Budget Overview
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Budget Powers in the Florida Constitution
The Legislature: The budget is product of the Legislature. Florida's
Constitution gives the Legislature the exclusive power to appropriate state
funds (Article VII, Section 1.(c)).
The Governor: The Constitution designates the Governor as the “... chief
administrative officer of the state responsible for the planning and
budgeting of the state.” (Article IV, Section 1.(a)).
The Chief Financial Officer: The chief financial officer shall serve as the
“chief fiscal officer of the state and shall settle and approve accounts
against the state, and shall keep all state funds and securities.” (Article IV,
Section 4(c)).
Constitution Requires Balanced Budget: “Provision shall be made by
law for raising sufficient revenue to defray the expenses of the state for
each fiscal period.” (Article 7, Section 1(d)) See section 216.221 (1),
Florida Statutes.
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Fund Segregation
 General Revenue - Consists of all monies received by the state
not earmarked by law for a specific purpose. The balance of
funds in the General Revenue Fund which is in excess of the
amount needed to meet General Revenue Fund appropriations
for the current fiscal year is known as the “working capital
balance”.
 Trust Funds - Consist of moneys received by the state which
under law or under trust agreement are segregated for a
purpose authorized by law.
 Budget Stabilization Fund - Consists of monies set aside
equaling five percent of the General Revenue Fund. It is
required by the Constitution and can only be used to cover
General Revenue shortfalls and emergencies.
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Primary Funding Sources
General Revenue
Trust Funds
 State tax revenues
 Monies that are
available for any
use
 These are the
revenues that
programs compete
for and the
Legislature must
allocate between
programs
earmarked by law for
specific purposes
Both have revenues that
are recurring and
non-recurring
 Legislature has little
discretion in allocating
among programs,
unless the law is
changed
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Developing the Budget
Agency LBR
- Independent Judgment
Governor’s Recommended Budget
- A Balanced Budget Recommendation
based on the Governor’s Priorities
General Appropriations Act – A Balanced Budget
Based on Negotiations between the House and Senate
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How much can we spend on our budget?
CONSENSUS ESTIMATING CONFERENCES
MAJOR PROJECTIONS
DEVELOPED BY CONFERENCES
Governor
Develop
agreed-upon
projections for
certain
revenues and
caseload/
workload data


House


Senate
Office of Economic and
Demographic Research


Amount of General Revenue
available for appropriations;
Amount of Lottery funds
available for appropriations;
Number of children to be
enrolled in public schools;
Caseload and expenditures for
Medicaid;
Amount of Public Education
Capital Outlay (PECO) funds;
Number of prisoners.
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Agency Legislative Budget Request
 By October 15, Agencies
provide the Legislature and
Governor with a Legislative
Budget Request (LBR),
reflecting each agency head’s
independent assessment of
needs.
 As early as October, the Senate
and House Appropriations
Committees begin developing
their respective budget
proposals.
 Committees hold hearings
and workshops in which
agencies and advocates
request funding.
Agency
Legislative Budget
Request
SENATE
HOUSE
GOV
Budget Workshops
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Governor’s Recommended Budget
 30 days prior to the
Legislative Session, the
Governor submits his
recommended budget.
 The Governor’s budget
must be balanced within
available revenues or
must include
recommendations to
increase revenues to
sufficiently fund his
budget
recommendations.
Agency
Legislative Budget
Request
SENATE
HOUSE
Budget Workshops
GOV
Governor’s
Recommended
Budget
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House and Senate Budget Proposals

Prior to the Legislative Session, the
Appropriations committees are
given the policy guidelines and a
funding allocation.
 The committees proceed to
develop a budget proposal
which funds specific programs
that fall within those guidelines
and allocations.
 Next, the proposed
appropriations acts are
considered by both the Senate
and House.
 Since the Senate and House
Appropriations bills are never
identical, nor is there usually full
agreement on the policy
underlying their development, a
Conference Committee is
appointed to hammer out a
compromise appropriations bill.
Agency
Legislative Budget
Request
SENATE
HOUSE
Budget Workshops
Proposed
Senate Bills
Proposed
House Bills
Senate Bill
House Bill
GOV
Governor’s
Recommended
Budget
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The Conference Report
 The Conference Committee
consists of Senate members
appointed by the President and
House members appointed by
the Speaker.
 The compromise appropriations
bill is known as the Conference
Report.
 The Report may not be
amended by the
membership of the Senate
or House, only accepted or
rejected.
 The Constitution requires a
72-hour waiting period
between distribution of a
General Appropriations Bill
Conference Report and its
final passage.
Agency
Legislative Budget
Request
SENATE
HOUSE
Budget Workshops
Proposed
Senate Bills
Senate Bill
GOV
Governor’s
Recommended
Budget
Proposed
House Bills
House Bill
Conference
Report
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Budget Amendment Process –
“The daily deal” - 216 actions
 Agencies are authorized to amend their
budgets based on need or unforseen
circumstances throughout the fiscal year;
 Authorizing entities based on the type of
action requested are:



Agency Head
Governor or Chief Justice
Legislative Budget Commission (LBC)
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The Budget “Make-Up”
PROGRAM: HEALTH CARE REGULATION
General Appropriations Act Line Item
250
HEALTH CARE REGULATION
APPROVED SALARY RATE
28,322,629
Line Item Proviso
250
This is what you see in the GAA:
1.
Program
Budget Entity
•
Service
2.
Approved Salary Rate
3.
Appropriation Category (Positions)
4.
Funds
POSITIONS
652.00
FROM GENERAL REVENUE FUND . . . . . . . .
1,849,876
FROM HEALTH CARE TRUST FUND . . . . . . .
33,885,318
FROM ADMINISTRATIVE TRUST FUND . . . . .
1,175,965
FROM FLORIDA ORGAN AND TISSUE DONOR
EDUCATION AND PROCUREMENT TRUST FUND .
BE: 68700700
IC: 1001000
This is “behind the scene” in LAS/PBS:
1.
Budget Entity
2.
Program Component
3.
D-3A Issue
4.
Appropriation Category
5.
Fund
6.
Funding Source Identifier
SALARIES AND BENEFITS
HEALTH CARE REGULATION
PC: 1204010000 FACILITY REGULATION
ESTIMATED EXPENDITURES - OPERATIONS
IOE APPROPRIATION CATEGORY
REC TYPE
A 000000 SALARY RATE
6 RATE ____
A 010000 SALARIES AND BENEFITS
______
80,302
FUND
COLUMN G57
ACT
APPR(1)
FSI FY 2007-08
_
24,392,670
1$
1000 GENERAL REVENUE FUND
1
768,377
1$
1000 GENERAL REVENUE FUND
2
538,472
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The State’s Ledgers
 Appropriations and Positions Ledgers
- Appropriations and Positions that are authorized in
the General Appropriations Act and in substantive
bills are maintained in an “official” ledger.
- Ledger adjustments are made based on the
Governor’s veto and through-out the fiscal year for
any approved budget and position amendments.
- These ledgers set the annual budget and
authorize positions for state agencies.
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Other Legal Authorities Impacting the
Budgetary Process
 The Florida Constitution
 Governor’s Executive Orders


State of Emergency
Creation of Task Forces, Boards, etc.
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