Florida s Budget Cycle in the Sunshine

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1 Florida s Budget Cycle in the Sunshine General Information Transparency Governance REVENUE How much money will we have? HELP!! GLOSSARY Public Meeting Notices Site Map Training AUDIT Did we spend it correctly? BUDGET How much can we spend? Video PowerPoint Get the word out: Connect: SPEND What are we actually spending? Information Disclaimer Information presented on this web site is collected, maintained, and provided for the citizens of Florida. While every effort is made to keep such information accurate and up-todate, the information presented is unaudited. The State of Florida may make changes to information at any time to add, update, or correct the information provided. Persons using this website should understand it is their determination on how suitable the information is...read Full Disclaimer

2 SITE MAP Florida s Budget Cycle in the Sunshine REVENUE BUDGET SPEND AUDIT Estimating the State s Budget Revenue estimates presented at a multitude of Consensus Estimating Conferences The Current State Budget Operating Budgets Operational Fixed Capital Outlay (FCO) Budget Adjustments Budget Amendments Reversions Supplementals Developing the State s Budget Planning & Budgeting Instructions Agency Legislative Budget Requests Capital Improvement Program Plans Long Range Program Plans Governor s Recommended Budget Legislature s Appropriations Bills Budget Summary Reports Spending the Cash Spending Reports/Graphs Cash Balances/Graphs Contracts State Agencies Department of Agriculture House of Representatives Senate State Contract Audits Vendor Payments Auditing the State s Budget Auditor General Reports of * State Agencies * District School Boards * Colleges * Universities * Charter Schools * Local governments/non profit * State Courts System and Judicial-related entities * State Financial Reporting & Back of Bill Fiscal Analysis in Brief Personnel Vetoes Final Budget Reports State Agencies Schedule of Trust Fund Revenues & Unreserved Fund Balances House of Representatives Senate 10 Year History of Appropriations State Pensions LEGEND of RESPONSIBILITY Red Revenue Estimating Conferences Navy Chief Financial Officer/DFS Pink Governor s Office and/or agencies Orange Legislature Green Dept of Agriculture Aqua Auditor General Fund Balances 10 Year History of Expenditures Local Government Budgets

3 REVENUE Estimating the State s Budget The Office of Economic and Demographic Research website contains results of all consensus estimating conferences. Consensus estimates of economic, demographic, caseload and revenue forecasts are essential for a variety of governmental planning and budgeting functions. Most importantly, revenue and caseload estimates are needed to ensure that the State meets the constitutional balanced budget requirement. In this regard, the various forecasts are primarily used in the development of the constitutionally or statutorily required: Long-Range Financial Outlook (LRFO) 1 st round of estimating conferences are usually held in July and August for the LRFO published by September 15 th of each year Governor's Budget Recommendations 2 nd round of estimating conferences are held in the fall of each year in preparation for the Governor s budget The Governor s budget is submitted 30 days before session, usually in late January, following the fall estimating conferences General Appropriations Act 3 rd round of estimating conferences are held in early spring for the development of the General Appropriations Act (GAA) The GAA is usually passed during the regular legislative session The regular legislative session is usually held on the first Tuesday after the first Monday in March, and lasts 60 days Economic and demographic forecasts are also used to support estimates of revenues and demands for state services. While references to specific conferences exist in several places within the Florida Statutes, general statutory authority for the consensus forecasts is provided in ss to , F.S., which specifies the duties of each conference and designate the conference principals and participants. See conference estimating process for a more detailed discussion.

4 BUDGET **MORE INFORMATION NEEDED HERE. The Current State Budget Florida's budget focuses on the needs of the state and its citizens and is prepared using the guiding principles in Chapter 216, Florida Statutes. The state's budget information originates from the Legislative Appropriations System/Planning and Budgeting (LAS/PBS). The budget information is then transmitted to the state's accounting system, the Florida Accounting Information Resource (FLAIR), for operation. While every effort is made to reconcile the information in the separate systems, differences may result due to recording for perspective reasons. OPERATING BUDGETS Operational Fixed Capital Outlay (FCO)

5 The Current State Budget BUDGET ADJUSTMENTS BUDGET AMENDMENTS Budget amendments are requested by an agency to adjust its approved budget in accordance with changed circumstances and only to the extent allowed by Florida law. State expenditures cannot be made without prior approval. Additionally, agencies are prohibited from spending in excess of their approved budgets. They are also required to develop internal management procedures and budgets necessary to ensure compliance with their approved budget. If the needs of an agency cannot be met within the current statutory flexibility granted to agencies, then an amendment to the original approved budget may be requested. The budget amendment process requires agency consultation with the Office of Policy and Budget (OPB), approval by OPB, consultation with the legislative appropriations committees, and may require approval by the Legislative Budget Commission. REVERSIONS Includes reports detailing the annual Operating Budget reverted by each State Agency for the selected fiscal year. SUPPLEMENTALS ANNUAL REVERSIONS REPORT This report provides a view of operational reversions by fiscal year. The original appropriation, budget amendment total, total operational budget, disbursements, reversion amount and percentage of total operational budget reverted are displayed. BACK OF BILL COMPARE REVERSIONS REPORT This report provides a comparison of operational reversions by fiscal year. The reversion amount and percentage of reversions/total appropriations are displayed for each fiscal year. FIXED CAPITAL OUTLAY ACTIVITY REPORT This report provides an Agency view of fixed capital outlay appropriations, reversions, and outstanding disbursements by fiscal year (which includes prior appropriation years). Each fixed capital outlay category (project) is reported in the year it was appropriated. VETOES REVERSIONS HISTORY REPORT This report provides a view of operational reversions for the last five fiscal years. The total appropriations (operational budget), releases, disbursements, and amount by operational budget reverted are displayed.

6 Developing the State s Budget Budget Conference Process General Approproations Act (GAA) as passed by the Legislature Governor's Veto Process House and Senate submit their proposed budgets Governor submits proposed budget to Legislature State Agencies submit budget requests to Governor

7 Developing the State s Budget How does the Budget Process work in Florida? Florida s budget process is governed by statute and Constitution of the state. The process involves citizen input, state agencies, the Governor, and the Legislature. The development of the state budget begins more than a year before its effective date, and the budget is not final until adopted by the Legislature and signed by the Governor. The Legislature convenes in its regular session beginning in March. The budget passed by the Legislature is valid for one year, beginning each July 1, and ending on June 30. The budget development process has three major phases: agency requests, Governor s recommendations and legislative adoption. Following instructions issued jointly by the Governor s Office and the Legislature in July, state agencies begin developing long-range program plans and budget requests which lay out the programs and funding needs of each agency for the next fiscal year. By mid-october, these requests are submitted to the Governor for consideration in the recommended budget. The Governor s Office analyzes the agency requests and works to develop the Governor s budget recommendations. The Governor s recommendations are based on state priorities and economic forecasts and reflect a balance between the Governor s policies and available revenues. The Governor s budget recommendations are typically submitted to the Legislature thirty days before the start of the legislative session each year. Following presentation of the Governor s recommended budget, the Legislature begins its review during committee meetings prior to the start of the legislative session. While considering the proposed budget, legislative committees hold public meetings with agency leaders and interested citizens. On opening day of the regular legislative session, the Governor delivers an annual "State of the State" address. At this time, the Governor outlines economic trends and conditions facing the state, the needs created by these conditions, and the programs being advanced to address these needs. During the legislative session, the Florida House and Senate each pass a budget reflecting the priorities of its members. These budgets are referred to as general appropriations bills. Differences between the Senate and House budgets are resolved in a joint conference committee. The report of this conference committee becomes the General Appropriations Act and is signed by the Speaker of the House and the President of the Senate and is presented to the Governor. The Governor has line item veto authority which may be used to delete any specific budget item within the appropriations act. Once the Governor has completed his line item vetoes, he signs the General Appropriations Act into law, establishing the statewide budget for the next fiscal year. A two-thirds majority vote of both the Senate and House is required to overturn any of the Governor s line item vetoes. In summary: The Legislature authorizes the budget The Governor implements the budget The Chief Financial Officer oversees the expenditures of the budget

8 Developing the State s Budget PLANNING & BUDGETING INSTRUCTIONS The Office of Policy and Budget within the Executive Office of the Governor in collaboration with the House and Senate staff provides instructions to assist each agency head in submitting a legislative budget request to the Legislature for the amount of funds and positions the agency head believes necessary to perform legislatively authorized or required services and activities. These instructions generate only the minimal information necessary for legislative and executive budgetary decision making. They are not meant to preclude an agency from submitting additional schedules and/or information to support its request. Instructions are provided by July 15 th of each year. Agency Descriptions A detailed description of each agency and their functions. Agency Legislative Budget Requests Capital Improvement Program Plans Long Range Program Plans A plan developed on an annual basis by each state agency that is policy based, priority driven, accountable, and developed through careful examination and justification of all programs and their associated costs. Each plan is developed by examining the needs of agency customers and clients and proposed programs and associated costs to address those needs based on state priorities as established by law, the agency mission, and legislative authorization. The plan provides the framework and context for preparing the legislative budget request and includes performance indicators for evaluating the impact of programs and agency performance.

9 Developing the State s Budget GOVERNOR S RECOMMENDED BUDGET BUDGET SUMMARY REPORTS LEGISLATURE S APPROPRIATIONS BILLS Fiscal Analysis in Brief The Fiscal Analysis in Brief is an annual report prepared and published by the Florida Legislature. It summarizes fiscal and budgetary information for a given fiscal year. Final Budget Reports 10 YEAR HISTORY OF APPROPRIATIONS Schedule of Trust Fund Revenues & Unreserved Fund Balances

10 SPEND State Spending Florida's spending is presented on a cash basis representing transfers and disbursements. Generally the monies are shown in the month when cash is transferred or disbursed. State Cash Balances Florida's cash balances are an indicator of what money the state can spend. Cash is divided into multiple fund types. General Revenue (GR) is the State's primary operating fund. Trust Funds are funds that receive monies by the state which under law or trust agreement are segregated for a purpose authorized by law. The Budget Stabilization Fund is used as a rainy day fund to stabilize the budget when needed. SPENDING REPORTS The reports show spending in numerical representation. Spending is shown by fiscal year (July 1 - June 30) for the past five years plus the current fiscal year. CASH REPORTS The reports show cash in numerical representation. Cash is shown by fiscal year (July 1 - June 30) for the past five years plus the current. Receipts and Transfers are shown for the past five years. Disbursements/Transfers by Category Receipts/Transfers by Category Cash Balances by Fund Type SPENDING GRAPHS Spending is shown in graphical representation. The graphs are shown for the General Revenue (GR), which is the State's primary operating fund. CASH GRAPHS Cash is shown in graphical representation for the different state fund types. General Revenue Spending Total State Spend Fiscal Year 2011 Total State Spend Fiscal Year 2012 Cash Balances by Fund Type General Revenue Ending Cash (FY) General Revenue Ending Cash (QTR) General Revenue Ending Cash (MTH)

11 Spending the Cash CONTRACTS Governments and government agencies are some of the largest purchasers of goods and services. Given that government purchases are paid for by citizens, through taxes and fees, how government procures goods and services and the amounts it pays for them should be open for public review. The Florida Accountability Contract Tracking System (FACTS) is a vital component of the Transparency Florida Act. Developed by Division of Financial Services (DFS), FACTS provides a means to track state contracts by government agencies and gives the public access to contract information. With the increased access to contract financial information, contract images, and audit findings of grant and contract documents, the public will realize greater accountability and transparency to how their tax dollars are being used. VENDOR PAYMENTS This link provides information about state disbursements to vendors. Using this site you may: Search and view payment totals to a vendor for each fiscal year beginning with fiscal year Conduct searches for payments to vendors and other recipients of state funds by name based on as much or little information as available. Drill down to detail information about the payments, including payment dates, amounts, and which state agency paid the vendor. View payment totals to a vendor by state agency. State Agencies Senate Dept of Agriculture & Consumer Services House of Representatives STATE CONTRACT AUDITS The Bureau of Auditing (Bureau) performs audits in accordance with Section 17.03, Florida Statutes. This statute relates to the Chief Financial Officer's (CFO) responsibilities to settle the claims of the state using various methods. The Bureau also audits pursuant to the requirements of Section , Florida Statutes, for grant agreements funded with Federal and State monies. Audits on contractual services agreements are audited pursuant to Section (14), Florida Statutes and Section (1), Florida Statutes. The CFO also issues memorandums that also provide additional audit requirements.

12 Spending the Cash PERSONNEL Search payroll information found in the State of Florida People First personnel information system. The State Agency link below includes salary information from all Executive Branch agencies, the Lottery, the Justice Administrative Commission (e.g. state attorney, public defender) and State Courts System (e.g. Judges). State Agencies Senate House of Representatives FUND BALANCES GENERAL REVENUE CASH BALANCES Includes reports of the cash balance and disbursements for the General Revenue Fund or each State Trust Fund. This report provides the cash balance, cash receipts, and cash disbursements for the General Revenue Fund. An option to view monthly activity and the net changes is provided. In this report, the disbursements are accounted for in the fiscal year in which they are spent regardless of the fiscal year the expenditure was appropriated. STATE PENSIONS The information on each member includes: The name of the agency from which the member retired. The effective date of retirement. Total years of service credit. The initial annualized retirement benefit is the benefit received when the person retired. The current annualized retirement benefit is the benefit the retiree currently receives, as of July 31, *The name of the retiree is not included. The names and addresses of retirees, in list form, are confidential and exempt from the provisions of s (1), F.S. This exemption is found in s (5), F.S. TRUST FUND DETAIL CASH/INVESTMENT BALANCE This report provides the cash/investment balance in the State Treasury for a specific trust fund within an agency. The Undisbursed Appropriations (includes nonoperating appropriations) are provided for informational purposes for the current fiscal year. 10 YEAR HISTORY OF APPROPRIATIONS LOCAL GOVERNMENT BUDGETS See how much Florida s cities and counties are collecting and spending.

13 AUDIT Auditing the State s Budget As the State s independent auditor, the Auditor General provides unbiased, timely, and relevant information which can be used by the Legislature, Florida s citizens, public entity management, and other stakeholders to promote government accountability and stewardship and improve government operations. The Auditor General: Conducts financial audits of the accounts and records of State agencies; State universities; State Colleges; district school boards; and, as directed by the Legislative Auditing Committee, of local governments. Conducts operational and performance audits of public records and information technology systems and performs related duties as prescribed by law or concurrent resolution of the Legislature. Adopts rules for financial audits performed by independent certified public accountants of local governmental entities, charter schools, district school boards, and Florida Single Audit Act nonprofit and for-profit organizations. Reviews all audit reports of local governmental entities, charter schools, charter technical career centers, and district school boards submitted pursuant to Section , Florida Statutes. REPORTS BY FISCAL YEAR REPORTS BY ENTITY AUDITED REPORTS BY AUDIT TYPE LOCAL GOVERNMENT / NON-PROFIT / FOR PROFIT DISTRICT SCHOOL BOARDS / CHARTER SCHOOLS RULES AND GUIDELINES