Transcript The Office of State Budget Budget Update Office of State

The Office of State Budget
Budget Update
Office of State Budget
State Budget & Control Board
1) Cat-astrophe
2) Beating a Dead
Horse
3) Over-haul
4) Bug Eyed
5) Writer’s Cramp
6) Questions
Cat astrophe
General Fund of the State
Actual Revenue
FY 2000-01
$ 5,080,323,000
FY 2001-02
$ 4,929,960,000
FY 2002-03
$ 4,967,801,000
FY 2003-04
$ 5,116,280,000
FY 2004-05
$ 5,591,060,000
FY 2005-06
$ 6,226,026,000
FY 2006-07 (Sales Tax on Food to 3%)
$ 6,658,500,000
FY 2007-08 (Sales Tax on Food / Lower 2.5% Bracket)
FY 2008-09
$ 5,544,173,000
Total Eight Year Growth %
9.2 %
$ 6,392,394,000
Budgetary Results
FY 2008-09 Year End Figures
Fiscal Year Ended June 30, 2009
(Amounts Expressed in $Millions)
Available Funds to Cover Expenditures
Actual Revenue Collections
$ 5,544.2
Brought Forward from FY 2007-08 – Agencies (Special Provisos) $
Total Available to Support Expenditures
229.1
$ 5,773.3
Expenditures & Carry Forward
Regular Appropriations
$ 5,747.9
Transfers to General Res. Fund & CRF
$
146.1
Carried Forward to FY 2009-10 – Agencies (Special Provisos)
Total Transfers, Expenditures & Carry Forward
$
$ 6,112.7
Capital Res. Fund Applied Against FY 09 Shortfall
General Res. Funds Applied Against FY 09 Shortfall
Net Excess Spending $
(98.2)
218.7
$
$
133.1
108.1
Budgetary Results
FY 2008-09 Year End Shortfall Analysis
Amounts Expressed in $Millions
Factors Producing Shortfall
Estimates used in Approp. Act over Actual Revenue $
(1,204.9)
Open-Ended Appropriations – SCDC & DJJ Deficits; Homestead Exemption
Total Budgetary Deficit
$
$
(109.3)
(1,314.2)
Factors Helping to Reduce Budgetary Shortfall
Governor’s Vetoes Sustained
$
.3
Rescission Act – Targeted Agency Reductions
$
487.9
B&C Board Actions – 7% and 2% Agency Reductions
$
Agency Surplus Funds (10%) Lapsed at Year-End
1.0
Net Budgetary Deficit $
$
485.4
(339.5)
Capital Res. Fund Applied Against FY 09 Shortfall
General Res. Funds Applied Against FY 09 Shortfall
108.7
Net Excess Spending
$
(98.2)
$
133.1
$
Property Tax Reform Bill – H.4449 of 2005-06
•
Increased Sales tax by 1 cent effective June 1, 2007. Created
Homestead Exemption Fund.
•
Exempts 100% of the fair market value of owner occupied
residential property from all school operating property taxes.
•
Section 11-11-156 (A) (6) - To the extent revenues in the
Homestead Exemption Fund are insufficient to pay all
reimbursements to a school district required by this subsection,
the difference must be paid from the State General Fund.
•
For FY 08-09 reimbursement to the School Districts exceeded
Revenue into the Homestead Exemption Fund by $53 million.
Education Lottery Account Deposits
Estimated vs. Actual Revenue
Estimated
Actual
FY 2002-03
$ 172
$ 213.3
FY 2003-04
$ 172
$ 270.5
FY 2004-05
$ 243
$ 266.0
FY 2005-06
$ 265
$ 300.0
FY 2006-07
$ 244
$ 257.0
FY 2007-08
$ 244
$ 252.0
FY 2008-09
$ 244
$ 241.0
FY 2009-10 Lottery Appropriations = $ 255 Million
Including Unclaimed Prizes
Education Improvement Act (EIA) Funds
Actual Revenue
FY 2002-03
$ 513.5
FY 2003-04
$ 544.6
FY 2004-05
$ 584.1
FY 2005-06
$ 662.2
FY 2006-07
$ 646.7
FY 2007-08
$ 633.2
FY 2008-09 *
$ 560.0
* Five EIA Appropriation Reductions Totaling $90 Million
Beating
A Dead
Horse
Establishing FY 2009-10 Part 1A Base
Revenue
BEA Revenue Estimate
$
5,529.5
Transfer to General Reserve Fund $
FY 2007-08 “Base” Budget
Recurring “New” Funds
(63.9)
$
$
(5,864.3)
(398.8)
DHHS Cash Transfer and Excess FMAP – 90.13
$
450.7
A.R.R.A. – Budget Stabilization Funds – Part III
348.0
$
DOR – Increased Enforced Collections – 90.21
48.2
$
Insurance Reserve Fund Transfer – 90.19
Other – Tobacco, SIF, LLR, DMV, Cons. Bank, etc.
55.6
$ 36.9
$
FY 2009-10 Part 1A ‘New Funds”
FY 2009-10 “New” Funds Calculations
FY 2008-09 Appropriation Act
$ 6,736,083,000
Rescission Bill & 7% Across the Board
FY 2009-10 Appropriation Base
$ (871,751,000)
$ 5,864,332,000
BEA Rev. Est. - FY 09-10 Original, Not Current
$ 5,529,491,000
Transfer to General Fund
$ (63,924,000)
Net TOTAL “New” Part 1A Funds
$
(398,765,000)
FY 2009-10 Part III - A.R.R.A. Stabilization Fund
Education Stabilization Funds – 81.8%
K-12: EFA$
184.9 Million
Higher Education Institutions: E&G
Total – Education
$
$
99.9 Million
284.8 Million
Government Services Fund – 18.2%
Corrections
$
22.0 Million
Public Safety
$
15.0 Million
All Other Agencies (20 Agencies) $
26.1 Million
Total – General Government
63.1 Million
$
Provisos 90.13 – Health & Human Services Funding
$224.8 Million of Health & Human Services
Funds from any Source including Carry Forward
Health & Human Services - $136.9 Million
Medicaid Maintenance of Effort $ 99.9
Nursing Home – Rate Restoration
Disproportionate Share
$
7.0
Transitional Medicaid
$
4.2
Hospital Cost Rates
$
3.5
$
4.9
Provisos 90.13 - Health & Human Services Funding
- Continued -
Other Health Agencies - $87.8 Million
Health & Environmental Control
Mental Health
$ 30.5
$ 19.0
Disabilities & Special Needs
Social Services
$ 17.2
$ 13.8
Lt. Gov. – Aging $
3.0
Vocational Rehabilitation $
2.0
Alcohol and Other Drug Abuse $
1.2
Other Agencies – 5 Agencies
1.1
$
FY 2009-10 “New” Funds Appropriations
Items of Interest
In Millions
2% Agency Reduction (March ’09) $ (101.9)
Debt Service
$
(28.6)
Local Government Fund (Suspend Statute) $
(49.9)
Capital Reserve Fund – Decline in Actual General Fund Rev.
(5.2)
Homestead Exemption Fund
$
107.4
$
Total “State” Appropriations
Recurring Part 1A & Non-Recurring (Proviso, Surplus, CRF, etc.)
In BILLIONS
After any Mid Year Reductions
FY 2000-01$
FY 2003-04
$
5.703
5.068
FY 2005-06
$
5.927
FY 2007-08
$
7.447
FY 2008-09
$
5.793
FY 2009-10 *
$
6.096
* FY 2009-10 Includes:
$348 Million of Part III A.R.R.A. Funds
$224.8 Million from Excess FMAP Funds
$226 Million Deposit to General Fund from DHHS
OverHaul
FY 2009-10 Revenue & Appropriation Reductions
YEAR – TO - DATE
BEA Revenue Reductions – FY 2009-10
June 2009 $
120.0 Million
July 2009 $
208.3 Million
Total Revenue Reductions (FY 09-01 YTD) $
328.3 Million
B & C Board Actions – July and September of 2009
Reduce CRF
$
127.8 Million
Agency 4.04% Reduction $
200.5 Million
Total Appropriation Reductions (YTD)
$
328.3 Million
Mid-Year Reductions
1-11-325, 1-11-495 & Proviso 80A.11
FY 2009-10 Base = $5,586,175,000
1-11-325 - Capital Reserve Fund ($127.8 Million) Reduced Prior to Cuts
Exemptions Before Reduction Calculations
Debt Service
$ 190.5 million
Local Government Fund
Scholarships & Tuition Grants
$ 230.2 million
$ 117.3 million
Homestead Exemption Fund $ 26.4 million
Other (1st Resp., Nat’l Guard Pen., DOR – 81.15)
$ 56.8 million
Adjusted Base Reduction Amount = $ 4,965,010,000
Agency Deficits – Reducing Rates of Expenditures
Section 1-11-495 of S.C. Code of Laws
•
Agencies should budget and allocate appropriations as a
quarterly allocation.
•
If a shortfall projected it is the responsibility of the agency to
develop a plan, in consultation with the B&C Board, that
eliminates or reduces the deficit.
•
B&C Board may determine that the recognition of an agency
deficit is appropriate.
•
If it is determined that the agency deficit is result of the
management then bond of the agency officials responsible shall
be held liable, and the B&C Board shall take action to curtail
agency expenditures to avoid or reduce the deficit.
Bug
Eyed
FY 2010-11 Outlook
UNOFFICIAL – 3% Growth Scenario
Revenue – With Unofficial 3% Growth Assumption
FY 2009-10 BEA Revenue Estimate (June ’09)
5,742.2
$
Assume 3% Growth (Not an actual BEA Est.) $
5,914.5
Property Tax Relief Trust Fund
$
(542.5)
Net General Fund Revenue (Based on unofficial 3%) $
FY 2010-11 Approp. Base (after 4.04% reduction)
5,513.5
“New” Recurring Revenue $
(141.5)
5,372.0
$
FY 2010-11 Outlook
UNOFFICIAL
Statewide Funding Issues
FY 08-09 General Fund Deficit
General Reserve Fund
$
$
98.2
55.4
Capital Reserve Fund – Decline in Actual General Fund Revenue
Local Government Fund
$
Homestead Exemption Shortfall
Net Balance
(17.0)
19.2
Annualization of Agency Approp. (supported w/ NR)
Total – Statewide Funding Issues
$
$
$
$
8.1
65.8
229.9
$ (371.5)
Assumes No Increase in EFA – Fund at FY 09-10 Level with ARRA Funds
No Increase in Medicaid/Health – Fund at FY 09-10 Level w/ ARRA Funds
Writer’s
Cramp
Proviso Changes
89.96 Flexibility
Allows Agencies to use Special Funds to maintain
Critical programs previously funded with General Funds
80A.43 – Sale of Surplus Real Property
Specifies that half of proceeds go to B&C Board for Deferred
Maintenance of State Buildings. Other half to agencies.
Specifies agency & project exceptions
Proviso Changes
89.97 – Voluntary Furlough
Agencies may institute voluntary employee furlough
of not more that 90 days if agency is receiving fewer
Appropriated General Funds than last Fiscal Year.
89.110 – Mandatory Furlough
Agencies may institute mandatory employee furlough
of not more that 10 days if agency is receiving fewer
Appropriated General Funds than last Fiscal Year.
Also if agency projects a decline in Other funds revenue
Provisos
FTE Deletions – SUSPENDED for FY 2009-10
80A.11 – Vacant Positions - SUSPENDED
FTE positions (regardless of source of funds) over
12 months old deleted from the system.
89.16 – Personal Service Reconciliation - SUSPENDED
Deletion of unfunded State FTEs only based on the availability
of General Funds personal service appropriations.
Provisos
809.133 – Mandatory Furlough & 89.134 – R.I.F.
Directs agency heads to consider furloughing or reducing
contract employees, post-TERI employees and/or TERI
employees before other employees if either is implemented.
89.125 – Fees and Fines Report
Requires each agency to provide a report (via their
Website) of all aggregate amounts of fines and fees charged
and collected in the prior fiscal year.
Three Year General Fund Financial Outlook
Section 11-11-350
Each agency receiving at least 1% of the State’s
General Fund appropriations shall provide Office of State Budget
projected General Fund expenditure needs for the next three years.
BEA provides long term revenue estimates.
Office of State Budget compiles revenue and expenditure data
and produces a three-year financial plan
which must be updated annually by December 31.
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