Legislative Appropriations Request for Fiscal Years 2018 and 2019

Transcription

1 Legislative Appropriations Request for Fiscal Years 2018 and 2019 Submitted to the Office of the Governor, Budget Division, and the Legislative Budget Board by Texas Ethics Commission August 5, 2016

2 Table of Contents Administrator s Statement Organizational Chart Certificate of Dual Submissions Budget Overview Summary of Base Request by Strategy Summary of Base Request by Method of Finance Summary of Base Request by Object of Expense Summary of Base Request by Objective Outcomes Summary of Exceptional Items Request Summary of Total Request by Strategy Summary of Total Request by Objective Outcomes Strategy Request Program Level Request Schedule Rider Revisions and Additions Request 2.A. 2.B. 2.C. 2.D. 2.E. 2.F. 2.G. 3.A. 3.A.1 3.B. Requests for Exceptional Items 4.A Exceptional Item Strategy Allocation Schedule 4.B Exceptional 4.C Capital Budget Project Schedule Capital Budget Project Information 5.A. 5.B.

3 Capital Budget Allocation to Strategies (Baseline) Capital Budget Operating and Maintenance Expenses Capital Budget Project OOE and MOF Detail by Strategy 5.C. 5.D. 5.E. Capital Budget Project Schedule Exceptional Historically Underutilized Business Supporting Schedule Estimated Revenue Collections Supporting Schedule 6.A. 6.E. 10 Percent Biennial Base Reduction Options 6.I. Indirect Administrative and Support Costs Direct Administrative and Support Costs 7.A. 7.B. Note: The following sections or supporting schedules did not apply to this submission: Rider Appropriations and Unexpended Balances Request (3.C.) Sub-strategy Request (3.D.) Current Biennium One-Time Expenditure Schedule (6.B.) Federal Funds Supporting Schedule (6.C.) Federal Funds Tracking Schedule (6.D.) Advisory Committee Supporting Schedule (6.F.) Homeland Security Funding Schedule (6.G.) Estimated Total of All Funds Outside the GAA Bill Pattern (6.H.) Budgetary Impacts Related to Federal Health Care Reform Schedule (6.J.) Budgetary Impacts Related to Budget Control Act Sequestration (6.K.) Summary of Requests for Capital Project Financing (Part 8)

4 Capital Budget Operating and Maintenance Expenses Capital Budget Project OOE and MOF Detail by Strategy 5.D. 5.E. Capital Budget Project Schedule Exceptional Historically Underutilized Business Supporting Schedule Estimated Revenue Collections Supporting Schedule 6.A. 6.E. 10 Percent Biennial Base Reduction Options 6.I. Indirect Administrative and Support Costs Direct Administrative and Support Costs 7.A. 7.B. Note: The following sections or supporting schedules did not apply to this submission: Rider Appropriations and Unexpended Balances Request (3.C.) Sub-strategy Request (3.D.) Current Biennium One-Time Expenditure Schedule (6.B.) Federal Funds Supporting Schedule (6.C.) Federal Funds Tracking Schedule (6.D.) Advisory Committee Supporting Schedule (6.F.) Homeland Security Funding Schedule (6.G.) Estimated Total of All Funds Outside the GAA Bill Pattern (6.H.) Budgetary Impacts Related to Federal Health Care Reform Schedule (6.J.) Budgetary Impacts Related to Budget Control Act Sequestration (6.K.) Summary of Requests for Capital Project Financing (Part 8)

5 ADMINISTRATOR S STATEMENT TEXAS ETHICS COMMISSION The Texas Ethics Commission (Commission) continues to work hard in the administration of and the fair, consistent, and tough enforcement of campaign finance, lobby, and other ethics laws. The Commission was created effective January 1, 1992, by a voterapproved constitutional amendment and is comprised of eight Commissioners, four of which are appointed by the Governor, two by the Lieutenant Governor, and two by the Speaker of the House of Representatives. Members of the Texas Senate and the Texas House of Representatives who represent each political party required by law to hold a primary submit lists of nominees to the appropriate state official for appointment. The current Commissioners are as follows: Board Member Chase Untermeyer, Chair Tom Harrison, Vice Chair Hugh C. Akin Jim Clancy Wilhelmina Delco Paul W. Hobby Bob Long Tom Ramsay Hometown Houston Austin Dallas Portland Austin Houston Bastrop Mount Vernon The Commission has both constitutional and statutory duties. As required by the Texas Constitution, the Commission sets the per diem for members of the legislature and the lieutenant governor. Statutory duties of the Commission are set out in Chapter 571 of the Government Code. The Commission administers and enforces the following laws: 1) Title 15 of the Election Code, concerning political contributions and expenditures, and political advertising; 2) Chapter 302 of the Government Code, concerning the election of the Speaker of the Texas House of Representatives; 3) Chapter 303 of the Government Code, concerning the governor for a day and speaker's reunion day ceremonies; 4) Chapter 305 of the Government Code, concerning lobbyist registration, reports, and activities; 5) Chapter 572 of the Government Code, concerning personal financial disclosure of state officers and conduct of state officers and employees; 6) Chapter 2004 of the Government Code, concerning representation before state agencies; 7) Chapter 159 of the Local Government Code, concerning judges of statutory county courts or statutory probate courts who elect to file a financial statement with the Commission; 8) Section of the Government Code concerning conflict of interest in certain transactions involving the Texas Facilities Commission; and 9) Section of the Government Code concerning conflict of interest involving the Office of 1

6 the Texas Comptroller of Public Accounts. Additionally, the Commission is authorized to issue advisory opinions relating to those laws and Chapters 36 and 39 of the Penal Code. Furthermore, the Commission is authorized to adopt rules relating to the laws it administers and enforces and Section of the Government Code, concerning the requirement that a business entity disclose its interested parties at the time the business entity submits certain contracts to a governmental body. The Commission is not authorized to conduct background checks and does not conduct background checks. Significant Changes in Provisions of Service With the funding appropriated by the legislature, the Texas Ethics Commission released a new electronic filing system for campaign finance, lobby, and personal financial statements, which is a project launched prior to the start of the 84th Legislature. The campaign finance filing application was released in April 2015, and the lobby and personal financial statement applications were released in September These new filing applications are web-based are accessible to users of personal computers, MAC computers, and modern mobile devices and are accessible from any place that has Internet access. The campaign finance application may be used by all filers regardless of whether they file with the Commission or with a local filing authority. Additionally, the 84th Legislature charged the Commission with the implementation of House Bill 1295, a transparency bill, which prohibits a governmental entity or state agency from entering into certain contracts unless the business entity submits a disclosure of interested parties form at the time the business entity submits the contract to the governmental body. The new law applies to contracts entered into on or after January 1, As required, the Commission adopted rules and a form to be used by business entities to disclose interested parties. Additionally, the Commission created an electronic filing application and requires that it be used to file the disclosure of interested parties form. To date, approximately 23,618 persons have used the filing application to file or acknowledge receipt of disclosure forms, and it is estimated that approximately 85,200 of those forms will be filed yearly. It is also estimated that the Commission will receive annually approximately 8,760 calls related to House Bill Transition to the Statewide ERP System, Centralized Accounting and Payroll/Personnel System (CAPPS) The Comptroller has scheduled the Texas Ethics Commission to begin its financial implementation of the statewide system on September 1, 2018, which would carry over for complete transition in FY After the financial implementation has been completed, the Commission will implement the CAPPS for HR/Payroll in a future biennium. 2

7 Significant Externalities The Texas Ethics Commission is currently a party to numerous lawsuits filed in state and federal court involving challenges to the constitutionality of the laws passed by the Legislature. The litigation is expected to continue into and beyond the 85 th Legislative Session. Significant Changes in Policy The Texas Ethics Commission has not had any significant changes in policy. Exempt Positions The Texas Ethics Commission is not requesting a change in its exempt positions. Budget Request The Texas Ethics Commission s budget request was developed in accordance with the instructions provided by the Legislative Budget Board and the Governor s Budget Office Division. The Commission s approved GR/GR-D baseline limit (96% of total) is $5,852,335. The Commission is requesting funding for the following items above the approved baseline budget. The stated amounts are per fiscal year. $75,000 Vendor support for the Texas Ethics Commission s new electronic filing system that includes filing applications for campaign finance, lobby, personal financial statements, and certificate of interested party disclosures and the Commission s management system for the applications. The Commission plans to extend the current maintenance contract with the vendor that designed and developed the new electronic filing system to make adjustments to the filing applications, to continue to work with the Commission s IT programming staff to provide hands-on learning of the code base of the new system so that the Commission s staff can modify and maintain the code base in-house, and resolve and fix source code defects found in the code base. The architecture of the new electronic filing system is complex. The source code base consists of over 785,000 lines of code that run in a virtualized Red Hat JBOSS 3

8 environment. Due to the complexity of the design of the software and the unexpected need to quickly develop, deploy, and assist filers with a new filing application to implement House Bill 1295 passed by the 84th Legislature, the Commission s IT programming staff has not had sufficient time to learn the code structure of the new system. $58,800 Increase the Texas Ethics Commission s Internet network bandwidth to 250 megabits per second (Mbps) to increase the amount of Commission filers data that can move over the network successfully at one time. Most campaign finance reports filed with the Commission are filed electronically. All personal financial statements, lobby reports, and disclosure of interested party reports filed with the Commission are filed electronically. The Commission s current Internet network bandwidth provided by DIR is not adequate to handle all the network traffic generated by these filers during heavy filing periods. Raising the bandwidth limit from the current 100 Mbps to 250 Mbps will increase the amount DIR charges the Commission to $5,000/month, or $60,000 annually. Prior to June, 2015, the Commission was charged $100/month ($1,200/year) for 100 Mbps Internet bandwidth. The Commission is requesting an additional $58,800 annually to cover the DIR internet bandwidth expenses. $150,000 Increase in funding for legal services costs due to the Office of the Attorney General declining to represent the Texas Ethics Commission in litigation relating to certain challenges to the constitutionality of laws passed by the legislature. The Commission is currently a party to numerous lawsuits in both state and federal court, many of which involve challenges to the constitutionality of Texas laws. Litigation of this nature is expected to continue beyond the 85th Legislative Session. The Commission does not know whether future requests for representation will be declined by the Office of the Attorney General and wants to be financially prepared to retain outside counsel to defend the constitutionality of laws passed by the legislature. $65,000 A system support analyst to respond to telephone calls related to House Bill 1295 passed by the 84th Legislature, which increased the number of calls received by the Texas Ethics Commission by approximately 730 monthly, which totals 8,760 yearly. $40,000 An administrative assistant to assist with the implementation of the state mandated transition to the CAPPS system. The Texas Ethics Commission does not have the additional resources to handle the CAPPS financial conversion while still continuing to perform the day-to-day functions of the agency. The Commission is scheduled to begin its CAPPS- Financial implementation on September 1, 2018, which would carry over for complete transition in FY After the Financial implementation has been completed, the Commission will begin the CAPPS for HR/Payroll in a future biennium. This FTE will make it possible for the Commission to continue with its day-to-day activities while the 4

9 current staff attends meetings and works closely with the Comptroller's conversion team in setting up the Commission in CAPPS. $25,000 To provide additional training to better educate the general public and all the state and local filers on laws administered and enforced by the Texas Ethics Commission. $58,000 A staff services officer who would be dedicated to educational and outreach efforts, including ethics symposiums, online training, and training webinars. This FTE would be in charge of securing facilities and audio/visual needs for training; coordinating postings for events on the Texas Ethics Commission's website; sending and responding to s to prospective attendees regarding events; registration to events; submitting applications for continuing education credit for the attendees; editing, printing and packaging handouts for the events; handling all logistics at the facility before and during the training; and monitoring costs. The Commission would like to increase the number of all-day training symposiums throughout the state from two to four. Additionally, the Commission would like to hold multiple half-day training sessions specific to the type of filer throughout the state. The Commission does not have the resources necessary to handle the planning and coordination that is required to successfully deliver this number of training events throughout the state. $75,000 An attorney to oversee facial compliance reviews, work on sworn complaints filed with the Texas Ethics Commission, and participate in ethics training throughout the state. With funding appropriated by the 84th Legislature, the Commission hired an auditor who annually conducts approximately 200 facial compliance reviews of campaign finance, lobby, and personal financial statement reports that are filed with the agency. Currently, one attorney in the enforcement division oversees and assists with these reviews. This same attorney also works on sworn complaints filed with the Commission, provides legal guidance by telephone, and assists with training. If the Commission s request for additional auditors is granted, a new attorney would be needed to oversee the facial compliance reviews to ensure that they are properly conducted. $ 110,000 Two FTEs for auditors to enable the Texas Ethics Commission to increase the number of facial compliance reviews conducted on reports filed with the Commission. The Commission currently has one auditor funded by the 84th legislature. Annually, this auditor conducts 200 reviews of campaign finance, lobby, and personal financial statement reports filed by Commission s filers. The auditor also assists in complaints involving complex financial analysis. Two additional auditors will permit the Commission to annually conduct a review of more of its approximately 8,960 filers. Also, the new auditors would conduct complete audits that may arise from the initial reviews. An increase in facial compliance reviews would likely result in an increase in compliance with the statutes enforced by the Commission. 5

10 4 Percent Reduction Strategy To achieve the $243,847 reduction required in the Policy Letter that limits agencies baseline requests to 96 percent of their approved biennial General Revenue Funds and General Revenue-Dedicated Funds expenditure, the Texas Ethics Commission took into account areas in which services could best be absorbed by remaining staff and areas in which reduction would not substantially reduce service to the public. Accordingly, the Commission will eliminate one FTE from the Disclosure Filing Division for a $64,000 reduction. This FTE s responsibilities include scanning paper reports and other paper filings, and assisting with filing those documents in corresponding folders. Since the new law requiring personal financial statements to be filed electronically went into effect in September 2015, most reports filed with the Commission are required to be filed electronically resulting in a reduction in documents required to be scanned and filed. Also, the Commission will reduce $150,000 from Indirect Administration, Central Administration, $22,000 from Enforcement and Legal Guidance and Opinions travel, and $7,847 from Legal Guidance and Opinions training. These reductions will not significantly impact the Commission s performance. 10 Percent Reduction Strategy To achieve the $585,233 General Revenue Funds and General Revenue-Dedicated reduction, the Texas Ethics Commission would eliminate one attorney from Legal Guidance and Opinions ($120,000 reduction), eliminate one attorney from Enforcement ($102,000 reduction), discontinue Legal Guidance and Opinions training ($63,232), eliminate two programmer positions in the Indirect Administration division ($210,000), and eliminate the investigator position in Enforcement ($90,000). The cuts necessary to achieve the 10 percent reduction would significantly impact the Commission s ability to carry out its core functions and would significantly impact the level of service the Commission provides to persons subject to the laws under the Commission s jurisdiction and the public. In selecting the affected programs, the Commission took into account its limited operating (non-personnel related) budget and the capital items that are critical to the operation of the electronic filing system, and determined achieving the required reduction thresholds would require cutting FTEs. 6

11 SESSION AGENCY MISSION DATE: TIME: PAGE: 8/5/2016 3:13:30PM 1 OF 1 Agency code: 356 Agency name: Texas Ethics Commission AGENCY MISSION The mission of the Texas Ethics Commission is to promote public confidence in electoral and governmental processes by enforcing, administering, and training state officers and employees on applicable laws governing standards of conduct, personal financial disclosure, lobby registration and activities, political contributions and expenditures, and political advertising.

12 AA Texas Ethics Commission As Of 08/05/2016 Total FTEs Authorized: 33.4 COMMISSIONERS Natalia Luna Ashley Executive Director 1 FTE Jessie Haug Director, Computer Services 7 FTE's Cristina Hernandez Director, Finance & Administration 3 FTE's Robbie Douglas Director, Disclosure Filings 8 FTE's John Moore Director, Enforcement 14.4 FTE's Ian Steusloff General Counsel

13

14 Budget Overview - Biennial Amounts 356 Texas Ethics Commission Appropriation Years: GENERAL REVENUE FUNDS GR DEDICATED FEDERAL FUNDS OTHER FUNDS ALL FUNDS EXCEPTIONAL ITEM FUNDS Goal: 1. Administer Public Disclosure/Ethics Laws Disclosure Filing 811, ,037 16,380 16, , , Legal Guidance And Opinions 976, , , , , Enforcement 1,473,967 1,459,967 1,473,967 1,459, ,000 Total, Goal 3,261,398 3,167,551 16,380 16,380 3,277,778 3,183, ,000 Goal: 2. Indirect Administration Central Administration 861, , , ,653 40, Information Resources 1,973,131 1,973,131 1,973,131 1,973, ,600 Total, Goal 2,834,784 2,684,784 2,834,784 2,684, ,600 Total, Agency 6,096,182 5,852,335 16,380 16,380 6,112,562 5,868,715 1,273,600 Total FTEs Page 1 of 1

15 2.A. Summary of Base Request by Strategy 8/5/2016 3:13:35PM 356 Texas Ethics Commission Goal / Objective / STRATEGY Exp 2015 Est 2016 Bud 2017 Req 2018 Req Administer Public Disclosure/Ethics Laws 1 Access Required Reports; Respond to Advisory Reqs & Sworn Complaints 1 DISCLOSURE FILING 377, , , , ,709 2 LEGAL GUIDANCE AND OPINIONS 365, , , , ,274 3 ENFORCEMENT 571, , , , ,983 TOTAL, GOAL 1 $1,314,583 $1,639,951 $1,637,827 $1,591,965 $1,591,966 2 Indirect Administration 1 Indirect Administration 1 CENTRAL ADMINISTRATION 328, , , , ,827 2 INFORMATION RESOURCES 2,792, ,616 1,008, , ,565 TOTAL, GOAL 2 $3,121,104 $1,396,187 $1,438,597 $1,342,392 $1,342,392 TOTAL, AGENCY STRATEGY REQUEST $4,435,687 $3,036,138 $3,076,424 $2,934,357 $2,934,358 2.A. Page 1 of 2

16 2.A. Summary of Base Request by Strategy 8/5/2016 3:13:35PM 356 Texas Ethics Commission Goal / Objective / STRATEGY Exp 2015 Est 2016 Bud 2017 Req 2018 Req 2019 TOTAL, AGENCY RIDER APPROPRIATIONS REQUEST* $0 $0 GRAND TOTAL, AGENCY REQUEST $4,435,687 $3,036,138 $3,076,424 $2,934,357 $2,934,358 METHOD OF FINANCING: General Revenue Funds: 1 General Revenue Fund 4,408,432 3,027,948 3,068,234 2,926,167 2,926,168 SUBTOTAL $4,408,432 $3,027,948 $3,068,234 $2,926,167 $2,926,168 Other Funds: 666 Appropriated Receipts 27,255 8,190 8,190 8,190 8,190 SUBTOTAL $27,255 $8,190 $8,190 $8,190 $8,190 TOTAL, METHOD OF FINANCING $4,435,687 $3,036,138 $3,076,424 $2,934,357 $2,934,358 *Rider appropriations for the historical years are included in the strategy amounts. 2.A. Page 2 of 2

17 2.B. Summary of Base Request by Method of Finance 8/5/2016 3:13:35PM Agency code: 356 Agency name: Texas Ethics Commission METHOD OF FINANCING Exp 2015 Est 2016 Bud 2017 Req 2018 Req 2019 GENERAL REVENUE 1 General Revenue Fund REGULAR APPROPRIATIONS Regular Appropriations from MOF Table ( GAA) $1,976,272 $0 $0 $0 $0 Regular Appropriations from MOF Table ( GAA) $0 $2,987,951 $3,034,675 $0 $0 Regular Appropriations from MOF Table ( GAA) $0 $0 $0 $2,892,608 $2,892,609 TRANSFERS Art IX, Sec Salary Increase for General State Employees ( GAA) $47,644 $0 $0 $0 $0 Art IX, Sec 18.02, Salary Increase for General State Employees ( ) $0 $39,997 $33,559 $33,559 $33,559 LAPSED APPROPRIATIONS Regular Appropriations from MOF Table ( GAA) 2.B. Page 1 of 5

18 2.B. Summary of Base Request by Method of Finance 8/5/2016 3:13:35PM Agency code: 356 Agency name: Texas Ethics Commission METHOD OF FINANCING Exp 2015 Est 2016 Bud 2017 Req 2018 Req 2019 GENERAL REVENUE Comments: FY 2015 Lapsed unexpended Electronic Filing System funds. $(27,315) $0 $0 $0 $0 Regular Appropriations from MOF Table ( GAA) $(22,334) $0 $0 $0 $0 Comments: FY 2015 lapsed funds from unexpended funds in all strategies. Regular Appropriations from MOF Table ( GAA) $(21) $0 $0 $0 $0 Comments: Credit Card service fees UB forwarded in FY 2015 were not deposited into a strategy used by TEC, they were deposited into Fund that the Comptroller sweeps each quarter. UNEXPENDED BALANCES AUTHORITY Art IX, Sec 14.03(i), Capital Budget UB ( GAA) $2,434,165 $0 $0 $0 $0 Comments: UB Forward of unexpended FY 2014 capital funds- Electronic Filing System Art IX, Sec 8.11, Appropriation of Receipts ( GAA) $21 $0 $0 $0 $0 2.B. Page 2 of 5

19 2.B. Summary of Base Request by Method of Finance 8/5/2016 3:13:35PM Agency code: 356 Agency name: Texas Ethics Commission METHOD OF FINANCING Exp 2015 Est 2016 Bud 2017 Req 2018 Req 2019 GENERAL REVENUE Comments: FY 2014 UB Forward of unexpended credit card service fees from Fund into FY 2015 Fund TOTAL, General Revenue Fund $4,408,432 $3,027,948 $3,068,234 $2,926,167 $2,926,168 TOTAL, ALL GENERAL REVENUE $4,408,432 $3,027,948 $3,068,234 $2,926,167 $2,926,168 OTHER FUNDS 666 Appropriated Receipts REGULAR APPROPRIATIONS Regular Appropriations from MOF Table ( GAA) $8,190 $0 $0 $0 $0 Comments: Appropriated Receipts (copy orders) Regular Appropriations from MOF Table ( GAA) $0 $8,190 $8,190 $0 $0 Comments: Appropriated Receipts (copy orders) Regular Appropriations from MOF Table ( GAA) $0 $0 $0 $8,190 $8,190 Comments: Appropriated Receipts (copy orders) 2.B. Page 3 of 5

20 2.B. Summary of Base Request by Method of Finance 8/5/2016 3:13:35PM Agency code: 356 Agency name: Texas Ethics Commission METHOD OF FINANCING Exp 2015 Est 2016 Bud 2017 Req 2018 Req 2019 OTHER FUNDS RIDER APPROPRIATION Art IX, Sec 8.03, Reimbursements and Payments ( GAA) $19,065 $0 $0 $0 $0 Comments: Appropriated Receipts Excess collected for copy orders TOTAL, Appropriated Receipts $27,255 $8,190 $8,190 $8,190 $8,190 TOTAL, ALL OTHER FUNDS $27,255 $8,190 $8,190 $8,190 $8,190 GRAND TOTAL $4,435,687 $3,036,138 $3,076,424 $2,934,357 $2,934,358 2.B. Page 4 of 5

21 2.B. Summary of Base Request by Method of Finance 8/5/2016 3:13:35PM Agency code: 356 Agency name: Texas Ethics Commission METHOD OF FINANCING Exp 2015 Est 2016 Bud 2017 Req 2018 Req 2019 FULL-TIME-EQUIVALENT POSITIONS REGULAR APPROPRIATIONS Regular Appropriations from MOF Table ( GAA) Regular Appropriations from MOF Table ( GAA) Regular appropriations from MOF Table ( GAA) UNAUTHORIZED NUMBER OVER (BELOW) CAP Regular Appropriations from MOF Table ( GAA) TOTAL, ADJUSTED FTES 3.3 (2.1) NUMBER OF 100% FEDERALLY FUNDED FTEs 2.B. Page 5 of 5

22 2.C. Summary of Base Request by Object of Expense 8/5/2016 3:13:36PM 356 Texas Ethics Commission OBJECT OF EXPENSE Exp 2015 Est 2016 Bud 2017 BL 2018 BL SALARIES AND WAGES 1002 OTHER PERSONNEL COSTS 2001 PROFESSIONAL FEES AND SERVICES 2003 CONSUMABLE SUPPLIES 2004 UTILITIES 2005 TRAVEL 2006 RENT - BUILDING 2007 RENT - MACHINE AND OTHER 2009 OTHER OPERATING EXPENSE 5000 CAPITAL EXPENDITURES $1,643,725 $2,068,395 $2,056,744 $2,029,117 $2,029,117 $135,664 $190,130 $190,130 $118,188 $118,188 $1,504,805 $170,917 $170,917 $171,068 $171,067 $10,822 $11,854 $11,854 $11,854 $11,854 $1,461 $1,840 $1,840 $1,840 $1,840 $30,563 $36,023 $36,023 $20,363 $20,364 $4,239 $5,679 $5,679 $5,679 $5,680 $10,556 $13,649 $13,649 $13,649 $13,649 $991,114 $212,651 $264,588 $237,599 $237,599 $102,738 $325,000 $325,000 $325,000 $325,000 OOE Total (Excluding Riders) $4,435,687 $3,036,138 $3,076,424 $2,934,357 $2,934,358 OOE Total (Riders) Grand Total $4,435,687 $3,036,138 $3,076,424 $2,934,357 $2,934,358 2.C Page 1 of 1

23 2.D. Summary of Base Request Objective Outcomes Automated Budget and Evaluation system of Texas (ABEST) 8/5/2016 3:13:36PM 356 Texas Ethics Commission Goal/ Objective / Outcome Exp 2015 Est 2016 Bud 2017 BL 2018 BL Administer Public Disclosure/Ethics Laws 1 Access Required Reports; Respond to Advisory Reqs & Sworn Complaints 1 Percent of Reports Available for Public Inspection within Two Days 2 % of Sworn Complaints Processed within Five Working Days After Filing % % % % 99.99% KEY 3 Percent of Advisory Opinion Requests Answered within 60 Days % % % % % % % % % 90.00% 2.D. Page 1 of 1

24 2.E. Summary of Exceptional Items Request DATE: 8/5/2016 TIME : 3:13:37PM Agency code: 356 Agency name: Texas Ethics Commission Biennium GR and GR and GR and Priority Item GR/GR Dedicated All Funds FTEs GR Dedicated All Funds FTEs GR Dedicated All Funds 1 Maintenance Contract $75,000 $75, $75,000 $75, $150,000 $150,000 2 Increase Network Bandwidth $58,800 $58, $58,800 $58, $117,600 $117,600 3 Legal Services $150,000 $150, $150,000 $150, $300,000 $300,000 4 System Support $65,000 $65, $65,000 $65, $130,000 $130,000 5 CAPPS- Administrative Assistant $0 $0 1.0 $40,000 $40, $40,000 $40,000 6 Training $25,000 $25, $25,000 $25, $50,000 $50,000 7 Staff Services Officer $58,000 $58, $58,000 $58, $116,000 $116,000 8 Attorney $75,000 $75, $75,000 $75, $150,000 $150,000 9 Auditors $110,000 $110, $110,000 $110, $220,000 $220,000 Total, Exceptional Items Request $616,800 $616, $656,800 $656, $1,273,600 $1,273,600 Method of Financing General Revenue $616,800 $616,800 $656,800 $656,800 $1,273,600 $1,273,600 General Revenue - Dedicated Federal Funds Other Funds $616,800 $616,800 $656,800 $656,800 $1,273,600 $1,273,600 Full Time Equivalent Positions E. Page 1 of 2

25 2.E. Summary of Exceptional Items Request DATE: 8/5/2016 TIME : 3:13:37PM Agency code: 356 Agency name: Texas Ethics Commission Biennium GR and GR and GR and Priority Item GR/GR Dedicated All Funds FTEs GR Dedicated All Funds FTEs GR Dedicated All Funds Number of 100% Federally Funded FTEs 2.E. Page 2 of 2

26 2.F. Summary of Total Request by Strategy DATE : 8/5/2016 TIME : 3:13:37PM Agency code: 356 Agency name: Texas Ethics Commission Goal/Objective/STRATEGY 1 Administer Public Disclosure/Ethics Laws Base Base Exceptional Exceptional Total Request Total Request Access Required Reports; Respond to Advisory Reqs & Sworn Compl 1 DISCLOSURE FILING $381,708 $381,709 $0 $0 $381,708 $381,709 2 LEGAL GUIDANCE AND OPINIONS 480, ,274 83,000 83, , ,274 3 ENFORCEMENT 729, , , ,000 1,064,984 1,064,983 TOTAL, GOAL 1 $1,591,965 $1,591,966 $418,000 $418,000 $2,009,965 $2,009,966 2 Indirect Administration 1 Indirect Administration 1 CENTRAL ADMINISTRATION 355, , , , ,827 2 INFORMATION RESOURCES 986, , , ,800 1,185,366 1,185,365 TOTAL, GOAL 2 $1,342,392 $1,342,392 $198,800 $238,800 $1,541,192 $1,581,192 TOTAL, AGENCY STRATEGY REQUEST $2,934,357 $2,934,358 $616,800 $656,800 $3,551,157 $3,591,158 TOTAL, AGENCY RIDER APPROPRIATIONS REQUEST GRAND TOTAL, AGENCY REQUEST $2,934,357 $2,934,358 $616,800 $656,800 $3,551,157 $3,591,158 2.F. Page 1 of 2

27 2.F. Summary of Total Request by Strategy DATE : 8/5/2016 TIME : 3:13:37PM Agency code: 356 Agency name: Texas Ethics Commission Goal/Objective/STRATEGY Base Base Exceptional Exceptional Total Request Total Request General Revenue Funds: 1 General Revenue Fund $2,926,167 $2,926,168 $616,800 $656,800 $3,542,967 $3,582,968 Other Funds: $2,926,167 $2,926,168 $616,800 $656,800 $3,542,967 $3,582, Appropriated Receipts 8,190 8, ,190 8,190 $8,190 $8,190 $0 $0 $8,190 $8,190 $2,934,357 $2,934,358 $616,800 $656,800 TOTAL, METHOD OF FINANCING $3,551,157 $3,591,158 FULL TIME EQUIVALENT POSITIONS F. Page 2 of 2

28 2.G. Summary of Total Request Objective Outcomes Automated Budget and Evaluation system of Texas (ABEST) Date : 8/5/2016 Time: 3:13:39PM Agency code: 356 Agency name: Texas Ethics Commission Goal/ Objective / Outcome BL 2018 BL 2019 Excp 2018 Excp 2019 Total Request 2018 Total Request Administer Public Disclosure/Ethics Laws 1 Access Required Reports; Respond to Advisory Reqs & Sworn Complaints 1 Percent of Reports Available for Public Inspection within Two Days % 99.99% % 99.99% 2 % of Sworn Complaints Processed within Five Working Days After Filing % % % % KEY 3 Percent of Advisory Opinion Requests Answered within 60 Days % 90.00% % 90.00% 2.G. Page 1 of 1

29 3.A. Strategy Request 8/5/2016 3:13:40PM GOAL: OBJECTIVE: 1 Administer Public Disclosure/Ethics Laws 356 Texas Ethics Commission 1 Access Required Reports; Respond to Advisory Reqs & Sworn Complaints Service Categories: STRATEGY: 1 Serve as the Repository for Statutorily Required Information Service: 02 Income: A.2 Age: B.3 CODE DESCRIPTION Exp 2015 Est 2016 Bud 2017 BL 2018 BL 2019 Output Measures: KEY 1 Number of Reports Logged within Two Working Days of Receipt 2 Number of Reports Received and Processed 31, , , , , , , , , , Explanatory/Input Measures: 1 Number of Inquiries for Information 2 Number of Lobbyists Registered with the Commission 3 # of Public Officials Required to File Reports with the Commission 4 Number of Reports Due Filed Electronically Objects of Expense: 785, , , , , , , , , , , , , , , , , , , , SALARIES AND WAGES $314,734 $339,504 $338,131 $307,503 $307, OTHER PERSONNEL COSTS $28,682 $36,487 $36,487 $35,801 $35, PROFESSIONAL FEES AND SERVICES $2,308 $150 $150 $150 $ CONSUMABLE SUPPLIES $4,266 $4,043 $4,043 $4,043 $4, UTILITIES $0 $0 $0 $0 $ TRAVEL $0 $0 $0 $0 $ RENT - BUILDING $397 $461 $461 $461 $461 3.A. Page 1 of 19

30 3.A. Strategy Request 8/5/2016 3:13:40PM GOAL: OBJECTIVE: 1 Administer Public Disclosure/Ethics Laws 356 Texas Ethics Commission 1 Access Required Reports; Respond to Advisory Reqs & Sworn Complaints Service Categories: STRATEGY: 1 Serve as the Repository for Statutorily Required Information Service: 02 Income: A.2 Age: B.3 CODE DESCRIPTION Exp 2015 Est 2016 Bud 2017 BL 2018 BL RENT - MACHINE AND OTHER $5,848 $8,000 $8,000 $8,000 $8, OTHER OPERATING EXPENSE $21,639 $25,750 $25,750 $25,750 $25,750 TOTAL, OBJECT OF EXPENSE $377,874 $414,395 $413,022 $381,708 $381,709 Method of Financing: 1 General Revenue Fund $350,619 $406,205 $404,832 $373,518 $373,519 SUBTOTAL, MOF (GENERAL REVENUE FUNDS) $350,619 $406,205 $404,832 $373,518 $373,519 Method of Financing: 666 Appropriated Receipts $27,255 $8,190 $8,190 $8,190 $8,190 SUBTOTAL, MOF (OTHER FUNDS) $27,255 $8,190 $8,190 $8,190 $8,190 TOTAL, METHOD OF FINANCE (INCLUDING RIDERS) $381,708 $381,709 TOTAL, METHOD OF FINANCE (EXCLUDING RIDERS) $377,874 $414,395 $413,022 $381,708 $381,709 FULL TIME EQUIVALENT POSITIONS: STRATEGY DESCRIPTION AND JUSTIFICATION: 3.A. Page 2 of 19

31 3.A. Strategy Request 8/5/2016 3:13:40PM GOAL: OBJECTIVE: 1 Administer Public Disclosure/Ethics Laws 356 Texas Ethics Commission 1 Access Required Reports; Respond to Advisory Reqs & Sworn Complaints Service Categories: STRATEGY: 1 Serve as the Repository for Statutorily Required Information Service: 02 Income: A.2 Age: B.3 CODE DESCRIPTION Exp 2015 Est 2016 Bud 2017 BL 2018 BL 2019 The Disclosure Filing Division (authorized 8 FTEs) handles the processing and maintenance of all reports received by the Commission. In addition, this division provides the public with information about and copies of disclosure reports filed with the agency, distributes blank disclosure reporting forms upon request, and collects charges for copies as authorized by law. The Commission serves to receive and make available for public review and inspection required disclosure reports for state officials, candidates, political committees, lobbyists, political parties, party chairs, legislative caucuses, district judicial officers, certain county judicial officers, and business entities that file disclosure of interested parties (Form 1295). Since July 2000, campaign finance reports filed with the Commission are required by law to be filed electronically unless the filer qualifies for and claims exemption from the electronic filing requirement. Since December 2004, lobbyists are required to file lobby reports electronically unless the filer qualifies for and claims an exemption. Since September 2015, state officers and candidates for certain offices are required to file personal financial statements electronically, no exemptions. Since January 2016, Form 1295 reports are required to be filed electronically, no exemptions. Campaign finance reports, lobby reports, personal financial statements, and Form 1295 reports make up the majority of the reports filed electronically with the Commission. The other reports filed with the Commission are filed on paper. EXTERNAL/INTERNAL FACTORS IMPACTING STRATEGY: The primary consumer of information on file with the Commission, pursuant to the disclosure statutes we administer, is the general public. While the information is available to any person, many in the general public historically rely on the media as its means to obtaining the disclosed information. 3.A. Page 3 of 19

32 3.A. Strategy Request 8/5/2016 3:13:40PM GOAL: OBJECTIVE: 1 Administer Public Disclosure/Ethics Laws 356 Texas Ethics Commission 1 Access Required Reports; Respond to Advisory Reqs & Sworn Complaints Service Categories: STRATEGY: 1 Serve as the Repository for Statutorily Required Information Service: 02 Income: A.2 Age: B.3 CODE DESCRIPTION Exp 2015 Est 2016 Bud 2017 BL 2018 BL 2019 EXPLANATION OF BIENNIAL CHANGE (includes Rider amounts): STRATEGY BIENNIAL TOTAL - ALL FUNDS Base Spending (Est Bud 2017) Baseline Request (BL BL 2019) BIENNIAL CHANGE EXPLANATION OF BIENNIAL CHANGE $ Amount Explanation(s) of Amount (must specify MOFs and FTEs) $827,417 $763,417 $(64,000) $(64,000) Reduced operating cost by (1) FTE (@ $32,000 annually) all GR. $0 The appropriated GAA amount in 2017 is $390,044 which differs above due to transfer in from strategy B.1.1 for Lump Sum & retention payments. $(64,000) Total of Explanation of Biennial Change 3.A. Page 4 of 19

33 3.A. Strategy Request 8/5/2016 3:13:40PM GOAL: OBJECTIVE: 1 Administer Public Disclosure/Ethics Laws 356 Texas Ethics Commission 1 Access Required Reports; Respond to Advisory Reqs & Sworn Complaints Service Categories: STRATEGY: 2 Respond to Requests for Guidance/Advisory Opinions Service: 01 Income: A.2 Age: B.3 CODE DESCRIPTION Exp 2015 Est 2016 Bud 2017 BL 2018 BL 2019 Output Measures: 1 Number of Advisory Opinions Adopted by the Commission Efficiency Measures: KEY 1 Average Time (Working Days) to Answer Advisory Opinion Requests Explanatory/Input Measures: 1 Number of Information Requests Regarding Commission Administered Laws 2 Number of Advisory Opinion Requests Received Objects of Expense: , , , , , SALARIES AND WAGES $300,323 $424,187 $423,737 $426,737 $426, OTHER PERSONNEL COSTS $10,942 $5,547 $5,547 $8,547 $8, PROFESSIONAL FEES AND SERVICES $361 $169 $169 $169 $ CONSUMABLE SUPPLIES $2,173 $2,500 $2,500 $2,500 $2, UTILITIES $404 $448 $448 $448 $ TRAVEL $14,386 $18,736 $18,736 $10,076 $10, RENT - BUILDING $2,215 $3,815 $3,815 $3,815 $3,816 3.A. Page 5 of 19

34 3.A. Strategy Request 8/5/2016 3:13:40PM GOAL: OBJECTIVE: 1 Administer Public Disclosure/Ethics Laws 356 Texas Ethics Commission 1 Access Required Reports; Respond to Advisory Reqs & Sworn Complaints Service Categories: STRATEGY: 2 Respond to Requests for Guidance/Advisory Opinions Service: 01 Income: A.2 Age: B.3 CODE DESCRIPTION Exp 2015 Est 2016 Bud 2017 BL 2018 BL RENT - MACHINE AND OTHER $962 $3,020 $3,020 $3,020 $3, OTHER OPERATING EXPENSE $33,685 $30,000 $30,000 $24,961 $24,961 TOTAL, OBJECT OF EXPENSE $365,451 $488,422 $487,972 $480,273 $480,274 Method of Financing: 1 General Revenue Fund $365,451 $488,422 $487,972 $480,273 $480,274 SUBTOTAL, MOF (GENERAL REVENUE FUNDS) $365,451 $488,422 $487,972 $480,273 $480,274 TOTAL, METHOD OF FINANCE (INCLUDING RIDERS) $480,273 $480,274 TOTAL, METHOD OF FINANCE (EXCLUDING RIDERS) $365,451 $488,422 $487,972 $480,273 $480,274 FULL TIME EQUIVALENT POSITIONS: STRATEGY DESCRIPTION AND JUSTIFICATION: 3.A. Page 6 of 19

35 3.A. Strategy Request 8/5/2016 3:13:40PM GOAL: OBJECTIVE: 1 Administer Public Disclosure/Ethics Laws 356 Texas Ethics Commission 1 Access Required Reports; Respond to Advisory Reqs & Sworn Complaints Service Categories: STRATEGY: 2 Respond to Requests for Guidance/Advisory Opinions Service: 01 Income: A.2 Age: B.3 CODE DESCRIPTION Exp 2015 Est 2016 Bud 2017 BL 2018 BL 2019 This Division provides counsel to the Commission on daily operational matters, answers questions from the regulated community and the public about laws under the agency s jurisdiction, and conducts training throughout the state to provide the regulated community guidance about the Commission s laws. The Division also produces different types of educational materials tailored for the different types of persons regulated by the Commission. This Division also drafts advisory opinions and rules for the Commissioner s consideration. The Commission is authorized to issue advisory opinions relating to laws concerning: political contributions and expenditures, and political advertising; election of the Speaker of the Texas House of Representatives; governor for a day and speaker's reunion day ceremonies; lobbyist registration, reports, and activities; personal financial disclosure of state officers and conduct of state officers and employees; 6) representation before state agencies; judges of statutory county courts or statutory probate courts who elect to file a financial statement with the Commission; conflict of interest in certain transactions involving the Facilities Commission; conflict of interest involving the Office of the Comptroller; bribery and benefits to public servants; and misuse of governmental resources. Also, the Commission is authorized to adopt rules concerning the requirement that a business entity disclose its interested parties at the time the business entity submits certain contracts to a governmental body. EXTERNAL/INTERNAL FACTORS IMPACTING STRATEGY: Advisory opinion requests are initiated by individuals subject to the laws administered by the Commission and are resolved by the Commission in open meetings. Accordingly, the Commission has no control over the number of requests received. 3.A. Page 7 of 19

36 3.A. Strategy Request 8/5/2016 3:13:40PM GOAL: OBJECTIVE: 1 Administer Public Disclosure/Ethics Laws 356 Texas Ethics Commission 1 Access Required Reports; Respond to Advisory Reqs & Sworn Complaints Service Categories: STRATEGY: 2 Respond to Requests for Guidance/Advisory Opinions Service: 01 Income: A.2 Age: B.3 CODE DESCRIPTION Exp 2015 Est 2016 Bud 2017 BL 2018 BL 2019 EXPLANATION OF BIENNIAL CHANGE (includes Rider amounts): STRATEGY BIENNIAL TOTAL - ALL FUNDS Base Spending (Est Bud 2017) Baseline Request (BL BL 2019) BIENNIAL CHANGE EXPLANATION OF BIENNIAL CHANGE $ Amount Explanation(s) of Amount (must specify MOFs and FTEs) $976,394 $960,547 $(15,847) $(15,847) Reduced operating costs of $7,847 for symposium training appropriations and $8,000 travel. All GR $0 The appropriated GAA amount in 2017 is $376,696 which differs above due to transfer in from strategy A.1.3. and B.1.1 for Lump Sum, salaries & retention payments. $(15,847) Total of Explanation of Biennial Change 3.A. Page 8 of 19

37 3.A. Strategy Request 8/5/2016 3:13:40PM GOAL: OBJECTIVE: 1 Administer Public Disclosure/Ethics Laws 356 Texas Ethics Commission 1 Access Required Reports; Respond to Advisory Reqs & Sworn Complaints Service Categories: STRATEGY: 3 Respond to Complaints and Enforce Applicable Statutes Service: 01 Income: A.2 Age: B.3 CODE DESCRIPTION Exp 2015 Est 2016 Bud 2017 BL 2018 BL 2019 Output Measures: 1 Number of Sworn Complaints Recommended for Resolution 2 # of Sworn Complaints Processed within Five Working Days after Filing KEY 3 Number of Sworn Complaints Processed 4 Number of Late Notices Sent to Filers , , , , , Efficiency Measures: KEY 1 Average Time (Working Days) to Respond to Sworn Complaints 2 Average Time to Notify Late Filer of Late Report 3 Avg Time to Notify Complainants & Respondents/Commission Determination Explanatory/Input Measures: 1 Number of Sworn Complaints Received Percent of Filers Filing Timely Reports % % % % % 3 Number of Late Penalties Received Percent of Sworn Complaints Resolved within 180 Days % % % % % 3.A. Page 9 of 19

38 3.A. Strategy Request 8/5/2016 3:13:40PM GOAL: OBJECTIVE: 1 Administer Public Disclosure/Ethics Laws 356 Texas Ethics Commission 1 Access Required Reports; Respond to Advisory Reqs & Sworn Complaints Service Categories: STRATEGY: 3 Respond to Complaints and Enforce Applicable Statutes Service: 01 Income: A.2 Age: B.3 CODE DESCRIPTION Exp 2015 Est 2016 Bud 2017 BL 2018 BL 2019 Objects of Expense: 1001 SALARIES AND WAGES $382,019 $488,484 $488,183 $488,183 $488, OTHER PERSONNEL COSTS $35,282 $36,953 $36,953 $36,953 $36, PROFESSIONAL FEES AND SERVICES $110,349 $165,590 $165,590 $165,741 $165, CONSUMABLE SUPPLIES $2,806 $2,600 $2,600 $2,600 $2, UTILITIES $227 $268 $268 $268 $ TRAVEL $15,054 $15,639 $15,639 $8,639 $8, RENT - BUILDING $0 $0 $0 $0 $ RENT - MACHINE AND OTHER $3,223 $2,000 $2,000 $2,000 $2, OTHER OPERATING EXPENSE $22,298 $25,600 $25,600 $25,600 $25,600 TOTAL, OBJECT OF EXPENSE $571,258 $737,134 $736,833 $729,984 $729,983 Method of Financing: 1 General Revenue Fund $571,258 $737,134 $736,833 $729,984 $729,983 SUBTOTAL, MOF (GENERAL REVENUE FUNDS) $571,258 $737,134 $736,833 $729,984 $729,983 3.A. Page 10 of 19

39 3.A. Strategy Request 8/5/2016 3:13:40PM GOAL: OBJECTIVE: 1 Administer Public Disclosure/Ethics Laws 356 Texas Ethics Commission 1 Access Required Reports; Respond to Advisory Reqs & Sworn Complaints Service Categories: STRATEGY: 3 Respond to Complaints and Enforce Applicable Statutes Service: 01 Income: A.2 Age: B.3 CODE DESCRIPTION Exp 2015 Est 2016 Bud 2017 BL 2018 BL 2019 TOTAL, METHOD OF FINANCE (INCLUDING RIDERS) $729,984 $729,983 TOTAL, METHOD OF FINANCE (EXCLUDING RIDERS) $571,258 $737,134 $736,833 $729,984 $729,983 FULL TIME EQUIVALENT POSITIONS: STRATEGY DESCRIPTION AND JUSTIFICATION: The Commission is authorized to enforces the following laws concerning: political contributions and expenditures, and political advertising; concerning the election of the Speaker of the Texas House of Representatives; governor for a day and speaker's reunion day ceremonies; 4) lobbyist registration, reports, and activities; personal financial disclosure of state officers and conduct of state officers and employees; representation before state agencies; judges of statutory county courts or statutory probate courts who elect to file a financial statement with the Commission; conflict of interest in certain transactions involving the Facilities Commission; and 9) conflict of interest involving the Office of the Comptroller. The Commission s enforcement jurisdiction of the campaign finance law extends to all individuals and entities filing reports with the Commission, as well as to those who file campaign finance reports with local filing authorities such as the county, city, or school districts. The Commission is authorized to undertake civil enforcement actions on its own motion or in response to a sworn complaint, hold enforcement hearings, issue orders, impose civil penalties, refer matters for criminal prosecution, and deny, suspend, or revoke a lobby registration for specified reasons. The Enforcement Division investigates complaints from the public as well as complaints initiated by the Commission by vigorously investigating and, where evidence warrants it, enforcing statutes within the Commission's enforcement jurisdiction. EXTERNAL/INTERNAL FACTORS IMPACTING STRATEGY: 3.A. Page 11 of 19

40 3.A. Strategy Request 8/5/2016 3:13:40PM GOAL: OBJECTIVE: 1 Administer Public Disclosure/Ethics Laws 356 Texas Ethics Commission 1 Access Required Reports; Respond to Advisory Reqs & Sworn Complaints Service Categories: STRATEGY: 3 Respond to Complaints and Enforce Applicable Statutes Service: 01 Income: A.2 Age: B.3 CODE DESCRIPTION Exp 2015 Est 2016 Bud 2017 BL 2018 BL 2019 Any person may file a sworn complaint. The Commission has no control over the number of sworn complaints it receives or the violations alleged in those complaints. Once a sworn complaint has been filed, the respondent named in the complaint is entitled to two separate hearings, the last one may be before the Commission or an administrative law judge. The time needed to reach a final resolution is therefore largely outside the control of the Commission. Federal law has little direct influence on agency functions because federal laws apply to different persons than those regulated by the Commission. However, federal court rulings, such as the U. S. Supreme Court decision in Citizens United v. Federal Election Commission, may have an effect on the laws administered and enforced by the Commission. Similarly, federal lawsuits challenging the constitutionality of the laws enforced by the Commission may have an effect on the laws administered and enforced by the Commission. EXPLANATION OF BIENNIAL CHANGE (includes Rider amounts): STRATEGY BIENNIAL TOTAL - ALL FUNDS Base Spending (Est Bud 2017) Baseline Request (BL BL 2019) BIENNIAL CHANGE EXPLANATION OF BIENNIAL CHANGE $ Amount Explanation(s) of Amount (must specify MOFs and FTEs) $1,473,967 $1,459,967 $(14,000) $(14,000) Reduced travel expenses by $7,000 annually $0 The appropriated GAA amount in 2017 is $774,497 which differs above due to transfer in from strategy A.1.3. for Lump Sum, salaries & retention payments and transfer out to A.1.2 for daily operations. $(14,000) Total of Explanation of Biennial Change 3.A. Page 12 of 19