A newly drafted bill that calls for more performance based budgeting could eventually save state taxpayers about $250 million a year, according to some lawmakers.

"This will save at least 5 percent of the state's budget each year," said Lt. Gov. Phil Bryant to a group of state and local officials and other concerned citizens Tuesday at the MSU Riley Center in downtown Meridian.

Meridian was the second of a three-city stop to announce a new report, released by Bryant and the Commission for a New Mississippi. The report discusses a more effective strategy for "the way the state conducts the people's business."

"Government really should be a mission that's driven with goals," said State Sen. Videt Carmichael, who was present for the announcement.

"We should have our direction in the state's government. The first thing in forethought should be the needs of the people, what we can do for them," Carmichael said.

State Sen. Terry Burton, who has been an advocate of performance based budgeting since 1994, said the passage of the proposal could mean major changes for Mississippi.

"We can hold agencies accountable by programs – if the program is not working, we don't fund it. If the program's working, we reward those agencies for doing good work," Burton said.

"That's the way it should be; that's the way it should be at the local level. At every government level we should reward those who succeed and stop spending the taxpayers money on those programs that do not work," he said. "If we have a plan in place to make true performance based budgeting the rule and the law in Mississippi, then we can make some huge changes in the way we do things."

The report, a yearlong effort, outlined three strategies for a more efficient state government. Referred to by the report as a three-legged stool approach – meaning that one strategy cannot effectively stand without the other. The strategies are:

• Creation of a strategic plan for the state of Mississippi giving clear and comprehensive direction for our government to meet the needs of the citizens of the state. All agencies would be required to create their strategic and operational plans to support the statewide plan.

• Reform of the performance-based budgeting to match agency budgets to achieve strategic goals.

• Creation of a joint performance review enforcement office from existing legislative resources to provide continuous review and improvements of state government operations.

Bryant said Mississippi lacks a statewide comprehensive strategic plan, therefore the first recommendation is for the state to adopt one. This will require state agencies to synchronize their plan with the state's. The plan focuses on the key roles of government, necessary services for citizens, and the outcomes expected when scarce resources are expanded.

"If resources are more targeted and waste is easier to identify through a strategic plan, there is the potential for reducing taxes and thus enabling the 'taxpayers' to keep more of their money," Bryant said.

The report aims to reform performance based budgeting, a process that has been on the books for years, but has yet to be applied practically. Based on a similar model in Texas, it is mission-driven and goal-oriented; it is a system that brings strategic planning and performance together in the state's appropriations process. The purpose of the performance budgeting process is to allow budget decisions to be made based on whether state agencies are accomplishing expected results.

The final recommendation is to combine the Legislative Budget Office and the Performance Evaluation and Expenditure Review (PEER) Committee. The new Legislative Budget and Accountability Office (LBAO) would be charged with implementing and operating systematic and continuous improvement programs based on statewide strategic planning and performance budgeting. The LBAO staff would also be charged with serving as a resource for state agencies in developing their strategic plans, and assuring that agency plans align with the statewide plan.

"We looked back at the history of over 80 years of government efficiency reports being submitted by groups to the governor and the Legislature," Bryant said. "What we found was that the great recommendations in those reports were largely not adopted and our current budget process is broken.

"The biggest policy decision government ever makes is when it builds a budget. Our reforms will help the state better prioritize when lawmakers build a budget. The entire framework for this method of budgeting is based on accountability for results."

At the request of Gov. Haley Barbour, Bryant formed a commission to evaluate the efficiency and effectiveness of state government. The 17-member commission was chaired by former Department of Finance and Administration Director J.K. Stringer.

"If we take into consideration the governor's plan to begin to balance the budget, hopefully a plan will be put forward on Dec. 15 by the Joint Legislative Budget Committee," Bryant said.

The entire reform bill will be introduced in January.

"This is a goal I have had since becoming lieutenant governor," Bryant said. "From reforming tax and ethics laws to holding firm for balanced budgets, this plan is another step to having the right sized government for Mississippi. This is not the first reform I have pushed for, and it will not be the last."

Bryant encouraged citizens to support the reform bill.

"Join us in this quest," he said. "I cannot convince everyone in the Legislature to join us, but you can. You can ask your House members, your senators to please become advocates of this new performance based budget plan, and let's get it done for the future."