Grading Criteria

Grading the States 2008

Information Criteria

1. The state actively focuses on making future policy and collecting information to support that policy direction.
   a.  The legislature and/or the governor set an overall strategic direction for the state.
   b.  Agencies focus on the long-term goals of programs or policies (beyond the next budget period).
   c.  The state engages in meaningful, multi-year information technology planning that is logically related to the state’s overall strategic direction and informs legislative, executive and agency decisions.
   
   
2. Elected officials, the state budget office and agency personnel have appropriate data on the relationship between costs and performance, and they use these data when making resource-allocation decisions.
   a.  The state routinely produces valid cost and performance information (including information on past performance).
   b.  The governor, budget office, state agencies and state legislature use cost and performance information during deliberations on the budget.
   c.  Agencies, the budget office, and the governor routinely use cost and performance information when developing, reviewing, and making decisions on the budget. And the state legislature routinely uses cost and performance information to allocate resources and as a basis for program design and redesign.
   
   
3. Agency managers have the appropriate information required to make program management decisions.
   a.  State information technology systems provide information that adequately supports managers’ needs.
   b.  The governor and agency managers draw clear links between managerial action and program results, and they communicate this information to appropriate agency personnel.
   c.  The agency regularly monitors performance (including the performance of key program partners) and uses this information to manage programs, improve performance and inform elected officials about deviations from agreed upon levels of performance.
   d.  Cost and performance information influences decisions to contract out for agency activities, and to manage and monitor those contracts.
   
   
4. The governor and agency managers have appropriate data that enable them to assess the actual performance of policies and programs.
   a.  The state subjects selected programs to performance audits or program evaluations on an ongoing basis.
   b.  The state’s audits and evaluations are relevant, credible, well-documented and publicly available. They include comparisons over time, against targeted levels and against similar governments, agencies or policies.
   
   
5. The public has appropriate access to information about the state, the performance of state programs and state services and is able to provide input to state policy makers.
   a.  The public can access key services without undue burden.
   b. The public can access credible information about the performance of key state programs, without undue burden.
   

Infrastructure Criteria

1. The state regularly conducts a thorough analysis of its infrastructure needs and has a transparent process for selecting infrastructure projects.
   a.  A systematic assessment of future infrastructure needs informs the capital planning process.
   b.  The state regularly conducts an infrastructure condition assessment in accordance with accepted engineering standards.
   c.  The state has a formal, multi-year capital plan that both prioritizes capital activities and links directly to the capital budget.
   d.  The state's selection of projects for inclusion in the capital budget relies on capital planning priorities, condition assessments of infrastructure and public input.
   e.  The state includes estimates of the operating and maintenance costs of capital projects in the state capital plan and the capital budget, and it formally links those estimates to the state operating budget prior to legislative adoption.
   
   
2. The state has an effective process for monitoring infrastructure projects throughout their design and construction.
   a.  The state adequately monitors, evaluates and detects project-cost overruns, delays and safety compliance.
   b.  The state effectively intervenes to take corrective action, as necessary, in managing the construction of capital projects.
   
   
3. The state maintains its infrastructure according to generally recognized engineering practices.
   a.  The state adopts a life-cycle approach to asset management.
   b.  The state uses up-to-date condition assessments in setting priorities for infrastructure maintenance and renewals.
   c.  The state funds maintenance at a level that minimizes a facility’s life-cycle costs and ensures that defined levels of service and safety standards are met.
   
   
4. The state comprehensively manages its infrastructure.
   a.  When responsibility overlaps, inter- and intra-agency councils and offices effectively coordinate infrastructure issues.
   
   
5. The state creates effective intergovernmental and interstate infrastructure coordination networks.
   a.  Through formal and informal intergovernmental structures, the state effectively communicates regulations and information applicable to local governments on capital planning, financing and administration, and ensures coordination among the various governments in the area of infrastructure management.
   b.  The state cooperatively engages formally and informally with interstate (regional) structures to coordinate and manage infrastructure issues.
   

Money Criteria

1. The state uses a long-term perspective to make budget decisions.
   a.  The state’s revenue- and expenditure-forecasting processes are thorough, accurate and transparent, and include a multi-year perspective.
   b.  The state considers the long-term impact of tax and expenditure decisions.
   c.  The state’s long-term liabilities, including pensions and other post-employment benefits, consider realistic and timely valuations and are managed with an emphasis on long-term benefits and consequences.
   d.  The state maintains low credit-risk status by managing a reasonable level of debt.
   
   
2. The state’s budget process is transparent, easy to follow and inclusive.
   a.  The state maintains a budget format and process that are results-oriented.
   b.  The state passes its budget on time.
   c.  The state provides citizens opportunities for public input about the budget.
   d.  The state provides budget information that is easily understood by all stakeholders.
   
   
3. The state’s financial management activities support structural balance between ongoing revenues and expenditures.
   a.  Given current revenue and expenditure levels, the state maintains structural balance.
   b.  The state’s revenue structure accommodates fluctuating economic climates.
   c.  The state uses counter-cyclical and/or contingency planning devices to address economic downturns.
   d.  The state is not overly dependent on windfalls, “one-time” revenues and debt or accounting changes to finance current expenditures.
   
   
4. The state’s procurement activities are conducted efficiently and supported with effective internal controls.
   a.  The state’s purchasing activities are supported electronically to advance efficient controls and equitable access.
   b.  State purchasing processes balance control and flexibility for effective program management.
   c.  The state’s contracting activities are supported electronically to advance efficient controls and equitable access.
   d.  State contracting processes balance control and flexibility for effective program management.
   
   
5. The state systematically assesses the effectiveness of its financial operations and management.
   a.  The state prepares an annual financial audit in accordance with generally accepted accounting principles and routinely receives a clean audit opinion.
   b.  The state’s single audit is prepared annually and routinely receives a clean audit opinion for both reporting and program management.
   c.  The state’s financial reporting is timely.
   d.  The state routinely reports on linkages between financial costs and operational performance.
   

People Criteria

1. The state regularly conducts and updates a thorough analysis of its human capital needs.
   a.  The state has a multi-year strategic workforce plan that identifies its current and future human capital needs, and is linked to the other human capital plans, potentially including a human resources management strategic plan.
   b.  The state’s human capital plan links to the budget and supports the state’s strategic direction.
   c.  The state has comprehensive and readily available data about its current and future workforce needs that is used to make decisions involving human capital management.
   d.  The state has a strategic competency management program (or a similar talent management effort) that links to its hiring, training, development and performance management systems.
   
   
2. The state acquires the employees it needs. 
   a.  The state hires people in a timely manner.
   b.  The state hires high-quality candidates who perform successfully.
   c.  The state is able to recruit and fill positions that are critical to its core services and strategic plan.
   
   
3. The state retains a skilled workforce. 
   a.  The state does not lose a disproportionate share of its managers and employees through voluntary departure each year.
   b.  The state creates a work environment that supports employees’ life needs.
   c.  The state maintains productive relations with employees and their representatives.
   
   
4. The state develops its workforce.
   a.  The state devotes sufficient resources to its employees’ development.
   b.  The state provides opportunities for career advancement.
   c.  The state purposefully develops its leaders’ competencies.
   d.  The state uses a system that promotes sharing critical knowledge across state agencies and employees.
   
   
5. The state manages its workforce performance programs effectively. 
   a.  The state links state, department and employee performance goals and actively engages employees in this process.
   b.  The state recognizes and rewards high performers (individuals or groups) for achieving desired results.
   c.  The state regularly encourages, receives and utilizes employee feedback.
   d.  The state addresses employee performance and behavior weaknesses. When necessary, it terminates employees for cause in a timely and fair manner.