8 LONG TITLE
9 General Description:
10 This resolution establishes zero based budgeting under certain circumstances.
11 Highlighted Provisions:
12 This resolution:
12a Ĥ→ ▸ defines terms; ←Ĥ
13 ▸ requires every appropriations subcommittee to create a zero based budget for a
14 percentage of the subcommittee's line items or programs each interim; and
15 ▸ modifies provisions governing appropriations subcommittee meetings.
16 Special Clauses:
18 Legislative Rules Affected:
23 Be it resolved by the Legislature of the state of Utah:
24 Section 1. JR3-2-402 is amended to read:
25 JR3-2-402. Executive appropriations -- Duties -- Base budgets.
26 (1) As used in this rule:
27 (a) "Base budget" means:
28 (i) the zero based budget created under JR3-2-501; or
29 (ii) for line items or programs not reviewed in the past year under JR3-2-501, amounts
30 appropriated by the Legislature for each line item [
33 appropriation is covered by ongoing or one-time revenue sources; and
35 (b) "Base budget" includes:
36 (i) any changes to those amounts approved by the Executive Appropriations
37 Committee; and
38 (ii) amounts appropriated for debt service.
39 (2) (a) The Executive Appropriations Committee shall meet no later than the third
40 Wednesday in December to:
41 (i) direct staff as to what revenue estimate to use in preparing budget
42 recommendations, to include a forecast for federal fund receipts;
43 (ii) consider treating above-trend revenue growth as one-time revenue for major tax
44 types and for federal funds;
45 (iii) hear a report on the historical, current, and anticipated status of the following:
46 (A) debt;
47 (B) long term liabilities;
48 (C) contingent liabilities;
49 (D) General Fund borrowing;
50 (E) reserves;
51 (F) fund balances;
52 (G) nonlapsing appropriation balances;
53 (H) cash funded infrastructure investment; and
54 (I) changes in federal funds paid to the state;
55 (iv) hear a report on:
56 (A) the next fiscal year base budget appropriation for Medicaid accountable care
57 organizations according to Section 26-18-405.5;
58 (B) an explanation of program funding needs;
59 (C) estimates of overall medical inflation in the state; and
60 (D) mandated program changes and their estimated cost impact on Medicaid
61 accountable care organizations;
62 (v) decide whether to set aside special allocations for the end of the session, including
64 (A) to address any anticipated reduction in the amount of federal funds paid to the
65 state; and
66 (B) of one-time revenue to pay down debt and other liabilities;
67 (vi) approve the appropriate amount for each subcommittee to use in preparing its
69 (vii) set a budget figure; and
70 (viii) adopt a base budget in accordance with Subsection (2)(b) and direct the
71 legislative fiscal analyst to prepare one or more appropriations acts appropriating one or more
72 base budgets for the next fiscal year.
73 (b) In a base budget adopted under Subsection (2)(a), appropriations from the General
74 Fund, the Education Fund, and the Uniform School Fund shall be set as follows:
75 (i) if the next fiscal year ongoing revenue estimates set under Subsection (2)(a)(i) are
76 equal to or greater than the current fiscal year ongoing appropriations, the new fiscal year base
77 budget is not changed;
78 (ii) if the next fiscal year ongoing revenue estimates set under Subsection (2)(a)(i) are
79 less than the current fiscal year ongoing appropriations, the new fiscal year base budget is
80 reduced by the same percentage that projected next fiscal year ongoing revenue estimates are
81 lower than the total of current fiscal year ongoing appropriations;
82 (iii) in making a reduction under Subsection (2)(b)(ii), appropriated debt service shall
83 not be reduced, and other ongoing appropriations shall be reduced, in an amount sufficient to
84 make the total ongoing appropriations, including the unadjusted debt service, equal to the
85 percentage calculated under Subsection (2)(b)(ii); and
86 (iv) the new fiscal year base budget shall include an appropriation to the Department of
87 Health for Medicaid accountable care organizations in the amount required by Section
89 (c) The chairs of each joint appropriations subcommittee are invited to attend this
91 (3) All proposed budget items shall be submitted to one of the subcommittees named in
92 JR3-2-302 for consideration and recommendation.
93 (4) (a) After receiving and reviewing subcommittee reports, the Executive
94 Appropriations Committee may refer the report back to a joint appropriations subcommittee
95 with any guidelines the Executive Appropriations Committee considers necessary to assist the
96 subcommittee in producing a balanced budget.
97 (b) The subcommittee shall meet to review the new guidelines and report the
98 adjustments to the chairs of the Executive Appropriations Committee as soon as possible.
99 (5) (a) After receiving the reports, the Executive Appropriations Committee chairs will
100 report them to the Executive Appropriations Committee.
101 (b) The Executive Appropriations Committee shall:
102 (i) make any further adjustments necessary to balance the budget; and
103 (ii) complete all decisions necessary to draft the final appropriations bills no later than
104 the 39th day of the annual general session.
105 Section 2. JR3-2-501 is amended to read:
106 JR3-2-501. Meetings -- Ĥ→ Zero based budget creation -- ←Ĥ Appropriation reviews.
107 (1) Ĥ→ As used in this section "Zero based budget" means a review of a line item's or a
107a program's expenditures, by category of expenditure, and sources of finance, by major fund
107b type, starting from zero for a given fiscal year. A zero based budget may include:
107c (a) evaluation of trends in categories of expenditure and major fund types over time;
107d (b) comparison of trends to major indicators like population, inflation, and workload;
107e (c) analysis of throughput and quality as they relate to operating expenses; and
107f (d) review of more detailed data as warranted and as resources allow.
107g (2) ←Ĥ (a) During the interim, the Executive Appropriations Committee shall meet at least
108 every other month on the day before interim meetings.
109 (b) The appropriations subcommittee chairs may attend these meetings and provide
110 input regarding their budget.
111 Ĥ→ [
111a during the
112 interim [
113 Management Committee in order for the subcommittees to carry out their responsibilities.
114 Ĥ→ [
114a for at least
115 20% of its line items or programs, and in doing so, shall ensure that each line item and program
116 is reviewed and included in the zero based budget no less frequently than every five years.
117a on a legislator's or
118 citizen's complaint, review any appropriation, whether in an appropriations bill or otherwise, to
119 ensure that the entity to which the funds were appropriated complies with any legislative intent
120 expressed in the legislation appropriating the funds.
121 (b) If the Executive Appropriations Committee finds that an entity has not complied
122 with any legislative intent concerning an appropriation expressed in the legislation
123 appropriating the fund, the committee may make a recommendation concerning the
124 appropriation to the entity receiving the funds and the Legislative Management Committee.
Legislative Review Note
Office of Legislative Research and General Counsel