§37-71  The budget.  (a)  Not fewer thanthirty days before the legislature convenes in every odd-numbered year, thegovernor shall submit to the legislature and to each member thereof a budgetthat shall contain the program and budget recommendations of the governor forthe succeeding two fiscal years.  The budget, in general, shall contain:

(1)  The state program structure;

(2)  Statements of statewide objectives;

(3)  The financial requirements for the next twofiscal years to carry out the recommended programs; and

(4)  A summary of state receipts and revenues in thelast completed fiscal year, a revised estimate for the fiscal year in progress,and an estimate for the succeeding biennium.

(b)  The information contained in the budgetshall be presented generally in the following manner:

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

(2)  Program financial requirements shall beappropriately crosswalked between the programs and expending 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,and regardless of whether the expenditure of any sum was authorized by priorappropriations acts, is authorized by existing law, or requires newauthorization, except that the amounts requiring new authorization shall beappropriately identified.

(5)  Financial requirements shall be presented to thenearest dollar, omitting cents; and the summary of state receipts and revenuesshall be presented to the nearest thousand dollars.

(6)  The budget shall reflect the ensuing first twofiscal year program costs contained in the six-year program and financial plan.

(c)  The display of financial requirements forthe ensuing two fiscal years shall more specifically include:

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

(A)  The total recommended expenditures,including research and development, capital and operating costs, by costcategories and cost elements for the ensuing biennium; the planned allocationof the total biennial request, by cost categories, and cost elements, between thetwo fiscal years of the biennium.  The means of financing and the number ofpositions included in any cost category amount shall be appropriatelyidentified;

(B)  A summary showing means of financing thetotal recommended expenditures, those amounts requiring and those amounts notrequiring legislative appropriation or authorization for spending in eachfiscal year of the biennium;

(C)  A crosswalk of the total proposed biennialexpenditures between the program and expending agencies.  The means of financingthe number of positions and the lease payments included in any cost amount, andthe net amount requiring appropriation or authorization shall be appropriatelyidentified for each expending agency; and

(D)  The proposed changes in the levels ofexpenditures, by cost categories, between the biennium in progress and theensuing biennium, together with a brief explanation of the major reasons foreach change.  The reasons shall include, as appropriate, the following:

(i)  Salary adjustments to existing positions ofpersonnel;

(ii)  The addition or deletion of positions;

(iii)  Changes in the number of persons beingserved or to be served by the program;

(iv)  Changes in the program implementationschedule;

(v)  Changes in the actual or planned level ofprogram effectiveness;

(vi)  Increases due to the establishment of aprogram not previously included in the State's program structure;

(vii)  Decreases due to the phasing out of aprogram previously included in the State's program structure; and

(viii)  Changes in the purchase price of goods orservices;

As appropriate, references to the program andfinancial plan shall be noted for an explanation of the changes. Notwithstanding the provisions of subsection (b)(5), the proposed changes in thelevels of expenditures may be shown to the nearest thousand dollars;

(2)  Appropriate summaries of paragraph (1)(A) and (C)immediately above at every level of the state program structure above thelowest level.  Such summaries shall be by the major groupings of programsencompassed within the level.  The summaries of paragraph (1)(A) shall identifythe means of financing and the number of positions and the lease paymentsincluded in any cost category amount; and

(3)  A summary listing of all capital improvementprojects included in the proposed capital investment costs for the ensuingbiennium.  The listing shall be by programs at the lowest level of the stateprogram structure and shall show for each project, by investment cost elements:

(A)  The cost of the project;

(B)  The amount of funds previouslyappropriated and authorized by the legislature; and

(C)  The amount of new appropriations andauthorizations proposed in each of the two fiscal years of the ensuing bienniumand in each of the succeeding four years.  The amount of the new appropriationsand authorizations proposed shall constitute the proposed new requests for theproject in each of the fiscal bienniums.

In every instance, the means of financing shallbe noted.

(d)  The summaries of the state receipts andrevenues shall more specifically include:

(1)  Financial summaries displaying the State'sfinancial condition, to-wit:

(A)  A display of the proposed, total stateexpenditures, by cost categories, the total state resources anticipated fromexisting taxes and nontax sources at existing rates, by resource categories(including the available fund balances or deficits and anticipated bondreceipts), and the fund balance or deficit resulting therefrom for the bienniumin progress, for the ensuing biennium, and for each of the two fiscal years ofthe ensuing biennium; and

(B)  The changes proposed to the existing taxand nontax rates, sources, or structure, and the estimated cumulative increasesor reductions, and the estimated fund balance or deficit in the ensuingbiennium and in each of the two fiscal years of the biennium as a result ofsuch proposed changes.  Proposals for changes in the existing tax and nontaxrates, sources, or structure shall be made in every case where the proposed,total state expenditures exceed the total state 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;

(2)  A summary of the balances of each special fund,actual for the last completed fiscal year and estimated for the fiscal year inprogress and for each of the two fiscal years in the ensuing biennium;

(3)  A summary of the State's total bond fund requiredto carry out the recommended programs and the kinds of bonds and amountsthereof through which such requirements are to be met in the biennium inprogress and in each of the two fiscal years in the ensuing biennium.  Thesummary shall detail for the biennium in progress and for each of the two yearsof the ensuing biennium:

(A)  Of the total requirements, the amount, bycost categories, requiring new bond issuance authorization and the kinds andamounts of bonds planned for issuance under such new authorization;

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

(C)  A recapitulation of the total bonds, bothnew authorizations and prior authorizations, by bond categories, proposed to beissued;

(4)  A tentative schedule by quarter and fiscal yearof the amount of general obligation bonds and the amount of revenue bondsproposed to be issued in the ensuing fiscal biennium;

(5)  A schedule of projected debt service charges forgeneral obligation bonds outstanding at the time of the submission of thebudget and to be issued by the close of the budget biennium in progress and theclose of the ensuing budget biennium.  The projection shall be separatelystated for:

(A)  Bonds currently outstanding;

(B)  Bonds to be issued during the remainder ofthe fiscal biennium in progress and during the ensuing fiscal biennium; and

(C)  The total bonds currently outstanding andto be issued.

In each case, the projection shall be categorizedinto debt service to be paid directly from the general fund, debt service to bepaid through reimbursements, and total debt service.  The projection shallextend at least five years beyond the close of the ensuing fiscal biennium.  Anexplanation shall be appended to the schedule, which shall include among otherthings, the amount of bonds to be issued during the fiscal year in progress andin each of the two fiscal years of the ensuing biennium, the maturities of thebonds to be issued, the method of retirement, and the interest rate assumed inthe projection;

(6)  A schedule of the current state funded debt,legal debt limit, and the legal debt margin, including the details thereof.  Inany budget which proposes appropriations for which the source of funding isgeneral obligation bonds, the schedule shall include a declaration by thedirector of finance and computations showing that the total amount of principaland interest, estimated for such proposed appropriations and for all bondsauthorized and unissued and calculated for all bonds issued and outstanding,will not cause the debt limit to be exceeded at the time of issuance;

(7)  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 two fiscal years in the ensuingbiennium, with appropriate totals for the two bienniums;

(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 two years in the ensuing fiscal biennium resultingfrom such changes; and

(C)  The total estimated revenues with andwithout the proposed changes; and

(8)  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 suchrequirements are to be met in the biennium in progress and in each of the twofiscal years in the ensuing biennium.  The summary shall detail for thebiennium in progress and for each of the two years of the ensuing biennium:

(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 thereof 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.

(e)  The proposed budget shall include:

(1)  A statement of the percentage differences betweenthe current biennium recommendations and the previous biennium appropriationsfor education programs.  The information shall be displayed by programs orgroups of programs, with corresponding amounts and percentage differences.  Ifany component of an education program is added or removed, the governor shallprovide an estimate of how the addition or removal affects the current bienniumrecommendations;

(2)  A statement of the difference between the totalamount proposed for the current biennium and the total amount expended in theprevious biennium for education programs per pupil; and

(3)  Other financial statements, information, and datathat in the opinion of the governor are necessary or desirable in order to makeknown in all practical detail the programs, program plans, and financialconditions of the State.

As used in this subsection, "educationprograms" include instructional, personnel, transportation, facilities,facilities repair and maintenance, and other programs deemed appropriate by thedepartment of education.

(f)  The proposed budget shall contain an itemto be known as the "contingent fund", which sum, upon approval by thelegislature, shall be available for allocation by the governor during theensuing fiscal biennium to meet contingencies as they arise.

(g)  If it is deemed more practical, thesix-year program and financial plan and the budget may be combined into asingle document containing all the information required for each separatedocument. [L 1970, c 185, §10; ren and am L 1972, c 72, pt of §§3, 6; am L1974, c 219, §5; am L 1980, c 64, §1; am L Sp 1981 1st, c 3, §4; am L 1991, c125, §3; am L 1993, c 364, §5; am L 1996, c 119, §5]

 

Attorney General Opinions

 

  Current year's lapses not considered part of "totalstate resources".  Details of current year's lapses need not be set forthin supplemental 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.

  Improper for biennial budget for fiscal biennium to incorporateas revenues proposed restrictions for fiscal year unless those restrictionswere reflected as reduced appropriations in budget adopted legislatively forthe fiscal year.  Appropriations for fiscal year that are restricted throughallotment system are not "available resources" for purposes of budgetpreparation pursuant to this section.  Att. Gen. Op. 03-2.

  Restrictions imposed in one fiscal year cannot be counted as"available resources" for the next fiscal year.  Att. Gen. Op. 03-2.