This document includes Senate 3rd Reading Floor Amendments incorporated into the bill on Tue, Mar 12, 2019 at 1:52 PM by lpoole.
1     
JOINT RULES RESOLUTION ON BASE BUDGETING

2     
PROVISIONS

3     
2019 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Jefferson Moss

6     
Senate Sponsor: Daniel Hemmert

7     

8     LONG TITLE
9     General Description:
10          This resolution modifies joint rules related to base budgeting.
11     Highlighted Provisions:
12          This resolution:
13          ▸     defines terms;
14          ▸     requires every appropriations subcommittee to create Ŝ→ [a zero based] an accountable
14a     process ←Ŝ budget for a
15     percentage of the subcommittee's budgets each interim; and
16          ▸     modifies provisions governing appropriations subcommittee meetings.
17     Special Clauses:
18          None
19     Legislative Rules Affected:
20     AMENDS:
21          JR3-2-101
22          JR3-2-402
23          JR3-2-501
24          JR4-2-406
25     

26     Be it resolved by the Legislature of the state of Utah:
27          Section 1. JR3-2-101 is amended to read:
28          JR3-2-101. Definitions.
29          As used in this chapter:
29a     Ŝ→      (1) "Accountable process budget" means a budget that is created by starting from zero
29b     and adding line items and programs recommended through an accountable budget process.
29c          (2) "Accountable budget process" means a review of a line item or program in a simple
29d     base budget to determine whether or the extent to which to recommend the line item or
29e     program be included in a budget for the upcoming fiscal year. ←Ŝ
30          Ŝ→ [(1)] (3) ←Ŝ "Base budget" means:
31          (a) Ŝ→ [a zero based] an accountable process ←Ŝ budget; or
32          (b) for a line item or program that was not the subject of Ŝ→ [a zero based] an accountable
32a     process ←Ŝ budget analysis
33     during the immediately preceding interim, a simple base budget.
34          [(1)] Ŝ→ [(2)] (4) ←Ŝ "Chair" means:
35          (a) the chair of an appropriations subcommittee or the Executive Appropriations
36     Committee; or
37          (b) a member of a joint appropriations subcommittee or the Executive Appropriations
38     Committee member who is authorized to act as chair under JR3-2-303.
39          [(2)] Ŝ→ [(3)] (5) ←Ŝ "Committee" means a joint appropriations subcommittee or the
39a     Executive
40     Appropriations Committee.
41          [(3)] Ŝ→ [(4)] (6) ←Ŝ "Majority vote" means a majority of a quorum as provided in
41a     JR3-2-404.
42          [(4)] Ŝ→ [(5)] (7) ←Ŝ "Original motion" means a non-privileged motion that is accepted by
42a     the chair
43     when no other motion is pending.
44          [(5)] Ŝ→ [(6)] (8) ←Ŝ "Pending motion" refers to a motion starting when a chair accepts a
44a     motion
45     and ending when the motion is withdrawn or when the chair calls for a vote on the motion.
46          [(6)] Ŝ→ [(7)] (9) ←Ŝ (a) "Privileged motion" means a procedural motion to adjourn, set a
46a     time to
47     adjourn, recess, end debate, extend debate, or limit debate.
48          (b) "Privileged motions" are not substitute motions.
49          [(7)] Ŝ→ [(8)] (10) ←Ŝ "Proposed budget item" means any item under consideration by an
50     appropriations committee for inclusion in an appropriations bill.☆
51     ☆     Ŝ→ [(9)] (11) ←Ŝ (a) "Simple base budget" means amounts appropriated by the Legislature
51a     for each
52     line item for the current fiscal year that:
53          (i) are not designated as one-time in an appropriation, regardless of whether the
54     appropriation is covered by ongoing or one-time revenue sources; and
55          (ii) were not vetoed by the governor, unless the Legislature overrode the veto.
56          (b) "Simple base budget" includes:
57          (i) any changes to those amounts approved by the Executive Appropriations
58     Committee; and
59          (ii) amounts appropriated for debt service.
60          [(8)] Ŝ→ [(10)] (12) ←Ŝ "Substitute motion" means a non-privileged motion that is made
60a     when a
61     non-privileged motion is pending.
62          [(9)] Ŝ→ [(11)] 13 ←Ŝ "Under consideration" means the time starting when a chair opens a
63     discussion on a subject or an appropriations request that is listed on a committee agenda and
64     ending when the committee disposes of the subject or request, moves on to another item on the
65     agenda, or adjourns.
66          Ŝ→ [(12) "Zero based budget" means a budget that is created by starting from zero and
67     adding line items and programs recommended through a zero based budget analysis.
68          (13) "Zero based budget analysis" means a review of a line item or program in a simple
69     base budget to determine whether or the extent to which to recommend the line item or
70     program be included in a budget for the upcoming fiscal year.] ←Ŝ
71          Section 2. JR3-2-402 is amended to read:
72          JR3-2-402. Executive appropriations -- Duties -- Base budgets.
73          [(1) As used in this rule:]
74          [(a) "Base budget" means amounts appropriated by the Legislature for each item of
75     appropriation for the current fiscal year that:]
76          [(i) are not designated as one-time in an appropriation, regardless of whether the
77     appropriation is covered by ongoing or one-time revenue sources; and]
78          [(ii) were not vetoed by the governor, unless the Legislature overrode the veto.]
79          [(b) "Base budget" includes:]
80          [(i) any changes to those amounts approved by the Executive Appropriations
81     Committee; and]
82          [(ii) amounts appropriated for debt service.]
83          [(2)] (1) (a) The Executive Appropriations Committee shall meet no later than the third
84     Wednesday in December to:
85          (i) direct staff as to what revenue estimate to use in preparing budget
86     recommendations, to include a forecast for federal fund receipts;
87          (ii) consider treating above-trend revenue growth as one-time revenue for major tax
88     types and for federal funds;
89          (iii) hear a report on the historical, current, and anticipated status of the following:
90          (A) debt;
91          (B) long term liabilities;
92          (C) contingent liabilities;
93          (D) General Fund borrowing;
94          (E) reserves;
95          (F) fund balances;
96          (G) nonlapsing appropriation balances;
97          (H) cash funded infrastructure investment; and
98          (I) changes in federal funds paid to the state;
99          (iv) hear a report on:
100          (A) the next fiscal year base budget appropriation for Medicaid accountable care
101     organizations according to Section 26-18-405.5;
102          (B) an explanation of program funding needs;
103          (C) estimates of overall medical inflation in the state; and
104          (D) mandated program changes and their estimated cost impact on Medicaid
105     accountable care organizations;
106          (v) decide whether to set aside special allocations for the end of the session, including
107     allocations:
108          (A) to address any anticipated reduction in the amount of federal funds paid to the
109     state; and
110          (B) of one-time revenue to pay down debt and other liabilities;
111          (vi) approve the appropriate amount for each subcommittee to use in preparing its
112     budget;
113          (vii) set a budget figure; and
114          (viii) adopt a base budget in accordance with Subsection [(2)] (1)(b) and direct the
115     legislative fiscal analyst to prepare one or more appropriations acts appropriating one or more
116     base budgets for the next fiscal year.
117          (b) In a base budget adopted under Subsection [(2)] (1)(a), appropriations from the
118     General Fund, the Education Fund, and the Uniform School Fund shall be set as follows:
119          (i) if the next fiscal year ongoing revenue estimates set under Subsection [(2)] (1)(a)(i)
120     are equal to or greater than the current fiscal year ongoing appropriations, the new fiscal year
121     base budget is not changed;
122          (ii) if the next fiscal year ongoing revenue estimates set under Subsection [(2)] (1)(a)(i)
123     are less than the current fiscal year ongoing appropriations, the new fiscal year base budget is
124     reduced by the same percentage that projected next fiscal year ongoing revenue estimates are
125     lower than the total of current fiscal year ongoing appropriations;
126          (iii) in making a reduction under Subsection [(2)] (1)(b)(ii), appropriated debt service
127     shall not be reduced, and other ongoing appropriations shall be reduced, in an amount
128     sufficient to make the total ongoing appropriations, including the unadjusted debt service,
129     equal to the percentage calculated under Subsection [(2)] (1)(b)(ii); and
130          (iv) the new fiscal year base budget shall include an appropriation to the Department of
131     Health for Medicaid accountable care organizations in the amount required by Section
132     26-18-405.5.
133          (c) The chairs of each joint appropriations subcommittee are invited to attend this
134     meeting.
135          [(3)] (2) All proposed budget items shall be submitted to one of the subcommittees
136     named in JR3-2-302 for consideration and recommendation.
137          [(4)] (3) (a) After receiving and reviewing subcommittee reports, the Executive
138     Appropriations Committee may refer the report back to a joint appropriations subcommittee
139     with any guidelines the Executive Appropriations Committee considers necessary to assist the
140     subcommittee in producing a balanced budget.
141          (b) The subcommittee shall meet to review the new guidelines and report the
142     adjustments to the chairs of the Executive Appropriations Committee as soon as possible.
143          [(5)] (4) (a) After receiving the reports, the Executive Appropriations Committee
144     chairs will report them to the Executive Appropriations Committee.
145          (b) The Executive Appropriations Committee shall:
146          (i) make any further adjustments necessary to balance the budget; and
147          (ii) complete all decisions necessary to draft the final appropriations bills no later than
148     the 39th day of the annual general session.
149          Section 3. JR3-2-501 is amended to read:
150          JR3-2-501. Meetings -- Ŝ→ [Zero based] Accountable process ←Ŝ budget creation --
150a     Appropriation reviews.
151          (1) (a) During the interim, the Executive Appropriations Committee shall meet at least
152     every other month on the day before interim meetings.
153          (b) The appropriations subcommittee chairs may attend these meetings and provide
154     input regarding their budget.
155          (2) Appropriation subcommittees shall meet at least once during the interim and may
156     also hold additional meetings if authorized by the Legislative Management Committee.
157          (3) (a) Each interim, each appropriations subcommittee shall create Ŝ→ [a zero based] an
157a     accountable process ←Ŝ
158     budget for approximately 20% of the budgets that fall within the appropriation subcommittee's
159     responsibilities.
160          (b) Each appropriations subcommittee shall ensure that each of the budgets for which
161     the appropriations subcommittee has responsibility is the subject of Ŝ→ [a zero based budget
162     analysis] an accountable budget process ←Ŝ at least once every five years.
163          [(3)] (4) (a) The Executive Appropriations Committee may, based on a legislator's or
164     citizen's complaint, review any appropriation, whether in an appropriations bill or otherwise, to
165     ensure that the entity to which the funds were appropriated complies with any legislative intent
166     expressed in the legislation appropriating the funds.
167          (b) If the Executive Appropriations Committee finds that an entity has not complied
168     with any legislative intent concerning an appropriation expressed in the legislation
169     appropriating the fund, the committee may make a recommendation concerning the
170     appropriation to the entity receiving the funds and the Legislative Management Committee.
171          Section 4. JR4-2-406 is amended to read:
172          JR4-2-406. Funding mix for state employee compensation adjustments and
173     internal service fund rate impacts.
174          (1) The legislative fiscal analyst shall prepare a budget for state employee
175     compensation adjustments and internal service fund rate impacts that minimizes costs to the
176     unrestricted General Fund, Education Fund, and Uniform School Fund, by:
177          (a) using a mix of funding sources that is proportionate to that of the base budget, as
178     defined [under Joint Rule 3-2-402] in JR3-2-101, at the appropriation unit level for the same
179     budget year;
180          (b) including sources other than the unrestricted General Fund, Education Fund, and
181     Uniform School Fund, regardless of the availability of additional revenue;
182          (c) adjusting the funding mix when the full or partial use of one or more sources is
183     directed in statute, federal regulation, or the terms of a federal grant; and
184          (d) adjusting the funding mix based on the appropriate use of funding sources other
185     than the unrestricted General Fund, Education Fund, and Uniform School Fund,
186     transportation-related funds, federal funds, restricted accounts, and dedicated credits.
187          (2) When the legislative fiscal analyst adjusts the funding mix in accordance with
188     Subsection (1)(c) or (d), the legislative fiscal analyst shall:
189          (a) eliminate the appropriate portion of the source from the funding mix;
190          (b) deduct the amount associated with the source from the base budget total;
191          (c) recalculate the proportional distribution among remaining sources; and
192          (d) distribute the appropriate budget adjustment amounts accordingly.
193          (3) If the legislative fiscal analyst identifies a funding mix that would provide
194     additional spending authority for sources other than the unrestricted General Fund, Education
195     Fund, and Uniform School Fund and additional revenue is unavailable, in accordance with
196     Subsection (1)(b), an agency may make or request program reductions, reprioritizations,
197     reallocations, or fee increases pursuant with Utah Code Title 63J, Chapter 1, Budgetary
198     Procedures Act.
199          (4) The legislative fiscal analyst shall request that an internal service fund agency
200     reflect state employee compensation adjustments and impacts from rate changes in other
201     internal funds in the rates recommended by the internal service fund agency for a given budget
202     cycle, either:
203          (a) on a prospective basis for the budget year, based on an estimated amount; or
204          (b) on a one-year lag basis, if the specific internal service fund has sufficient operating
205     reserves to maintain the internal service fund's fiscal integrity.
206          (5) (a) The Executive Appropriations Committee may approve for one fiscal year
207     exceptions to the budget preparation criteria described in Subsections (1) through (4).
208          (b) The legislative fiscal analyst shall prepare a budget that includes exceptions
209     approved by the Executive Appropriations Committee under this Subsection (5).
210          (c) The Executive Appropriations Committee shall annually determine whether to
211     re-approve an exception approved by the Executive Appropriations Committee under this
212     Subsection (5).