AN ACT CONCERNING EXPENDITURES OF APPROPRIATED FUNDS OTHER THAN THE GENERAL FUND.

AN ACT CONCERNING EXPENDITURES OF APPROPRIATED FUNDS OTHER THAN THE GENERAL FUND.

This bill requires the Office of Policy and Management (OPM) secretary and the Office of Fiscal Analysis (OFA) director to agree on and issue consensus revenue estimates each year by October 15^th and to issue any necessary consensus revisions of those estimates in January and April. The estimates must cover the current biennium and the three following years. If the two are unable to issue consensus estimates, the bill requires the comptroller to issue the consensus estimate, which must either equal one of the separate estimates from the two offices or fall between the two.

Under the bill, the consensus revenue estimates and revised estimates must (1) serve as the basis for the governor's proposed budget and for the revenue statement included in the final budget act passed by the legislature to indicate that the budget is balanced, and (2) be included the annual fiscal accountability reports submitted to the legislature's fiscal committees each November.

If the estimates or revised estimates forecast deficits or increased deficits exceeding certain levels, the bill requires the governor and the legislature's fiscal committees to take specified actions to address the estimates.

Finally, the bill establishes an additional procedure for developing a consensus revenue estimate for the current biennium and requires the governor and legislative fiscal committees to take certain actions based on those estimates if no budget for the biennium has become law by the bill's effective date.

*Senate Amendment “A” eliminates the original bill and substitutes the provisions summarized above. The original bill required the Office of Fiscal Analysis to (1) review appropriations authorized from appropriated funds other than the General Fund for the biennium ending June 30, 2009, (2) identify general areas of spending for which appropriations increased 10% or more over appropriations for the immediately preceding biennium, and (3) report the results of its review to the Appropriations Committee by May 1, 2009.

The bill requires the OPM secretary and the OFA director to agree on and issue consensus revenue estimates each year by October 15^th. The estimates must cover a five-year period that includes the current biennium and the three following fiscal years. It also requires the two offices, by January 15^th and April 30^th each year, to issue a consensus revision of their estimate or a statement that no revision is needed.

If the OPM secretary and the OFA director do not issue a consensus estimate or revision by these deadlines, they must issue separate estimates or revisions. The state comptroller must then issue the consensus estimate or revision, which must either (1) equal one of the separate estimates or revisions or (2) fall somewhere between the two. The deadline for the comptroller to issue the October consensus estimate, if required, is October 25^th. For any required revised January and April consensus estimates, the deadline is not later than five days after the OFA and OPM fail to issue a consensus revision, i. e. , by January 20^th and May 4^th, respectively.

The bill requires the governor to base the draft revenue and appropriations bills needed to carry out her budget recommendations on the consensus estimate or most recent revised consensus estimate. It also requires that the consensus estimate or revised consensus estimate serve as the basis for the estimated revenue statement that, by law, the legislature must include the state budget act. This statement must be itemized by major revenue source for each major state fund and shows the budget's spending requirements and the state's estimated revenues are balanced.

Finally, the bill requires OPM and OFA to submit the October consensus revenue estimate as part of the state fiscal accountability reports they must each submit to the Finance, Revenue and Bonding and Appropriations committees by November 15^th annually.

When the revised consensus revenue estimate issued in January or April of any year changes the previous consensus estimate to forecast (1) a deficit of more than 1% of total General Fund appropriations for the year in which it is issued or (2) an increase in a previously forecasted deficit of at least a like amount, the bill requires the governor and the General Assembly to address the revised estimates if the General Assembly is in session and no budget for the upcoming fiscal year has become law.

If the April revised estimate forecasts such a deficit or deficit increase, the Appropriations and Finance, Revenue and Bonding committees must, by the 10^th business day after the April consensus revision is issued, prepare and vote on adjusted appropriations and revenue plans needed to address the revised estimate.

The governor must submit a budget document to the legislature within 25 calendar days after the January estimate is issued and within 10 calendar days after issuance of the April revised estimate. The document must be based on the consensus revenue estimate or revised estimate and must include drafts of appropriations and revenue bills necessary to address the most recent of these estimates.

If no budget for the July 1, 2009 to June 30, 2011 biennium has become law by the bill's effective date, the bill gives the OPM secretary and the OFA director five days after its passage to issue the revised consensus revenue estimate for that biennium. If the offices do not issue the estimate by the deadline, they must issue separate revised estimates. Immediately afterwards, the comptroller must consider the two estimates and issue the revised consensus estimate for the biennium. The estimate must either be the same as the OFA or OPM revised estimate or fall between the two.

Unless a budget for the July 1, 2009 to June 30, 2011 biennium has become law by the bill's effective date, the Appropriations and Finance, Revenue and Bonding committees must, by the 10^th day after that date, prepare and vote on adjusted appropriations and revenue plans needed to address the revised consensus estimate. Also by the 10^th day after the bill takes effect, the governor must submit a budget document to the legislature that addresses the revised consensus estimate. The document must be based on the estimate and include drafts of appropriations and revenue bills necessary to address it.

Yea

Nay

(04/13/2009)

Yea

Nay

(05/18/2009)

Yea

Nay

(05/19/2009)