§37-69 - The six-year program and financial plan.

§37-69 The six-year program and financialplan. (a) The governor shall prepare a state six-year program andfinancial plan encompassing all state programs. Not fewer than thirty daysbefore the legislature convenes in every odd-numbered year, the governor shallsubmit to the legislature and to each member thereof the six-year program andfinancial plan. The program and financial plan shall be annually andcontinually updated and maintained. The program and financial plan, ingeneral, shall contain:

(1) The state program structure;

(2) Statements of statewide objectives and programobjectives;

(3) Program plans that describe the programsrecommended to implement the statewide and program objectives and the manner inwhich the recommended programs are proposed to be implemented over the next sixfiscal years; and

(4) A financial plan that shows the fiscalimplications of the recommended programs for the next six fiscal years.

(b) The information contained in the programand financial plan shall be presented generally in the following manner:

(1) Information shall be displayed by programs, orgroups of programs.

(2) Programs shall be appropriately crosswalked toexpending agencies.

(3) Data shall be appropriately summarized at eachlevel of the program structure.

(4) Program costs shall include all costs, includingresearch and development, operating and capital, regardless of the means offinancing except that the means of financing shall be expressly identified; allcosts shall be displayed in the year of their anticipated expenditure,regardless of whether such costs have been authorized to be expended by priorappropriations acts or are authorized to be expended by existing law, orrequire new appropriations or authorizations.

(5) Cost data shall be presented in units ofthousands of dollars or less.

(6) Comparative data for the last completed fiscalyear and the fiscal year in progress shall be shown.

(1) Economic data for the State and the counties ofthe following kinds:

(A) Population: Including historical, current,and projected population count; population distribution by age and sex;estimated increases and decreases, including increases and decreases byimmigration;

(B) Employment: Including magnitude of laborforce by age and sex; labor force participation rates; employment by age andsex; industry and occupational surpluses and shortages; effects of governmentprograms on employment rate;

(D) Wages and prices: Including wages byindustry and occupational groups; prices for government procurement items;construction costs; cost of living index; price indices for components ofpersonal consumption;

(E) Industry and business trends; and

(F) Effects of national economic and financialpolicies and conditions;

(2) Brief statements disclosing the basis upon whichthe revenue estimates in the plan were made, including for each specific taxand nontax revenue source:

(A) The previous projections for the lastcompleted fiscal year and the fiscal year in progress;

(B) The variance between the projections andthe actual or revised estimate, and the reasons for the variances;

(D) Yield projections of existing revenuesources and existing taxes at authorized rates;

(E) Assumptions made and methodology used inprojections;

(F) Changes recommended; and

(G) Projected yields if changes are adopted;etc.;

(3) At the lowest level on the state programstructure, for each program:

(A) The total actual program cost for the lastcompleted fiscal year, the estimated cost for the fiscal year in progress, andthe estimated cost for each of the next six fiscal years; research anddevelopment, operating, and capital costs shall be included and the means offinancing shall be identified. The number of personnel positions and all leasepayments shall be shown for the program, identified by their means offinancing;

(B) The program size indicators; the actualsize attained in the last completed fiscal year, the estimated size for thefiscal year in progress, and the estimated size for each of the next six fiscalyears; and

(C) The effectiveness measures; the actuallevel of effectiveness attained in the last completed fiscal year, theestimated level of effectiveness for the fiscal year in progress, and theestimated level for each of the next six fiscal years;

(4) Appropriate displays of paragraph (3)(A) and (C),at every level of the state program structure above the lowest level, by themajor groupings of programs encompassed within the level. The displays of[paragraph] (3)(A) shall appropriately identify the means of financing and thenumber of positions included in the level;

(5) Financial summaries displaying the State'sfinancial condition, actual for the last completed fiscal year, and estimatedfor the fiscal year in progress and each of the next six fiscal years,including:

(A) A display of the programmed, total stateexpenditures, by cost categories, the total state resources anticipated fromexisting tax and nontax sources at existing rates, by resource categories,including the fund balance or deficit at the beginning of the fiscal year andbond receipts, and the resulting fund balance or deficit at the close of eachfiscal year. Lease payments in each cost category shall be stated separately;and

(B) The changes proposed to the existing taxand nontax rates, sources or structure, and the estimated increases orreductions in revenues, the estimated cumulative increases or reductions, andthe estimated fund balance or deficit in each of the next six fiscal years as aresult of such proposed changes. Proposals for changes in the existing tax andnontax rates, sources or structure shall be made in every case where theproposed, total state expenditures exceed the total resources anticipated fromexisting tax and nontax sources at existing rates.

Such financial summaries shall be prepared forthe total state expenditures and resources and for the general fund and specialfund portions thereof;

(6) A summary of the balance of each special fund,actual for the last completed fiscal year and estimated for the fiscal year inprogress and estimated for each of the next six fiscal years;

(7) A summary of the State's total bond fund requiredto carry out the recommended programs and the kinds of bonds and amountsthereof through which the requirements were met in the last completed fiscalyear, are to be met in the fiscal year in progress, and are proposed to be metin each of the next six fiscal years. The summary shall detail, for eachfiscal year:

(A) Of the total bond fund requirements, theamount, by cost categories, requiring new bond issuance authorization and thekinds and amounts of bonds planned for issuance under such new authorizations;

(B) By bond categories, the total, cumulativebalance of bonds authorized in prior years but unissued and the amount thereofproposed to be issued; and

(C) A recapitulation of the total bonds to beissued, including both new authorizations and prior authorizations, by bondcategories;

(8) Separately for general fund tax revenues, specialfund tax revenues, general fund nontax revenues, and special fund nontaxrevenues:

(A) By kinds of taxes or sources, the amountof revenue from existing, authorized taxes or sources at existing ratesreceived in the last completed fiscal year and estimated to be received in thefiscal year in progress and in each of the next six fiscal years;

(B) A summary of the proposed changes in theexisting taxes or sources or rates, and the estimated increases or reductionsin revenues in each of the next six fiscal years resulting from such changes;and

(9) A summary of the State's total payments due underfinancing agreements required to carry out the recommended programs and thekinds of financing agreements and amounts thereof through which therequirements were met in the last completed fiscal year, are to be met in thefiscal year in progress, and are proposed to be met in each of the next sixfiscal years. The summary shall detail, for each fiscal year:

(A) Of the total financing agreementrequirements, the amount, by cost categories, requiring new financing agreementauthorizations and the kinds and amounts of financing agreements planned forexecution and delivery under such new authorizations;

(B) By cost category, the cumulative balanceof financing agreements authorized in prior years but not executed anddelivered and the amount proposed to be executed and delivered; and

(C) A recapitulation of the total financingagreements to be executed and delivered, including both new authorizations andprior authorizations, by cost categories.

(d) The program plans for the ensuing sixfiscal years shall more specifically include:

(1) At the lowest level on the state programstructure, for each program:

(A) A statement of its objectives;

(B) Measures by which the effectiveness inattaining the objectives is to be assessed;

(D) A brief description of the activitiesencompassed;

(E) The program size indicators;

(F) The program size planned for each of thenext six fiscal years;

(G) A narrative explanation of the plans forthe program. It shall contain, and in general be limited to, the following:

(i) A description of the kinds of activitiescarried out or unusual technologies employed;

(ii) A statement of key policies pursued;

(iii) Identification of important program ororganizational relationships involved;

(iv) A description of major external trendsaffecting the program;

(v) A discussion of significant discrepanciesbetween previously planned cost, effectiveness, and program size levels andthose actually achieved;

(vi) Comments on, and an interpretation of, cost,effectiveness, and program size data over the upcoming budget period, withspecial attention devoted to changes from the current budget period;

(vii) Comments on, and an interpretation of,cost, effectiveness, and program size data over the four years of the planningperiod and how they relate to the corresponding data for the budget period; and

(viii) A summary of the special analytic study,program evaluation, or other analytic report supporting a substantial change inthe program where such a major program change recommendation has been made;

(H) The full cost implications of therecommended programs, by cost categories and cost elements, actuallyexperienced in the last completed fiscal year, estimated for the fiscal year inprogress, and estimated for each of the next six fiscal years. The means offinancing shall be identified for each cost category. The personal servicescost element and the lease payments cost element shall be shown separately; thecost elements of other current expenses, equipment, and motor vehicles may becombined. The number of positions included in the program shall beappropriately identified by means of financing;

(I) A recapitulation of subparagraph (H) forthe last completed fiscal year, the fiscal year in progress and each of thenext six fiscal years, by means of financing grouped under each cost category. The number of positions included in any program shall be appropriatelyidentified;

(J) An identification of the revenuesgenerated in the last completed fiscal year and estimated to be generated inthe fiscal year in progress and in each of the next six fiscal years, and thefund into which such revenues are deposited;

(K) Details of implementation of each capitalimprovement project included in the total program cost, including:

(i) A description of the project, location, andscope;

(ii) The initially estimated, currentlyestimated, and final cost of the project, by investment cost elements and bymeans of financing;

(iii) The amounts previously appropriated by thelegislature for the project, by cost elements and by means of financingspecified in the acts appropriating the sums, and an identification of the actsso appropriating;

(iv) The costs incurred in the last completedfiscal year and the estimated costs to be incurred in the fiscal year inprogress and in each of the next six fiscal years, by cost elements and bymeans of financing; and

(v) A commencement and completion schedule, bymonth and year, of the various phases of the capital improvement project (i.e.,land acquisition, design, construction, and occupancy) as originally intended,as currently estimated, and as actually experienced; and

(L) A crosswalk of the program expenditures,by cost categories and cost elements between the program and expending agenciesfor the next two fiscal years. The means of financing and the number ofpositions included in the program costs to be expended by each agency shall bespecified; and

(2) Appropriate displays at every level of the stateprogram structure above the lowest level. The displays shall include:

(A) A listing of all major groupings ofprograms included within the level, together with the objectives, measures ofeffectiveness, and planned levels of effectiveness for each of the ensuing sixfiscal years for each such major groupings of programs; and

(B) A summary of the total cost of each costcategory by the major groupings of programs encompassed within the level,actual for the last completed fiscal year and estimated for the fiscal year inprogress and for each of the next six fiscal years. [L 1970, c 185, §9; am L1972, c 72, §§2, 5; am L 1974, c 219, §3; am L 1991, c 125, §2; am L 1996, c119, §4]

Attorney General Opinions

Details of current year's lapses need not be set forth insupplemental appropriations bill and budget. Att. Gen. Op. 83-4.

Although express words "balanced budget" are notincluded in state constitution or statutes relating to state budget,constitutional and statutory provisions do require a balanced budget byrequiring a description of proposed expenditures and sources of revenue to payfor them. Att. Gen. Op. 97-1.

Using historical data to make estimates for a future fiscalperiod is an acceptable planning tool. Att. Gen. Op. 03-2.