SB 454-FN – AS INTRODUCED
2010 SESSION
05/01
SENATE BILL 454-FN
AN ACT relative to requiring submission of a reduced spending alternative as part of the biennial budget process.
SPONSORS: Sen. Bradley, Dist 3; Sen. Barnes, Jr., Dist 17; Sen. Bragdon, Dist 11; Sen. Carson, Dist 14; Sen. Letourneau, Dist 19; Sen. Odell, Dist 8; Sen. Roberge, Dist 9; Sen. Gallus, Dist 1; Rep. Boutin, Merr 9; Rep. Wendelboe, Belk 1; Rep. Kurk, Hills 7; Rep. Packard, Rock 3
This bill requires state agencies to submit budget appropriation requests that estimate both a maintenance level expenditure and a reduced spending level alternative of a specified amount as part of the biennial budget process. Such estimates shall be made available to the public as part of the biennial budget process.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
10-2802
05/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Ten
AN ACT relative to requiring submission of a reduced spending alternative as part of the biennial budget process.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Requests for Appropriations and Statement of Objectives. RSA 9:4 is repealed and reenacted to read as follows:
9:4 Requests for Appropriations and Statement of Objectives.
I. On or before October 1 prior to each biennial legislative session, all departments of the state shall transmit to the commissioner of administrative services, on blanks to be furnished by the commissioner, 2 estimates of their expenditure requirements for each fiscal year of the ensuing biennium for administration, operation, and program services, including costs for workers’ compensation and unemployment compensation. These estimates shall include:
(a) An estimate for expenditure resulting in a maintenance level expenditure. The maintenance level expenditure estimate shall include any necessary changes to state statutes and administrative rules.
(b) An estimate for expenditure for each year of the biennium that is 5 percent less than the budget and any footnote adjustments or subsequent appropriations, additions, or reductions, implemented in the previous fiscal year. The reduction level expenditure estimate shall include all necessary changes to state statutes and administrative rules.
II. If any department fails to submit such estimates within the time specified, the commissioner of administrative services shall cause to be prepared such estimates for the department as in the commissioner’s opinion are reasonable and proper.
III. Upon completion, both estimates submitted under paragraph I shall be publicly available pursuant to RSA 91-A.
IV. In this section, “maintenance level expenditure” means:
(a) The cost of providing the same level of service authorized and funded in the preceding fiscal year, considering and incorporating changes in the population, economic conditions, technology, and other factors outside the control of the department. The governor shall provide criteria for the development of maintenance level expenditures which may include the following:
(1) Any increases or decreases in the cost of purchased goods or services due to general price changes in the economy at large.
(2) Salary steps within grade.
(3) New positions necessary to provide the same level of service.
(4) Additional operating costs associated with previously authorized capital improvement projects to be completed during the biennium.
(5) Reductions for non-recurring costs of the prior fiscal year.
(b) The maintenance level expenditure shall not include new programs or changes in the kind, quantity, or quality of service when the change is at the agency’s discretion or is the result of changes in federal or state law or regulation.
(c) Within the meaning of this section, the governor shall make the final determination as to whether a particular cost shall be deemed to be a maintenance level expenditure.
V. In this section, “reduction level expenditure” means the reduced cost of providing authorized services, considering and incorporating changes in the population, economic conditions, technology, and other factors outside the control of the department. The governor shall provide criteria for the development of reduced expenditures and shall make the final determination as to whether a particular cost shall be deemed to be a reduction level expenditure.
2 Effective Date. This act shall take effect upon its passage.
LBAO
10-2802
12/29/09
SB 454-FN - FISCAL NOTE
AN ACT relative to requiring submission of a reduced spending alternative as part of the biennial budget process.
FISCAL IMPACT:
The Department of Administrative Services states this bill will increase state expenditures by $254,816 in FY 2011, $234,918 in FY 2012, $289,415 in FY 2013, and $260,739 in FY 2014. There will be no fiscal impact on state, county, and local revenue or on county and local expenditures.
METHODOLOGY:
The Department of Administrative Services states this bill requires that a reduced spending alternative budget be included as part of the biennial budget process in addition to the maintenance level submission by each agency currently mandated by RSA 9:4. The proposed bill would require each agency to submit a version of the budget for the upcoming biennium with expenditure estimates at a level five percent less than the current modified budget of the second year (uneven year) of the preceding biennium. The Department states it would provide support for both of these agency submissions and it could absorb base costs for this support within the existing budgets of the Budget Office (DASBO) and Financial Data Management (FDM). However, the Department states additional funding would also be necessary to ensure adequate coordination and management of two separate budget submissions. Although this bill does not establish positions or contain an appropriation, the Department states they would need to hire a full-time financial data administrator (LG 28) to support two concurrent budget versions, as well as require funds for additional overtime for FDM support staff and printing costs. In addition, DASBO would need to hire two business administrator II positions (LG 27) to coordinate the multiple version management and the additional report requirements of two submissions with FDM and state agencies. Added responsibilities for timely submission for both versions for public availability by October 1st by each agency will be coordinated by these individuals. Additional costs are also expected for the printing of public documents as well as overtime. The Department assumes the bill will be enacted as law on July 1, 2010, and the required staff will be hired August 1, 2010. The Department also assumes the current format for the budget reports that are now utilized will not need to be modified, and that they will be submitted by state agencies in a format that will allow for them to be published for public review. The Department estimates the fiscal impact as follows –
LBAO
10-2802
12/29/09
FY 2011 FY 2012 FY 2013 FY 2014
Personnel and Costs $212,816 $234,918 $247,415 $260,739
FDM Overtime $5,000 $0 $5,000 $0
DASBO Overtime $15,000 $0 $15,000 $0
FDM Printing $2,000 $0 $2,000 $0
DASBO Printing $20,000 $0 $20,000 $0
Total $254,816 $234,918 $289,415 $260,739