MISSISSIPPI LEGISLATURE
2007 Regular Session
To: Appropriations
By: Senator(s) Dearing
AN ACT TO PROVIDE FOR THE PREPARATION OF AN EXECUTIVE BUDGET; TO AMEND SECTION 27-103-137, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE JOINT LEGISLATIVE BUDGET COMMITTEE AND THE EXECUTIVE BUDGET OFFICE SHALL CONDUCT JOINT BUDGET HEARINGS; TO AMEND SECTION 27-103-139, MISSISSIPPI CODE OF 1972, TO REVISE THE TIMETABLE FOR PREPARATION OF THE LEGISLATIVE BUDGET BEGINNING WITH THE 2008 REGULAR SESSION; TO CODIFY SECTIONS 27-103-161 THROUGH 27-103-187, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE OFFICE OF BUDGET AND FUND MANAGEMENT WITHIN THE DEPARTMENT OF FINANCE AND ADMINISTRATION SHALL BE KNOWN AS THE EXECUTIVE BUDGET OFFICE, TO PROVIDE FOR BUDGET PREPARATION, RECOMMENDATIONS AND STUDIES AS TO STATE AGENCIES, TO PROVIDE FOR EXECUTIVE BUDGET PARTS, SEPARATION OF ITEMS, LIMITATION ON EXPENDITURES, RECOMMENDATIONS AS TO ADDITIONAL TAXES OR SOURCES OF REVENUE, TO PROVIDE THAT BUDGET HEARINGS SHALL BE CONDUCTED JOINTLY WITH THE JOINT LEGISLATIVE BUDGET COMMITTEE, TO PROVIDE FOR EXECUTIVE BUDGET REQUESTS, PROCEEDINGS, FAILURE OR REFUSAL TO FILE BUDGET REQUESTS, VISITATION OF STATE AGENCIES, HEARINGS ON EXECUTIVE BUDGET REQUIREMENTS, TO PROVIDE FOR REPORTS TO BE FURNISHED BY REVENUE PRODUCING AGENCIES, TO PROVIDE FOR SUBMISSION OF THE EXECUTIVE BUDGET; TO AMEND SECTIONS 27-103-101 AND 27-103-103, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-103-137, Mississippi Code of 1972, is amended as follows:
27-103-137. The Legislative Budget Office shall hold such hearings as may be necessary to determine the actual budget requirements of the agencies, to be held jointly and in conjunction with the Executive Budget Office as provided in Section 27-103-187. Such budget hearings shall be coordinated and held at the same time, to the extent that this is practicable. * * * The State Fiscal Management Board and the Governor's Budget Officer shall be notified of such hearings and the board and any staff members of the board and of the Governor's office may attend such hearings in order to give the Governor adequate information on which to base any budget recommendations he may desire to submit to the Legislature. The Legislative Budget Office shall have made a sufficient number of copies of its proposed budget in order that the data contained therein will be available to the members of the Legislature for consideration, and to provide a copy for each state agency included in the budget proposal, and shall forward a copy to each member or member-elect of the Legislature and to each state agency on or about November 15 prior to the 2007 Regular Session and on or about November 15 annually thereafter.
SECTION 2. Section 27-103-139, Mississippi Code of 1972, is amended as follows:
27-103-139. On or before November 15 preceding the 2008 Regular Session and each regular session of the Legislature, except the first regular session of a new term of office, the Joint Legislative Budget Committee shall submit to the members of the Legislature, * * * or the members-elect, as the case may be, and to the executive head of each state agency a balanced budget for the succeeding fiscal year. The budget submitted shall be prepared in a format that will include performance measurement data associated with the various programs operated by each agency. The total proposed expenditures in the balanced budget shall not exceed the amount of estimated revenues that will be available for appropriation or use during the succeeding fiscal year, including any balances that will be on hand at the close of the then current fiscal year, as determined by the revenue estimate jointly adopted by the Governor and the Legislative Budget Committee. The total proposed expenditures from the State General Fund in the balanced budget shall not exceed ninety-eight percent (98%) of the amount of general fund revenue estimate for the succeeding fiscal year, plus any unencumbered balances in general funds that will be available and on hand at the close of the then current fiscal year. However, for fiscal year 2006 only, the total proposed expenditures from the State General Fund in the balanced budget shall not exceed one hundred percent (100%) of the amount of the general fund revenue estimate for the succeeding fiscal year, plus any unencumbered balances in general funds that will be available and on hand at the close of the then current fiscal year. The general fund revenue estimate shall be the estimate jointly adopted by the Governor and the Joint Legislative Budget Committee. Unencumbered balances in general funds that will be available and on hand at the close of the fiscal year shall not include projected amounts required to be deposited into the Working Cash-Stabilization Reserve Fund and the Education Enhancement Fund under Section 27-103-203.
The revenues used in preparing the balanced budget shall be only those revenues that will be available under the general laws of the state as they exist when the balanced budget is prepared, and shall not include any proposed revenues that would become available only after the enactment of new legislation. If the Joint Legislative Budget Committee has any recommendations for additional proposed expenditures or proposed revenues that are not included in the balanced budget, it shall submit those recommendations in a supplement that is separate from the balanced budget, and whenever the Joint Legislative Budget Committee recommends any such additional proposed expenditures, it also shall recommend proposed revenues that are sufficient to fund the additional proposed expenditures, providing specific details regarding the sources and the total amount of those proposed revenues.
* * *
SECTION 3. The following provision shall be codified as Section 27-103-161, Mississippi Code of 1972:
27-103-161. The Office of Budget and Fund Management within the Department of Finance and Administration shall be known as the Executive Budget Office.
SECTION 4. The following provision shall be codified as Section 27-103-163, Mississippi Code of 1972:
27-103-163. It shall be the duty of the Executive Budget Office to prepare the overall balanced budget of the entire expenses and income of the state for each fiscal year, which budget shall encompass the operations of all general-fund agencies and all special-fund agencies and the Mississippi Department of Transportation. Said overall budget shall be completed prior to December 15 before the convening of the Legislature at the regular session, except the first regular session of a Governor's new term of office. At the first regular session after his election for Governor, the Governor shall submit any budget recommendations plus the required revenue source recommendations no later than January 31 of such year.
SECTION 5. The following provision shall be codified as Section 27-103-165, Mississippi Code of 1972:
27-103-165. It shall be the further duty of the Executive Budget Office to make continuous and careful study of all state agencies, and it may make recommendations to the state Legislature for abolition, consolidation or creation of state agencies.
SECTION 6. The following provision shall be codified as Section 27-103-167, Mississippi Code of 1972:
27-103-167. It shall be the duty of the Director of the Executive Budget Office to familiarize himself with the operations, needs, requirements and anticipated expenses and income of all state agencies and, for such purpose, he shall have the authority to require any state agency to furnish him with any and all necessary information.
SECTION 7. The following provision shall be codified as Section 27-103-169, Mississippi Code of 1972:
27-103-169. The overall budget so prepared shall be in three (3) parts as specified in Sections 27-103-151 through 27-103-155 and 27-104-1 through 27-104-27 and shall contain a general summary of the three (3) parts.
SECTION 8. The following provision shall be codified as Section 27-103-171, Mississippi Code of 1972:
27-103-171. Part 1 of the overall budget shall include therein the requested budget and the recommended budget for each general-fund agency, in addition to such other information as may be prescribed by the Executive Budget Office, the following:
(a) The amount appropriated from the General Fund for the current fiscal year, all special funds receipts already collected and available in the current fiscal year, and an estimate of all special funds which will be collected, or otherwise will become available, by the end of the then current fiscal year;
(b) The estimated amount of all expenditures to be made or obligations to be incurred payable from general or special funds during the then current fiscal year;
(c) The estimated aggregate amount of funds which will be needed by the agency for the succeeding fiscal year; beginning with the 2008 fiscal year and in the event that any services proposed to be provided by the agency in the succeeding fiscal year are Medicaid reimbursable, any state general matching funds necessary for such reimbursements shall be included in the agency's proposed budget, and the appropriation to the Division of Medicaid in the 2008 fiscal year shall be adjusted accordingly;
(d) The estimated aggregate amount of special funds, if any, which will be available during the succeeding fiscal year, including any balances which will be on hand at the close of the then current fiscal year;
(e) The estimated amount which will be needed and which will require change in existing law or laws;
(f) If any new item of expense is included in the proposed budget of any general-fund agency, the reason therefor shall be given; and in any case where the Executive Budget Office shall eliminate or reduce any item or items in the budget request of any general-fund agency, it shall note briefly the reasons therefor, together with the reasons advanced by the agency in support of the item or items eliminated or reduced.
SECTION 9. The following provision shall be codified as Section 27-103-173, Mississippi Code of 1972:
27-103-173. The proposed budget of each state agency shall show the amounts required for operating expenses separately from the amounts required for permanent improvements. The overall budget shall show, separately by each source, the estimated amount of general-fund revenues and of special-fund revenues of general-fund agencies. The total proposed expenditures in Part 1 of the overall budget shall not exceed the amount of estimated revenues which will be available in the general and special funds for appropriation or use during the succeeding fiscal year, including any balances which will be on hand in the general and special funds at the close of the then current fiscal year. Beginning with the budget for fiscal year 2008, the total proposed expenditures from the State General Fund in Part 1 of the overall budget shall not exceed ninety-eight percent (98%) of the amount of the general-fund revenue estimate for the succeeding fiscal year, plus any unencumbered balances in general funds that will be available and on hand at the close of the then current fiscal year. The general-fund revenue estimate shall be the estimate jointly adopted by the Governor and the Joint Legislative Budget Committee. Unencumbered balances in general funds that will be available and on hand at the close of the current fiscal year shall not include projected amounts required to be deposited into the Working Cash-Stabilization Reserve Fund pursuant to Section 27-103-203. The Executive Budget Office may recommend additional taxes or sources of revenue if, in its judgment, such additional funds are necessary to adequately support the functions of the state government.
SECTION 10. The following provision shall be codified as Section 27-103-175, Mississippi Code of 1972:
27-103-175. To the end that the overall budget shall present in comparable terms a complete summary of all financial operations of all state agencies, Part 2 of the overall budget shall include therein the requested budget and the recommended budget for each special-fund agency. The overall budget shall show for each special-fund agency, in addition to such other information as may be prescribed by the Executive Budget Office, the following:
(a) The amount by source of all special-fund receipts collected or otherwise available in the current fiscal year, and an estimate by source of all special funds which will be collected or become available by the end of the then current fiscal year;
(b) The estimated amount of all expenditures to be made or obligations to be incurred payable from such special funds during the then current fiscal year;
(c) The estimated aggregate amount of special funds which will be needed by the agency for the succeeding fiscal year; beginning with the 2006 fiscal year and in the event that any services proposed to be provided by the agency in the succeeding fiscal year are Medicaid reimbursable, any state general matching funds necessary for such reimbursement shall be included in the agency's proposed budget, and the appropriation to the Division of Medicaid in the 2006 fiscal year shall be adjusted accordingly;
(d) The estimated amount by source of special funds which will be available under existing laws during the succeeding fiscal year, including any balances which will be on hand at the close of the then current fiscal year;
(e) The estimated amount which will be needed and which will require change in existing law or laws;
(f) If any new item of expense is included in the proposed budget of any special-fund agency, the reason therefor shall be given; and in any case where the Executive Budget Office shall eliminate or reduce any item or items in the proposed budget of any special-fund agency, it shall note briefly the reasons therefor, together with the reasons advanced by the agency in support of the item or items eliminated or reduced;
(g) The proposed budget of each special-fund agency shall show the amounts required for operating expenses separately from the amounts required for permanent improvements. Proposed expenditures for any agency in Part 2 of the overall budget shall not exceed the amount of estimated revenues which will be available to it. Provided, that the Executive Budget Office may recommend changes in existing law so as to decrease or increase the revenues available to any agency if, in its judgment, such changes are necessary or desirable. Provided further, that expenditures approved or authorized by the Legislature for any special-fund agency or special funds approved for general-fund agency shall constitute a maximum to be expended or encumbered by such agency, and shall not constitute authority to expend or encumber more than the amount of revenue actually collected or otherwise received. No special-fund agency or general-fund agency shall make expenditures from special funds available to such agency unless such expenditures are set forth in a budget approved by the Legislature. Such legislative approval shall be set forth in an appropriation act. Provided, however, that special funds derived from the collection of taxes for any political subdivision of the state shall be excepted from the foregoing provisions. The executive head of the state agency shall be liable on his official bond for expenditures or encumbrances which exceed the total amount of the budget or the amount received if receipts are less than the approved budget. Provided, however, that each university and college shall submit through the Board of Trustees of State Institutions of Higher Learning an annual budget to the Executive Budget Office prior to the beginning of each fiscal year with such information and in such form, and in such detail, as may be required by the Executive Budget Office. If the Executive Budget Office determines that sufficient funds will be available during the fiscal year to fund the proposed budget as submitted, then and in that event the proposed budget shall be approved. However, if the Executive Budget Office determines that, in its judgment, sufficient funds will not be available to fund the proposed budget, the affected institution or institutions and the Board of Trustees of State Institutions of Higher Learning shall be promptly notified and given an opportunity to either justify the proposed budget or proposed amendments which can be mutually agreed upon. The Executive Budget Office shall then approve the proposed budget or budgets of the several universities and colleges. The total amount approved for each institution shall constitute the maximum funds which may be expended during the fiscal year. The municipal, county or combined municipal and county port and harbor commissions, authorities or other port or harbor agencies not owned or operated by the state, shall submit annual or amended budgets of their estimated receipts and expenditures to the governing bodies of such municipality, county or municipality and county, for their approval, and a copy of such budget as approved by such governing body or bodies shall be filed with the Executive Budget Office. Such budget shall itemize all estimated receipts and expenditures, and the Executive Budget Office may require particularization, explanation or audit thereof, and shall report such information to the Legislature. To the end that the overall budget shall present in comparable terms a complete summary of all financial operations of all state agencies, Part 3 of such overall budget shall consist of an estimated preliminary annual budget of the Department of Transportation and the Division of State Aid Road Construction of the Department of Transportation and such information for the current fiscal year as is necessary to make presentation comparable to that specified for Part 2 special-fund agencies. The annual budget request of the Department of Transportation shall be divided into the following program budgets: (i) administration and other expenses, (ii) construction, (iii) maintenance, and (iv) debt service. In making its annual appropriation to the Department of Transportation from the State Highway Fund, the Legislature shall separate the appropriation bill into the four (4) program budget areas herein specified. For the purposes of this paragraph, "administration and other expenses" shall be construed to mean those expenses incurred due to departmental support activities which cannot be assigned to a specific construction or maintenance project, and shall be construed to include expenses incurred for office machines, furniture, fixtures, automobiles, station wagons, trucks and other vehicles, road machinery, farm equipment and other working equipment, data processing and computer equipment, all other equipment and replacements for equipment. "Construction" shall be construed to mean those expenses associated with the creation and development of the state highway system and its related facilities; "maintenance" shall be construed to mean those expenses incurred due to activities associated with preservation of safe and aesthetically acceptable highways in an attempt to maintain them in as close to the original condition as possible; and "debt service" shall be construed to mean amounts needed to pay bonds and interest coming due, bank service charges and bond debt service.
SECTION 12. The following provision shall be codified as Section 27-103-181, Mississippi Code of 1972:
27-103-181. If any officer or employee of any state agency whose duty it is to do so shall refuse or fail to file a budget request with such information and in such form and in such detail and within such time as the Executive Budget Office may require in the exercise of its authority, the director shall prepare and file, or cause to be prepared and filed, a budget request for such agency, and the expense thereof shall be personally borne by said officer or employee, and he or she shall be responsible on his or her official bond for the payment of the expense; provided that a negligently prepared budget shall be considered as a refusal or failure under the provisions of this section. The records of the Executive Budget Office and the overall budget submitted by it to the Legislature shall clearly identify and set forth all the facts relative to any agency budget request prepared by the director under the authority of this section.
SECTION 13. The following provision shall be codified as Section 27-103-183, Mississippi Code of 1972:
27-103-183. The Director of the Executive Budget Office, in person or by assistant, may visit such state agencies as he deems necessary to obtain information as to the needs or requirements thereof and may hold hearings at such place or places as may be designated for such purpose.
SECTION 14. The following provision shall be codified as Section 27-103-185, Mississippi Code of 1972:
27-103-185. (1) At such regular or special times and on such forms as the Executive Budget Office may require, every tax or fee-collecting or other revenue-producing agency shall furnish the Executive Budget Office with complete and detailed information as to the amount of revenue collected or otherwise received by it during the then current fiscal year, together with an estimate of the revenue that is anticipated for such succeeding periods as the Executive Budget Office may require.
(2) At such regular or special times and on such forms as the State Fiscal Officer may require, every tax or fee-collecting or other revenue-producing agency shall furnish the State Fiscal Officer with complete and detailed information as to the amount of revenue collected or otherwise received by it during the then current fiscal year, together with an estimate of the revenue that is anticipated for such succeeding periods as the board may require. The information required to be furnished under this section shall include all revenues from every fee, penalty, tax, assessment or other charge levied, whether authorized by law or not, and shall further include an itemized statement by the agency of the costs of services for which fees are charged, comparing the costs with revenues generated by the fees, and copies of said information shall be furnished to the Legislative Budget Office.
(3) The State Fiscal Officer shall review the information so furnished and report to the Legislature any fees which do not appear to be reasonably calculated to recover the costs of services for which such fees are charged, and any fees which are collected without legal authority.
SECTION 15. The following provision shall be codified as Section 27-103-187, Mississippi Code of 1972:
27-103-187. The Executive Budget Office shall hold such hearings as may be necessary to determine the actual budget requirements of the agencies jointly and in conjunction with the Joint Legislative Budget Committee. Such budget hearings shall be coordinated and held at the same time, to the extent that this is practicable. The Executive Budget Office shall have made a sufficient number of copies of its proposed budget in order that the data contained therein will be available to the members of the Legislature for consideration, and to provide a copy for each state agency included in the budget proposal, and shall forward a copy to each member or member-elect of the Legislature and to each state agency on or about December 15 of each year.
SECTION 16. Section 27-103-101, Mississippi Code of 1972, is amended as follows:
27-103-101. (1) There is created the Joint Legislative Budget Committee and the Legislative Budget Office which shall be governed by such committee. The joint committee shall be composed of the following members: The Chairman of the Senate Finance Committee, the President Pro Tempore of the Mississippi State Senate, the Lieutenant Governor of the State of Mississippi, the Chairman of the Senate Appropriations Committee and three (3) members of the Senate to be named by the Lieutenant Governor; the Chairman of the Ways and Means Committee of the House of Representatives, the Chairman of the Appropriations Committee of the House of Representatives, the Speaker of the House of Representatives and four (4) members of the House of Representatives to be named by the Speaker of the House. In the event any ex officio member of the joint committee holds two (2) positions entitling him to membership on the committee, the Lieutenant Governor or the Speaker of the House, as the case may be, shall appoint another member of the respective house to membership on the committee. The chairmanship shall alternate for twelve-month periods between the Speaker of the House of Representatives and the Lieutenant Governor, with the Speaker of the House of Representatives serving as the first chairman. In the absence of the Chairman of the Senate Finance Committee, Senate Appropriations Committee, House Appropriations Committee and Ways and Means Committee, the vice chairman of any such committee shall be entitled to attend; if the vice chairman is unable to attend or if an appointed member is unable to attend, another legislator may be designated to attend by the Lieutenant Governor or the Speaker of the House, as the case may be. If the Lieutenant Governor or Speaker of the House is unable to attend a meeting, he may designate a legislator to substitute for him at that meeting. If the President Pro Tempore of the State Senate is unable to attend a meeting, the Lieutenant Governor shall designate a member of the Senate to substitute for him at that meeting. Any proxy shall have a vote at the meeting he was selected to attend and also shall, when attending, receive compensation and expenses in the same manner and amount as regular members of the joint committee.
There shall be no business transacted, including adoption of rules of procedure, without the presence of a quorum of the joint committee. A quorum shall be eight (8) members, to consist of four (4) members from the Senate and four (4) members from the House of Representatives. No action shall be valid unless approved by the majority of those members present and voting, entered upon the minutes of the joint committee and signed by the chairman and vice chairman. All actions of the joint committee shall be approved by at least four (4) Senate members and four (4) House members.
As used in Sections 27-103-101 through 27-103-139, the term "committee" shall mean the Joint Legislative Budget Committee.
(2) The members of the committee shall receive, in addition to other compensation due them, per diem as is authorized by law for their services in carrying out the duties of the committee and, in addition thereto, shall receive a daily expense allowance equal to the maximum daily expense rate allowable to employees of the federal government for travel in the high rate geographical area of Jackson, Mississippi, as may be established by federal regulations, including mileage as authorized by Section 25-3-41, the same to be paid from the operating budget of the Legislative Budget Office. However, in no case shall the members of the committee draw per diem while the Legislature is in regular or special session.
(3) The committee may meet at least once each month; and the chairman or director may call additional meetings at such times as they deem necessary or advisable.
(4) The Legislative Budget Office shall, upon the request of a member or member-elect of the Senate or House of Representatives, make available one (1) copy of data, reports, fiscal information or related information submitted to the budget office by any general or special fund agency, whether submitted in support of its budget request or pursuant to any requirement of law or rule of the budget committee or office.
(5) All expenses incurred by and on behalf of the committee shall be paid from funds appropriated therefor, or from a sum to be provided in equal portion from the contingency funds of the Senate and House of Representatives or from transfers of funds as provided in Section 7-13-7.
SECTION 17. Section 27-103-103, Mississippi Code of 1972, is amended as follows:
27-103-103. (1) For the purpose of Sections 27-103-101 through 27-103-187 and 27-104-1 through 27-104-27, the term "state general-fund agency" or "general-fund agency" shall mean any agency, department, institution, board or commission of the State of Mississippi which is supported in whole or in part by appropriations from the General Fund; but such term shall not include the Legislature.
(2) For the purposes of Sections 27-103-101 through 27-103-187 and 27-104-1 through 27-104-27, the term "state special-fund agency" or "special-fund agency" shall mean any agency, department, institution, board or commission of the State of Mississippi which receives no appropriation from the General Fund, but which is supported entirely from special-fund sources, by appropriation, or otherwise, but such term shall not include the State Highway Department; nor shall such term include the Mississippi Industries for the Blind.
(3) For the purposes of Sections 27-103-101 through 27-103-187 and 27-104-1 through 27-104-27, the term "state agency" shall mean any general-fund agency or special-fund agency as defined in this section, or the State Highway Department, or the Division of State Aid Road Construction of the State Highway Department as is evident from the context wherein it is used.
(4) For the purposes of Sections 27-103-101 through 27-103-187 and 27-104-1 through 27-104-27, the term "special funds" shall mean all revenues and/or income other than appropriations from the State General Fund which are received, collected by, or available for the support of or expenditure by any state general-fund agency or special-fund agency or the State Highway Department or the Division of State Aid Road Construction of the State Highway Department, whether such funds be derived from taxes or fees collected by or for such general-fund agency or special-fund agency or the State Highway Department or the Division of State Aid Road Construction of the State Highway Department, as the case may be, or from any other types of revenue from any other source.
(5) For the purposes of Sections 27-103-101 through 27-103-187 and 27-104-1 through 27-104-27, the term "special funds" shall include revolving funds and all funds received from the United States Government by any state general-fund agency or special-fund agency, but shall not include any revolving fund established prior to July 1, 1984, for the purpose of paying or retiring any indebtedness as is authorized by statute.
SECTION 18. This act shall take effect and be in force from and after July 1, 2007.