A Horse of a Different Color: Working with the Budget Bill
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1 A Horse of a Different Color: Working with the Budget Bill Leah Settle, Budget Reviser, Legislative Research Commission, Kentucky Colbey Sullivan, Staff Coordinator, Department, Jason Simmons, Principal Fiscal Analyst, Legislative Research Council, South Dakota Leah Settle, Budget Reviser Legislative Research Commission (LRC) = Budget Instructions State Agency Budget Requests Consensus Forecasting Group (CFG) Estimates Four Branch Budget Bills (Three Branches + Transportation) One Biennial Highway Construction Plan One Resolution Outlining the Four Out -Years of the Road Plan Budget Instructions
2 State Agency Budget Requests Consensus Forecasting Group (CFG) Estimates Bills as Introduced
3 HB 200, Executive Branch Budget Jan 16, introduced in House Jan 18, to Appropriations & Revenue (H) March 1, 2018; floor amendment (1) filed to Committee Substitute; 3rd reading, passed with Committee Substitute, committee amendment (1-title), floor amendment (1) March 2, received in Senate March 6, to Appropriations & Revenue (S) March 20, reported favorably, to Rules with Committee Substitute (1); posted for passage in the Regular Orders of the Day for Tuesday, March 20, 2018; 3rd reading, passed with Committee Substitute (1) HB 200, Executive Branch Budget March 21, received in House; to Rules (H); taken from Rules; posted for passage for concurrence in Senate Committee Substitute (1); House refused to concur in Senate Committee Substitute; received in Senate March 22, posted for passage for receding from Senate Committee Substitute (1) on Thursday, March 22, 2018; Senate refused to recede from Committee Substitute (1); Conference Committee appointed in House and Senate; Conference Committee report filed in House and Senate; Conference Committee report adopted in Senate; Conference Committee report adopted in House; Free Conference Committee appointed in House and Senate HB 200, Executive Branch Budget Apr 02, Free Conference Committee report filed in Senate; posted for passage for consideration of Free Conference Committee Report for Monday, April 2, 2018; Free Conference Committee report adopted in Senate; Bill passed 25-13; received in House; to Rules (H); Free Conference Committee report filed in House; taken from Rules; posted for passage for consideration of Free Conference Committee Report; Free Conference Committee report adopted in House; Bill passed 59-36; enrolled, signed by Speaker of the House; enrolled, signed by President of the Senate; delivered to Governor Apr 09, vetoed
4 HB 200, Executive Branch Budget Apr 13, received in House; to Rules (H); taken from Rules; posted for consideration of Governor's veto; veto overridden; Bill passed 66-28; received in Senate; to Rules (S); posted for passage for consideration of Governor's veto for Friday, April 13, 2018; veto overridden; Bill passed 26-12; received in House; enrolled, signed by Speaker of the House; enrolled, signed by President of the Senate Apr 14, delivered to Secretary of State (Acts, ch. 169) Colbey Sullivan, Staff Coordinator, Department, Biennial operating budget enacted in first (odd -numbered) year of the legislative session Adjustments to the operating budget enacted in the second (even-numbered) year Balanced budget requirement - borrowing to fund operating costs is generally not allowed House and Senate each have approximately 8-10 budget committees (Transportation, Health and Human Services, etc.) Each committee assembles a separate omnibus budget bill
5 Omnibus bills often include a significant amount of policy/statutory language Both bodies have budget-control committees Odd-numbered year: 8-10 budget laws Even-numbered year: One supplemental budget law Differences between House and Senate budget bills are resolved in conference committee: 8-10 in odd-numbered year, 1 in even- numbered Separate capital investment bill
6 Pros: 8-10 separate budget bills Decentralized decision-making Public input Partial government shutdowns Staff preference Concerns and reform ideas Supplemental funding bills - single-subject and process concerns Reform proposed: Pass the even-year, supplemental budget legislation in 8-10 separate bills, as in oddnumbered year Brinksmanship - rush to pass all budget bills before constitutional adjournment date Reform proposed: Binding rule to establish joint House - Senate budget targets earlier in the legislative session Policy provisions - single-subject and executive branch demands Reform proposed: Binding rule to limit policy language in budget bills
7 South Dakota Budget Process in Law Jason Simmons, Principal Fiscal Analyst, Legislative Research Council, South Dakota South Dakota Constitution Article XII, Section 2: The general appropriation bill shall embrace nothing but appropriations for ordinary expenses of the executive, legislative and judicial departments of the state, the current expenses of state institutions, interest on the public debt, and for common schools. All other appropriations shall be made by separate bills, each embracing but one object, and shall require a two -thirds vote of all the members of each branch of the Legislature. SDCL Chapter 4-7 further directs preparation and adoption of the state budget Special Appropriation Bills Expenses that are neither current nor ordinary in nature One-time (or finite period) expenditures land acquisitions, construction of permanent buildings, etc. Single object Require a two-thirds vote Cannot be introduced after bill introduction deadline Ordinary or Extraordinary? government. The line of demarcation is not clear, distinct, or static. Much must be left to the wisdom, Oster v. Jorgenson (1965)
8 Special Appropriation Bill Template Section 1. There is hereby appropriated from the fund the sum of ($ ), or so much therof as may be necessary, to the for. Section 2. The shall approve vouchers and the state auditor shall draw warrants to pay expenditures authorized by this act. Section 3. Any amounts not appropriated in this Act not lawfully expended or obligated shall revert in accordance with the procedures prescribed in chapter 4-8. General Appropriation Bill and Process Joint Committee on Appropriations (JCA) 18 Members (9 Senators + 9 Representatives) Any member may call for a separate vote on any motion Subcommittees on cer tain subjects or depar tment budgets Senate leads in first year of two -year term; House in the second Limited Purposes: Budget Hearings Bills that authorize the sale of state proper ty, appropriate money, or adjust school district proper ty tax levies Adoption of Revenue Targets Annual General Appropriation Bill and Supplemental Budget Bill
9 2016 Budget Process Changes Amended rules to allow more bills to be heard by the JCA (Rather than by separate House and Senate Committees) Shorter budget hearings; more emphasis on subcommittees Earlier revenue target Modified crossover deadline for special appropriation bills (Prior practice of amending special appropriation bills to $1) New budget system for LRC fiscal staff
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