text begin (b) Department or agency budget proposals must include integration of performance
measures that allow objective determination of an activity's success in achieving strategic
goals. Each department or agency shall include in the budget proposal an explanation of
how the budget request promotes the strategic goals, performance measures, and outcomes
outlined in the applicable strategic plan. For each change item in the budget proposal,
the goal or performance measure to be achieved by the cost increase must be identified
along with the method to evaluate whether or not the outcome has been achieved. The
governor's budget must consider proposals to eliminate mandates and maintenance of
effort provisions if alternative forms of service delivery can meet or exceed identified
performance outcomes.
new text end

new text begin (c) Budget targets shall be set by goal or outcome achieved, rather than by
department. Budget items shall be evaluated and ranked within each budget to determine
how well that budget item contributes to the achievement of the state's strategic goals.
Budget items that lead to high outcome achievement will receive high budget priority,
and budget items that lead to low outcome achievement will be ranked lower and may
not receive funding.
new text end

new text begin (d) The departments must present biannually to the aligned legislative committees
on the achievement of the state's strategic goals through aligned strategic plans and
performance measures. The chair of the aligned legislative committees may request
updates at any time. The commissioner of management and budget shall work with
department and agency staff to prepare fiscal notes that, in addition to financial impacts,
also indicate how a bill will impact the achievement levels of the state's and departments'
strategic plans and performance measures.
new text end

new text begin (e) The legislature may use the performance measurement system to mandate
performance measure outcomes for state agencies rather than mandating a process
or service delivery mandate or maintenance of effort. The legislature must take
implementation costs into account when setting mandates for performance-based
outcomes.
new text end