CHAPTER 1. THE BUDGET AGENCY
IC 4-12
ARTICLE 12. APPROPRIATIONS MANAGEMENT
IC 4-12-1
Chapter 1. The Budget Agency
IC 4-12-1-1
Short title; purposes
Sec. 1. (a) This chapter shall be known and may be cited as thebudget agency law.
(b) Its general purposes and policies may be perceived only fromthe entire chapter, but among them are four (4) of particularsignificance, namely:
(1) Vesting in the budget agency duties and functions and rightsand powers which make the execution and administration of allappropriations made by law the exclusive prerogative andauthority of that agency, and otherwise denying suchprerogative and authority to the budget committee.
(2) Designating an officer of the executive department and four(4) members of the general assembly as members of the budgetcommittee through which they may work between regularsessions of the general assembly and cooperatively propose andrecommend to the general assembly the appropriations whichappear to be necessary to carry on state government in thesucceeding budget period.
(3) Giving the members of the budget committee, who aremembers of the general assembly, the authority to engage inactivities incidental and germane to their legislative powers,including investigations of appropriations made and to be madeby law, before and after sessions of the general assembly.
(4) Making the gathering of information, data, and expertopinion, with reference to the revenues of the state from currentsources, and with reference to procuring additional revenues tomeet appropriations which may be recommended, and makingthe evaluation of such data and opinion and of appropriationsrequested by agencies of the state, the concurrent prerogativeand authority of the budget committee and the budget agency.
(Formerly: Acts 1961, c.123, s.1.) As amended by Acts 1977, P.L.28,SEC.1; P.L.3-1986, SEC.4.
IC 4-12-1-2
Definitions
Sec. 2. As used in this chapter unless a different meaning appearsfrom the context:
(a) The word "committee" means the budget committee.
(b) The word "director" or the term "budget director" means theperson who is director of the budget agency.
(c) The term "appointing authority" means the head of an agencyof the state.
(d) The terms "agency of the state" or "agencies of the state" or
"state agency" or "state agencies" mean and include every office,officer, board, commission, department, division, bureau, committee,fund, agency, and, without limitation by reason of any enumerationherein, every other instrumentality of the state of Indiana, nowexisting or which may be created hereafter; every hospital, everypenal institution and every other institutional enterprise and activityof the state of Indiana, wherever located; the universities andcolleges supported in whole or in part by state funds; the judicialdepartment of the state of Indiana; and all non-governmentalorganizations receiving financial support or assistance from the stateof Indiana; but shall not mean nor include cities, towns, townships,school cities, school towns, school townships, school districts, norother municipal corporations or political subdivisions of the state.
(e) The terms "budget bill," or "budget bills," shall mean a bill foran act, or two (2) or more such bills, prepared as authorized in thischapter, by which substantially all of the appropriations are madethat are necessary and required to carry on state government for thebudget period, if and when such bill is, or such bills are, enacted intolaw.
(f) The term "budget report" shall mean a written explanation ofthe budget bill or bills, and a general statement of the reasons for theappropriations therein and of the sources and extent of state incometo meet such appropriations, together with such further parts as arerequired by law.
(g) The term "budget period" means that period of time for whichappropriations are made in the budget bill or budget bills.
(Formerly: Acts 1961, c.123, s.2.) As amended by Acts 1977, P.L.28,SEC.2.
IC 4-12-1-3
Creation of budget agency; director; establishment of budgetcommittee
Sec. 3. (a) A budget agency is created as an agency of the state. Adirector, appointed by the governor to serve at his will and pleasure,shall be the chief executive officer of the agency and shall be knownas the budget director. The director shall receive the salary fixed bythe governor and shall give all of his time to his office and the budgetagency. He shall execute such bond as shall be approved by thegovernor, conditioned for the faithful discharge of his official duties,and an oath of office, and both shall be filed with the secretary ofstate.
(b) A budget committee consisting of five (5) regular membersand four (4) alternate members is established: One (1) regularmember is the budget director, while in office. The four (4)remaining regular members must be legislators selected in thefollowing manner. Two (2) members must be senators appointed bythe president pro tempore of the senate, one (1) of whom shall benominated by the leader of the minority political party of the senate.Two (2) members must be representatives appointed by the speakerof the house of representatives, one (1) of whom shall be nominated
by the leader of the minority political party of the house ofrepresentatives. Legislative appointments to the budget committeeshall be made within fifteen (15) days after the official selection ofthe president pro tempore of the senate and the speaker of the houseof representatives. Each member appointed by the president protempore of the senate and each member appointed by the speaker ofthe house of representatives shall serve at the will and pleasure of hisrespective appointing leadership or until his term as a member of thegeneral assembly expires, whichever is shorter. Vacancies occurringin the legislative appointments to the budget committee shall befilled for the unexpired term by the president pro tempore of thesenate or speaker of the house last elected in like manner as ifappointment to such vacant offices were being made originally.Nominations shall be made by the persons above mentioned in thissection who were elected and selected at the last preceding sessionof the general assembly. When there is no such legislative officerentitled to fill vacancies, the governor shall fill such vacancies fromamong members and members-elect of the senate and of the house ofrepresentatives who are members of the same house and politicalparty as the vacating member. Any such appointee of the governorshall serve for the unexpired term of the vacating member or until thefirst day of the next session of the general assembly.
The four (4) alternate members of the budget committee must belegislators selected in the manner described in this section for theappointment of the four (4) regular legislative members of the budgetcommittee. An alternate member is entitled to participate in thebudget committee meetings in the same manner as the regularmembers, except that he is entitled to vote only if the regular memberfrom his respective house and political party is not present for thevote. The alternate members shall serve the same term of office asthe regular members of the budget committee.
(Formerly: Acts 1961, c.123, s.3.) As amended by Acts 1977, P.L.28,SEC.3; P.L.3-1986, SEC.5.
IC 4-12-1-4
Deputy budget directors; staff members, assistants, employees, andclerks; experts
Sec. 4. (a) Two (2) offices are hereby created in the budget agencywhich shall be responsible to, and junior and subordinate to, thebudget director. The persons to fill such offices shall be appointed bythe governor to serve at his will and pleasure, shall not be adherentsof the same political party, shall receive the salary fixed by thegovernor, shall give all of their time to the respective offices and tothe budget agency, and each shall be a deputy budget director. Thedirector shall designate the order in which such deputy directors shallserve in the place and stead of the budget director in the event of hisdisability or absence.
(b) The budget director is authorized to employ such staffmembers, assistants, employees and clerks as he shall require todischarge efficiently and economically the duties and functions and
rights and powers of the budget agency established hereby. Withinthis authority the director may employ on a part time or advisorybasis the services of experts in the field of public revenue and publicfinance and the administration thereof as such services are desirableor necessary in the effective management and operation of the budgetagency and in the discharge of its duties and functions.
(c) Promptly upon the receipt of a request therefor from thebudget committee, the budget director shall provide such assistants,employees, clerks and experts as are reasonably required to permitprompt and efficient discharge of the duties and functions and workof the budget committee. To the extent that assistants, employees,clerks and experts ordinarily employed by the budget agency areavailable and are not required by the budget agency to execute andadminister appropriations made by law, the budget director shallutilize these persons to serve the budget committee.
(Formerly: Acts 1961, c.123, s.4.) As amended by Acts 1977, P.L.28,SEC.4.
IC 4-12-1-5
Budget director, budget committee, deputy budget directors,officers, and employees; qualifications; financial interest incontracts and appropriations
Sec. 5. The budget director, and the members of the budgetcommittee, and the deputy budget directors, and other officers andthe employees of the budget agency shall be persons of knownprobity and shall possess adequate capacity and training for the workthey are to do. No person shall be appointed budget director, ordeputy budget director, or a member of the budget committee, orbecome an officer or employee of the budget agency who has anycontract pending with the state, either directly or indirectly, or whoshall be financially interested, directly or indirectly, in anyappropriation made by law or in any requested appropriation whichmay come before the budget agency or the budget committee.Persons may be appointed or employed as above notwithstanding theforegoing limitations whose only financial interest in appropriationsis in those for personal service from which they are or will be paidfor service rendered under this chapter, or for service at any stateagency, or for both services.
(Formerly: Acts 1961, c.123, s.5.) As amended by Acts 1977, P.L.28,SEC.5.
IC 4-12-1-6
State agencies; forms; reporting statistical data and informationfor budget bill or report
Sec. 6. When requested so to do by the governor, or by the budgetdirector, other agencies of the state shall assist the budget agency inthe effective discharge of its duties and functions. Any such agencyshall employ its equipment and facilities to assist the budget agencyto prepare the data and information for a recommended or finalbudget report and budget bill. The budget agency shall create and
prepare forms required for the administration of this chapter, andforms necessary for machine accounting to permit accumulation ofstatistical data and information required by the budget agency andthe budget committee. Every state agency, except the universities andcolleges, shall adopt such forms and reporting procedures as arecreated and prepared by the budget agency for administration andexecution of appropriations made by law, when such forms andprocedures have been otherwise approved in the manner required bylaw.
(Formerly: Acts 1961, c.123, s.6.) As amended by Acts 1977, P.L.28,SEC.6.
IC 4-12-1-7
Statements of state agencies; filing; examination; recommendationsfor budget report
Sec. 7. (a) On or before the first day of September, in any yearthat the budget director makes a request under this chapter, each andevery state agency shall prepare and file with the budget agency onforms designated by it a written statement, showing in detail thefollowing:
(1) The several amounts actually expended for theadministration, operation, maintenance and support of suchstate agency for at least the two (2) fiscal years which endedimmediately preceding such first day of September, and theseveral amounts estimated by such state agency to be actuallyexpended for the fiscal year to end on June 30 following thenext regular session of the general assembly; and the actual andestimated income of such state agency for like periods.
(2) An estimate of the necessary expenditures of such stateagency for the proposed budget period as specified in thebudget director's request beginning on the first day of July ofthe calendar year next succeeding the filing of such statement;such estimates or requests for appropriations to defray theestimated expenditures of such department shall be set forthseparately for each fiscal year; and the estimated income ofsuch state agency for like period.
(3) A written statement showing concisely the reasons for allestimated expenditures and requests for appropriationscontemplated in the preceding subdivision (2), showingparticularly the reason for any requested increase or decreaseover former appropriations.
(4) Proposals for expenditures for new projects, specialpurposes or objects, construction, additions, building,improvements, undertakings or expansion of the work of anystate agency requiring additional expenditures and capitaloutlays.
(5) Any other information related to the subject matter of thepreceding subdivisions of this subsection (a), or otherwiserequired to effect the purposes of this chapter, to the extent thebudget agency or budget committee deems such information
necessary or required, including when requested, citations toany statutes regulating, governing or providing for continuingannual appropriations, fees or other sources of income.
(b) The budget agency shall examine such written statements andreview and analyze all of the information, data, estimates, requestsfor appropriations and for other authorizations to spend state fundsas the several state agencies have prepared and filed them. Aspromptly as possible the budget agency shall complete itsexamination, review and analysis and shall prepare recommendationsfor a budget report, and from time to time shall submit these to thebudget committee for its consideration at one of its meetings.
(Formerly: Acts 1961, c.123, s.7.) As amended by Acts 1977, P.L.28,SEC.7.
IC 4-12-1-8
Estimates for budget report; investigation and examination of stateagencies; hearings by budget committee
Sec. 8. (a) In preparing the various estimates for the budget report,the budget agency may require any state agency to prepare and filewith it additional or more detailed information and the director, orany duly authorized employee of the budget agency, may enter andinvestigate the operation of any state agency, and may examine itsrecords as authorized by the director. A written report of theinvestigation and examination shall be prepared and filed in thebudget agency. The foregoing report shall be made available to thebudget committee for review and to aid in its determination of theseveral amounts or estimates for appropriations the budget committeemay recommend for inclusion in the budget report and in the budgetbills prepared pursuant to the authority of this chapter.
(b) Upon its own initiative or at the request of any state agency,the budget committee may arrange a hearing or hearings devoted toany matter pertinent to the preparation of a budget report and budgetbill at which representatives of the interested state agency, or anycitizen, may appear and be heard. As allowed by the committee'spolicies and procedures, general information and relevant andmaterial evidence, and explanation and argument may then bepresented to the budget committee members that will assist them inthe performance of their respective duties under this chapter.
(Formerly: Acts 1961, c.123, s.8.) As amended by Acts 1977, P.L.28,SEC.8.
IC 4-12-1-9
Budget report; budget bill; governor's duties; distribution of copiesof bill; general assembly committee hearings
Sec. 9. (a) The budget agency shall assist the budget committee inthe preparation of the budget report and the budget bill, using therecommendations and estimates prepared by the budget agency andthe information obtained through investigation and presented athearings. The budget committee shall consider the data, information,recommendations and estimates before it and, to the extent that there
is agreement on items, matters and amounts between the budgetagency and a majority of the members of the budget committee, thecommittee shall organize and assemble a budget report and a budgetbill or budget bills. In the event the budget agency and a majority ofthe members of the budget committee shall differ upon any item,matter, or amount to be included in such report and bills, therecommendation of the budget agency shall be included in the budgetbill or bills, and the particular item, matter or amount, and the extentof and reasons for the differences between the budget agency and thebudget committee shall be stated fully in the budget report. Beforethe second Monday of January, in the year immediately afterpreparation, the budget report and the budget bill or bills shall besubmitted to the governor by the budget committee. The governorshall deliver to the house members of the budget committee such billor bills for introduction into the house of representatives.
(b) Whenever during the period beginning thirty (30) days priorto a regular session of the general assembly the budget report andbudget bill or bills have been completed and printed and are availablefor distribution, upon the request of a member of the generalassembly an informal distribution of one (1) copy of each suchdocument shall be made by the budget committee to such members.During business hours, and as may be otherwise required duringsessions of the general assembly, the budget agency shall makeavailable to the members of the general assembly so much as theyshall require of its accumulated staff information, analyses andreports concerning the fiscal affairs of the state and the currentbudget report and budget bill or bills.
(c) The budget report shall include at least the following five (5)parts;
(1) A statement of budget policy, including but not limited torecommendations with reference to the fiscal policy of the statefor the coming budget period, and describing the importantfeatures of the budget.
(2) A general budget summary setting forth the aggregatefigures of the budget to show the total proposed expendituresand the total anticipated income, and the surplus or deficit.
(3) The detailed data on actual receipts and expenditures for theprevious fiscal year or two (2) fiscal years depending upon thelength of the budget period for which the budget bill or bills isproposed, the estimated receipts and expenditures for thecurrent year, and for the ensuing budget period, and theanticipated balances at the end of the current fiscal year and theensuing budget period. Such data shall be supplemented withnecessary explanatory schedules and statements, including astatement of any differences between the recommendations ofthe budget agency and of the budget committee.
(4) A description of the capital improvement program for thestate and an explanation of its relation to the budget.
(5) The budget bills.
(d) The budget report shall cover and include all special and
dedicated revenue funds as well as the general revenue fund and shallinclude the estimated amounts of federal aids, for whatever purposeprovided, together with estimated expenditures therefrom.
(e) The budget agency shall furnish the governor with any furtherinformation required concerning the budget, and upon request shallattend hearings of committees of the general assembly on the budgetbills.
(Formerly: Acts 1961, c.123, s.9; Acts 1967, c.96, s.1.) As amendedby Acts 1977, P.L.28, SEC.9.
IC 4-12-1-10
Budget committee; meetings; time
Sec. 10. The budget committee shall meet at least once during thetwo (2) months period after adjournment of each regular session ofthe general assembly sine die, except that beginning with July thecommittee shall meet at least once each month, and upon call of thechairman. The committee shall fix the time and place for suchmeetings.
(Formerly: Acts 1961, c.123, s.10.) As amended by Acts 1977,P.L.28, SEC.10.
IC 4-12-1-11
Budget committee; functions; compensation
Sec. 11. (a) In addition to cooperating in the preparation of arecommended budget report and budget bill as herein provided, thechief functions of the budget committee shall be to serve as liaisonbetween the legislative and executive, including the administrativebranches of government, and to provide information to the generalassembly with respect to the management of state fiscal affairs sothat it may have a better insight into the budgetary and appropriationneeds of the various state agencies. To perform such functions thebudget committee may:
(1) Select a chairman and such other officers as the membersdesire, and hold meetings at stated intervals, and on call of thechairman.
(2) Make such policies and procedures concerning itsorganization and operation as are deemed advisable butIC 4-22-2 shall not apply thereto.
(3) Have access to all files, information gathered and reports ofthe budget agency.
(4) Inspect any state agency in order to obtain accurateinformation concerning its budgetary needs and fiscalmanagement, and examine all of its records and books ofaccount.
(5) Subpoena witnesses and records, examine witnesses underoath, hold hearings, and exercise all the inherent powers of aninterim legislative committee for study of budgetary affairs andfiscal management.
(6) Attend meetings of appropriate committees of the generalassembly and furnish it with information and advice. (7) Make such general or special reports to the budget agencyand to the general assembly as are deemed advisable. A reportto the general assembly under this subdivision must be in anelectronic format under IC 5-14-6.
(b) The salary per diem of the legislative members of the budgetcommittee is seventy dollars ($70) per day each for the timenecessarily employed in the performance of their duties, and asprovided by law all necessary traveling and hotel expenses, inaddition to their legislative salary and legislative expense allowance,fixed by law as members of the general assembly. However, thesalary per diem provided in this section is in lieu of any other perdiem allowances available for the same day to legislative membersof the budget committee in their capacity as members of otherlegislative committees or commissions.
(Formerly: Acts 1961, c.123, s.11.) As amended by Acts 1977,P.L.28, SEC.11; P.L.28-2004, SEC.35.
IC 4-12-1-11.5
Agency action requiring budget committee review; placement oncommittee agenda
Sec. 11.5. For purposes of any statute that requires budgetcommittee review before an action may be taken by a state agency orother entity, budget committee review is considered to have takenplace when the action requiring review has been included on anapproved agenda of the budget committee in the part of the agendaconcerning review items.
As added by P.L.224-2003, SEC.278.
IC 4-12-1-12
Appropriation lists; allotment system; transfer; emergency orcontingency appropriations
Sec. 12. (a) Within forty-five (45) days following the adjournmentof the regular session of the general assembly, the budget agencyshall examine the acts of such general assembly and, with the aid ofits own records and those of the budget committee, shall prepare acomplete list of all appropriations made by law for the budget periodbeginning on July 1 following such regular session, or so made forsuch other period as is provided in the appropriation. While such listis being made by it the budget agency shall review and analyze thefiscal status and affairs of the state as affected by suchappropriations. A written report thereof shall be made and signed bythe budget director and shall be transmitted to the governor and theauditor of state. The report shall be transmitted in an electronicformat under IC 5-14-6 to the general assembly.
(b) Not later than the first day of June of each calendar year, thebudget agency shall prepare a list of all appropriations made by lawfor expenditure or encumbrance during the fiscal year beginning onthe first day of July of that calendar year.
(c) Within sixty (60) days following the adjournment of anyspecial session of the general assembly, or within such shorter period
as the circumstances may require, the budget agency shall prepare forand transmit to the governor and members of the general assemblyand the auditor of state, like information and a list of sumsappropriated, all as is done upon the adjournment of a regularsession, pursuant to subsections (a) and (b) of this section to theextent the same are applicable. The budget agency shall transmit anyinformation under this subsection to the general assembly in anelectronic format under IC 5-14-6.
(d) The budget agency shall administer the allotment systemprovided in IC 4-13-2-18.
(e) The budget agency may transfer, assign, and reassign anyappropriation or appropriations, or parts of them, excepting thoseappropriations made to the Indiana state teacher's retirement fundestablished by IC 5-10.4-2, made for one specific use or purpose toanother use or purpose of the agency of state to which theappropriation is made, but only when the uses and purposes to whichthe funds transferred, assigned and reassigned are uses and purposesthe agency of state is by law required or authorized to perform. Notransfer may be made as in this subsection authorized unless upon therequest of and with the consent of the agency of state whoseappropriations are involved. Except to the extent otherwisespecifically provided, every appropriation made and hereafter madeand provided, for any specific use or purpose of an agency of thestate is and shall be construed to be an appropriation to the agency,for all other necessary and lawful uses and purposes of the agency,subject to the aforesaid request and consent of the agency andconcurrence of the budget agency.
(f) One (1) or more emergency or contingency appropriations foreach fiscal year or for the budget period may be made to the budgetagency. Such appropriations shall be in amounts definitely fixed bylaw, or ascertainable or determinable according to a formula, oraccording to appropriate provisions of law taking into account therevenues and income of the agency of state. No transfer shall bemade from any such appropriation to the regular appropriation of anagency of the state except upon an order of the budget agency madepursuant to the authority vested in it hereby or otherwise vested in itby law.
(Formerly: Acts 1961, c.123, s.12; Acts 1972, P.L.31, SEC.1.) Asamended by Acts 1977, P.L.28, SEC.12; P.L.28-2004, SEC.36;P.L.2-2006, SEC.6; P.L.146-2008, SEC.13.
IC 4-12-1-12.5
"Block grant" defined; transfers of funds
Sec. 12.5. (a) As used in this section, "block grant" means a blockgrant established by the federal Omnibus Budget Reconciliation Actof 1981 (P.L. 97-35).
(b) The governor may transfer funds between block grants only inan amount authorized by state law.
As added by Acts 1982, P.L.21, SEC.2.
IC 4-12-1-13
Inspections of state institutions; compensation of state employees;review by budget agency; collective bargaining
Sec. 13. (a) During the interval between sessions of the generalassembly, the budget agency shall make regular or, at the request ofthe governor, special inspections of the respective institutions of thestate supported by public funds. The budget agency shall reportregularly to the governor relative to the physical condition of suchinstitutions, and any contemplated action of the institution on a newor important matter, and on any other subject which such agency maydeem pertinent or on which the governor may require information.The budget agency shall likewise familiarize itself with the best andapproved practices in each of such institutions and supply suchinformation to other institutions to make their operation moreefficient and economical.
(b) Except as to officers and employees of state educationalinstitutions, the executive secretary of the governor, theadministrative assistants to the governor, the elected officials, andpersons whose salaries or compensation are fixed by the governorpursuant to law, the annual compensation of all persons employed byagencies of the state shall be subject to the approval of the budgetagency. Except as otherwise provided by IC 4-15-1.8 and IC 4-15-2,the budget agency shall establish classifications and schedules forfixing compensation, salaries and wages of all classes and types ofemployees of any state agency or state agencies, and any and allother such classifications affecting compensation as the budgetagency shall deem necessary or desirable. The classifications andschedules thus established shall be filed in the office of the budgetagency. Requests by an appointing authority for salary and wageadjustments or personal service payments coming within suchclassifications and schedules shall become effective when approvedby, and upon the terms of approval fixed by, the budget agency. Allpersonnel requests pertaining to the staffing of programs or agenciessupported in whole or in part by federal funds are subject to reviewand approval by the state personnel department under IC 4-15-1.8and IC 4-15-2.
(c) The budget agency shall review and approve, for thesufficiency of funds, all payments for personal services which aresubmitted to the auditor of state for payment.
(d) The budget agency shall review all contracts for personalservices or other services and no contract for personal services orother services may be entered into by any agency of the state beforethe written approval of the budget agency is given. Each demand forpayment submitted by an agency to the auditor of state under thesecontracts must be accompanied by a copy of the budget agencyapproval. No payment may be made by the auditor of state withoutsuch approval. However, this subsection does not apply to a contractentered into by:
(1) a state educational institution; or
(2) an agency of the state if the contract is not required to be
approved by the budget agency under IC 4-13-2-14.1.
(e) The budget agency shall review and approve the policy andprocedures governing travel prepared by the department ofadministration under IC 4-13-1, before the travel policies andprocedures are distributed.
(f) The budget agency is responsible for reviewing and advisingthe governor, as chief executive of the state, or the governor'sdesignee, as to whether any agreement reached pursuant to publicemployee collective bargaining as provided by statute, other thanIC 20-29, is within the money legally available to the state as anemployer.
(g) The budget director, or the director's designee, may serve asa member of the negotiating team selected to represent the state as anemployer in the public employee collective bargaining procedurepursuant to statute, other than IC 20-29.
(h) The budget agency may adopt such policies and proceduresnot inconsistent with law as it may deem advisable to facilitate andcarry out the powers and duties of the agency, including theexecution and administration of all appropriations made by law.IC 4-22-2 does not apply to these policies and procedures.
(Formerly: Acts 1961, c.123, s.13; Acts 1971, P.L.25, SEC.1.) Asamended by Acts 1977, P.L.28, SEC.13; P.L.3-1989, SEC.17;P.L.26-1989, SEC.1; P.L.1-2005, SEC.58; P.L.2-2007, SEC.28.
IC 4-12-1-13.5
Determination and certification of state agency costs;appropriation from dedicated funds
Sec. 13.5. (a) The budget director may determine on or after July1 of each fiscal year the costs of operating, during the precedingfiscal year, the office of the auditor of state, the office of attorneygeneral, the office of the treasurer of state, the department ofadministration, the state budget agency and any other state agencythat the budget director determines is attributable to the operationsof other state agencies. The budget director shall establish a formulato determine those costs.
(b) When the budget director has determined the total attributableamount of those costs for each of the state agencies, he shall certifythose amounts to the auditor of state and shall transmit a duplicate ofthe certification to the treasurer of state.
(c) The amount certified by the budget director for an agencysupported by any dedicated fund is appropriated to pay that cost fromthe dedicated fund used to support that agency. On receipt of thecertification of the budget director, the auditor of state shall transferfrom the dedicated funds to the state general fund the amountscertified by the budget director. The auditor of state shall make theappropriate entries in the records of those dedicated funds. Thetreasurer of state shall make the appropriate entries in his records.
As added by Acts 1977, P.L.27, SEC.2. Amended by P.L.18-1991,SEC.2.
IC 4-12-1-14
Federal aid programs; federal aid management division; creation
Sec. 14. (a) It is the legislative intent of this section that the stateof Indiana participate in federal aid programs to the extent that it isin the state's interest to so participate. In order that the governor andthe general assembly be enabled to make informed decisions aboutfederal aid programs and that efficient and effective administrationof these programs may take place, a federal aid management divisionis established within the state budget agency.
(b) There is created within the budget agency the federal aidmanagement division. The division shall have the following powersand duties:
(1) To periodically inform the governor and the generalassembly of pending and enacted federal aid legislationaffecting the state.
(2) To evaluate new federal aid programs as they becomeoperative, to periodically inform the governor and the generalassembly of the existence of such programs, and of conditionswhich must be met by the state of Indiana for acceptance ofsuch programs, to include any necessary enabling legislation.
(3) To review and approve all information as requested by thebudget director, including but not limited to applications forfederal funds and state plans, which shall be submitted to it byall state agencies, except in the case of universities or collegessupported in whole or in part by state funds which are otherwiseprovided for in this clause, before submission of theinformation to the proper federal authority. Each regular sessionof the general assembly shall be furnished the names of anystate agencies that fail to comply with the instructions of thebudget agency and budget committee. For universities andcolleges supported in whole or in part by state funds, the statebudget agency shall review and either approve or disapproveany program application which exceeds one hundred thousanddollars ($100,000) and all construction grant requests. Programapplications which do not exceed one hundred thousand dollars($100,000) do not require review or approval by the statebudget agency, but a copy of those applications shall beforwarded to the state budget agency for informational purposesonly.
A program application which exceeds one hundred thousanddollars ($100,000) may be submitted to the proper federal fundingauthority, before the application has been approved by the statebudget agency, but the funds may not be spent until after the statebudget agency has given its approval.
All construction grant requests must be reviewed and approved bythe state budget agency before submission to the federal fundingauthority.
(4) To compile and analyze data received from state and localgovernments and agencies accepting federal aid, andperiodically report on the same to the governor and the general
assembly.
(5) To periodically report to the governor and the generalassembly as to administrative or other problems caused byacceptance and operation of federal aid programs on both stateand local levels, and to make recommendations for thealleviation of the same. A report under this subdivision to thegeneral assembly must be in an electronic format underIC 5-14-6.
(6) To maintain an information system on federal aid programs.
(7) To assist, at the discretion of the governor, in thecoordination of broad federal programs administered by morethan one (1) state agency.
(8) To serve at the governor's designation as the state clearinghouse under the United States office of management and budgetcircular A-95, revised.
(9) To prepare and administer an indirect cost allocation planfor the state of Indiana.
(10) To perform such tasks related to the above powers andduties as may be required by the governor.
(c) Staff members and other employees of the federal aidmanagement division shall be appointed in the same mannerprescribed by law for selection of other personnel of the budgetagency. The governor may, at the governor's discretion, appoint achief of the federal aid management division.
(Formerly: Acts 1961, c.123, s.13a; Acts 1969, c.383, s.1.) Asamended by Acts 1977, P.L.28, SEC.14; P.L.28-2004, SEC.37.
IC 4-12-1-14.1
Federal aid programs; transfer of appropriations between involvedstate agencies
Sec. 14.1. For federal aid programs that involve more than one (1)state agency, the budget agency may transfer, assign, and reassignany part of any appropriation made for the federal aid program froma state agency involved in the federal aid program to another stateagency involved. However, this transfer may only be made if the usesand purposes to which any part of the appropriation may betransferred, assigned, or reassigned are uses and purposes of thefederal aid program involved.
As added by Acts 1977, P.L.27, SEC.3. Amended by P.L.3-1990,SEC.16.
IC 4-12-1-14.2
Oil overcharge funds; appropriation to division of familyresources; amount
Sec. 14.2. Notwithstanding any other law, all oil overcharge fundsreceived from the federal government are annually appropriated tothe lieutenant governor for the lieutenant governor's use in carryingout the home energy assistance program. The amount of this annualappropriation for a state fiscal year is equal to:
(1) the total amount necessary to carry out the program during
that fiscal year; minus
(2) the amount of federal low income energy assistance fundsavailable for the program during that state fiscal year.
As added by P.L.17-1990, SEC.1. Amended by P.L.2-1992, SEC.30;P.L.145-2006, SEC.4; P.L.181-2006, SEC.15; P.L.1-2010, SEC.6.
IC 4-12-1-14.3
Tobacco master settlement agreement fund
Sec. 14.3. (a) As used in this section, "master settlementagreement" has the meaning set forth in IC 24-3-3-6.
(b) There is hereby created the Indiana tobacco master settlementagreement fund for the purpose of depositing and distributing moneyreceived under the master settlement agreement. The fund consistsof:
(1) all money received by the state under the master settlementagreement;
(2) appropriations made to the fund by the general assembly;and
(3) grants, gifts, and donations intended for deposit in the fund.
(c) The fund shall be administered by the budget agency.Notwithstanding IC 5-13, the treasurer of state shall invest the moneyin the fund not currently needed to meet the obligations of the fundin the same manner as money is invested by the public employeesretirement fund under IC 5-10.3-5. The treasurer of state maycontract with investment management professionals, investmentadvisors, and legal counsel to assist in the investment of the fund andmay pay the state expenses incurred under those contracts from thefund. Interest that accrues from these investments shall be depositedin the fund. Money in the fund at the end of the state fiscal year doesnot revert to the state general fund.
(d) The state general fund is not liable for payment of a shortfallin expenditures, transfers, or distributions from the Indiana tobaccomaster settlement agreement fund or any other fund due to a delay,reduction, or cancellation of payments scheduled to be received bythe state under the master settlement agreement. If such a shortfalloccurs in any state fiscal year, the budget agency shall make the fulltransfer to the regional health facilities construction account and thenreduce all remaining expenditures, transfers, and distributionsaffected by the shortfall.
As added by P.L.273-1999, SEC.232. Amended by P.L.21-2000,SEC.1; P.L.291-2001, SEC.52; P.L.224-2003, SEC.117.
IC 4-12-1-15
Emergency or contingency appropriations; standards forallocation
Sec. 15. (a) In the absence of other directions, purposes orstandards specifically imposed therein, or otherwise fixed by law, anemergency or contingency appropriation to the budget agency whichis general and unrelated to any specific agency of the state shall befor the general use, respectively, of any agency of the state, shall be
for its emergency or contingency purposes or needs, as the budgetagency, in each situation, shall determine and shall fix the amount totransfer, and shall order transfer thereof from such appropriation tothe agency of state relieved thereby. From such emergency orcontingency appropriations, the budget agency is hereby empoweredto make and order allocations and transfers to, and to authorizeexpenditures by, the various agencies of the state to achieve thepurposes, or meet the needs, circumstances and standards following,namely:
(1) Necessary expenditures for the preservation of publichealth, and for the protection of persons and property whichwere not foreseen when the appropriations were made by theprevious general assembly.
(2) Repair of damage to, or replacement of, any building orequipment owned by the state or by any agency of the statewhich has been so damaged as to materially affect the publicsafety or utility thereof, or which has been destroyed, if such isnecessary to discharge the functions of the state or of anyagency of the state, and if such damage or loss was caused bysabotage, fire, flood, wind, war, catastrophe or disaster.
(3) Repair of damage to, or replacement of, any building orequipment owned by the state or by an agency of the statewhich has so depreciated or deteriorated or sufferedobsolescence as to become unusable, but is required in thedischarge of necessary functions of the state or of an agency ofthe state, and if such depreciation, deterioration or obsolescencewas not foreseen at the time appropriations were made by theprevious general assembly.
(4) Emergencies resulting from increase of costs or any otherfactor or event unforeseen at the time appropriations were madewhich render insufficient the appropriated funds for food,clothing, maintenance or medical care necessary for theoperation of any state institution.
(5) Emergencies resulting from increase in costs or any otherfactor or event unforeseen at the time appropriations were madewhich render insufficient the appropriated funds for the cost ofinstruction or other costs of operation of any of the stateeducational institutions.
(6) In addition to and without limitation by the foregoing,supplementation of an exhausted fund or account of any stateagency, whatever the cause of such exhaustion, if such is foundnecessary to accomplish the orderly administration of such stateagency, or the accomplishment of an existing specific stateproject. However, it shall be an express condition of any suchsupplementation, that the funds shall not serve to authorize apurpose or purposes which were included in the budget bill, orbudget bills, to the previous general assembly but were whollyomitted or excluded from appropriations made by the generalassembly.
The provisions of this section shall not change, impair or destroy any
fund previously created, nor be deemed to affect the administrationof any contingency or emergency appropriations made for specificpurposes.
(b) If in the administration of any contingency or emergencyappropriation made to the budget agency, it should appear that theallocation by the budget agency of funds to any designated otheragency of the state for expenditure is illegal then such appropriationor fund may, consistent with the provisions of such contingency oremergency appropriations and with the approval of the governor, beexpended for and on behalf of any other agency of the state by thebudget agency pursuant to the standards set forth in this section. Noprovisions in this section are intended to conflict or interfere with thepowers and duties of the state board of finance.
(Formerly: Acts 1961, c.123, s.14.) As amended by Acts 1977,P.L.28, SEC.15; P.L.2-2007, SEC.29.
IC 4-12-1-15.5
Medicaid contingency and reserve account
Sec. 15.5. (a) The Medicaid contingency and reserve account isestablished within the state general fund for the purpose of providingmoney for timely payment of Medicaid claims, obligations, andliabilities. Money in the account must be used to pay Medicaidclaims, obligations, and liabilities. The account shall be administeredby the budget agency.
(b) Expenses of administering the account shall be paid frommoney in the account. The account consists of the following:
(1) Appropriations to the account.
(2) Other Medicaid appropriations transferred to the accountwith the approval of the governor and the budget agency.
(c) The treasurer of state shall invest the money in the account notcurrently needed to meet the obligations of the account in the samemanner as other public money may be invested.
(d) Money in the account at the end of a state fiscal year does notrevert.
As added by P.L.340-1995, SEC.38.
IC 4-12-1-15.7
State tuition reserve fund
Sec. 15.7. (a) As used in this section, "fund" refers to the statetuition reserve fund.
(b) The state tuition reserve fund is established for the followingpurposes:
(1) To fund a tuition support distribution under IC 20-43whenever the budget director determines that state general fundcash balances are insufficient to cover the distribution.
(2) To meet revenue shortfalls whenever the budget director,after review by the budget committee, determines that state taxrevenues available for deposit in the state general fund will beinsufficient to fully fund tuition support distributions underIC 20-43 in any particular state fiscal year. (c) The fund consists of the following:
(1) Money appropriated to the fund by the general assembly.
(2) Money transferred to the fund under any law.
(3) Interest earned on the balance of the fund.
(d) The treasurer of state shall invest the money in the fund notcurrently needed to meet the obligations of the fund in the samemanner as other public money may be invested. Interest that accruesfrom these investments shall be deposited in the fund.
(e) Money in the fund at the end of a state fiscal year does notrevert for any other purpose of the state general fund.
(f) The budget agency shall administer the fund. Whenever thebudget director makes a determination under subsection (b)(1) or(b)(2), the budget agency shall notify the auditor of state of theamount from the fund to be used for state tuition supportdistributions. The auditor of state shall transfer the amount from thefund to the state general fund. The amount transferred may be usedonly for the purposes of making state tuition support distributionsunder IC 20-43. If the amount is transferred under subsection (b)(1),the amount shall be repaid to the fund from the state general fundbefore the end of the state fiscal year in which the transfer is made.
As added by P.L.146-2008, SEC.14.
IC 4-12-1-16
Transfer of powers and duties
Sec. 16. Wherever in any existing law not expressly repealed byActs 1961, c. 123 and not inconsistent herewith references are madeto the budget committee, the state budget committee, the budgetdirector, the director of the budget, secretary of the budgetcommittee, or the division of the budget, all of such references shallbe deemed to mean and refer to the budget agency created by thischapter. All powers, duties and appropriations of any of the abovenamed agencies contained in any existing law or laws which are notexpressly repealed in Acts 1961, c. 123 and are not inconsistent withthis chapter, including but not limited to the allotment duties referredto herein and hereby imposed on the budget agency, are herebytransferred to the budget agency the same as if those powers andduties had been expressly enumerated in this chapter.
(Formerly: Acts 1961, c.123, s.15.) As amended by Acts 1977,P.L.28, SEC.16.
IC 4-12-1-17
Repealed
(Repealed by P.L.1-1989, SEC.75.)
IC 4-12-1-18
Appropriation and allotment of federal funds to instrumentalities
Sec. 18. Federal funds received by an instrumentality areappropriated for purposes specified by the federal government,subject to allotment by the budget agency. The provisions of thischapter and other laws concerning the acceptance, disbursement,
review, and approval of grants, loans, and gifts made by the federalgovernment or any other source to the state or its agencies apply toinstrumentalities.
As added by P.L.246-2005, SEC.40.