ARIZONA STATE SENATE
state budget
reform; omnibus
Strengthens legislative oversight of state agencies, agency budgets and programs administered by state agencies. Appropriates $308,000 in FY 2001-2002 from the state general fund to the Auditor General for emergency special audits.
Background
State law requires the Legislature to enact two annual state budgets every biennium. These budgets consist of Legislative appropriations of state general fund monies and various other fund monies. With the exception of certain block grants, appropriations do not include federal monies. While H.B. 2251 does not authorize Legislative appropriation of federal monies, it does require that the expenditure of these monies be reported to the Legislature quarterly.
Currently, state law provides for a default ten year sunset review cycle. This bill reduces the default time to eight years. It also requires new state programs to be subject to an eight year expiration time period, rather than ten years. Additionally, the Joint Legislative Audit Committee (JLAC), which oversees audit functions, is required under H.B. 2251 to order emergency special audits of agencies and programs in consultation with the chairman and vice-chairman of the Joint Legislative Budget Committee (JLBC) and report findings back to JLAC.
The fiscal impact to the state general fund associated with H.B. 2251 is due to the addition of four full-time employees to conduct the emergency special audits. This legislation appropriates $308,000 in FY 2001-2002 for these auditors and related expenses.
Provisions
1. Requires state budget units to submit a quarterly report to JLBC on any federal monies expended which are ten percent or more in excess of monies spent the prior fiscal year. This excludes monies received for entitlement programs or research grants received by universities.
2. Authorizes JLBC to request, between quarterly reports, an expenditure plan for any new program using at least $500,000 of federal funds.
1. Requires specified performance measures be included in biennial budget reports.
1. Requires, to the extent possible, the master list of state programs to be consistent with the 1997 master list for specified agencies that provide health care and social services to children, but allows for the program structure to be modified for budgeting purposes.
1. Requires a budget unit subject to strategic program area review to meet with the Chairmen of the Senate and House Appropriation Committees after the self-assessment to discuss the program and self-assessment.
2. Requires a budget unit that transfers spending authority between expenditure classes or programs to report the transfers to JLBC.
3. Requires JLAC, in consultation with the chairman and vice-chairman of JLBC, to order emergency audits of agencies and programs to be conducted by a team of four auditors who will report to the Committee within thirty days.
4. Reduces the default sunset review cycle from ten years to eight years, effective July 1, 2003.
5. Reduces, from ten to eight years, the default expiration date for new programs created by the Legislature, effective July 1, 2003.
6. Requires enabling legislation for new programs to include a requirement of a report on specified performance measures and a time limit for submission of the report.
7. Appropriates $308,000 in FY 2001-2002 from the state general fund to the Auditor General for four full-time employees, employee related expenditures and other costs for the emergency special audits.
8. Contains technical and conforming changes.
9. Provides for a general effective date, except as otherwise specified.
House Action
RULES 03/08/01 AMEND C&P 9-0-0-2-0
Third Read 03/14/01 37-13-10-0
Prepared by Senate Staff
March 23, 2001