Press Room

SMART Bill Keeps Government SMARTer

Monday, August 9 2010

Sen. Shaffer’s and Rep. Ferrandino’s New Law to Take Effect This Week

DENVER—    Senate President Brandon Shaffer (D-Longmont) and Representative Mark Ferrandino (D-Denver) sponsored an important law that will take effect this Wednesday, August 11, 2010. House Bill 1119, The SMART (Strengthening Measurements for Accountable, Responsive, and Transparent) Government Act increases accountability and efficiency by utilizing “performance budgeting” strategies. The state assembly will have more oversight to ensure the state departments are running effectively and efficiently and to ensure that funding for each department is linked to the results of that funding.  Departments will be audited by the legislature, required to set certain goals, and provide annual reports.

 (photo: Gov. Ritter signs 2010-11 budget)

“It’s essential that the budget be tied to performance so that we know where every dollar is going and how effectively that money is being used,” stated President Shaffer. “With this legislation we are improving transparency and strengthening the way we do business. I’m proud to have carried this bill for Colorado citizens.”

 “SMART Government will change the way we create and present our state budget.  It will be easier for the average person to understand where our money comes from and what programs it provides.  It will be easier for legislators to evaluate how taxpayers’ dollars are spent; and if they are being spent wisely,” said Rep. Ferrandino.  

 This law requires the State Auditor to conduct performance audits of every department of state government and report back to the legislature.  The performance audits measure how well each department is doing in achieving its mission.  This allows performance-based budgeting to reward agencies that are meeting strategic goals and root out waste in agencies that aren’t.  Where there are duplications or inefficiencies, those resources can be reallocated to other priorities like economic development and K-12 education.  All this information will also be available online at the website for the Office of State Planning and Budgeting for taxpayers to see how their money is being spent.

 This legislation could not have come at a better time. In the midst of an economic downturn, it is more important than ever that taxpayer money is allocated as judiciously as possible.  HB 1119 is just one of many measures passed last session to make Colorado’s government accountable to taxpayers and transparent.  HB 1119 passed with strong bipartisan support.