HB1684 (2010) Detail

Requiring an annual state operating budget.


HB 1684-FN – AS INTRODUCED

2010 SESSION

10-2316

10/03

HOUSE BILL 1684-FN

AN ACT requiring an annual state operating budget.

SPONSORS: Rep. Campbell, Hills 24

COMMITTEE: Finance

ANALYSIS

This bill requires the adoption of the state operating budget on an annual basis rather than biennially.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

10-2316

10/03

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Ten

AN ACT requiring an annual state operating budget.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Budget; Transmission to Legislature. Amend RSA 9:2 to read as follows:

9:2 Transmission to the Legislature. Not later than February 15 of [the] each year[of each biennial legislative session], the governor shall transmit to the legislature a document to be known as a budget setting forth the governor’s financial program for [each of the fiscal years of] the ensuing [biennium] fiscal year and having the character and scope hereinafter set forth.

2 Budget Form and Contents. Amend RSA 9:3 to read as follows:

9:3 Form and Contents. The budget shall consist of 3 parts, the nature and contents of which shall be as follows:

I. Part I shall consist of the governor’s budget message, which shall set forth:

(a) The governor’s program for meeting all the expenditure needs of the government for [each of the years of the biennium] the fiscal year to which the budget relates, indicating the classes of funds, general or special, from which such appropriations are to be made and the means through which such expenditures shall be financed;

(b) Financial statements giving in summary form:

(1) The condition of the treasury at the end of the last completed fiscal year, the estimated condition of the treasury at the end of the year in progress, and the estimated condition of the treasury at the end of each of the [2 years] year to which the budget relates if the budget proposals are put into effect;

(2) Statements showing the bonded indebtedness of the state, debt authorized and unissued, debt redemption and interest requirements, and condition of the sinking funds, if any;

(3) A summary of appropriations recommended for [each of the years of the biennium] the fiscal year to which the budget relates for each department and for the state as a whole in comparison with actual expenditures for the last completed fiscal year and estimated expenditures for the year in progress;

(4) A summary of the revenue estimated to be received by the state during [each of the 2 years of the biennium] the fiscal year to which the budget relates, classified according to sources in comparison with the actual revenue received by the state during the last completed fiscal year and estimated income during the year in progress; and

(5) Such other financial statements, data, and comments as in the governor’s opinion are necessary or desirable in order to make known in all practicable detail the financial condition and operations of the state and the effect that the budget as proposed will have on such condition and operations.

(6) [Repealed.]

(c) If the estimated revenues of the state for the ensuing [biennium] fiscal year as set forth in the budget on the basis of existing laws, plus the estimated amounts in the treasury at the close of the year in progress available for expenditure in the ensuing [biennial period] fiscal year is less than the aggregate recommended for the ensuing [biennial period] fiscal year as contained in the budget, the governor shall make recommendations to the legislature in respect to the manner in which such deficit shall be met, whether by an increase in the state tax or the imposition of new taxes, increased rates on existing taxes, or otherwise; and if the aggregate of such estimated revenues, plus estimated balances in the treasury is greater than such recommended appropriations for the ensuing [biennial period] fiscal year, the governor shall make such recommendations in reference to the application of such surplus to the reduction of debt or otherwise, to the reduction in taxation, or to such other action as in the governor’s opinion is in the interest of the public welfare. The governor’s operating budget shall not use bonded indebtedness to fund operating appropriations. Nothing contained herein shall prohibit the use of projected lapses in determining compliance with this section.

II. Part II shall present in detail recommendations for appropriations to meet the expenditure needs of the state from each general class of funds, classified by departments, and indicating for each the appropriations recommended for meeting the cost of administration, operation, and maintenance of such departments.

III. Part III shall embrace a draft or drafts of appropriation bills having for their purpose to give legal sanction to the appropriations recommended to be made in parts I and II. Such appropriation bills shall indicate the funds, general or special, from which such appropriations shall be paid, but such appropriations need not be in greater detail than to indicate the total appropriation to be made for administration, operation, and maintenance of each department for [each] the fiscal year [of the biennium].

III-a. The governor shall comply with RSA 9:9-b in the formulation of the budget [for the ensuing biennium].

IV. The budget shall be available in printed format and at least one electronic computer file format in common use at the time.

3 Capital Budget Requests. Amend RSA 9:3-a to read as follows:

9:3-a Capital Expenditure Requests. Prior to the adoption of the 6-year capital budget, the requests for appropriation of funds shall be as follows:

I. All departments seeking funds for capital expenditures shall submit their requests to the commissioner of administrative services no later than [the] May 1 [before the opening of the biennial legislative session]. Requests shall be made on forms supplied by the commissioner of administrative services. Each request shall list estimates of the costs of land, construction, furnishings, and equipment and shall identify projects which are expected or planned to require funding in subsequent [bienniums] fiscal years of the 6-year capital budget in order to be completed. In addition, each request shall include the square footage, estimates of annual operating and maintenance costs, program descriptions, and number of people involved.

II. The commissioner of administrative services shall submit a summary of the requests and any supporting detail to the governor by May 31.

III. The governor shall hold public hearings on the requests no later than June 30. The governor may require officials of those departments submitting requests to attend and testify.

IV. There shall be a governor’s advisory committee on the capital budget consisting of the following, or their designees: commissioner of administrative services, administrator of the bureau of public works design and construction in the division of plant and property management, department of administrative services, chairperson of the senate capital budget committee, and chairperson of the house public works and highway committee. Members of the advisory committee may attend the hearings on capital budget requests, question those testifying, and contribute their opinions.

V. The governor shall select those projects which the governor considers worthy of further evaluation, and send the requests for the selected projects to the commissioner of administrative services no later than August 1. The governor may hold additional hearings on capital requests at the time of the operating budget hearings. If any additional hearing is held after an election day, the governor shall invite the governor-elect to attend.

VI. The department of administrative services through its bureau of public works design and construction shall prepare schematic drawings, cost estimates, and program descriptions and the commissioner of administrative services shall present these, along with any recommendations, to the governor no later than December 1.

VII. The governor shall submit the capital budget to the general court no later than February 15 [of each odd numbered year]. The capital budget submitted shall identify all projects which are expected or planned to require funding in the [first biennium] ensuing fiscal year and in subsequent [bienniums] years of the 6-year capital budget in order to be completed.

4 Review of Capital Budget. Amend RSA 9:3-b to read as follows:

9:3-b Review and Update of Capital Budget. [In the first year of each biennium] The legislature shall review the 6-year capital budget and update the extended projects, and may approve new projects over the next 6 years. The general court intends that once a capital budget project has been approved it shall be funded through each phase of the project unless some extreme and significant event makes further funding inappropriate.

5 Expenditure Requests. Amend RSA 9:4 to read as follows:

9:4 Requests for Appropriations and Statement of Objectives.

I. On or before each October 1 [prior to each biennial legislative session], all departments of the state shall transmit to the commissioner of administrative services, on blanks to be furnished by the commissioner, estimates of their expenditure requirements for [each] the ensuing fiscal year [of the ensuing biennium] for administration, operation, maintenance expenditure, and program services, including costs for workers’ compensation and unemployment compensation. In case of the failure of any department to submit such estimates within the time above specified, the commissioner of administrative services shall cause to be prepared such estimates for such department as in the commissioner’s opinion are reasonable and proper.

II. In this section “maintenance expenditure” means:

(a) The cost of providing the same level of service authorized and funded in the preceding fiscal year, incorporating changes in the population, economic conditions, and other factors outside the control of the PAU. The governor shall provide criteria for the development of maintenance expenditures which may include the following:

(1) Any increases or decreases in the cost of purchased goods or services due to general price changes in the economy at large;

(2) Salary steps within grade;

(3) New positions necessary to provide the same level of service;

(4) Additional operating costs associated with previously authorized capital improvement projects to be completed during the [biennium] ensuing fiscal year;

(5) Reductions for non-recurring costs of the prior fiscal year.

(b) The maintenance level shall not include new programs or changes in the kind, quantity, or quality of service when the change is at the agency’s discretion or is the result of changes in federal or state law or regulation.

(c) Within the meaning of this section, the governor shall make the final determination as to whether a particular cost shall be deemed to be a maintenance expenditure.

6 Information Technology Plan. Amend RSA 9:4-b to read as follows:

9:4-b Information Technology Plan. Each executive department, with the necessary assistance of the chief information officer, shall prepare an information technology plan and submit it to the information technology council. The portion of each plan which addresses the upcoming [biennium] fiscal year shall define the capital and operating budgets necessary for implementing the plan. The budget data in the information technology plan shall provide for both new information technology initiatives and existing operations and shall be consistent with the budget data submitted under RSA 9:4 and 9:4-a. In the case of the failure of any executive department to submit an information technology plan, the chief information officer shall cause a plan to be prepared as in his or her opinion is reasonable and proper. Each information technology plan shall identify a process for collaborative involvement of stakeholders representing other levels of government within the state in the development, design, and deployment of information technology systems that involve or impact such other political subdivisions of the state.

7 Highway Fund Requests. Amend RSA 9:4-d, I to read as follows:

I. On or before each October 1 [prior to each biennial legislative session], all departments of the state, except the department of transportation, and the judicial branch requesting appropriations from the highway fund shall transmit to the commissioner of administrative services, on blanks to be furnished by the commissioner, appropriate program measures which support the use of highway funds being requested. This data shall reflect the volume of activity within each PAU directly related to highway activity.

8 Estimates of Income. Amend RSA 9:5, I to read as follows:

I. On or before each October 1 [next prior to each biennial legislative session], the commissioner of administrative services shall prepare an estimate of the total income of the state for [each] the ensuing fiscal year [of the ensuing biennium], in which the several items of income shall be listed and classified according to sources or character, departments or establishments producing said funds and brought into comparison with the income actually received during the last completed fiscal year, and the estimated income to be received during the year in progress.

9 Formulation of Budget. Amend RSA 9:8 to read as follows:

9:8 Formulation of the Budget. Following his or her inauguration, the governor shall proceed to the formulation of the budget provided for by RSA 9:2 and [3RSA 9:3. In doing so [he] the governor shall give such weight to the estimates of income as prepared by the commissioner of administrative services and to the estimates of expenditure requirements as submitted by the departments and to the testimony elicited at the hearings thereon as he or she deems proper, but the proposals contained in the budget shall represent [his] the governor’s judgment and recommendations in respect to the provision to be made for meeting the revenue and expenditure needs of the state for [each of the fiscal years of] the ensuing [biennium] fiscal year.

10 Adoption of Annual Budget. Amend RSA 9:8-b to read as follows:

9:8-b Adoption of Operating Budget. The general court shall not adopt an operating budget for any fund, or any other legislation which provides for appropriations, which exceed the state’s total estimated revenues from existing, increased, or new taxes, fees, operating income, and other sources. If the estimated revenues of the state for the ensuing [biennium] fiscal year as set forth in the budget on the basis of existing laws, plus the estimated amounts in the treasury at the close of the year in progress available for expenditure in the ensuing [biennial period] fiscal year is less than the aggregate recommended for the ensuing [biennial period] fiscal year as contained in the budget, the general court shall adopt a budget in which such deficit shall be met, whether by an increase in the state tax or the imposition of new taxes, increased rates on existing taxes, or otherwise; and if the aggregate of such estimated revenues, plus estimated balances in the treasury is greater than such recommended appropriations for the ensuing [biennial period] fiscal year, the general court shall adopt a budget applying such surplus to the reduction of debt or otherwise, to the reduction in taxation, or to such other action as is in the interest of the public welfare. Such operating budget shall not use bonded indebtedness to fund operating appropriations. Nothing contained herein shall prohibit the use of projected lapses in determining compliance with this section.

11 Highway Fund Allocations; 2011 Version. Amend the introductory paragraph of RSA 9:9-b to read as follows:

For each fiscal year [of the biennium], gross highway fund appropriations net of highway block grant aid, shall be allocated in the operating budget as follows:

12 Highway Fund Allocations; 2013 Version. Amend the introductory paragraph of RSA 9:9-b to read as follows:

For each fiscal year [of the biennium], gross highway fund appropriations net of highway block grant aid, shall be allocated in the operating budget as follows:

13 Revenue Stabilization Reserve Account. Amend RSA 9:13-e to read as follows:

9:13-e Revenue Stabilization Reserve Account.

I. Notwithstanding the definition of “budget” in RSA 9:1, for purposes of this section the term “budget” means the operating budget in effect for the appropriate fiscal [biennium] year.

II. There is hereby established within the general fund general ledger a revenue stabilization reserve account. At the close of [the fiscal biennium ending June 30, 2001, and at the close of] each fiscal [biennium thereafter] year, any surplus, as determined by the official audit performed pursuant to RSA 21-I:8, [I(h)] II shall be transferred by the comptroller to a special nonlapsing revenue stabilization reserve account; provided, however, that in any [single] fiscal year the total of such transfer shall not exceed 1/2 of the total potential maximum balance allowable under paragraph V. The comptroller is hereby directed to establish the revenue stabilization reserve account in which to deposit any money received from a general fund operating budget surplus. The state treasurer shall invest funds in this account as authorized by RSA 6:8. The interest so earned shall be deposited as unrestricted general fund revenue.

III. In the event of a general fund operating budget deficit at the close of any fiscal [biennium] year as determined by the official audit performed pursuant to RSA 21-I:8, [I(h)] II, the comptroller shall notify the fiscal committee and the governor of such deficit and request that sufficient funds, to the extent available, be transferred from the revenue stabilization reserve account to eliminate such deficit. Such transfer may be made only when both of the following conditions have been met:

(a) A general fund operating budget deficit occurred for the most recently completed fiscal [biennium] year; and

(b) Unrestricted general fund revenues in the most recently completed fiscal [biennium] year were less than the budget forecast. The amount of said transfer shall not exceed a sum equal to the lower of the amount of the deficit in subparagraph (a) or the revenue shortfall in subparagraph (b). Upon receipt of approval from both the fiscal committee and the governor, the comptroller shall immediately transfer the sums so approved to the general fund surplus account.

IV. No available balance in the revenue stabilization reserve account shall be utilized for any purpose other than those authorized by paragraphs II and III, without the specific approval of 2/3 of each house of the general court and the governor.

V. If, after the requirements of paragraphs II-IV have been met and the balance remaining in the revenue stabilization reserve account is in excess of an amount equal to 10 percent of the actual general fund unrestricted revenues for the most recently completed fiscal year, then such excess shall be transferred, without further action, to the general fund surplus account.

14 Pease Development Authority; Operating Budget. Amend RSA 12-G:32 to read as follows:

12-G:32 Operating Budget. The authority shall comply with the requirements of RSA 9:1 through 9:9, relative to the budget. The authority shall include in its [biennial] estimate of the expenditure requirements of the division of ports and harbors a separate line item titled “Reimbursement to Pease Development Authority for Services” and request a reasonable estimated amount to cover such costs as necessary.

15 Pease Development Authority; Harbor Dredging and Pier Maintenance Fund. Amend RSA 12-G:46, II to read as follows:

II. The fund shall be nonlapsing and continually appropriated for the purposes of initiating and implementing harbor dredging projects and maintaining state-owned commercial piers. The authority shall, in each [biennium] fiscal year, request annual appropriations to the fund in an amount sufficient to provide for the funding of the authority’s periodic harbor dredging and pier maintenance efforts. The state treasurer shall invest the moneys deposited in the fund as provided by law. Interest earned on moneys deposited in the fund shall be deposited into the fund.

16 Commission of Alcohol and Drug Abuse Prevention. Amend RSA 12-J:4, II(h) to read as follows:

(h) [In even-numbered years] The report may include specific recommendations for funds to be included in the next state [biennial] budget to support alcohol and drug abuse prevention, intervention, and treatment services and programs.

17 Executive Branch Organization; Commissioners. Amend RSA 21-G:9, II(a) to read as follows:

(a) [Biennially] Annually compile a comprehensive program budget which reflects all fiscal matters related to the operation of the department and each program and activity of the department.

18 Corrections; Commissioner; Powers. Amend RSA 21-H:8, II(a) to read as follows:

(a) [Biennially] Annually compile a comprehensive program budget which reflects all fiscal matters related to the operation of the department and each program and activity of the department.

19 Division of Safety Services. Amend RSA 21-P:10-b, II to read as follows:

II. In conjunction with the operating budget of the department of safety, the department shall submit a budget [for the biennium beginning July 1, 2003, and] for each [biennium thereafter] fiscal year, which shall include financial responsibility for and the costs of all training and educational programs offered or contracted by the division of safety services, the revenue generated from safe boater education certificates, and all revenues and expenditures of the navigation safety fund established in RSA 270-E:6-a.

20 Division of Fire Standards and Training and Emergency Medical Services. Amend RSA 21-P:12-e, II to read as follows:

II. In conjunction with the operating budget of the department of safety, the department shall submit a budget [for the biennium beginning July 1, 2003, and] for each [biennium thereafter] fiscal year, which shall include financial responsibility for and the costs of all programs offered or contracted by the division of fire standards and training and emergency medical services and the division of fire safety, the development of technological advancements in division programs, the revenue generated from the sale of motor vehicle records, the extent of direct aid to municipalities and mutual aid associations, and all revenues and expenditures of the dedicated fund established in RSA 21-P:12-d.

21 Retirement System; Administration. Amend RSA 100-A:14, XIII to read as follows:

XIII. Administrative Cost Assessment. Other provisions of law notwithstanding, the cost of administration of the retirement system as provided in this section shall be a charge upon the funds of the retirement system. The amount of administrative expense recorded monthly by the department of administrative [service] services, division of accounting services, shall be paid to the state treasurer by the board of trustees. The board shall [biennially] annually review the administrative expenses for the previous [biennium] fiscal year and shall submit in a budget for legislative appropriation, those amounts that the board, in its reasonable discretion, may deem necessary for the efficient operation of the system. Administrative balances accrued prior to June 30, 2001 shall be retained by the retirement system and expended for ongoing operations.

22 Retirement System; Employer Contributions; State Budget. Amend RSA 100-A:16, III(a) to read as follows:

(a) On or before the first day of October next preceding each regular session of the state legislature, the board of trustees shall certify to the commissioner of administrative services the amounts which will become due and payable by the state during the [biennium] fiscal year next following to the retirement system and it shall be the duty of the commissioner of administrative services in preparing the executive budget for each ensuing [biennium] fiscal year to include in the budget the amounts so certified which amounts shall be appropriated by the legislature. The amounts so certified under this subparagraph shall include the unfunded accrued liability of the retirement system. The annual employer contribution requirements effective July 1, 2008 and as calculated each year thereafter shall not be less than the employee contribution rates under RSA 100-A:16, I(a).

23 Judicial Retirement Plan; Employer Contributions; State Budget. Amend RSA 100-C:13, IV to read as follows:

IV. State Contributions. On or before the first day of October preceding each regular session of the state legislature, the board of trustees shall certify to the commissioner of administrative services the amounts which will become due and payable by the state during the [biennium] fiscal year next following to the judicial retirement plan and it shall be the duty of the commissioner of administrative services in preparing the executive budget for each ensuing [biennium] fiscal year to include in the budget the amounts so certified which amounts shall be appropriated by the legislature. The amounts so certified under this paragraph shall include the unfunded accrued liability of the judicial retirement plan; provided, however, that if bonds are issued to fund or eliminate the unfunded accrued liability, the payments of principal and interest for the bonds or notes shall be made from the general fund.

24 Enhanced 911; Budget; Department of Safety. Amend RSA 106-H:6, VII to read as follows:

VII. In conjunction with the operating budget of the department of safety, the department shall submit a budget for each [biennium] fiscal year, which shall include financial responsibility for and the costs of all programs offered or contracted by the division of emergency services, communications, and management, and all revenues and expenditures of the dedicated fund established in RSA 106-H:9.

25 Medicaid Reimbursement Rates; Department of Health and Human Services. Amend RSA 126-A:18-b, II and III to read as follows:

II. On or before each October 1 [prior to each biennial legislative session] and prior to submitting the department’s budget request under RSA 9:4, the department of health and human services shall submit a report relative to the reimbursement rates, the methodologies underlying the establishment of such rates, and justifications for such rates to the speaker of the house of representatives, the senate president, the house clerk, the senate clerk, the state library, and the health and human services oversight committee established in RSA 126-A:13. The report also shall be used to formulate the department’s budget request under RSA 9:4.

III. In addition to the [biennial] report under paragraph II, the department of health and human services shall submit an annual report relative to Medicaid reimbursement rates to the health and human services oversight committee established in RSA 126-A:13. The report shall address any questions raised by the committee and shall summarize the department’s economic analysis and rate setting policy for the prior fiscal year and include any recommendations for the next fiscal year.

26 Early Care and Education Programs; Department of Health and Human Services. Amend RSA 170-E:50, II to read as follows:

II. The department of health and human services shall incorporate this program, funded by the fee established in paragraph I of this section, into the [next biennial] department budget [after the effective date of this section].

27 Milk Producers Emergency Relief Fund Board. Amend RSA 184:110, III to read as follows:

III. The board shall submit to the governor, the speaker of the house of representatives, and the president of the senate a report, no later than October 1 of each year, on the status of the milk producers emergency relief fund and the state of the milk industry. The report [in even-numbered years] shall include a request for any necessary appropriation in the next [biennium] fiscal year from the general fund. Any such appropriations shall be included in the department’s operating budget [for each biennium]. The first such report shall be submitted no later than October 1, 2008.

28 Regional Vocational Education Centers; Department of Education. Amend RSA 188-E:10, I(b) to read as follows:

(b) The commissioner of the department of education submits [on a biennial basis] annually in a capital budget request a priority list of facilities and programs eligible for renovation and expansion, provided that priority shall be given to programs that have been certified by an approved standard or that need additional funds to become certified by an approved standard;

29 Pre-Engineering Technology Curriculum; Department of Education. Amend RSA 188-E:14, IV to read as follows:

IV. The department of education, in coordination with the regional vocational education centers, shall include in its [biennial] capital budget request, funding for the planning, construction, and renovation of equipment necessary for the operation of pre-engineering technology curriculum in the public schools for students in grades 6 through 12.

30 Automotive Technology Curriculum; Department of Education. Amend RSA 188-E:18, IV to read as follows:

IV. When appropriate, the department of education shall include in its [biennial] capital budget request funding for the planning, construction, and renovation of equipment necessary for the operation of automotive technology curriculum in the regional vocational education centers.

31 Community College System. Amend RSA 188-F:6, VI and VII to read as follows:

VI. Prepare and adopt [a biennial] an operating budget for presentation to the governor and the general court. Each college within the community college system of New Hampshire and the chancellor’s office shall be considered a separate budgetary unit. The community college system of New Hampshire shall submit its budget in the same format and at the same time as other state agencies. All claims to be presented for the issuance of warrants submitted by the colleges and the system office of the community college system of New Hampshire shall be pre-audited by the community college system of New Hampshire, and such certification shall be sufficient evidence for the director of the division of accounting services to fulfill such responsibilities relative to the debt incurred by the community college system of New Hampshire.

VII. Prepare and adopt a [biennial] capital improvements budget for presentation to the governor and the general court.

32 School Building Aid. Amend RSA 198:15-e to read as follows:

198:15-e Proration and Unexpended Funds. If in any year, the amount appropriated for distribution as school building grants in accordance with RSA 198:15-b is insufficient therefor, grants for eligible construction work approved by the legislative body of the school district since the approval of the most recent state [biennial] budget shall be deferred and included in a request for a future appropriation, or partial grants may be made to the extent of the available appropriation. Any partial grant made shall be prorated proportionally among all districts with eligible construction work approved since the approval of the most recent [biennial] state budget. The department of education shall include any unpaid grant amounts in the next [biennial] budget or request a supplemental appropriation. If the amount appropriated is insufficient after deducting all grants approved since the approval of the most recent [biennial] budget, the appropriation shall be prorated proportionally among the districts entitled to a grant. [Any amounts not distributed in the first year of any biennium may be distributed in the second year if required to distribute the maximum amount permissible under RSA 198:15-a.]

33 New England Higher Education Compact. Amend RSA 200-A:5 to read as follows:

200-A:5 Certification to Postsecondary Education Commission. The New England Board of Higher Education shall certify to the postsecondary education commission on or before each October 1 [of the year preceding each legislative session] the amounts needed to carry out the purposes of RSA 200-A:4 for the coming [biennium] fiscal year. Upon such certification, the postsecondary education commission shall include such amounts in the budget request for its department. The sums appropriated by the legislature in accordance with the provisions of this subdivision shall be a continuing appropriation and shall not lapse.

34 State Park System; Cannon Mountain. Amend RSA 216-A:2, VII to read as follows:

VII. The director shall place an immediate emphasis within the division of parks and recreation, department of resources and economic development, on long-range planning and capital development at Cannon Mountain and prepare a capital budget for planning and design to be submitted annually by the commissioner to the general court [on a biennial basis].

35 Department of Transportation; Equipment Acquisition Plan. Amend RSA 228:24-c to read as follows:

228:24-c Replacement or Acquisition of Vehicles and Construction Equipment. The commissioner of transportation is directed to prepare an equipment acquisition plan each [biennium] fiscal year and present such plan with his or her budget requirements submitted in accordance with RSA 9:4.

36 Allied Health Professionals; Board of Directors. Amend RSA 328-F:12, I to read as follows:

I. The board of directors shall be responsible for preparing and submitting the [biennial] annual budget, setting fees, and allocating appropriated funds to each governing board.

37 Pesticides Training Program; Department of Agriculture, Markets, and Food. Amend RSA 430:31-b, IV to read as follows:

IV. In addition to or in conjunction with the operating budget of the department of agriculture, markets, and food, the department shall submit a budget for the [biennium beginning July 1, 2003, and for each biennium thereafter,] fiscal year which shall include financial responsibility for and the costs of all training and educational programs offered or contracted by the division of pesticide control, the development of technological advancements in division programs, the revenue generated from the pesticides training program, and all revenues and expenditures of the dedicated fund established in paragraph II of this section.

38 Judicial Conduct Commission; Executive Director. Amend RSA 494-A:3, II(c) to read as follows:

(c) Submitting budgets to be funded through general funds in the [biennial] operating budget.

39 Effective Date.

I. Section 12 of this act shall take effect July 1, 2013, at 12:01 a.m.

II. Section 11 of this act shall take effect July 1, 2011, at 12:01 a.m.

III. The remainder of this act shall take effect July 1, 2011.

LBAO

10-2316

12/21/09

HB 1684-FN - FISCAL NOTE

AN ACT requiring an annual state operating budget.

FISCAL IMPACT:

      The Department of Administrative Services states this bill will increase state general fund expenditures by $1,704,680 in FY 2012, by $1,118,770 in FY 2013 and by $1,237,418 in FY 2014. The Legislative Budget Assistant’s Office states this bill will increase state expenditures by an indeterminable amount in FY 2012 and each year thereafter. There is no fiscal impact on county and local expenditures or state, county and local revenue.

METHODOLOGY:

    The Department of Administrative Services states this bill requires the adoption of an annual state operating budget rather than a biennial state operating budget. The Department states the adoption of an annual state operating budget will result in the need for additional staff in the Department’s Budget Office, Financial Data Management, and Bureau of Public Works. The Department of Administrative Services states this bill will increase the Department’s state general fund expenditures by $1,704,680 in FY 2012, by $1,118,770 in FY 2013 and by $1,237,418 in FY 2014. The Department estimates it will need 13 additional full-time staff and three part-time staff to meet the workload of preparing an annual state operating budget. The costs associated with the full-time staff would include salaries, benefits, overtime, current expense, travel and purchasing of hardware and software. In addition, there will be costs associated with purchasing new servers, Affinity Global Solution support, maintenance for the servers, and printing.

    Financial Data Management will need to add three full-time staff (two financial data administrators I (Labor Grade 28) and one financial data specialist I (Labor Grade 26)), purchase two servers (one dedicated to the budget system, the other for use as a budget system test environment), costs for maintenance of the new servers, and additional support from Affinity Global Solution. The costs are as follows:

Financial Data Management

FY 2012

FY 2013

FY 2014

Personnel

$152,745

$159,414

$166,491

Benefits

76,578

82,274

88,461

Overtime

10,000

10,000

10,000

Current Expense

3,000

3,000

3,000

Technology Hardware (for staff)

6,000

0

0

Technology Software (for staff)

6,000

600

600

Servers

548,000

0

0

Maintenance on Servers

12,000

12,000

12,000

Affinity Global Solution support

20,000

20,000

20,000

Total

$834,323

$287,288

$300,552

    The Budget Office will need to add six full-time staff (business administrator III (Labor Grade 27). The costs are as follows:

Budget Office

FY 2012

FY 2013

FY 2014

Personnel

$292,620

$305,490

$318,828

Benefits

150,750

162,055

174,275

Overtime

25,000

0

25,000

Current Expense

6,000

6,000

6,000

Technology Hardware (for staff)

12,000

0

0

Technology Software (for staff)

0

1,200

1,200

Printing Costs

36,000

0

36,000

Total

$522,370

$474,745

$561,303

    The Bureau of Public Works will need to add four full-time staff (one project manager IV (Labor Grade 32) and three project manager III (Labor Grade 27)) and three part-time staff (two secretary II (hourly rate: $12.00) and one project manager IV (hourly rate: $28.00)). The costs are as follows:

Bureau of Public Works

FY 2012

FY 2013

FY 2014

Personnel

$216,530

$225,812

$235,367

Benefits

103,457

111,125

119,396

Current Expense

4,000

4,000

4,000

Technology Hardware (for staff)

8,000

0

0

Technology Software (for staff)

0

800

800

Printing Costs

1,000

0

1,000

Travel

15,000

15,000

15,000

Total

$347,987

$356,737

$375,563

    The Legislative Budget Assistant’s Office states requiring an annual state operating budget rather than a biennial state operating budget will increase state expenditures by an indeterminable amount. It is estimated the Legislative Branch will need to add at least 11 full-time staff and one part-time staff. The staff will be needed in the following areas: five assistant budget analysts (labor grade M) and one administrative assistant (labor grade G) to the Legislative Budget Assistant’s Office; add one position (labor grade I) to the Office of Legislative Accounting; add one administrative assistant (labor grade H) to House Finance; add one administrative assistant (labor grade H) to Senate Finance; add a part-time administrative assistant to House Ways and Means; and add a bill drafter (labor grade M) and a word processor (labor grade F) to the Office of Legislative Services. It cannot be determined at this time if additional staff will be needed in other parts of the Legislature. In addition, there will be increased expenditures associated with printing, office supplies, and equipment, such as desks, chairs, and computers. The salary and benefit costs for the 11 full time positions and one part time position identified as being needed in the Legislative Branch:

Legislative Branch

FY 2012

FY 2013

FY 2014

Personnel Salary

$563,900

$587,021

$611,142

Benefits

279,944

300,578

322,928

Total

$843,844

$887,599

$934,070

    The Office also states there will be an indeterminable increase in state expenditures as state departments, agencies, and commissions as well as the Judicial Branch determine staffing needs and other costs to preparing annual operating budgets.

    This bill does not contain an appropriation or authorization for additional personnel.