Jo anneleznoffjune 25 2012

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Jo anneleznoffjune 25 2012

  1. 1. Budget Overview for theBlue Ribbon Task Force on State Higher Education Reform JoAnne Leznoff Staff Director Appropriations Committee
  2. 2. Major Constitutional Provisions Article • Requires an annual state budget and planning process III, Section 19(a) Article • No money shall be drawn from the treasury except in VII, Section pursuance of appropriation made by law. 1(c) Article • Provision shall be made by law raising sufficient revenue VII, Section to defray expenses of the state for each fiscal period. (1)(d)2
  3. 3. Major Constitutional Provisions (continued) • Unless approved by a three-fifths vote of the membership of each house, appropriations made for recurring purposes from nonrecurring general Article revenue funds for any fiscal year shall not exceed three percent of the total general III, Section revenue funds estimated to be available at the time such appropriation is made. 19(a)(2) • No later than September 15 of each year, the joint legislative commission shall issue a Article long-range financial outlook setting out recommended fiscal strategies for the state III, Section and its departments and agencies in order to assist the legislature in making budget 19(c)(1) decisions. • Provides line item veto authority to the Governor – “The Governor may veto any specific appropriation in a general appropriation bill, but may not veto any qualification or restriction without also vetoing the appropriation to which it relates.” Article III, Section • Authorizes Governor to veto specific appropriation in substantive bill – “Substantive (8), Article bills containing appropriations….shall be subject to the governor’s specific III, Section appropriation veto power described in Article III, Section 8.” 19(b)3
  4. 4. Legislature passes GAA Governor Governo issues r signs/ recommended vetoes budget Budget Process Cycle Agencies State submit agencies budget implement requests Base LRFO prepared issued for next cycle4
  5. 5. The Appropriations Process • On September 15th the Legislative Budget Commission issues the Long Range Financial Outlook. • State agencies submit budget requests on October 15th of each year. • The Governor makes his budget recommendations 30 days prior to the onset of the legislative session. • House & Senate committees workshop the budget and each chamber passes an independent appropriations bill. • The differences between the bills are usually resolved through a conference by members of both chambers. • The product of the conference process is the Conference Report or the General Appropriations Act. • The Governor has line item veto authority. • The Governor with consensus of House & Senate execute the budget and develop the base for the next cycle5
  6. 6. Fiscal Year 2012-13 General Appropriations Act $70.0 Billion (in millions of dollars) Federal General 24,847.0 Revenue 36% 24,717.3 35% State Trust 20,398.4 29%6
  7. 7. Fiscal Year 2012-13 General Appropriations Act -- All Funds $70.0 Billion Agriculture & Natural Appropriations (in millions of dollars) Resources 2,200.9 3,184.9 3% 5% Justice Government Higher Education Operations 5,847.0 4,630.2 7% 1,762.6 Transportation & Ec. 8% 2% Development 9,668.2 14% Pre K-12 12,791.4 18% Health Care 29,877.6 43%7
  8. 8. FY 2012-13 Appropriations by Committee by Fund Source 35,000.0 30,000.0 25,000.0Millions of Dollars 20,000.0 Medicaid FEFP 15,000.0 10,000.0 5,000.0 0.0 Transportatio Agriculture & n & Ec. Higher Appropriatio Governm Health Care Pre K-12 Justice Natural Developmen Education ns Operatio Resources t All TF Federal 16,540.0 2,477.6 3,279.5 320.2 266.7 1,503.4 228.8 230.7 8 All TF-State 5,690.8 627.8 6,191.7 2,541.1 903.2 1,475.9 1,693.4 1,274.5 General Revenue 7,646.8 9,686.0 196.9 2,985.7 3,460.2 205.6 278.7 257.4
  9. 9. Higher Education Funding by Budget Entity Board of Blind Vocational Private Colleges & Student Governors Services Rehabilitation Universities Financial $6 $53 $201 $93 Assistance 0% 1% 4% 2% $487 8% Workforce Education $488 8% State Universities E&G Florida Colleges $3,452 $1,066 59% 18%9
  10. 10. Higher Education By Fund Type Other Trust, $323 5% Tuition, $1,729 30% GR, $2,986 51% Lottery, $809 14%10
  11. 11. Long Range Financial Outlook Multi Year Estimate of: Surplus/ Revenues SPENDING Shortfall Base Critical Other Budget Needs High Priorities11
  12. 12. Consensus Estimating Conferences Major Projections Developed by Conferences  amount of General Revenue available for appropriations Governor  amount of Lottery funds available for appropriations  number of children to be Develop agreed- enrolled in public schools; upon projections House  number and caseload for for certain Temporary Assistance to Needy Families; revenues and  amount of Public Education caseload/ Senate Capital Outlay (PECO) funds; workload data  number of prisoners  amount of transportation funds Office of Economic and available for appropriations Demographic Research  number of students & amount of student financial aid12
  13. 13. 2nd Year General Revenue Forecast Error 4,021.6 3,569.3 960.3 1,184.9 410.4 -15.8% -28.3% -19.7% -4.5% 4.6% 16.7% 17.5% 4.7% 1.9% -1,096.8 -4,512.1 -5,294.1 -8,299.1132003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
  14. 14. Estimated Budget Shortfall - Adjusted for $1.0 Billion in Reserve Cumulative $21 Billion of Shortfall (billions of dollars) 0.3 (1.0) (3.3) (3.5) (3.7) (4.3) (4.1) (4.7) (4.8) (6.4) 2008-09 2009-10 2010-11 2011-12 2012-1314 LRFO Balance
  15. 15. Operating Appropriations All Funds (dollars in millions) Medicaid Services All Other 42,570 40,886 41,409 41,060 70.8% 37,555 70.3% 67.2% 38,125 38,517 70.2% 64.3% 64.5% 70.9% 20,018 21,194 21,181 17,469 35.7%15,917 15,603 35.5% 15,442 32.8% 29.7% 27.2% 27.6% 29.1%15 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
  16. 16. Options for resolving GR shortfalls  Budget reductions  Depleting reserves  One-time trust fund transfers  Permanent trust fund redirection  Fund shifts  Revenue enhancements16  Not fund certain need
  17. 17. Percent Change in State Operating Funds 20.0% 15.0% 10.0% 5.0% Health Care Higher Education 0.0% All Others -5.0% -10.0% -15.0% 2007-08 2008-09 2009-10 2010-11 2011-12 2012-1317
  18. 18. State Funds Operating Change Since FY 2006- 0725,000.0 -14.5%20,000.015,000.0 +20% 2006-0710,000.0 2012-13 -6% 5,000.0 0.018 Health Care Higher Education All Others
  19. 19. What’s Next/Risks  LRFO under development  Risks  Looming litigation  The economy  Federal budget reductions  Natural disasters (hurricane season)19

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