state budget cycles
HB 2700 defines annual budget units and requires budgetary reports and estimates for annual budget units to be submitted annually.
Currently, the Governor is required to submit, to the Legislature not later than five days after the regular session convenes, a budget containing a complete plan of expenditures proposed to be made before the close of the two ensuing fiscal years. The budget must also include all monies and revenues estimated to be available along with an explanation of the basis of the estimates and recommendations as to proposed Legislation that the Governor deems necessary to provide revenues sufficient to meet proposed expenditures. Each fiscal year is delineated separately. Not later than five days after the regular session convenes in even-numbered years; the Governor may submit any proposed revisions to the enacted budgets for the current and ensuing fiscal years. An explanation for any changes to the enacted budget and a current estimate of all available monies and revenues must accompany the proposed revisions.
In even-numbered years, on or before June 1, the Governor transmits to the administrative head of each budget unit, the prescribed forms for submitting the next two ensuing fiscal year’s budget estimates and requests for appropriation. The head of each budget unit then, before September 1 of each even-numbered year submits estimates of the financial requirements and of receipts of the budget unit for the next two ensuing fiscal years. A thirty day extension on the September 1 submission deadline may be granted if approved by the Governor’s Office of Strategic Planning and Budgeting (OSPB).
The Governor is required to have, in continuous process of preparation and revision, a tentative budget report for the next two ensuing years. OSPB, in consultation with the Joint Legislative Budget Committee (JLBC) budget analyst, is required to determine and report to the Governor and Legislature, an estimate of appropriations subject to the limit imposed in the Constitution of Arizona. The constitutional appropriations limit prohibits state revenue appropriations from exceeding 7% of the total personal income tax revenues for that year. The appropriations estimate report must be published by February 15 for each odd-numbered year for the current fiscal year and must reflect the Governor’s budget recommendations for the two ensuing fiscal years. The appropriations report must also be published by November 1 of each year to reflect the total amount appropriated for the current and preceding fiscal years.
· Defines annual budget unit to mean the following agencies:
· Department of Education
· Arizona Board of Regents
· Arizona State University
· University of Arizona
· Northern Arizona University
· State Board of Directors for Community Colleges
· School Facilities Board
· Department of Economic Security
· State Department of Corrections
· Department of Juvenile Corrections
· Arizona Health Care Cost Containment System
· Department of Administration (DOA)
· Department of Transportation
· Extends the definition of budget unit to apply to both annual budget units and biennial budget units.
· Requires the Governor to submit a budget report every year for annual budget units and biennially in odd-numbered years for biennial budget units not later than five days after the regular session of the Legislature convenes. In accordance with this change all items contained in the budget report shall include information for the two ensuing fiscal years for biennial budget units, and only the next fiscal year for annual budget units.
· Requires the Governor to submit the prescribed forms for budget estimates and appropriations requests to the administrative head of each budget unit annually rather than biennially.
· Requires the administrative heads of annual budget units to submit estimates to the Governor for the next fiscal year’s financial requirements and receipts not later than September 1 every year.
· Requires the administrative heads of biennial budget units to submit estimates to the Governor for the next two ensuing fiscal year’s financial requirements and receipts not later than September 1 in even-numbered years.
· Allows the director of OSPB to approve a thirty-day extension of the September 1 deadline.
· States that the Governor may require biennial budget units to submit budget estimates more often than every two years.
· Requires the Governor’s tentative budget report to cover the next two ensuing years for biennial budget units and the next fiscal year for annual budget units.
· Requires OSPB, in consultation with JLBC, to determine and report to the Governor and the Legislature an estimate of appropriations by February 15 of each year for the preceding fiscal year, the current fiscal year and the ensuing fiscal year to reflect the budget recommendations of the governor.
· States that the director of OSBP rather than the director of DOA, in person or by assistant, shall be available to the Legislature and the appropriation committees for explanation of any recommendation made in the Governor’s budget report.
· States that the application of the provisions of this act shall begin for FY 2003-04.
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45th Legislature
Second Regular Session 2 March
21, 2002
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