HOUSE BILL 404
47th legislature - STATE OF NEW MEXICO - first session, 2005
INTRODUCED BY
Brian K. Moore
FOR THE LEGISLATIVE FINANCE COMMITTEE
AN ACT
RELATING TO STATE BUDGETS; PROVIDING FOR A BIENNIAL BUDGET; LIMITING EVEN-NUMBERED-YEAR STATE AGENCY BUDGET APPROPRIATIONS TO SUPPLEMENTALS AND DEFICIENCIES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 2-5-4 NMSA 1978 (being Laws 1967, Chapter 267, Section 1) is amended to read:
"2-5-4. LEGISLATIVE FINANCE COMMITTEE--ADDITIONAL DUTIES.--
A. The legislative finance committee, in addition to all other duties prescribed by law, shall [annually] review budgets and appropriations requests and the operation and management of selected state agencies, departments and institutions and shall make recommendations with respect thereto to the legislature.
B. To carry out the purposes of this section, the legislative finance committee shall establish a budget analysis division staffed with persons knowledgeable and proficient in budget analysis and budget preparation.
C. Each state agency, department and institution shall furnish to the legislative finance committee a copy of its appropriation request made to the department of finance and administration at the same time [such] the request is made [to such department]. Each state agency, department or institution shall also furnish to the legislative finance committee and its staff any other supporting information or data deemed necessary to carry out the purposes of this section.
D. The legislative finance committee or, when it deems necessary, its staff may hold such hearings and require such testimony from officers and employees of each state agency, department or institution as is necessary to carry out the purposes of this section.
E. Not later than the first week of any regular legislative session, the legislative finance committee shall furnish a document containing its budget recommendations to each member of the senate finance committee, the house appropriations and finance committee and to those other members of the legislature [which] who may request it. A copy shall also be furnished to the governor and to the department of finance and administration."
Section 2. Section 6-3-6 NMSA 1978 (being Laws 1957, Chapter 253, Section 7, as amended) is amended to read:
"6-3-6. STATE BUDGET DIVISION--PERIODIC ALLOTMENTS.--The state budget division, subject to the approval of the secretary of finance and administration, is authorized to provide [regulations] rules for the periodic allotment of funds that may be expended by any state agency. The expenditures of any state agency as defined in Section [11-4-1.1 NMSA 1953] 6-3-1 NMSA 1978, for the first [six-months] six-month period of each [odd-numbered] fiscal year in a biennium shall be limited to one-half of the appropriation or approved budget, whichever is less, for that fiscal year. This restriction [shall] does not apply to those agencies whose operations are more efficiently measured by periods other than a fiscal year, including but not limited to the legislative council, legislative committees [the inter-tribal Indian ceremonial] and the New Mexico state fair. Expenditures of [the inter-tribal Indian ceremonial and] the New Mexico state fair shall be governed by [regulation] rule of the department of finance and administration. The department of finance and administration may also allow expenditure of more than one-half of the appropriation or approved budget for those agencies planning major expenditures for capital outlay [in the first six months of the fiscal year which would result in over-expenditure of the first six-months' allocation]."
Section 3. Section 6-3-7 NMSA 1978 (being Laws 1957, Chapter 253, Section 8, as amended) is amended to read:
"6-3-7. [ANNUAL] BIENNIAL OPERATING BUDGETS--SUPERVISION AND CONTROL--SUBMISSION OF PROPOSED BUDGETS--APPROVAL--REVIEW BY GOVERNOR.--Each state agency shall [annually], on or before May 1 of each odd-numbered year, submit to the state budget division of the department of finance and administration a budget for the ensuing two fiscal [year] years in [such] the form [as may be] prescribed by the division and containing [such] information concerning the anticipated receipts, expenditures and balances on hand as may be prescribed by law or by rule of the state budget division. [Such] The budget shall be subject to the approval of the state budget division, and no expenditures shall be made by any state agency for the [fiscal year] biennium covered by [said] the budget until the budget [shall have] has been approved by the state budget division; provided that any action by the division [shall be] is subject to review and modification by the governor."
Section 4. Section 6-3-10 NMSA 1978 (being Laws 1955, Chapter 114, Section 2, as amended) is amended to read:
"6-3-10. BUDGET DEFINED.--[The] "Budget" means a complete statement as to the financial operation of all state agencies for the [fiscal year] biennium last completed, the current [fiscal year] biennium and a financial plan for the operation of all state agencies for the succeeding [fiscal year] biennium. The budget for the succeeding [fiscal year] biennium shall set forth in detail the following:
A. all proposed expenditures for the administration, operation and maintenance of all state agencies;
B. all interest and debt redemption charges;
C. all expenditures for capital projects to be undertaken and executed;
D. all anticipated revenues; and
E. means of financing proposed expenditures."
Section 5. Section 6-3-11 NMSA 1978 (being Laws 1955, Chapter 114, Section 3, as amended) is amended to read:
"6-3-11. PARTS OF THE BUDGET.--The budget shall contain the following parts:
A. the governor's budget message;
B. summary statements showing the following:
(1) financial condition of the state government at the beginning and at the end of the [fiscal year] biennium last completed;
(2) financial condition of the state government at the beginning of the current [fiscal year] biennium and condition anticipated at the end of the current [fiscal year] biennium;
(3) anticipated financial condition of the state government at the beginning and end of the succeeding [fiscal year] biennium;
(4) condition of all funds for the [fiscal year] biennium last completed, the current [fiscal year] biennium and the succeeding [fiscal year] biennium, as follows:
(a) balance or anticipated balance at the beginning of the [fiscal year] biennium;
(b) balance or anticipated balance at the end of the [fiscal year] biennium;
(c) revenue or anticipated revenue during the [fiscal year] biennium;
(d) source of revenue or anticipated revenue during the [fiscal year] biennium; and
(e) expenditures or anticipated expenditures during the [fiscal year] biennium;
(5) the bonded indebtedness, debts authorized, debts redeemed, interest requirements and the condition of sinking funds;
(6) appropriations recommended by the governor compared with appropriations for the [fiscal year] biennium last completed and the current [fiscal year] biennium. Any increase or decrease in the recommended appropriation shall be explained;
(7) anticipated revenue for the succeeding [fiscal year] biennium, classified according to source of revenue and compared with revenues for the [fiscal year] biennium last completed and anticipated revenue for the current [fiscal year] biennium;
(8) other information necessary to make known in practicable detail the financial operation of the state government; and
(9) if anticipated revenue is less than the total of all appropriations recommended in any [fiscal year] biennium, recommendations as to how the deficit shall be met;
C. a summary statement of requested appropriations by state agencies and recommendations of the state budget division concerning [such] the requested appropriations; and
D. an appropriation bill recommended by the governor. [Such] The bill shall follow budget classification and shall be stated in lump sums according to category, function or purpose of each agency."
Section 6. Section 6-3-18 NMSA 1978 (being Laws 1955, Chapter 114, Section 9, as amended by Laws 1999, Chapter 5, Section 10 and also by Laws 1999, Chapter 15, Section 10) is amended to read:
"6-3-18. BUDGET FORMS.--
A. On or before June 15 of each even-numbered year, the state budget division shall send to each state agency biennial budget forms that provide for the collection of the following information:
[A.] (1) revenue or anticipated revenue from all sources for the [fiscal year] biennium last completed, the current [fiscal year] biennium and [for] the succeeding [fiscal year] biennium, including [among other things]:
[(1)] (a) grants from the federal government;
[(2)] (b) gifts and grants from private sources;
[(3)] (c) income from investments;
[(4)] (d) proceeds from sale of bonds or other instruments of indebtedness;
[(5)] (e) income from sale of land;
[(6)] (f) income from sale of personal property;
[(7)] (g) income from lease of land or lease of personal property;
[(8)] (h) income from services;
[(9)] (i) income from fees, licenses, fines, penalties, tuition, royalties and other charges;
[(10)] (j) income from athletic activities and related enterprises; and
[(11)] (k) income from each tax collected;
[B.] (2) expenditures or anticipated expenditures for the current [fiscal year] biennium and for the [two] succeeding [fiscal years] biennium, including [among other things]:
[(1)] (a) capital expenditures consisting of: [(a)] 1) additions to plant or office; [(b)] 2) repairs and replacements; [(c)] 3) permanent equipment; and [(d)] 4) other; and
[(2)] (b) operational expenditures consisting of: [(a)] 1) operation and maintenance of institution, office or building; [(b)] 2) supplies and equipment; [(c)] 3) personal services; [(d)] 4) travel; and [(e)] 5) other;
[C. appropriation] (3) appropriations requested for the succeeding [fiscal year] biennium, with a statement as to the functions and activities of each agency, division and bureau;
[D.] (4) if increased appropriations are requested, the reason therefor; and
[E.] (5) citation of statutory authority for functions and activities of the agency, a summary statement as to the workload of the agency and such other information as [is] specified by the state budget division.
B. On or before June 15 of each odd-numbered year, the state budget division shall send to each state agency supplemental budget forms to be submitted by state agencies that plan to request a deficiency appropriation or a supplemental appropriation for the remainder of the biennium. The state budget division shall prescribe the information required for each deficiency or supplemental appropriation request."
Section 7. Section 6-3-19 NMSA 1978 (being Laws 1955, Chapter 114, Section 10, as amended by Laws 1999, Chapter 5, Section 11 and also by Laws 1999, Chapter 15, Section 11) is amended to read:
"6-3-19. AGENCIES TO COMPLETE BUDGET FORMS.--Each state agency shall fill out the budget forms provided for in Section 6-3-18 and 6-3A-7 NMSA 1978 in the manner prescribed by the state budget division. [Each state agency, in completing the budget forms, shall include information for all divisions, subdivisions and offices of the agency. Related agencies, upon approval of the state budget division, may join in submitting one set of budget forms. Completed budget forms shall be returned to the state budget division not later than September 1 in each year.]"
Section 8. Section 6-3-20 NMSA 1978 (being Laws 1955, Chapter 114, Section 11, as amended) is amended to read:
"6-3-20. REVIEW OF BUDGET FORMS.--The state budget division shall review the completed budget forms of all state agencies and [shall] include recommendations concerning the requested appropriation in the tentative budget. Prior to submission of the tentative budget to the governor, any state agency may be given an informal hearing by the state budget division concerning recommendation of the division pertaining to the requested appropriation of [such] that agency and [shall] be given [such] a hearing if the state budget division proposes to decrease the requested appropriation."
Section 9. Section 6-3-21 NMSA 1978 (being Laws 1955, Chapter 114, Section 12, as amended) is amended to read:
"6-3-21. PREPARATION OF THE BUDGET.--
A. The governor shall prepare the budget and submit it to the legislative finance committee and each member of the legislature not later than [January 5 in even-numbered years and not later than] January 10 in odd-numbered years. A supplemental budget may be submitted not later than January 5 in even-numbered years. In the preparation of the budget the governor may:
(1) change the tentative budget by adding new items, increasing or decreasing or eliminating items;
(2) obtain advice and assistance from any state agency; and
(3) hold hearings on the budget.
B. Any budget hearings conducted by the governor shall be open to the public. The governor may require the attendance of any head of an agency, whether elective or appointive. At the hearings, any officer or agency may protest budget items."
Section 10. Section 6-3A-6 NMSA 1978 (being Laws 1999, Chapter 5, Section 6 and Laws 1999, Chapter 15, Section 6, as amended) is amended to read:
"6-3A-6. SCHEDULE FOR SUBMISSION OF PERFORMANCE-BASED PROGRAM BUDGET REQUESTS.--
A. No later than September 1 of each even-numbered year, agencies shall submit performance-based program budget requests for the subsequent fiscal year to the division and to the committee.
B. No later than September 1 of each odd-numbered year, agencies may submit requests for supplemental and deficiency appropriations."
Section 11. Section 6-3A-7 NMSA 1978 (being Laws 1999, Chapter 5, Section 7 and Laws 1999, Chapter 15, Section 7, as amended) is amended to read:
"6-3A-7. PERFORMANCE-BASED PROGRAM BUDGET REQUESTS.--
A. The division, in consultation with the committee, shall develop instructions for those agencies required to submit performance-based program budget requests. The instructions shall be sent to the agencies on or before June 15 of each even-numbered year and shall be in addition to any other forms required by Section 6-3-18 NMSA 1978. The instructions shall require that performance-based program budget requests contain the following:
(1) a summary of each approved program, including a justification for the program;
(2) for each approved program, an evaluation of the agency's progress in meeting the performance targets. The evaluation shall be developed as prescribed in the budget instructions;
(3) for each approved program, the outputs, outcomes, baseline data, performance measures and historic and proposed performance targets;
(4) if a performance audit has been conducted on an approved program during either the present or any of the immediately preceding two fiscal years, any responses that the agency may have to the audit and any actions that the agency has taken as a result of the audit; and
(5) any other information that the division believes may be useful to the division or the legislature in developing a budget for the agency.
B. On or before September 1 of each [year] biennium, each agency shall submit a performance-based program budget request to the division and the committee in the form and manner prescribed in the budget instructions. [Budget requests submitted pursuant to this section shall be in lieu of those required by Section 6-3-19 NMSA 1978]."
Section 12. Section 6-5-10 NMSA 1978 (being Laws 1994, Chapter 11, Section 1, as amended) is amended to read:
"6-5-10. STATE AGENCY REVERSIONS--DIRECTOR POWERS--COMPLIANCE WITH FEDERAL RULES.--
A. Except as provided in [Subsections B and C] Subsection B of this section, all unreserved undesignated fund balances in reverting funds and accounts as reflected in the central financial reporting and accounting system as of June 30 of the second year of the biennium shall revert by September 30 to the general fund. The division may adjust the reversion within forty-five days of release of the audit report for that [fiscal year] biennium.
B. The director of the division may modify a reversion required pursuant to Subsection A of this section if the reversion would violate federal law or rules pertaining to supplanting of state funds with federal funds or other applicable federal provisions."
Section 13. Section 6-10-1 NMSA 1978 (being Laws 1903, Chapter 108, Section 7, as amended) is amended to read:
"6-10-1. FISCAL YEAR AND BIENNIA DESIGNATED.--
A. The fiscal year for the state and for the counties, cities, towns, villages and school districts thereof begins on July 1 and ends on June 30. The year beginning on July 1, 1925 shall be known as the fourteenth fiscal year.
B. Beginning July 1, 1994, the fiscal year shall be cited by citing the calendar year in which the fiscal year ends. The fiscal year beginning July 1, 1994 shall be fiscal year 1995.
C. Beginning July 1, 2007, the state budget shall be appropriated biennially, which shall be cited by citing the two fiscal years of the biennium. The biennium beginning July 1, 2007 shall be the 2008-2009 biennium."
Section 14. Section 6-10-4 NMSA 1978 (being Laws 1963, Chapter 35, Section 1, as amended) is amended to read:
"6-10-4. PAYMENT OF OBLIGATIONS OF PRIOR YEARS FROM CURRENT YEAR APPROPRIATIONS.--
A. Except as provided in Subsection B of this section, appropriations made for a specific fiscal year or specific biennium may not be used for paying obligations of any prior fiscal year or prior biennium except upon approval of the department. As a condition to the approval, the department shall certify that there existed in the affected state agency's budget at the end of the fiscal year or biennium sufficient funds, including uncollected earned revenue, to pay the obligation had the bill been presented prior to the end of that fiscal year. The department shall make quarterly reports to the legislative finance committee concerning all authorizations of payment.
B. Appropriations to the human services department for medicaid payments may be expended by that department for medicaid obligations for prior fiscal years or biennia."
Section 15. EFFECTIVE DATE.--The effective date of the provisions of this act is January 1, 2007.
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