1     
BUDGETING REVISIONS

2     
2017 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Lincoln Fillmore

5     
House Sponsor: Ken Ivory

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions relating to budgeting requirements.
10     Highlighted Provisions:
11          This bill:
12          ▸     requires the Office of Legislative Fiscal Analyst to include in the review and
13     analysis of revenue estimates for existing and proposed revenue a comparison of
14     current estimates of federal fund receipts to 15-year trends;
15          ▸     requires the governor to include in the proposed budget submitted to the presiding
16     officer of each house of the Legislature a projection of:
17               •     estimated federal fund receipts; and
18               •     15-year trends for federal fund receipts; and
19          ▸     makes technical corrections.
20     Money Appropriated in this Bill:
21          None
22     Other Special Clauses:
23          None
24     Utah Code Sections Affected:
25     AMENDS:
26          36-12-13, as last amended by Laws of Utah 2014, Chapters 344 and 430
27          63J-1-201, as last amended by Laws of Utah 2016, Chapter 298
28     

29     Be it enacted by the Legislature of the state of Utah:

30          Section 1. Section 36-12-13 is amended to read:
31          36-12-13. Office of Legislative Fiscal Analyst established -- Powers, functions,
32     and duties -- Qualifications.
33          (1) There is established an Office of Legislative Fiscal Analyst as a permanent staff
34     office for the Legislature.
35          (2) The powers, functions, and duties of the Office of Legislative Fiscal Analyst under
36     the supervision of the fiscal analyst are:
37          (a) to analyze in detail the state budget before the convening of each legislative session
38     and make recommendations to the Legislature on each item or program appearing in the
39     budget, including:
40          (i) funding for and performance of programs, acquisitions, and services currently
41     undertaken by state government to determine whether each department, agency, institution, or
42     program should:
43          (A) continue at its current level of expenditure;
44          (B) continue at a different level of expenditure; or
45          (C) be terminated; and
46          (ii) increases or decreases to spending authority and other resource allocations for the
47     current and future fiscal years;
48          (b) to prepare cost estimates on all proposed bills that anticipate state government
49     expenditures;
50          (c) to prepare cost estimates on all proposed bills that anticipate expenditures by
51     county, municipal, local district, or special service district governments;
52          (d) to prepare cost estimates on all proposed bills that anticipate direct expenditures by
53     any Utah resident or business, and the cost to the overall impacted Utah resident or business
54     population;
55          (e) to prepare a review and analysis of revenue estimates for existing and proposed
56     revenue acts, which shall include a comparison of:
57          (i) current estimates to 15-year trends by tax type; and

58          (ii) current federal fund receipt estimates to 15-year trends;
59          (f) to report instances in which the administration may be failing to carry out the
60     expressed intent of the Legislature;
61          (g) to propose and analyze statutory changes for more effective operational economies
62     or more effective administration;
63          (h) to prepare, before each annual general session of the Legislature, a summary
64     showing the current status of the following as compared to the past nine fiscal years:
65          (i) debt;
66          (ii) long-term liabilities;
67          (iii) contingent liabilities;
68          (iv) General Fund borrowing;
69          (v) reserves;
70          (vi) fund and nonlapsing balances; and
71          (vii) cash funded capital investments;
72          (i) to make recommendations for addressing the items described in Subsection (2)(h) in
73     the upcoming annual general session of the Legislature;
74          (j) to prepare, after each session of the Legislature, a summary showing the effect of
75     the final legislative program on the financial condition of the state;
76          (k) to conduct organizational and management improvement studies;
77          (l) to prepare and deliver upon request of any interim committee or the Legislative
78     Management Committee, reports on the finances of the state and on anticipated or proposed
79     requests for appropriations;
80          (m) to recommend areas for research studies by the executive department or the interim
81     committees;
82          (n) to appoint and develop a professional staff within budget limitations;
83          (o) to prepare and submit the annual budget request for the office;
84          (p) to develop a taxpayer receipt:
85          (i) available to taxpayers through a website; and

86          (ii) that allows a taxpayer to view on the website an estimate of how the taxpayer's tax
87     dollars are expended for government purposes; and
88          (q) to publish or provide other information on taxation and government expenditures
89     that may be accessed by the public.
90          (3) The Office of Legislative Fiscal Analyst shall report the review and analysis
91     required under Subsection (2)(e) to the Executive Appropriations Committee of the Legislature
92     before each upcoming annual general session of the Legislature.
93          (4) The legislative fiscal analyst shall have a master's degree in public administration,
94     political science, economics, accounting, or the equivalent in academic or practical experience.
95          (5) In carrying out the duties provided for in this section, the legislative fiscal analyst
96     may obtain access to all records, documents, and reports necessary to the scope of the
97     legislative fiscal analyst's duties according to the procedures contained in Title 36, Chapter 14,
98     Legislative Subpoena Powers.
99          Section 2. Section 63J-1-201 is amended to read:
100          63J-1-201. Governor's proposed budget to Legislature -- Contents -- Preparation
101     -- Appropriations based on current tax laws and not to exceed estimated revenues.
102          (1) The governor shall deliver, not later than 30 days before the date the Legislature
103     convenes in the annual general session, a confidential draft copy of the governor's proposed
104     budget recommendations to the Office of the Legislative Fiscal Analyst according to the
105     requirements of this section.
106          (2) (a) When submitting a proposed budget, the governor shall, within the first three
107     days of the annual general session of the Legislature, submit to the presiding officer of each
108     house of the Legislature:
109          (i) a proposed budget for the ensuing fiscal year;
110          (ii) a schedule for all of the proposed changes to appropriations in the proposed budget,
111     with each change clearly itemized and classified; and
112          (iii) as applicable, a document showing proposed changes in estimated revenues that
113     are based on changes in state tax laws or rates.

114          (b) The proposed budget shall include:
115          (i) a projection of:
116          (A) estimated revenues by major tax type;
117          (B) 15-year trends for each major tax type;
118          (C) estimated receipts of federal funds; [and]
119          (D) 15-year trends for federal fund receipts; and
120          [(D)] (E) appropriations for the next fiscal year;
121          (ii) the source of changes to all direct, indirect, and in-kind matching funds for all
122     federal grants or assistance programs included in the budget;
123          (iii) changes to debt service;
124          (iv) a plan of proposed changes to appropriations and estimated revenues for the next
125     fiscal year that is based upon the current fiscal year state tax laws and rates and considers
126     projected changes in federal grants or assistance programs included in the budget;
127          (v) an itemized estimate of the proposed changes to appropriations for:
128          (A) the Legislative Department as certified to the governor by the president of the
129     Senate and the speaker of the House;
130          (B) the Executive Department;
131          (C) the Judicial Department as certified to the governor by the state court
132     administrator;
133          (D) changes to salaries payable by the state under the Utah Constitution or under law
134     for lease agreements planned for the next fiscal year; and
135          (E) all other changes to ongoing or one-time appropriations, including dedicated
136     credits, restricted funds, nonlapsing balances, grants, and federal funds;
137          (vi) for each line item, the average annual dollar amount of staff funding associated
138     with all positions that were vacant during the last fiscal year;
139          (vii) deficits or anticipated deficits;
140          (viii) the recommendations for each state agency for new full-time employees for the
141     next fiscal year, which shall also be provided to the State Building Board as required by

142     Subsection 63A-5-103(3);
143          (ix) a written description and itemized report submitted by a state agency to the
144     Governor's Office of Management and Budget under Section 63J-1-220, including:
145          (A) a written description and an itemized report provided at least annually detailing the
146     expenditure of the state money, or the intended expenditure of any state money that has not
147     been spent; and
148          (B) a final written itemized report when all the state money is spent;
149          (x) any explanation that the governor may desire to make as to the important features
150     of the budget and any suggestion as to methods for the reduction of expenditures or increase of
151     the state's revenue; and
152          (xi) information detailing certain fee increases as required by Section 63J-1-504.
153          (3) For the purpose of preparing and reporting the proposed budget:
154          (a) The governor shall require the proper state officials, including all public and higher
155     education officials, all heads of executive and administrative departments and state institutions,
156     bureaus, boards, commissions, and agencies expending or supervising the expenditure of the
157     state money, and all institutions applying for state money and appropriations, to provide
158     itemized estimates of changes in revenues and appropriations.
159          (b) The governor may require the persons and entities subject to Subsection (3)(a) to
160     provide other information under these guidelines and at times as the governor may direct,
161     which may include a requirement for program productivity and performance measures, where
162     appropriate, with emphasis on outcome indicators.
163          (c) The governor may require representatives of public and higher education, state
164     departments and institutions, and other institutions or individuals applying for state
165     appropriations to attend budget meetings.
166          (4) (a) The Governor's Office of Management and Budget shall provide to the Office of
167     Legislative Fiscal Analyst, as soon as practicable, but no later than 30 days before the date the
168     Legislature convenes in the annual general session, data, analysis, or requests used in preparing
169     the governor's budget recommendations, notwithstanding the restrictions imposed on such

170     recommendations by available revenue.
171          (b) The information under Subsection (4)(a) shall include:
172          (i) actual revenues and expenditures for the fiscal year ending the previous June 30;
173          (ii) estimated or authorized revenues and expenditures for the current fiscal year;
174          (iii) requested revenues and expenditures for the next fiscal year;
175          (iv) detailed explanations of any differences between the amounts appropriated by the
176     Legislature in the current fiscal year and the amounts reported under Subsections (4)(b)(ii) and
177     (iii);
178          (v) a statement of agency and program objectives, effectiveness measures, and program
179     size indicators; and
180          (vi) other budgetary information required by the Legislature in statute.
181          (c) The budget information under Subsection (4)(a) shall cover:
182          (i) all items of appropriation, funds, and accounts included in appropriations acts for
183     the current and previous fiscal years; and
184          (ii) any new appropriation, fund, or account items requested for the next fiscal year.
185          (d) The information provided under Subsection (4)(a) may be provided as a shared
186     record under Section 63G-2-206 as considered necessary by the Governor's Office of
187     Management and Budget.
188          (5) (a) In submitting the budget for the Department of Public Safety, the governor shall
189     include a separate recommendation in the governor's budget for maintaining a sufficient
190     number of alcohol-related law enforcement officers to maintain the enforcement ratio equal to
191     or below the number specified in Subsection 32B-1-201(2).
192          (b) If the governor does not include in the governor's budget an amount sufficient to
193     maintain the number of alcohol-related law enforcement officers described in Subsection
194     (5)(a), the governor shall include a message to the Legislature regarding the governor's reason
195     for not including that amount.
196          (6) (a) The governor may revise all estimates, except those relating to the Legislative
197     Department, the Judicial Department, and those providing for the payment of principal and

198     interest to the state debt and for the salaries and expenditures specified by the Utah
199     Constitution or under the laws of the state.
200          (b) The estimate for the Judicial Department, as certified by the state court
201     administrator, shall also be included in the budget without revision, but the governor may make
202     separate recommendations on the estimate.
203          (7) The total appropriations requested for expenditures authorized by the budget may
204     not exceed the estimated revenues from taxes, fees, and all other sources for the next ensuing
205     fiscal year.
206          (8) If any item of the budget as enacted is held invalid upon any ground, the invalidity
207     does not affect the budget itself or any other item in it.