Senator Dean Cameron Chair Senate Finance Committee Co-Chair JFAC

Guiding Principles - Constitution

EXECUTIVE DEPARTMENT Article IV



Section 8 – Governor May Require Reports Messages to the Legislature

 1) 2) State of the State Report of all Expenditures 3) Estimates of amount of money required by taxation

Section 17 – Accounts & Reports of Officers

Agencies report all revenues and expenditures to Governor before the session, who then transmits to the Legislature

FINANCE AND REVENUE Article VII

 

Section 11- Finance & Revenue

Legislature must balance budget

Section 13 – Money How Drawn from the Treasury

All money drawn from the state treasury subject to appropriation 2

Guiding Principles - Statutory

 Chapter 35, Title 67 - State Budget  Chapter 36, Title 67 - Standard Appropriations Act of 1945  Chapter 68, Title 67 - Economic Estimates 

Sections IC 57-814

– 57-814A - Budget Stabilization Fund 

Sections IC 67-432 thru 67-440

–

Joint Finance Appropriations Committee (JFAC) 

Section IC 67-703

– Budget & Policy Analysis – Function of Legislative Services Office 3

Idaho State Budget Process

Budget Development Manual May Legislature Analysis & Development of Legislative Budget Book State Agencies Develop Budgets June – Aug.

Agencies Submit Budgets September 1 Sept.-Dec.

Governor’s Office Analysis & Development of Executive Budget Recommendation Budget Hearing Process for JFAC Budget Setting Process by JFAC Appropriation Bills to the Floor House Senate Jan.-Feb.

Feb.-Mar.

To Governor For Approval Presentation of Executive Budget to Legislature If Vetoed Signature or Veto Becomes Law

Idaho Joint Finance Appropriations Committee

 10 Senators & 10 Representatives  Meets 8 am - Monday thru Friday  5 Weeks of Budget Hearings  3 Weeks of Budget Setting   Idaho Legislature looks at both the agency request and the Governor’s recommendation, and key measures and fiscal information.

JFAC has “early morning meetings” during budget setting at 7am to discuss the upcoming morning’s work. JFAC members often share prepared motions with other committee members and often work out differences.

FY 2015 Gen Fund Revenue $2,990.4 million

Corporate Income Tax $206.5 6.9% All Other Taxes $146.5 4.9% Individual Income Tax $1,406.0 47.0% Sales Tax $1,231.4 41.2%

6

FY 2015 Gen Fund Appropriation $2,936.1 million

Other Education $153,7 5,2% College & Universities $251,2 8,6% All Education $1,779.5, 60.6% Public Schools $1 374,6 46,8% Public Safety $308,0 10,5% Health & Human Services $680,9 23,2% General Government $105,2 3,6% Natural Resources $36,2 1,2% Economic Development $26,2 0,9%

7

Idaho’s line-item, incremental, program, zero based performance budget

At What Level Do We Budget?



Base Budgeting - Incremental



By Program



By Fund



By Object Class

1) 2) Personnel Costs

: Salaries and Benefits

Operating Expenditures

: Leases & Travel

3) 4) 5) Capital Outlay

: Computers and Vehicles

Trustee and Benefit Payments

: Services on Behalf of Another

Lump Sum:

No Defined Category

Three Fund Types

1)



General Fund

: Sales Tax, Individual & Corporate Income & Product Taxes, Miscellaneous Revenue Tax Commission

2) Dedicated

: Taxes, Fees, and Penalties  Fish & Game

3)



Federal

: Grants, with or without match Health & Welfare - Medicaid  Commission on Aging 9

General Fund History

Department/Agency Public School Support H&W Medicaid College and Universities Dept of Correction Health & Welfare Prof-Technical Education Juvenile Corrections Catastrophic Health Care Judicial Branch Revenue & Taxation Community Colleges Ag Research & Ext Idaho State Police Total Top 13 Agencies FY 2009 Orig Appropriation

1,418,542,700 402,492,800 285,151,500 175,915,200 184,785,100 54,899,400 40,029,300 20,767,700 31,862,500 29,011,500 29,666,400 28,249,200 24,529,500 2,725,902,800

FY 2012 Orig Appropriation

1,223,580,400 436,159,000 209,828,300 157,367,900 128,683,800 46,511,600 35,763,500 19,267,700 29,246,700 29,034,700 23,033,000 22,559,000 14,889,700 2,375,925,300

FY 2015 Orig Appropriation

1,374,598,400 492,347,100 251,223,200 204,240,600 144,941,300 53,079,000 39,027,400 34,966,300 40,930,400 31,490,200 32,978,500 26,453,700 23,799,500 2,750,075,600

FY 2016 Request

1,461,944,500 507,301,000 299,936,300 209,324,600 150,644,500 56,635,900 39,800,900 32,303,900 39,898,200 34,294,500 37,305,000 28,476,800 28,755,700 2,926,621,800

% of Tot Req

46.7% 16.2% 9.6% 6.7% 4.8% 1.8% 1.3% 1.0% 1.3% 1.1% 1.2% 0.9% 0.9% 93.4%

Total Lowest 42 Agencies Statewide Total

233,380,600

2,959,283,400

153,035,300

2,528,960,600

186,021,000

2,936,096,600

207,196,700

3,133,818,500

6.6%

100.0%

This table illustrates one challenge for the Legislature in setting the state budget when trying to manage growth. The largest five budget requests for agencies make up 81% of the General Fund, and the largest 13 make up 93.4% of the General Fund.

Caseload Matters

FUNDING HISTORY: Public Schools Coll & Universities Community Colleges Medicaid IDOC: State Prisons & Medical Comm Supv & Treatment

2008

Gen Fund

2015 % Chg

$1,376 $1,375 $264 $251 $24 $33

-0.6% -4.9% 39.8%

$376 $492

30.8%

$141 $23 $152 $24

7.4% 6.6%

2008

Total Funds

2015

$1,657 $399 $59 $1,677 $499 $83 $1,294 $2,033

% Chg

1.2% 25.0% 40.8% 57.2%

$152 $31 $163 $30

7.3% -3.7%

Caseload Matters

Public Schools Coll & Universities Community Colleges Medicaid IDOC: State Prisons & Medical Comm Supv & Treatment 272,058

2008

38,066 7,149 185,038 7,361 13,361

CASELOAD

2015 % Chg

289,064

2008 2015 % Chg

6.3% $5,056 $4,755

2008 2015 % Chg

-5.9% $6,089 $5,800

-4.7%

40,171 15,531 236,352 8,050 15,110

FUNDING PER INDIVIDUAL Gen Fund

27.7% $2,034 $2,083 9.4% $19,121 $18,777 13.1% $1,688 $1,591

Total Funds

5.5% $6,941 $6,254 -9.9% $10,482 $12,413

18.4%

117.2% $3,299 $2,123 -35.6% $8,219 $5,327 -35.2% 2.4% $6,992 $8,603

23.0%

-1.8% $20,642 $20,257

-1.9%

-5.8% $2,332 $1,986 -15.0%

State Stabilization Fund Balances

(in millions at the end of each fiscal year)

450 $389M 400 350 $282.3M

300 250 200 150 100 50 0 Mill Fund PESF ERRF BSF