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House Bill 5 would codify the information that a state agency must provide to the Legislative Budget Board when the Board decides to conduct a strategic fiscal review of this agency. It would also detail the information to be found in a strategic fiscal review. The information would include descriptions and justifications for an agency's activities, itemized accounts of expenditures needed to maintain the activities at the current level and at a minimum level of service, or consequences of discontinuing activities. The review would evaluate the effectiveness and efficiency of the agency and would make recommendations on whether to continue funding each activity. The review could also be used in the appropriations process.
House Bill 5 has the potential to create more transparency on the activities of state agencies and to encourage efficiency by considering which activities are still worth funding. As a consequence, it would encourage a limited government. We support House Bill 5.