72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 1834
 
                         House Bill 2531
 
Sponsored by Representative NELSON
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Requires overhead to be shown as separate item in budget
report. Prohibits Governor from recommending and Legislative
Assembly from approving agency budget that authorizes expenditure
of more than 15 percent of budget for overhead.
 
                        A BILL FOR AN ACT
Relating to state agency budgets; creating new provisions; and
  amending ORS 291.206 and 291.216.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 291.206 is amended to read:
  291.206. (1) The Governor shall prescribe such rules and
regulations as the Governor deems necessary for the guidance of
agencies in the preparation of the budget estimates and
requests. The Governor, with the approval of the Secretary of
State, shall prepare and prescribe classifications of
expenditures and revenue for the purpose of budget-making and
accounting. { +  In preparing classifications of expenditures,
the Governor shall include overhead as a separate classification
and shall specify what expenditures are classified as
overhead. + }
  (2) In so far as practicable, agency budget estimates and
requests and appropriation measures shall be prepared in a manner
that reflects state governmental organization and state agency
duties, functions and powers under the law in effect on January 1
of the following year. The Oregon Department of Administrative
Services shall maintain agency budget estimates and requests in
the form in which they are submitted.
  SECTION 2. ORS 291.216 is amended to read:
  291.216. (1) Not later than November 10 of each even-numbered
year the Governor shall cause the budget report to be compiled
and prepared for printing.
  (2) The budget report shall include a budget message prepared
by the Governor, including recommendations of the Governor with
reference to the fiscal policy of the state government for the
coming biennium, describing the important features of the budget
plan, embracing a general budget summary setting forth the
aggregate figures of the budget report so as to show a balanced
relation between the total proposed expenditures and the total
anticipated income, with the basis and factors on which the
estimates are made, the amount to be borrowed, and other means of
financing the estimated expenditures for the ensuing biennium,
compared with the corresponding figures for at least the last
completed biennium and the current biennium.
  (3) The budget plan shall be supported by explanatory schedules
or statements, classifying the expenditures reported therein,
both past and proposed, by organization units, objects and funds,
and the income by organization units, sources and funds, and the
proposed amount of new borrowing as well as proposed new tax or
revenue sources, including a single comprehensive list of all
proposed increases in fees, licenses and assessments assumed in
the budget plan.
  (4) The budget plan shall be submitted for all dedicated funds,
as well as the state General Fund, and shall include the
estimated amounts of federal and other aids or grants to state
agencies or activities provided for any purpose whatever,
together with estimated expenditures therefrom.
  (5) The budget report shall embrace the detailed estimates of
expenditures and revenues. It shall include statements of the
bonded indebtedness of the state government, showing the actual
amount of the debt service for at least the past biennium, and
the estimated amount for the current biennium and the ensuing
biennium, the debt authorized and unissued, the condition of the
sinking funds and the borrowing capacity. It shall contain the
Governor's recommendations concerning tax expenditures identified
under ORS 291.214. It shall also contain any statements relative
to the financial plan which the Governor may deem desirable or
which may be required by the legislature.
  (6) The budget plan shall use the estimated revenues under ORS
291.342 for the fiscal year in which the plan is submitted as the
basis for total anticipated income under subsection (2) of this
section, subject to such adjustment as may be necessary to
reflect accurately projections for the next biennium.
  (7) As supplemental information to the budget report, the
Governor shall publish an existing level tentative budget plan
for the two fiscal years for which the budget report is required.
This summary budget shall reflect only existing revenues
estimated under subsection (6) of this section; subject to such
adjustment as may be necessary to reflect accurately projections
for the next biennium. The supplemental information to the budget
report shall be submitted at the same time as the budget report.
  (8)(a) The budget report shall present information regarding
the expenses of the state in the following categories:
  (A) Personnel expenses, including compensation and benefits for
state employees, but excluding costs of services contracted out
and temporary service costs.
  (B) Supplies, equipment and the costs of services contracted
out.
  (C) Capital construction.
  (D) Capital outlay.
  (E) Debt service.
   { +  (F) Overhead expenses, defined and stated separately for
each agency. + }
  (b) For each category described in paragraph (a) of this
subsection, the report shall show actual expenditures to date.
  (c) For each category described in paragraph (a) of this
subsection, the report shall show { + , as appropriate + }:
  (A) The amount of merit increases for the existing workforce.
  (B) Increases for the cost of replacement and repair of
supplies and equipment.
  (C) Increases for the costs of new construction or major
remodeling.
  (D) Increases for the cost of inflation.
  (d) The report shall show the total increase in the cost of
salaries and benefits for all state positions.
  (9) The budget report shall include:
  (a) The total number of positions included in the budget.
  (b) The average vacancy rate in the present biennium.
  (c) The number of permanent, full-time equivalent vacancies,
excluding academics, as of July 1 of even-numbered years.
  (10) The budget report shall include computations showing
budget figures as a percentage of the total General Fund, federal
fund, fee or other source category, as may be appropriate.
  (11) The budget report shall include, in a format that provides
side-by-side comparison with the State Debt Policy Advisory
Commission report of net debt capacity, a six-year forecast, by
debt type and repayment source, of:
  (a) That portion of the capital construction program required
to be reported by ORS 291.224 that will be financed by debt
issuance.
  (b) The acquisition of equipment or technology in excess of
$500,000 that will be financed by debt issuance.
  (c) Other state agency debt issuance for grant or loan
purposes.
  (12) As supplemental information to the budget report, the
Governor shall prepare an alternative budget plan for the two
fiscal years for which the budget report is required and shall
provide the alternative budget plan to the President of the
Senate, the Speaker of the House of Representatives and the
majority and minority leaders in the Senate and the House of
Representatives. The alternative budget plan shall establish
funding for each state agency's programs and activities at 90
percent of the appropriations requested for the state agency in
the budget report, excluding appropriations that are not made to
fund recurring activities. For each state agency, the Governor
shall describe the 10 percent reduction in appropriated moneys in
terms of the activities or programs that the agency will not
undertake. The activities or programs that are not undertaken as
a result of the reductions in appropriated moneys made in the
alternative budget plan shall be ranked in order of importance
and priority on the basis of lowest cost for benefit obtained.
  SECTION 3.  { + Section 4 of this 2003 Act is added to and made
a part of ORS 291.201 to 291.222. + }
  SECTION 4.  { + (1) The budget recommended by the Governor may
not include authorization for overhead expenditures for any state
agency of more than 15 percent of the total recommended budget
for the agency.
  (2) The budget approved by the Legislative Assembly may not
include authorization for overhead expenditures for any state
agency of more than 15 percent of the total approved budget for
the agency. + }
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