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

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

(1) The state program structure;

(2) Statements of statewide objectives and program
objectives;

(3) Program plans that describe the programs
recommended to implement the statewide and program objectives and the manner in
which the recommended programs are proposed to be implemented over the next six
fiscal years; and

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

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

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

(2) Programs shall be appropriately crosswalked to
expending agencies.

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

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

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

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

(1) Economic data for the State and the counties of
the 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 by
immigration;

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

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

(E) Industry and business trends; and

(F) Effects of national economic and financial
policies and conditions;

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

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

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

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

(E) Assumptions made and methodology used in
projections;

(F) Changes recommended; and

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

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

(A) The total actual program cost for the last
completed fiscal year, the estimated cost for the fiscal year in progress, and
the estimated cost for each of the next six fiscal years; research and
development, operating, and capital costs shall be included and the means of
financing shall be identified. The number of personnel positions and all lease
payments shall be shown for the program, identified by their means of
financing;

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

(C) The effectiveness measures; the actual
level of effectiveness attained in the last completed fiscal year, the
estimated level of effectiveness for the fiscal year in progress, and the
estimated 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 the
major groupings of programs encompassed within the level. The displays of
[paragraph] (3)(A) shall appropriately identify the means of financing and the
number of positions included in the level;

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

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

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

Such financial summaries shall be prepared for
the total state expenditures and resources and for the general fund and special
fund 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 in
progress and estimated for each of the next six fiscal years;

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

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

(B) By bond categories, the total, cumulative
balance of bonds authorized in prior years but unissued and the amount thereof
proposed to be issued; and

(C) A recapitulation of the total bonds to be
issued, including both new authorizations and prior authorizations, by bond
categories;

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

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

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

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

(A) Of the total financing agreement
requirements, the amount, by cost categories, requiring new financing agreement
authorizations and the kinds and amounts of financing agreements planned for
execution and delivery under such new authorizations;

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

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

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

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

(A) A statement of its objectives;

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

(D) A brief description of the activities
encompassed;

(E) The program size indicators;

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

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

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

(ii) A statement of key policies pursued;

(iii) Identification of important program or
organizational relationships involved;

(iv) A description of major external trends
affecting the program;

(v) A discussion of significant discrepancies
between previously planned cost, effectiveness, and program size levels and
those actually achieved;

(vi) Comments on, and an interpretation of, cost,
effectiveness, and program size data over the upcoming budget period, with
special 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 planning
period 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 in
the program where such a major program change recommendation has been made;

(H) The full cost implications of the
recommended programs, by cost categories and cost elements, actually
experienced in the last completed fiscal year, estimated for the fiscal year in
progress, and estimated for each of the next six fiscal years. The means of
financing shall be identified for each cost category. The personal services
cost element and the lease payments cost element shall be shown separately; the
cost elements of other current expenses, equipment, and motor vehicles may be
combined. The number of positions included in the program shall be
appropriately identified by means of financing;

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

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

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

(i) A description of the project, location, and
scope;

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

(iii) The amounts previously appropriated by the
legislature for the project, by cost elements and by means of financing
specified in the acts appropriating the sums, and an identification of the acts
so appropriating;

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

(v) A commencement and completion schedule, by
month 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 agencies
for the next two fiscal years. The means of financing and the number of
positions included in the program costs to be expended by each agency shall be
specified; and

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

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

(B) A summary of the total cost of each cost
category by the major groupings of programs encompassed within the level,
actual for the last completed fiscal year and estimated for the fiscal year in
progress and for each of the next six fiscal years. [L 1970, c 185, §9; am L
1972, c 72, §§2, 5; am L 1974, c 219, §3; am L 1991, c 125, §2; am L 1996, c
119, §4]

Attorney General Opinions

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

Although express words "balanced budget" are not
included in state constitution or statutes relating to state budget,
constitutional and statutory provisions do require a balanced budget by
requiring a description of proposed expenditures and sources of revenue to pay
for them. Att. Gen. Op. 97-1.

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