Budget Overview and LSC Budget Products & Services. Legislative Service Commission January 25, 2011

Transcription

1 Budget Overview and LSC Budget Products & Services Legislative Service Commission January 25, 2011

2 Budget Overview LSC Budget Products and Services Resources Available on the LSC Web Site

3 Operating Odd Year Capital Even Year Capital reappropriations bill Capital appropriations bill Traditionally, one of the two becomes the corrective bill

4 Governor presents the operating budget proposal: within four weeks after a new General Assembly organizes by March 15 in a year when a new Governor is inaugurated

5 Traditionally, the Governor s budget proposal is introduced in four different bills Main operating budget bill Transportation Workers Compensation Industrial Commission

6 As a courtesy extended by the legislature to the Governor, LSC drafts the Governor s budget proposal into bills Budget bills are ready for introduction a few weeks after the Blue Book, depending on OBM instructions

7 Stage Main Operating Transportation BWC & OIC Introduced March 20 February 22 March 6 House Passed May 1 March 13 April 25 Senate May 1 March 13 April 26 Senate Passed June 13 March 27 May 22 Sent to Conference June 20 March Concurrence June 27 March 28 May 23 Governor Signed June 30 March 31 June 11 * The timeline differs for a newly elected Governor, so we went back four years.

8 Stage Main Operating Transportation BWC OIC Introduced February 12 February 12 February 17 February 17 House Passed April 29 March 5 March 24 March 24 Senate April 30 March 10 March 25 March 25 Senate Passed June 3 March 18 June 17 June 29 Sent to Conference June 10 March 24 June Concurrence July 13 April 1 June 30 June 30 Governor Signed July 17 April 1 June 30 June 30

9 Budget FY 2010 FY 2011 Biennium Total Share Main Operating (H.B. 1) $55.68 $56.62 $ % Transportation (H.B. 2) % BWC (H.B. 15) % OIC (H.B. 16) % Total $59.75 $60.60 $ % Note: $ in billions; Excluding $1.93 billion federal stimulus appropriations for FY 2009 made in H.B. 2.

10 Lottery Profits, 1.9% Other, 5.7% Highway Operating Fund, 4.3% Revenue Distribution Fund, 6.7% State Special & General Service Funds, 7.0% General Revenue Fund, 42.0% Federal Funds, 22.7% Agency Fund, 9.8% Total: $ billion

11 GRF, 45.0% Non-GRF, 55.0% Total: $ billion

12 All state financial resources that are not required to be accounted for in other funds Least restrictive Traditionally, central focus of the budget process Funding source of most legislative changes

13 Total - $24.95 billion in FY 2010 State sources - $18.05 billion Tax revenue - $16.23 billion Personal income - $7.25 billion Sales - $7.08 billion Cigarette - $0.89 billion Other - $1.01 billion Non-tax revenue - $1.82 billion Federal grants - $6.90 billion

14 FY 1976 FY 1977 FY 1978 FY 1979 FY 1980 FY 1981 FY 1982 FY 1983 FY 1984 FY 1985 FY 1986 FY 1987 FY 1988 FY 1989 FY 1990 FY 1991 FY 1992 FY 1993 FY 1994 FY 1995 FY 1996 FY 1997 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY % 17.5% 15.0% 12.5% 10.0% 7.5% 5.0% 2.5% 0.0% -2.5% -5.0% -7.5% -10.0% -12.5% -15.0% 14

15 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% -15.0% -20.0% 15

16 FY 1976 FY 1977 FY 1978 FY 1979 FY 1980 FY 1981 FY 1982 FY 1983 FY 1984 FY 1985 FY 1986 FY 1987 FY 1988 FY 1989 FY 1990 FY 1991 FY 1992 FY 1993 FY 1994 FY 1995 FY 1996 FY 1997 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY % 17.5% 15.0% 12.5% 10.0% 7.5% 5.0% 2.5% 0.0% -2.5% -5.0% -7.5% -10.0% -12.5% 16

17 FY 1976 FY 1977 FY 1978 FY 1979 FY 1980 FY 1981 FY 1982 FY 1983 FY 1984 FY 1985 FY 1986 FY 1987 FY 1988 FY 1989 FY 1990 FY 1991 FY 1992 FY 1993 FY 1994 FY 1995 FY 1996 FY 1997 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY % 17.5% 15.0% 12.5% 10.0% 7.5% 5.0% 2.5% 0.0% -2.5% -5.0% -7.5% -10.0% 17

18 $ in billions $60 $55 $50 $45 $40 $35 $38.07 $35.12 $46.05 $43.84 $39.95 $42.02 $48.43 $49.51 $49.65 $52.42 $52.34 $30 $25 $20 $19.22 $21.08 $21.61 $22.65 $23.84 $24.83 $24.86 $25.15 $25.72 $26.78 $24.14 $15 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 All-Fund GRF Only 18

19 Corrections, $1,606, 9.3% Other, $1,596, 9.3% K-12 Education, $7,509, 43.5% Human Services, $4,320, 25.0% Higher Education, $2,214, 12.8% *$ in millions; excludes federal grants deposited into the GRF Total State-source GRF Spending: $17.25 billion in FY 2010

20 Corrections, $1,716, 7.1% Other, $1,596, 6.6% K-12 education, $7,927, 32.8% Human services, $10,406, 43.1% Higher education, $2,496, 10.3% *$ in millions; includes $6.90 billion federal grants deposited into the GRF Total state and federal GRF spending: $24.14 billion in FY 2010

21 Subsidies, 85.6% Other, 14.4% Payroll & Related Costs, 7.6% Other Operating Expenses, 2.9% Total : $24.14 billion Debt Service, Transfers, & Other, 3.9% 21

22 Transfers 15.0% Capital Items 3.4% Debt Service 2.0% Other 1.0% Subsidies 66.6% Operating Expenses 12.0% Payroll 7.8% Purchased Services 1.6% Other Operating 2.6% All-fund Total : $55.87 billion 22

23 Total $4.36 billion GRF $1.85 billion Non-GRF $2.52 billion DRC & DYS $1.01 billion 23

24 Total: 58,766 Corrections: 15,276 DRC: 13,426 DYS: 1,850 24

25 Children & Families 7.6% Medicaid 82.4% TANF 5.8% Other 1.7% Workforce Services 2.5% All-fund Total: $18.4 billion in FY 2010

26 Other 12.7% Federal Title I & Special Education 11.1% Property Tax Replacement Payments 9.5% School Foundation Aid 57.6% Property Tax Rollbacks 9.0% All-fund Total: $11.79 billion in FY 2010

27 $1,800 $1,690.5 $1,598.1 $1,600 $ $1,400 i n m i l l i o n s $1,200 $1,000 $800 $600 $400 $200 $0 $1,055.4 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY Note: FY 2011 figure represents appropriation.

28 $ i n m i l l i o n s $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 $1,321 $982 28

29 Biennium Amount Change FY 2000-FY 2001 FY 2002-FY 2003 FY 2004-FY 2005 FY 2006-FY 2007 FY 2008-FY 2009 FY 2010-FY 2011 * $1, $1,818.5 $420.1 $1,982.2 $163.7 $2,235.2 $253.0 $2,325.6 $90.4 $1, $719.1 *Appropriations minus anticipated lapses 29

30 $ i n $10,000 $9,000 $8,000 $7,000 $9,212 $8,587 m i l l i o n s $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 $3,650 Outstanding Principal Amount as of June 30 of Each Year 30

31 Budget Overview LSC Budget Products and Services Resources Available on the LSC Web Site

32 Prior summer through February/March: Review prior Redbooks, visit agencies, and collect data for Redbooks December: Receive agency budget requests from OBM December February/March: Draft budget language (base bill) for OBM January February/March: Conduct agency budget hearings

33 Permanent Law Revised Code sections with changes The first 88% of H.B. 1 Temporary Law Agency appropriations (in alphabetical order) and spending requirement language The last 12% of H.B. 1

34

35

36 Forecasts of GRF Revenues and Medicaid Expenditures Redbooks Comparison Document Budget in Detail (aka Spreadsheet ) Budget In Brief Catalog of Budget Line Items (COBLI) Bill Analysis Amendments Greenbooks Budget Footnotes

37 Independent, baseline forecasts of GRF revenues and Medicaid expenditures Baseline based on current law Presented to House Finance after the unveiling of the executive budget

38 Updated and presented to Conference Committee Augmented, during the budget process, by research on fiscal effects of any proposed changes affecting GRF revenues and Medicaid expenditures

39 LSC analyses of the executive budget proposal Issued for each state agency according to its House Finance subcommittee hearing date

40 Overview Facts and Figures optional Analysis of Executive Proposal Requests Not Funded - optional Attachments Catalog of budget line items (COBLI) Appropriation spreadsheet

41 Overview A brief description of the agency, an analysis of the overall executive budget recommendations, and a summary of major new initiatives and other important budget related issues Facts and Figures optional Additional information that is relevant to the understanding of the agency budget

42 Analysis of Executive Proposal Detailed line item-by-line item analysis of the executive budget proposal, including funding for each initiative, earmarks, and proposed statutory changes. For large agencies, line items are grouped into categories for presentation purposes Requests Not Funded optional Compares the agency budget request and the executive budget recommendation

43 Provides a brief description and analysis of the fiscal effect of each provision Tracks language changes, including both permanent and temporary law provisions Compares provisions of the bill as new versions of the bill become public Organized by agency Does not track appropriation changes

44 Version 1st column 2nd column 3rd column 4th column Due 1 As Introduced 2 As Introduced In House Finance 3 As Introduced 4 As Introduced 5 As Introduced 6 As Introduced 7 As Introduced 8 As Introduced 9 As Introduced 10 As Introduced As Reported by House Finance As Passed by the House As Passed by the House As Passed by the House As Passed by the House As Passed by the House As Passed by the House As Passed by the House In Senate Finance As Reported by Senate Finance As Passed by the Senate As Passed by the Senate As Passed by the Senate As Passed by the Senate As Amended by Conference As Enacted 2-3 weeks after bill is introduced When substitute bill is adopted in House Finance When bill is on House floor First hearing in Senate Finance When substitute bill is adopted in Senate Finance When bill is on Senate floor Complete version if requested by caucus staff Version with House and Senate agreements removed, 2-3 days after Senate vote When conference report is on House and Senate floor 1-2 weeks after release of vetoes

45 Summarizes total GRF and all-fund appropriations by agency Details line-item appropriations for each agency Organized alphabetically by agency name Tracks line item appropriation changes Includes appropriations for each year of the biennium for which the budget decisions are deliberated and two to four years of historical expenditure data

46 Version Due 1 As Introduced When bill is introduced 2 In House Finance When substitute bill is adopted in House Finance 3 As Reported by House Finance When bill is on House floor 4 As Passed by the House First hearing in Senate Finance 5 In Senate Finance When substitute bill is adopted in Senate Finance 6 As Reported by Senate Finance When bill is on Senate floor 7 As Passed by the Senate Before Conference Committee begins 8 As Amended by Conference Committee When conference report is on House and Senate floor 9 As Enacted 1-2 weeks after release of vetoes 10 As Enacted with Actual for Prior Year 1-2 weeks after prior year actual becomes available

47 Both compare different versions of the bill Compare doc tracks language changes, including earmarks Spreadsheet tracks line item appropriation changes Together, they highlight legislative budget decisions

48 An 11 x 17 booklet style publication providing a quick glance at the state budget Charts showing sources and uses of the GRF Program highlights Produced four times As Introduced As Passed by the House As Passed by the Senate As Enacted

49 Provides specific line item information Six-year spending/appropriation data Revenue source Legal authority Purpose

50

51 Designed to help readers gain a quick understanding of an agency s line items An excellent tool to learn about an agency s use of funding Updated and included in the agency Redbook Updated and compiled into a single document, including all agencies, in the fall each year

52 Details the bill s (1) permanent law changes and (2) temporary law not related to appropriations Table of Contents can be helpful overview of permanent law organized by agency Produced four times As Introduced As Passed by House As Passed by Senate Final Analysis Does not compare each version of the bill

53 Compare Doc Brief synopsis of every provision of the bill (except line item appropriations), compared across different versions Bill Analysis Detailed description of permanent law and non-appropriation temporary law, for that version only

54 The General Assembly makes changes to the Governor s budget by adopting amendments LSC drafted about 4,800 amendments for H.B.1 current main operating budget bill

55 Identifier Amendment number Bill number Version of the bill Body official part of the amendment Clear instructions of what is to be removed and what is to be added Technically detailed Synopsis Summarizes what the amendment does Not part of the amendment

56 Amendment number Corresponds to the point in the process in which they are offered HC- House Committee HF- House Floor CC- Conference Committee

57 H.B. 1 As Introduced HC-0803 Sub. H.B. 1 As Reported by H. Finance and Appropriations HF Am. Sub. H.B. 1 As Passed by the Senate CC-1264

58 Starts immediately after the bill s introduction Busiest periods Days leading to the majority unveiling of the substitute bill H.B. 119 About 400 amendment requests in the last eight days before the adoption of the substitute bill in House Finance Days leading to committee reporting of the bill H.B. 119 About 150 amendments requests during a three-day period between the adoption of the substitute bill and the reporting of the bill by House Finance

59 Most permanent law amendments comparable to bill drafts Detailed explanation of proposed changes Name of contact person to answer potential questions Timeline for completion Always best to err on the side of more information rather than less Effective dates

60 All of the information in the previous slide, plus... Amount (one year or both years)? Source of funds (e.g., GRF, fee based, TANF)? Earmarks (proposed language)? New funds or transfers (between line items, fiscal years, or agencies)?

61 Who to or call? LSC staff address convention: House Finance Committee liaisons Megan Cummiskey Wendy Risner Monica Baker Matt Stiffler Any other LSC staff

62 Let one of our House Finance liaisons know how you want to receive your amendments: Paper copy only (default) e-copy only (in pdf format) e-copy plus paper copy

63 Research Staff Attorney and non-attorney drafters Permanent law provisions Fiscal Staff Budget analysts and economists Appropriations and spending requirements

64 Similar to Redbook format Analyses of the enacted budgets Published in one to two months following the enactment of the main operating budget Focus on what s in the budget

65 Monthly publication that provides updates on the state budget and the economy Published around the 12 th of each month Includes three major sections: Status of the GRF Compares actual monthly and year-to-date revenues and expenditures with OBM estimates Issue Updates Tracking the Economy

66 Highlights revenues and expenditures Revenues Table 1 monthly variances (actual vs. estimate) Table 2 YTD variances Narrative explains variances and comments on performance of major taxes Expenditures Table 3 monthly variances Table 4 YTD variances Table 5 Medicaid monthly and YTD variances Narrative explains major variances

67 Short updates on budget implementation and issues affecting the state budget Generally, two to three paragraphs long Easy to skim Examples of update topics appearing in the January issue of the Budget Footnotes: Ohio GI Promise Long-Term Care Services Clean Ohio Revitalization Grants

68 National economy Ohio economy Economic forecast update Tracks changes in key economic indicators GDP, personal income, wage disbursement, CPI, unemployment rate Compares forecast used in enacting the budget with the most updated forecast

69 Budget Overview LSC Budget Products and Services Resources Available on the LSC Web Site

70 All budget documents are available on LSC web site PDF documents Easy to search Easy to print Easy to locate agency specific information

71

72

73

74

75

76

77

78

79

80

81

82