§37-71 - The budget.

§37-71 The budget. (a) 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 a budget
that shall contain the program and budget recommendations of the governor for
the 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 two
fiscal years to carry out the recommended programs; and

(4) A summary of state receipts and revenues in the
last 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 budget
shall be presented generally in the following manner:

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

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

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

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

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

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

(B) A summary showing means of financing the
total recommended expenditures, those amounts requiring and those amounts not
requiring legislative appropriation or authorization for spending in each
fiscal year of the biennium;

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

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

(i) Salary adjustments to existing positions of
personnel;

(ii) The addition or deletion of positions;

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

(iv) Changes in the program implementation
schedule;

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

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

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

(viii) Changes in the purchase price of goods or
services;

As appropriate, references to the program and
financial plan shall be noted for an explanation of the changes.
Notwithstanding the provisions of subsection (b)(5), the proposed changes in the
levels 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 the
lowest level. Such summaries shall be by the major groupings of programs
encompassed within the level. The summaries of paragraph (1)(A) shall identify
the means of financing and the number of positions and the lease payments
included in any cost category amount; and

(3) A summary listing of all capital improvement
projects included in the proposed capital investment costs for the ensuing
biennium. The listing shall be by programs at the lowest level of the state
program structure and shall show for each project, by investment cost elements:

(A) The cost of the project;

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

(C) The amount of new appropriations and
authorizations proposed in each of the two fiscal years of the ensuing biennium
and in each of the succeeding four years. The amount of the new appropriations
and authorizations proposed shall constitute the proposed new requests for the
project in each of the fiscal bienniums.

In every instance, the means of financing shall
be noted.

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

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

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

(B) The changes proposed to the existing tax
and nontax rates, sources, or structure, and the estimated cumulative increases
or reductions, and the estimated fund balance or deficit in the ensuing
biennium and in each of the two fiscal years of the biennium 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 state 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;

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

(3) 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 such requirements are to be met in the biennium in
progress and in each of the two fiscal years in the ensuing biennium. The
summary shall detail for the biennium in progress and for each of the two years
of the ensuing biennium:

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

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

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

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

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

(A) Bonds currently outstanding;

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

In each case, the projection shall be categorized
into debt service to be paid directly from the general fund, debt service to be
paid through reimbursements, and total debt service. The projection shall
extend at least five years beyond the close of the ensuing fiscal biennium. An
explanation shall be appended to the schedule, which shall include among other
things, the amount of bonds to be issued during the fiscal year in progress and
in each of the two fiscal years of the ensuing biennium, the maturities of the
bonds to be issued, the method of retirement, and the interest rate assumed in
the projection;

(6) A schedule of the current state funded debt,
legal debt limit, and the legal debt margin, including the details thereof. In
any budget which proposes appropriations for which the source of funding is
general obligation bonds, the schedule shall include a declaration by the
director of finance and computations showing that the total amount of principal
and interest, estimated for such proposed appropriations and for all bonds
authorized 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, 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 two fiscal years in the ensuing
biennium, with appropriate totals for the two bienniums;

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

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

(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 thereof 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.

(e) The proposed budget shall include:

(1) A statement of the percentage differences between
the current biennium recommendations and the previous biennium appropriations
for education programs. The information shall be displayed by programs or
groups of programs, with corresponding amounts and percentage differences. If
any component of an education program is added or removed, the governor shall
provide an estimate of how the addition or removal affects the current biennium
recommendations;

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

(3) Other financial statements, information, and data
that in the opinion of the governor are necessary or desirable in order to make
known in all practical detail the programs, program plans, and financial
conditions of the State.

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

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

(g) If it is deemed more practical, the
six-year program and financial plan and the budget may be combined into a
single document containing all the information required for each separate
document. [L 1970, c 185, §10; ren and am L 1972, c 72, pt of §§3, 6; am L
1974, c 219, §5; am L 1980, c 64, §1; am L Sp 1981 1st, c 3, §4; am L 1991, c
125, §3; am L 1993, c 364, §5; am L 1996, c 119, §5]

Attorney General Opinions

Current year's lapses not considered part of "total
state resources". 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.

Improper for biennial budget for fiscal biennium to incorporate
as revenues proposed restrictions for fiscal year unless those restrictions
were reflected as reduced appropriations in budget adopted legislatively for
the fiscal year. Appropriations for fiscal year that are restricted through
allotment system are not "available resources" for purposes of budget
preparation 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.