Presentation on theme: "The Office of State Budget Budget Update Office of State Budget State Budget & Control Board."— Presentation transcript:
The Office of State Budget Budget Update Office of State Budget State Budget & Control Board
1) Cat-astrophe 2) Beating a Dead Horse 3) Over-haul 5) Writer’s Cramp 4) Bug Eyed 6) Questions
Cat - astrophe
General Fund of the State Actual Revenue FY $ 5,080,323,000 FY $ 4,929,960,000 FY $ 4,967,801,000 FY $ 5,116,280,000 FY $ 5,591,060,000 FY $ 6,226,026,000 FY (Sales Tax on Food to 3%) $ 6,658,500,000 FY (Sales Tax on Food / Lower 2.5% Bracket) $ 6,392,394,000 FY $ 5,544,173,000 Total Eight Year Growth %9.2 %
Budgetary Results FY Year End Figures Available Funds to Cover Expenditures Actual Revenue Collections$ 5,544.2 Brought Forward from FY – Agencies (Special Provisos) $ Total Available to Support Expenditures $ 5,773.3 Expenditures & Carry Forward Regular Appropriations $ 5,747.9 Transfers to General Res. Fund & CRF$ Carried Forward to FY – Agencies (Special Provisos) $ Total Transfers, Expenditures & Carry Forward$ 6,112.7 Capital Res. Fund Applied Against FY 09 Shortfall $ General Res. Funds Applied Against FY 09 Shortfall$ Net Excess Spending$ (98.2) Fiscal Year Ended June 30, 2009 (Amounts Expressed in $Millions)
Budgetary Results FY Year End Shortfall Analysis Factors Producing Shortfall Estimates used in Approp. Act over Actual Revenue$ (1,204.9) Open-Ended Appropriations – SCDC & DJJ Deficits; Homestead Exemption $ (109.3) Total Budgetary Deficit $ (1,314.2) Factors Helping to Reduce Budgetary Shortfall Governor’s Vetoes Sustained $.3 Rescission Act – Targeted Agency Reductions$ B&C Board Actions – 7% and 2% Agency Reductions $ Agency Surplus Funds (10%) Lapsed at Year-End $ 1.0 Net Budgetary Deficit$ (339.5) Capital Res. Fund Applied Against FY 09 Shortfall $ General Res. Funds Applied Against FY 09 Shortfall $ Net Excess Spending $ (98.2) Amounts Expressed in $Millions
Property Tax Reform Bill – H.4449 of Increased Sales tax by 1 cent effective June 1, Created Homestead Exemption Fund. Exempts 100% of the fair market value of owner occupied residential property from all school operating property taxes. Section (A) (6) - To the extent revenues in the Homestead Exemption Fund are insufficient to pay all reimbursements to a school district required by this subsection, the difference must be paid from the State General Fund. For FY reimbursement to the School Districts exceeded Revenue into the Homestead Exemption Fund by $53 million.
Education Lottery Account Deposits Estimated vs. Actual Revenue Estimated Actual FY $ 172 $ FY $ 172 $ FY $ 243 $ FY $ 265 $ FY $ 244 $ FY $ 244 $ FY $ 244 $ FY Lottery Appropriations = $ 255 Million Including Unclaimed Prizes
Establishing FY Part 1A Base Revenue BEA Revenue Estimate $ 5,529.5 Transfer to General Reserve Fund$ (63.9) FY “Base” Budget $ (5,864.3) Recurring “New” Funds $ (398.8) DHHS Cash Transfer and Excess FMAP – $ A.R.R.A. – Budget Stabilization Funds – Part III $ DOR – Increased Enforced Collections – $ 48.2 Insurance Reserve Fund Transfer – $ 36.9 Other – Tobacco, SIF, LLR, DMV, Cons. Bank, etc. $ 55.6 TOTAL “New” Funds$ 540.6
FY Part 1A ‘New Funds” FY “New” Funds Calculations FY Appropriation Act $ 6,736,083,000 Rescission Bill & 7% Across the Board$ (871,751,000) FY Appropriation Base $ 5,864,332,000 BEA Rev. Est. - FY Original, Not Current $ 5,529,491,000 Transfer to General Fund $ (63,924,000) Net TOTAL “New” Part 1A Funds$ (398,765,000)
FY Part III - A.R.R.A. Stabilization Fund Education Stabilization Funds – 81.8% K-12: EFA$ Million Higher Education Institutions: E&G$ 99.9 Million Total – Education $ Million Government Services Fund – 18.2% Corrections$ 22.0 Million Public Safety$ 15.0 Million All Other Agencies (20 Agencies) $ 26.1 Million Total – General Government $ 63.1 Million
Provisos – Health & Human Services Funding $224.8 Million of Health & Human Services Funds from any Source including Carry Forward Health & Human Services - $136.9 Million Medicaid Maintenance of Effort $ 99.9 Nursing Home – Rate Restoration $ 4.9 Disproportionate Share $ 7.0 Transitional Medicaid$ 4.2 Hospital Cost Rates $ 3.5
Provisos Health & Human Services Funding - Continued - Other Health Agencies - $87.8 Million Health & Environmental Control $ 30.5 Mental Health$ 19.0 Disabilities & Special Needs $ 17.2 Social Services $ 13.8 Lt. Gov. – Aging$ 3.0 Vocational Rehabilitation$ 2.0 Alcohol and Other Drug Abuse$ 1.2 Other Agencies – 5 Agencies$ 1.1
FY “New” Funds Appropriations Items of Interest In Millions 2% Agency Reduction (March ’09) $ (101.9) Debt Service$ (28.6) Local Government Fund (Suspend Statute) $ (49.9) Capital Reserve Fund – Decline in Actual General Fund Rev. $ (5.2) Homestead Exemption Fund$ 107.4
Total “State” Appropriations Recurring Part 1A & Non-Recurring (Proviso, Surplus, CRF, etc.) In BILLIONS After any Mid Year Reductions FY $ FY $ FY $ FY $ FY $ FY * $ * FY Includes: $348 Million of Part III A.R.R.A. Funds $224.8 Million from Excess FMAP Funds $226 Million Deposit to General Fund from DHHS
FY Revenue & Appropriation Reductions YEAR – TO - DATE BEA Revenue Reductions – FY June 2009$ Million July 2009$ Million Total Revenue Reductions (FY YTD) $ Million B & C Board Actions – July and September of 2009 Reduce CRF$ Million Agency 4.04% Reduction $ Million Total Appropriation Reductions (YTD) $ Million
Mid-Year Reductions , & Proviso 80A.11 FY Base = $5,586,175, Capital Reserve Fund ($127.8 Million) Reduced Prior to Cuts Exemptions Before Reduction Calculations Debt Service$ million Local Government Fund$ million Scholarships & Tuition Grants $ million Homestead Exemption Fund$ 26.4 million Other (1st Resp., Nat’l Guard Pen., DOR – 81.15) $ 56.8 million Adjusted Base Reduction Amount = $ 4,965,010,000
Agency Deficits – Reducing Rates of Expenditures Section of S.C. Code of Laws Agencies should budget and allocate appropriations as a quarterly allocation. If a shortfall projected it is the responsibility of the agency to develop a plan, in consultation with the B&C Board, that eliminates or reduces the deficit. B&C Board may determine that the recognition of an agency deficit is appropriate. If it is determined that the agency deficit is result of the management then bond of the agency officials responsible shall be held liable, and the B&C Board shall take action to curtail agency expenditures to avoid or reduce the deficit.
FY Outlook UNOFFICIAL – 3% Growth Scenario Revenue – With Unofficial 3% Growth Assumption FY BEA Revenue Estimate (June ’09) $ 5,742.2 Assume 3% Growth (Not an actual BEA Est.) $ 5,914.5 Property Tax Relief Trust Fund $ (542.5) Net General Fund Revenue (Based on unofficial 3%) $ 5,372.0 FY Approp. Base (after 4.04% reduction) $ 5,513.5 “New” Recurring Revenue$ (141.5)
FY Outlook UNOFFICIAL Statewide Funding Issues FY General Fund Deficit $ 98.2 General Reserve Fund $ 55.4 Capital Reserve Fund – Decline in Actual General Fund Revenue $ (17.0) Local Government Fund $ 19.2 Annualization of Agency Approp. (supported w/ NR) $ 8.1 Homestead Exemption Shortfall $ 65.8 Total – Statewide Funding Issues$ Net Balance $ (371.5) Assumes No Increase in EFA – Fund at FY Level with ARRA Funds No Increase in Medicaid/Health – Fund at FY Level w/ ARRA Funds
Proviso Changes Flexibility Allows Agencies to use Special Funds to maintain Critical programs previously funded with General Funds 80A.43 – Sale of Surplus Real Property Specifies that half of proceeds go to B&C Board for Deferred Maintenance of State Buildings. Other half to agencies. Specifies agency & project exceptions
Proviso Changes – Voluntary Furlough Agencies may institute voluntary employee furlough of not more that 90 days if agency is receiving fewer Appropriated General Funds than last Fiscal Year – Mandatory Furlough Agencies may institute mandatory employee furlough of not more that 10 days if agency is receiving fewer Appropriated General Funds than last Fiscal Year. Also if agency projects a decline in Other funds revenue
Provisos FTE Deletions – SUSPENDED for FY A.11 – Vacant Positions - SUSPENDED FTE positions (regardless of source of funds) over 12 months old deleted from the system – Personal Service Reconciliation - SUSPENDED Deletion of unfunded State FTEs only based on the availability of General Funds personal service appropriations.
Provisos – Mandatory Furlough & – R.I.F. Directs agency heads to consider furloughing or reducing contract employees, post-TERI employees and/or TERI employees before other employees if either is implemented – Fees and Fines Report Requires each agency to provide a report (via their Website) of all aggregate amounts of fines and fees charged and collected in the prior fiscal year.
Three Year General Fund Financial Outlook Section Each agency receiving at least 1% of the State’s General Fund appropriations shall provide Office of State Budget projected General Fund expenditure needs for the next three years. BEA provides long term revenue estimates. Office of State Budget compiles revenue and expenditure data and produces a three-year financial plan which must be updated annually by December 31.
The Office of State Budget & Budget Overview Office of State Budget State Budget & Control Board