1.1.................... moves to amend H.F. No. 2720 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2010, section 16A.10, is amended to read:
1.5    Subdivision 1. Budget format. (a) In each even-numbered calendar year the
1.6commissioner shall prepare budget forms and instructions for all agencies, including
1.7guidelines for reporting agency performance measures, subject to the approval of the
1.8governor. These forms and instructions shall include guidelines for:
1.9(1) classifying revenue by:
1.10(i) fund;
1.11(ii) program;
1.12(iii) activity; and
1.13(iv) source of revenue;
1.14(2) classifying expenditures by:
1.15(i) fund;
1.16(ii) program;
1.17(iii) activity;
1.18(iv) character or object of expenditure; and
1.19(v) outcome; and
1.20(3) reporting performance.
1.21(b) The commissioner shall request and receive advisory recommendations from
1.22the chairs of the senate Finance Committee and house of representatives Ways and
1.23Means Committee before adopting a format for the biennial budget document. By June
1.2415, the commissioner shall send the proposed budget forms to the appropriations and
1.25finance committees. The committees have until July 15 to give the commissioner their
1.26advisory recommendations on possible improvements. To facilitate this consultation, the
2.1commissioner shall establish a working group consisting of executive branch staff and
2.2designees of the chairs of the senate Finance and house of representatives Ways and Means
2.3Committees. The commissioner must involve this group in all stages of development of
2.4budget forms and instructions. The budget format must show actual expenditures and
2.5receipts for the most recent fiscal year, estimated expenditures and receipts for the current
2.6fiscal year, and estimates for each fiscal year of the next biennium. Estimated expenditures
2.7must be classified by funds and character of expenditures and may be subclassified by
2.8programs and activities. Agency revenue estimates must show how the estimates were
2.9made and what factors were used. Receipts must be classified by funds, programs, and
2.10activities. Expenditure and revenue estimates must be based on the law in existence at the
2.11time the estimates are prepared.
2.12    Subd. 1a. Purpose of performance data. Performance data shall be presented in
2.13the budget proposal to:
2.14(1) provide information so that the governor, legislature, and the public can
2.15determine the extent to which state agencies, programs, and activities are successful;
2.16(2) encourage agencies to develop clear and measurable goals and objectives for
2.17their programs and activities; and
2.18(3) strengthen accountability to Minnesotans by providing a record of state
2.19government's performance in providing effective and efficient services and achieving
2.20statewide outcomes.
2.21    Subd. 1b. Performance data format. (a) As part of the budget proposal, agencies
2.23(1) describe the goals and objectives of each agency program and activity;
2.24(2) provide evidence for how each agency program and activity goal and objective
2.25contributes to achieving one statewide outcome; and
2.26(3) present performance data that measures the performance of programs and
2.27activities in meeting program the agency's goals and objectives and contributing to one
2.28statewide outcome.
2.29(b) Measures reported may include indicators of outputs, efficiency, outcomes,
2.30effectiveness, and other measures relevant to understanding each program and activity.
2.31(c) Agencies shall present as much historical information as needed to understand
2.32major trends and shall set targets for future performance issues where feasible and
2.33appropriate. The information shall appropriately highlight agency performance issues that
2.34would assist legislative review and decision making.
2.35(d) For purposes of this subdivision and subdivisions 1 and 2, the terms "program"
2.36and "activity" are used in the same manner as the terms are used in state budgeting.
3.1However, the commissioner may authorize an agency to define these terms in a different
3.2manner if that allows for a more effective presentation of performance data. The term
3.3"statewide outcome" means an outcome included in the chart of outcomes developed
3.4under subdivision 4.
3.5    Subd. 1c. Performance measures for change items. For each change item in the
3.6budget proposal requesting new or increased funding, the budget document must classify
3.7expenditures by agency, program, activity, and statewide outcome, and present proposed
3.8performance measures that can be used to determine if the new or increased funding is
3.9accomplishing its goals. To the extent possible, each budget change item must identify
3.10relevant Minnesota Milestones and other statewide goals and indicators related to the
3.11proposed initiative. The commissioner must report to the Subcommittee on Government
3.12Accountability established under section 3.885, subdivision 10, regarding the format to
3.13be used for the presentation and selection of Minnesota Milestones and other statewide
3.14goals and indicators.
3.15    Subd. 2. By October 15 and November 30. By October 15 of each even-numbered
3.16year, an agency must file the following with the commissioner:
3.17(1) budget estimates for the most recent and current fiscal years;
3.18(2) its upcoming biennial budget estimates;
3.19(3) a comprehensive and integrated statement of agency missions and outcome
3.20and performance measures; and
3.21(4) a concise explanation of any planned changes in the level of services or new
3.22activities; and
3.23(5) a comprehensive list that links every budget program, activity, and appropriation
3.24with the one statewide core outcome that it primarily supports; and
3.25(6) after June 30, 2014, a comprehensive list that links every budget program,
3.26activity, and appropriation with the one statewide contributing outcome that it primarily
3.28The commissioner shall prepare and file the budget estimates for an agency failing to
3.29file them. By November 30, the commissioner shall send the final budget format, agency
3.30budget estimates for the next biennium, and copies of the filed material to the Ways and
3.31Means and Finance Committees, except that the commissioner shall not be required to
3.32transmit information that identifies executive branch budget decision items.
3.33    Subd. 3. Duties to governor-elect. Immediately after the election of a new
3.34governor, the commissioner shall report the budget estimates and make available to the
3.35governor-elect all department information, staff, and facilities relating to the budget.
4.1    Subd. 4. Chart of outcomes. The Statewide Budgeting System and the Statewide
4.2Accounting System must include a chart of outcomes to be used for classifying all agency
4.3programs, activities, and allotments. The chart of outcomes must include:
4.4(1) up to ten state-level core outcomes that citizens expect from government;
4.5(2) three to five state-level contributing outcomes that evidence shows most
4.6contribute to achieving each core state-level core outcome in clause (1); and
4.7(3) a performance measure for each core outcome and each contributing outcome.
4.8EFFECTIVE DATE.This section is effective upon enactment of a law approving
4.9the chart of outcomes, according to section 2, and must be implemented as soon as
4.10possible after that date.

4.12The commissioner of management and budget, in consultation with the chairs and
4.13ranking minority members of the house Ways and Means and senate Finance Committees
4.14and legislative staff designated by those legislators, must report a proposed chart of
4.15outcomes to the Legislative Commission on Planning and Fiscal Policy by October 15,
4.162012. The chart of outcomes must be implemented as soon as possible after enactment of
4.17a law approving the chart of outcomes."
4.18Amend the title accordingly