(a) "Continuous improvement" means a set of actions designed to permanently improve state agency performance, either in a specific targeted area or across all levels of an agency, through the use of structured process analysis and problem solving.
(b) "Outcomes-based budget" means a budget that allocates government resources to those uses of taxpayer moneys and fee revenues that will best produce the outcomes most important to the residents of this state, that generates options for funding, that uses service redesign, competition, collaboration and prioritization to drive continuous improvement and innovations, and that can be used to align government, nonprofit and private resources to help produce the desired outcomes.
(c) "Performance management" means a formal, comprehensive set of business processes, including strategic planning, performance measurement, leadership, process management and human resources that help ensure more efficient and effective management operations and practices and reduce costs.
(d) "Performance measurement" means a process of assessing progress toward achieving predetermined program objectives, including information on the efficiency with which resources are transformed into goods and services, the quality of those goods and services, the results of a program activity compared to its intended purpose and the effectiveness of state agency operations in terms of their specific contributions to program objectives.
(e) "State agency" means every state officer, board, commission, department, institution, branch or agency of the state government whose costs are paid wholly or in part from funds held in the State Treasury.
(f) "State government" has the meaning given that term in ORS 174.111.
(2) As part of the Governor’s budget required under ORS 291.216, the Oregon Department of Administrative Services and the Governor shall submit an outcomes-based budget. The outcomes-based budget shall be based on the desired results of state agency continuous improvement actions, performance management and performance measurement, shall describe and measure state agency efforts to implement process improvements and shall reflect state agency efforts to achieve, through process improvements, quality service delivery at a lower cost.
(3) The budget for each state agency shall:
(a) Identify how the agency is addressing continuous improvement, performance management and performance measurement; and
(b) For each agency program, state the number of persons served, or other units of service provided, by the program.
(4) The Joint Committee on Ways and Means, the Emergency Board, the Joint Interim Committee on Ways and Means and the Legislative Fiscal Office may review performance management and performance measurement processes for services provided by contract by state agencies or by school districts. [2011 c.563 §§2 to 4; 2012 c.107 §8; 2016 c.117 §20]