Understanding the Appropriations Documents Presented by Dave Lakly, dlakly@uga.edu

Crafting a Budget in Georgia: 30,000 foot view The Governor (Executive Branch) recommends a budget to the General Assembly (Legislative Branch) The General Assembly debates and passes a budget The Governor signs (or vetoes) the budget

Legislative Branch: General Assembly Creates laws that govern GA Members elected every two years by district House of Representatives 180 Members Speaker of the House is elected by the chamber and presides Senate 56 Members Lieutenant Governor is elected statewide and presides

Committees House has 36 standing committees Senate has 30 standing committees All members serve on two or more committees All legislation moves through committees The Appropriations Committee deals with the budget

Legislative Duties Adopt an annual budget Introduce bills that change, repeal, or add to current statutory law Introduce resolutions that express opinions or recognition Consider constitutional amendments (2/3 vote)

How a Bill Becomes a Law Introduced to the House or Senate Considered by Committee Floor consideration Governor consideration

Introduction of a Bill Bill sponsor submits to Clerk of House or Secretary of Senate Bill assigned a number Read to the chamber Assigned a committee Tax and revenue bills must originate in the House This rule includes the budget!

Committee Consideration Committee studies the bill, holds hearings Favorable review Do pass Do pass with amendments Do pass by substitute Unfavorable review Do not pass (take no action)

Committee Consideration Rules Committee decides what bills receive floor consideration (very powerful!) Favorable review Do pass Do pass with amendments Do pass by substitute Unfavorable review Do not pass (take no action)

Floor Consideration House or Senate members debate the bill Amendments may be introduced Most bills require a majority vote Identical bills must pass House and Senate (conference committee) Must pass one chamber by Day 30

Rules

Rules

Governor Consideration Bills approved by House and Senate go to the Governor Governor has forty days to consider Sign = becomes law No action = becomes law Veto = does not become law (Vetoes can be overturned by a 2/3 majority vote in each chamber – rare!) Bills that become law are known as acts

OPB The Governor crafts a budget recommendation with the assistance of the Governor’s Office of Planning and Budget (OPB) OPB does many things! Strategic Planning, Program Budgeting, Budget Development, Budget Administration, Process Improvement, Capital Budgeting, Legislative Analysis and Assistance, Motor Vehicle Oversight

Governor’s Budget Report How does the Governor recommend a budget? Must submit The Governor’s Budget Report to the General Assembly within five days after a session convenes Homework: OCGA 45-12-75 outlines specifically what should be in the budget report

General Assembly Convenes second Monday of January for forty session days

Governor’s Budget Submission Governor releases Budget Report and Draft Appropriations Bills simultaneously Usually coincides with State of the State Address Budget bills introduced in the House by floor leaders One bill for amended budget, one bill for general budget

Budget Report Includes Budget Highlights Financial Summaries Revenue Estimate Summary of Appropriations Vital statewide information Department Summaries Program-specific changes

Budget Report

Budget Report

Budget Report

Look at Handout! Pages 1-9

Joint Budget Hearings The House and Senate hold joint budget hearings co-chaired by the House Appropriations Committee Chair and the Senate Appropriations Committee Chair Agency heads and fiscal officers present and answer questions Budget Report is the document used in this hearing!

Appropriations Bills Presented by program, summarized by department Legal level of control is fund source within program This is the lowest level of budgetary detail at which the government may not reassign resources without legislative approval House and Senate bills look different – the House writes the final bill in odd- numbered years, the Senate in even- numbered years

Stages of Approval Bills follow legislative process through each chamber, using several subcommittees

House of Representatives The House process uses two documents: Appropriations Bill Tracking Sheet Includes information on different phases of bill (Gov, House, Senate, CC) Does not have force of law House prints final bill for odd-numbered years

House of Representatives

House of Representatives

House of Representatives

Look at Handout! Pages 10-15

Senate The Senate creates an appropriations bill with tracking information included No additional tracking sheet Senate prints final bill for even-numbered years

Senate

Look at Handout! Pages 16-17

Conference Committee If the House and Senate do not adopt identical budgets, the bill is referred to a Conference Committee The Speaker of the House and President of the Senate each appoint three members to the Conference Committee Both chambers typically create a version of the tracking sheet called a “differences report” or “conference committee report

Conference Committee

Look at Handout! Pages 18-23

Fund Sources The Governor’s Budget Report and the appropriations bills have detailed information for the fund sources available for appropriation.

Revenue Sources (FY18 Example)

Revenue Sources (FY17 Example)

Bonds (FY18 Example)

Bonds (FY17 Example)

Bonds (FY17 Example)

Where do I find documents?

Where do I find documents?

Where do I find documents?

History

History

Vetoes

Dave Lakly dlakly@uga.edu (706) 248-8872