Establishes the State Budget Authority Shortfall Trust for exclusive use by agencies who experience budget shortfalls during the course of the fiscal year (OR SEE FISC NOTE SD EX)
Impact
The establishment of the State Budget Authority Shortfall Trust would create a mechanism for the state to handle unanticipated budgetary challenges. It aims to ensure that agencies are not left in financial distress when they exceed their approved budgets, thereby supporting the continuity of government operations and services. The unexpended funds in the trust at the end of each fiscal year will be recognized as non-recurring revenue, which can subsequently be appropriated, offering a potential buffer for future budget issues.
Summary
House Bill 479, introduced by Representative Ivey, establishes the State Budget Authority Shortfall Trust aimed at providing financial support to state agencies that encounter budget shortfalls during a fiscal year. The bill allows agencies that have exhausted their budget authority to apply for additional funding from this trust, ensuring that agencies can maintain operations despite financial difficulties. The trust will be funded by state appropriations and managed by the commissioner of administration in conjunction with the Joint Legislative Committee on the Budget.
Sentiment
Discussions around HB 479 have generally been supportive, as it addresses a critical need for state agencies that struggle with budget management. Proponents emphasize that the bill would help avoid disruptions in government services due to budget shortfalls. However, there could be concerns from some legislators who may view the increased reliance on a trust fund as a potential lack of fiscal discipline, sparking debates on the best ways to manage state budgets effectively.
Contention
While the bill has been welcomed for its potential to address immediate funding needs of state agencies, it raises questions about the long-term implications for budget discipline and accountability. Some lawmakers may argue that creating such a trust could inadvertently lead to overspending or mismanagement if agencies rely too heavily on the trust for budgetary support. The crux of the contention lies in balancing the need for adequate agency funding while maintaining responsible and sustainable financial practices at the state level.
Establishes the State Budget Authority Reserve Trust for use as an extra source of revenue for executive department agencies (Item #11) (EG +$139,700,550 SD RV See Note)
Establishing the congressional budget for the United States Government for fiscal year 2025 and setting forth the appropriate budgetary levels for fiscal years 2026 through 2034.
Establishing the congressional budget for the United States Government for fiscal year 2025 and setting forth the appropriate budgetary levels for fiscal years 2026 through 2034.
To provide appropriations from the General Fund for the expenses of the Executive, Legislative and Judicial Departments of the Commonwealth, the public debt and the public schools for the fiscal year July 1, 2023, to June 30, 2024, and for the payment of bills incurred and remaining unpaid at the close of the fiscal year ending June 30, 2023; to provide appropriations from special funds and accounts to the Executive and Judicial Departments for the fiscal year July 1, 2023, to June 30, 2024, and for the payment of bills remaining unpaid at the close of the fiscal year ending June 30, 2023; to provide for the appropriation of Federal funds to the Executive and Judicial Departments for the fiscal year July 1, 2023, to June 30, 2024, and for the payment of bills remaining unpaid at the close of the fiscal year ending June 30, 2023; and to provide for the additional appropriation of Federal and State funds to the Executive and Legislative Departments for the fiscal year July 1, 2022, to June 30, 2023, and for the payment of bills incurred and remaining unpaid at the close of the fiscal year ending June 30, 2022.