jagomart
digital resources
picture1_Budgetprocess


 144x       Filetype PDF       File size 0.33 MB       Source: ofm.wa.gov


Budgetprocess

icon picture PDF Filetype PDF | Posted on 02 Jan 2023 | 2 years ago
Partial capture of text on file.
                                                                         A Guide to the
                           Office of                             Washington State  
                           Financial Management
                           STATE OF WASHINGTON                      Budget Process
                   
                 July 2019                                       Biennial budget cycle 
                 This guide contains information on:         Washington enacts budgets on a two-
                  Biennial budget cycle                      year cycle, beginning July 1 of each odd-
                  Roles and responsibilities in the          numbered year. The budget approved for 
                  budget process                                       –21 biennium remains in effect 
                  Budget development approach                the 2019
                  Budget and accounting structure            from July 1, 2019, through June 30, 2021. 
                  Source of state revenue                    By law, the Governor must propose a 
                                                             biennial budget in December, the month 
                  Size and distribution of the state         before the Legislature convenes in regular 
                  budget                                     session. The biennial budget enacted by 
                  General Fund-State operating budget        the  Legislature  can  be  modified  in  any 
                  State staffing levels                      legislative session through changes to the 
                  Budget drivers                             original appropriations. Since the inception 
                  State spending limit                       of annual legislative sessions in 1979, it has 
                  Debt limit                                 become common for the Legislature to 
                  Budget Stabilization Account               enact annual revisions to the state’s biennial 
                  Glossary of budget-related terms           budget. These revisions are referred to as 
                                                             supplemental budgets. 
            Ongoing                 June 2020           September 2020            Fall 2020           December 2020
             Agency                 OFM issues              Agencies             OFM review              Governor 
            strategic                 budget                 submit                  and                 proposes 
            planning                instructions            budget                Governor’s             budget to 
                                                            requests              decisions              Legislature
          January 2021            April/May 2021        May/June 2021           July 1, 2021             Ongoing
            Legislature             Legislature             Governor               Biennial            Performance 
            convenes                  passes                 signs               budget takes            measure 
           2nd Monday                 budget                budget                  effect                tracking
            of January
                                                                                                              1
                         Roles and responsibilities in the budget process 
                 State agencies are responsible for developing         in the Senate and 98 members in the House 
                 budget estimates and submitting budget                of Representatives. Specific fiscal committees 
                 proposals to the Governor. Once the budget is         have primary responsibility for preparation 
                 enacted by the Legislature and approved by the        of the legislative budget. These include 
                 Governor, agencies implement approved policies        the Appropriations, Capital Budget and 
                 and programs within the budgetary limits              Transportation committees in the House; 
                 imposed by legislation. Under Washington’s            and the Ways & Means and Transportation 
                 budget and accounting statutes, individual            committees in the Senate. 
                 agency directors are accountable for carrying out 
                 the legal intent of appropriations.                   The House and Senate employ staff analysts 
                                                                       to review and evaluate the state budget and 
                 The Governor recommends a budget to the               to prepare appropriation bills. As with other 
                 Legislature consistent with executive policy          legislation, if the two houses cannot agree on a 
                 priorities. Appropriation bills, like other           budget or revenue proposal to implement the 
                 legislation, are subject to gubernatorial veto        budget, a conference committee of legislators 
                 authority and may be rejected in part or in their     may be convened to reconcile the differences.
                 entirety within a defined number of days after 
                 legislative passage. After a budget is enacted, the   Beginning with the 2013–15 biennium, the 
                 Governor’s general administrative duties include      Legislature must enact a budget that leaves a 
                 monitoring agency expenditures and helping to         positive ending fund balance in the General 
                 implement legislative policy directives.              Fund-State (GF-S) and related funds.
                                                                        
                 The Office of Financial Management (OFM)              The Economic and Revenue Forecast Council 
                 coordinates the submittal of agency budget            (ERFC) is composed of representatives from 
                 requests and prepares the Governor’s budget           both the legislative and executive branches. Each 
                 recommendation to the Legislature. Budget staff       fiscal quarter, the council adopts an official 
                 from OFM work closely with state agencies             forecast of GF-S revenues for the current and 
                 to explain and justify planned expenditures.          (at some point) the ensuing biennia. These 
                 Analysts evaluate all budget requests for             forecasts, together with any reserves left over 
                 consistency with executive policy priorities and      from previous biennia, determine the financial 
                 to ensure that proposed expenditures match            resources available to support estimated 
                 fiscal constraints. OFM is also responsible           expenditures.  
                 for maintaining the state’s central accounting        Beginning in 2012, the ERFC also became 
                 system and developing certain population and          responsible for overseeing preparation of 
                 demographic forecasts.                                GF-S expenditure outlooks for future biennia. 
                 Through appropriations bills, the Washington          With the technical assistance of a State Budget 
                 State Legislature mandates the amount of              Outlook Work Group composed of legislative 
                 money each state agency can spend and, in             and executive staff, expenditure outlooks 
                 varying degrees of detail, directs agencies           are published in November, January (for the 
                 where and how to spend it. Washington’s               Governor’s budget proposal) and within 30 days 
                 bicameral Legislature consists of 49 members          of enactment of the operating budget.
                 2
                 The Caseload Forecast Council was created             The State Expenditure Limit Committee, 
                 by the 1997 Legislature and began operations          composed of legislators and representatives 
                 in the 1997–99 biennium. The council consists         of the Governor and Attorney General, was 
                 of two members appointed by the Governor              established in 2000 to determine the state 
                 and four appointed by the legislative political       General Fund expenditure limit created by 
                 caucuses. The council prepares official caseload      Initiative 601.
                 forecasts for state entitlement programs, 
                 including public schools, long-term care, 
                 medical assistance, foster care, adoption 
                 support, adult and juvenile offender institutions 
                 and others.  
                                         Budget development approach
                 In general, Washington state’s budget process          In working with the Governor to develop his 
                 cannot be characterized by any single budget           2019-21 biennial budget, OFM used Results 
                 decision model. Elements of program,                   Washington goals, outcome measures and action 
                 target and traditional line item budgeting             plans — along with agency strategic plans and 
                 associated with objects of expenditure (e.g.,          performance measures — to prioritize spending 
                 salaries, equipment) are all used, along with a        within and across agency budgets. Improving 
                 performance budgeting approach in decision-            efficiency and streamlining the operations of 
                 making.                                                state government is an expectation Governor 
                                                                        Inslee has of all agencies. 
                 In 2017, meeting the state’s constitutional duty 
                 to fully fund K-12 education was an enormous 
                 challenge and the top budget priority. Agencies 
                 were directed to limit their requests for new 
                 funding and to focus on the highest priority 
                 services that deliver significant performance 
                 improvements and outcomes for the people of 
                 Washington. While agencies are always expected 
                 to strive to reduce costs and find new ways to 
                 save resources, these efforts will be especially 
                 important over at least the next two biennia.
                                                                                                                           3
                                         Budget and accounting structure 
                 State government is organized among 119                 The state’s budget and accounting system 
                 agencies, boards and commissions representing           includes more than 730 discrete accounts, 
                 a wide range of services. While many state              which operate much like individual bank 
                 agencies report directly to the Governor, others        accounts with specific sources of revenue. 
                 are managed by statewide elected officials or           The largest single account is the GF-S. State 
                 independent boards appointed by the Governor.           collections of retail sales, business, property, 
                 Most agencies receive their expenditure                 and other taxes are deposited in this account. 
                 authority from legislative appropriations that          Expenditures from the GF-S can be made 
                 impose a legal limit on operating and capital           for any authorized state activity, subject to 
                 expenditures. Appropriations are authorized for         legislative appropriation limits.
                 a single account, although individual agencies 
                 frequently receive appropriations from more             Other accounts are less flexible. Certain 
                 than one account.                                       revenues (for example, the motor vehicle 
                                                                         fuel tax or hunting license fees) are deposited 
                 A few agencies are “nonappropriated,” meaning           in accounts that can be spent only for the 
                 that they operate from an account that is legally       purpose established in state law. In budget 
                 exempt from appropriation. Expenditures by              terms, these are referred to as “dedicated 
                 these agencies are usually monitored through a          accounts.”
                 biennial allotment plan. There is no dollar limit 
                 as long as expenditures remain within available 
                 revenues and are consistent with the statutory 
                 purpose of the agency.
                                                Sources of state revenue
                 Washington receives most of its revenue from taxes, licenses, permits and fees, and federal grants.  
                 Each individual revenue source is designated by law for deposit in specific accounts to support state 
                 operating or capital expenditures.  
                               Licenses, permits, ees 
                                       .4%                                     Sources of State Revenues – All 
                                                                                     Governmental Funds
                                                                                 2019–21 Biennium Estimates
                                                                          Category                         $$ in millions
                          Federal grants                                  Taxes                                 $55,047
                              24.4%                                       Charges/misc. revenues                 27,426
                                                Taxes 48.2%
                                                                          Federal grants                         27,834
                               Charges &                                  Licenses, permits, fees                  3,818
                             miscellaneous                                Total                                $114,125
                            revenues 24.0%
                                                                          Source: 2019–21 OFM budget database
                                                                                            Office of Financial Management
                4
The words contained in this file might help you see if this file matches what you are looking for:

...A guide to the office of washington state financial management budget process july biennial cycle this contains information on enacts budgets two year beginning each odd roles and responsibilities in numbered approved for biennium remains effect development approach accounting structure from through june source revenue by law governor must propose december month size distribution before legislature convenes regular session enacted general fund operating can be modified any staffing levels legislative changes drivers original appropriations since inception spending limit annual sessions it has debt become common stabilization account enact revisions s glossary related terms these are referred as supplemental ongoing september fall agency ofm issues agencies review strategic submit proposes planning instructions requests decisions january april may performance passes signs takes measure nd monday tracking responsible developing senate members house estimates submitting representatives sp...

no reviews yet
Please Login to review.