2014 -- H 7728

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LC003170

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

RELATING TO STATE BUDGET

     Introduced By: Representatives Newberry, Chippendale, Giarrusso, and Morgan

     Date Introduced: February 27, 2014

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Sections 35-3-4, 35-3-7 and 35-3-9 of the General Laws in Chapter 35-3

entitled "State Budget" are hereby amended to read as follows:

     35-3-4. Estimates submitted by department heads. -- (a) On dates determined by the

budget officer, but not later than the first day of October in each year, each head of a department

of the state government, not including the general assembly or the judiciary, shall assemble,

correlate, and revise, with power to increase or decrease, the estimates for expenditures and

requests for appropriations for the next ensuing fiscal year of each of the divisions, boards,

commissions, officers, bureaus, institutions, or agencies of the state included within his or her

department, and, after this revision, shall prepare an itemized departmental estimate of the

appropriations necessary to meet the financial needs of the department, including a statement in

detail of all moneys for which any general or special appropriation is desired at the ensuing

session of the general assembly. The estimate shall be in such form, and in such number of

copies, and with such explanation as the budget officer may require, and, on dates determined by

the budget officer, but not later than the first day of October in each year, shall be submitted to

the governor through the budget officer. The budget officer shall provide copies to the house

fiscal advisor and senate fiscal advisor.

      (b) The estimates shall also include a supplemental presentation of estimates of

expenditures for information resources and information technologies as defined in section 29-8-2

[repealed] regardless of source of financing. The estimate shall include a detailed listing and

explanation of expenses and the source of funds and shall be in such form, and in such number of

copies, and with such explanation as the budget officer may require. Copies shall be provided

directly to the house fiscal advisor, the senate fiscal advisor, and the Rhode Island Information

Resources Management Board.

     (c) Commencing with the fiscal year beginning on July 1, 2014, and in accordance with

the schedule provided herein, the estimates for expenditures and requests for appropriations shall

be based upon a justification by each department head of the budget of the department from a

zero base. The budget request shall be accompanied by a statement giving facts and explanations

of reasons for each item requested. It shall include a brief explanation of the functions of each of

the divisions, boards, commissions, officers, bureaus, institutions, or agencies of the state

included within the department and comments on its policies and plans, with such descriptive,

quantitative, comparative and other data as to work done and other information as is considered

necessary or desirable. "Zero based budget" requests so-called, requests for appropriations based

upon a justification of a department from a zero base as if the budget for the department was

being initiated for the first time shall be required based upon the following schedule:

     (1) Beginning with the fiscal year beginning July 1, 2015, zero based budgets shall be

submitted by twenty percent (20%) of state departments, being those departments which

submitted the lowest budget request for the fiscal year beginning July 1, 2014;

     (2) Beginning with the next fiscal year, zero based budgets shall be submitted by twenty

percent (20%) of state departments, being those submitting the lowest budget request for the

fiscal year beginning July 1, 2015, except for those departments included in subdivision (1)

above;

     (3) Beginning with the next fiscal year, zero based budget requests shall be submitted by

twenty percent (20%) of state departments submitting the lowest budget requests for the fiscal

year beginning July 1, 2016, except for those departments included in subdivisions (1) and (2);

     (4) Beginning with the next fiscal year, zero based budget requests shall be submitted by

twenty percent (20%) of state departments submitting the lowest budget requests for the fiscal

year beginning July 1, 2017, except for those departments included in subdivisions (1), (2), and

(3) herein;

     (d) For the fiscal year beginning July 1, 2018, and thereafter, zero based budgets shall be

submitted by all remaining state departments.

     The budget officer shall provide copies to the house fiscal advisor and senate fiscal

advisor.

     35-3-7. Submission of budget to general assembly -- Contents. [Effective January 1,

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2014.] -- (a) On or before the third Thursday in January in each year of each January session of

the general assembly, the governor shall submit to the general assembly a budget containing a

complete plan of estimated revenues and proposed expenditures, with a personnel supplement

detailing the number and titles of positions of each agency and the estimates of personnel costs

for the next fiscal year, and with the inventory required by subsection 35-1.1-3(b)(4). Provided,

however, in those years that a new governor is inaugurated, the new governor shall submit the

budget on or before the first Thursday in February. Beginning with the fiscal year beginning July

1, 2014, and in accordance with the schedule set forth in § 35-3-4, the budget submitted by the

governor shall be a "zero based budget," a budget based upon a justification of each department's

estimate of expenditures and requests for appropriations from a zero base. In accordance with the

schedule set forth in § 35-3-4, the entire budget for the fiscal year beginning July 1, 2018, shall be

a zero based budget.

     In the budget the governor may set forth in summary and detail:

     (1) Estimates of the receipts of the state during the ensuing fiscal year under laws existing

at the time the budget is transmitted and also under the revenue proposals, if any, contained in the

budget, and comparisons with the estimated receipts of the state during the current fiscal year, as

well as actual receipts of the state for the last two (2) completed fiscal years.

     (2) Estimates of the expenditures and appropriations necessary in the governor's

judgment for the support of the state government for the ensuing fiscal year, and comparisons

with appropriations for expenditures during the current fiscal year, as well as actual expenditures

of the state for the last two (2) complete fiscal years.

     (3) Financial statements of the

     (i) Condition of the treasury at the end of the last completed fiscal year;

     (ii) The estimated condition of the treasury at the end of the current fiscal year; and

     (iii) Estimated condition of the treasury at the end of the ensuing fiscal year if the

financial proposals contained in the budget are adopted.

     (4) All essential facts regarding the bonded and other indebtedness of the state.

     (5) A report indicating those program revenues and expenditures whose funding source is

proposed to be changed from state appropriations to restricted receipts, or from restricted receipts

to other funding sources.

     (6) Such other financial statements and data as in the governor's opinion are necessary or

desirable.

     (b) Any other provision of the general laws to the contrary notwithstanding, the proposed

appropriations submitted by the governor to the general assembly for the next ensuing fiscal year

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should not be more than five and one-half percent (5.5%) in excess of total state appropriations,

excluding any estimated supplemental appropriations, enacted by the general assembly for the

fiscal year previous to that for which the proposed appropriations are being submitted; provided,

that the increased state share provisions required to achieve fifty percent (50%) state financing of

local school operations as provided for in P.L. 1985, ch. 182, shall be excluded from the

definition of total appropriations.

     (c) Notwithstanding the provisions of subsection 35-3-7(a), the governor shall submit to

the general assembly a budget for the fiscal year ending June 30, 2006 not later than the fourth

(4th) Thursday in January 2005.

     (d) Notwithstanding the provisions of subsection 35-3-7(a), the governor shall submit to

the general assembly a supplemental budget for the fiscal year ending June 30, 2006 and/or a

budget for the fiscal year ending June 30, 2007 not later than Thursday, January 26, 2006.

     (e) Notwithstanding the provisions of subsection 35-3-7(a), the governor shall submit to

the general assembly a supplemental budget for the fiscal year ending June 30, 2007 and/or a

budget for the fiscal year ending June 30, 2008 not later than Wednesday, January 31, 2007.

     (f) Notwithstanding the provisions of subsection 35-3-7(a), the governor shall submit to

the general assembly a budget for the fiscal year ending June 30, 2012 not later than Thursday,

March 10, 2011.

     (g) Notwithstanding the provisions of subsection 35-3-7(a), the governor shall submit to

the general assembly a budget for the fiscal year ending June 30, 2013 not later than Tuesday,

January 31, 2012.

     35-3-9. Action on bills by house committee -- Hearings. -- The budget plan and bill or

bills for proposed appropriations, when sent by the governor to the general assembly, shall be

referred as soon as practicable to an appropriate committee of the house of representatives, and

the committee shall forthwith proceed to the consideration of the bill. and upon receipt of the

budget plan the committee shall refer it to a budget panel consisting of three (3) persons: one of

whom shall be appointed by the speaker of the house; one of whom shall be appointed by the

house minority leader; and one of whom shall be appointed by the senate president. The members

of the panel shall be persons with expertise and experience in the areas of finance or accounting.

The panel shall review the budget plan and shall consider the objectives, operations, and costs of

all activities of each department; explore alternative means of conducting the activities of each

department; evaluate alternative budget amounts for various levels of effort for each activity of

each department. The panel shall report its findings and make its recommendations as to the

needs of each department, the programs and activities of each department and all other

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recommendations and information that it deems appropriate, to the committee, within thirty (30)

days after the budget plan is referred to it.

     The committee shall proceed to the consideration of the bill upon receipt of this

recommendation of the panel. The committee shall hear the budget officer upon the bill as a

whole or upon any item thereof or any proposed amendment thereto as each may elect, and the

committee may summon the budget officer to appear before it and to furnish such information

relative to the bill or any item therein, or any proposed amendment thereto, as it may require, and

the committee may in its discretion hear the proper person representing any department or agency

desiring to be heard with respect to any item or amendment in the bill relating to the department

or agency; provided, that nothing contained in this section shall be construed to limit the right of

the committee to hold public hearings upon the bill as a whole or upon any item therein, or to

summon any person for examination regarding any item contained therein, or for the purpose of

obtaining information necessary for a full and proper consideration of the bill. The committee,

after the consideration of the bill, shall report the bill with its recommendation endorsed thereon

to the house of representatives.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATE BUDGET

***

     This act would require that the governor submit a zero based budget to the general

assembly. The zero based budget shall be phased in over a five (5) year period.

     This act would take effect upon passage.

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