GUIDE TO UNDERSTANDING THE STATE AGENCY BUDGET
“PROGRAM DETAILS” SPREADSHEETS
General Overview
The “Program Details” State budget spreadsheets are created for each State agency in which PEF members work. These spreadsheets include bullets which explain the major changes in the agency’s “state operations” budget as the budget evolves during the budget process. The bullets are cumulative and in reverse chronological order, with the most recent budget changes on top. The bullets note major changes in an agency’s state operations budget. The bottom group of bullets notes the major changes in the proposed Executive Budget (i.e. the initial budget submitted by the Governor to the Legislature in January) from the enacted budget for the previous fiscal year. The next group of bullets notes major changes made by the Governor’s 30-day amendments from the initial proposed Executive Budget. In some years, the Senate and Assembly pass their own versions of the budget, sometimes as actual detailed budget legislation and sometimes as simple resolutions which contain very few details. When this occurs we note the major changes in the state operations budget that are contained in the bills or resolutions passed by the Assembly or Senate as compared to the Governor’s proposed and amended Executive Budget. The last and topmost group of bullets notes the major changes in the enacted state operations budget passed by the Legislature and signed by the Governor from the Governor’s proposed and amended Executive Budget. It is important to note that the actual spreadsheets always show the dollar change and percentage change in appropriation from the previous year’s enacted budget. We do this because we believe that is the most critical budget information expressed by the appropriation numbers. Our members want to know how much more or less money their agency has to spend on its operations and employees than it had in the previous fiscal year’s budget.
The state operations budget contains appropriations that fund most state agencies’ operations and the salaries of their employees. In some cases, most notably the Department of Transportation, the salaries of some employees who work on capital construction projects (generally employees involved in capital project planning, land acquisition, design, construction, construction management and supervision) are contained in the Capital Projects budget. In the instances where we are aware that PEF positions are funded with Capital Projects’ appropriations, we note that in the agency spreadsheet. In addition, when we are aware that “local assistance” or “aid to localities” appropriations, which are for local governments, school districts and other local agencies such as community tax-exempt organizations, fund PEF positions or that changes in “local assistance” appropriations will impact PEF members, that is also noted in the spreadsheet bullets.
Budget Terminology
Appropriation – An appropriation is a statutory authorization against which expenditures may be made during a specific State fiscal year, for the purposes designated, up to the stated amount of the appropriation. Under the Constitution, an appropriation may be made for no longer than a two-year period. Appropriations are authorizations to spend, as opposed to mandates to spend. Expenditures need not, and generally do not, equal the amount of the appropriation from which they were made, since less than the full amount of the appropriation is usually spent within the fiscal year to which it pertains. In essence, an appropriation represents maximum spending authority. When authorized by statute an appropriation may be suballocated (that is, moved) from one agency to another agency for the purpose of spending it in the agency which receives the suballocation.
General Fund - This is the State’s major operating fund. It receives all State income not earmarked for a particular program or activity and not specified by law to be deposited in another fund. In the agency spreadsheets, all appropriations are general fund appropriations unless they are specially identified as another type of appropriation.
Special Revenue Federal (SRF) - These funds account for State receipts from specific revenue sources, in this case the Federal Government, and are legally restricted to disbursement for specified purposes. SRF appropriations are specifically identified in the spreadsheets.
Special Revenue Other (SRO) - These funds account for State receipts from specific revenue sources other than the Federal Government and are legally restricted to disbursement for specified purposes. For example, the Conservation Fund, financed by specific sportsman fees, is an SRO that finances a number of State environmental programs. SRO appropriations are specifically identified in the spreadsheets.
Internal Service Fund (ISF) - These funds are paid by one agency to another for goods or services. ISF appropriations are specifically identified in the spreadsheets.
Enterprise Funds (EF) - These funds are used to account for operations similar to private business enterprises. EF appropriations are specifically identified in the spreadsheets.
Fiduciary Funds (FF) - These funds are used to account for funds held by the State in a trust capacity whose principal and income may be spent for designated operations. FF appropriations are specifically identified in the spreadsheets.
Personal Service (PS) - Personal service represents an appropriation for salaries and non-wage compensation for State employees (e.g. longevity payments or geographic differentials) and certain payments to non-State employees which are not paid through contractual services. It should be noted that the cost of employee benefits for those employees whose salaries are paid through a General Fund or a Special Revenue-Federal appropriation are not included in their agency’s budget but are included in the General State Charges section of the General Government and Public Protection appropriation bill. The fringe benefits costs for employees who are paid with Special Revenue Other (SRO) appropriations are specifically supported by an SRO appropriation in their agency’s budget.
Nonpersonal Service (NPS) - Nonpersonal service represents an appropriation for such items as contractual services, equipment, materials, supplies, and travel.
Maintenance Undistributed (MU) - Maintenance Undistributed represents an appropriation that does not define the amounts to be available for personal and non-personal service. Such an appropriation allows flexibility in the management of a program.
Article VII Bills – These bills, also known as “language” bills, contain specific legal language that pertains to the allowable use of appropriations. These bills generally set specific policies and can also raise taxes and fees necessary to support the appropriation bills. The Governor generally submits these bills with his proposed Executive Budget and there is usually one Article VII bill for each of the major appropriation bills as well as an Article VII bill for any revenues that are raised or decreased in the budget.