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Week 3: Budget Processes: Federal and California

Week 3: Budget Processes: Federal and California. Federal Budget Process California Budget Process State Process: the players; roles and rewards The politics of budgeting for positions LAO cases Guest Speaker -- Cheryl Stewart

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Week 3: Budget Processes: Federal and California

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  1. Week 3: Budget Processes: Federal and California • Federal Budget Process • California Budget Process • State Process: the players; roles and rewards • The politics of budgeting for positions • LAO cases • Guest Speaker -- Cheryl Stewart • Assistant Program Budget Manager, Department of Finance (formerly with Leg Analyst, Corrections) • Preview week 4

  2. Key Features of Federal Process • Centrality of entitlements • Focus on deficit control • Budget resolution v President’s Budget • competing frameworks for priorities, spending • Multiple sets of congressional committees • Budget committees • Revenue committees • Authorizing committees (like policy committees) • Appropriations committees (13 separate bills)

  3. Federal Process: Actors and Timelines • Office of Management and Budget (OMB) • Executive agencies • Congressional committees • Congressional Budget Office (CBO) • Timeline (about 18 months) • Initial preparation: March - June • Agency budget development: June - Sept • President’s budget development: Oct - Feb • Congressional Budget Resolution - April • Congressional review and appropriations - May-Sept • Fiscal year begins October 1

  4. Key Features of State Process • Focus on agency programs and policy • One committee in each house • Senate Budget and Fiscal Review • Assembly Budget • Appropriations committees no budget bill role • One budget bill per house; one process • Trailer Bills • Governor’s Budget sets agenda for budget hearings • LAO gives item by item analysis (not done by CBO)

  5. Assembly Health and Human Services Education Resources State Administration Information Technology / Transportation Senate Education Resources Health General Government Energy State Legislature -- Budget Subcommittees

  6. State Budget Process: Actors and Timeline • Department of Finance (equivalent of federal OMB) • Executive agencies • Senate and Assembly budget committees/subcomm. • Legislative Analyst’s Office (equivalent of federal CBO) • Timeline (about 12 months) • Initial preparation: July-August • Agency budget development (BCPs): Sept - Dec • Governor’s Budget Presented: January 10 • LAO Analysis published: mid-February • Budget subcommittee hearings: February - May • May Revise • Conference Committee/”Big Five”: June • Constitutional Deadline for Legislature: June 15 • Start of fiscal year: July 1

  7. State Budget Process: Roles and Rewards Governor • reserve/flexibility • control costs but retain agency support • political statement/leadership State Agencies • gain DOF support for programs • gain DOF trust for reliable budget information • from adversary with DOF to loyalty to Gov. Budget • political v civil servant

  8. State Budget Process: Roles and Rewards (cont) Department of Finance (DOF) • keep costs down • avoid appeals from agencies • successfully defend Governor’s Budget, once released Legislative Analyst’s Office (LAO) • frame budget discussions • recommend budget reductions • preserve non-partisan reputation/accurate analysis • gain Legislative approval for recommendations (secondary)

  9. The Politics of Budgeting for Positions • Position budgeting • good workload measure; analytical tool; control • limits flexibility for managers; can be manipulated • Position v dollar budgeting • Premium on positions: generate ongoing $$, increases • Salary savings • Position “games” • by agencies: to generate savings • by DOF: cut the size of state bureaucracy

  10. Legislative Analyst Examples • Technical issues (Rehab) • Workload justification (DHS) • Policy issue (ARB, DHS) • Program redesign (CSU) • Other • recommend more information be provided

  11. Preview of Week 4 • Kettl -- excellent and very readable • Wildavsky -- classic but harder to read • Think about “rationality” • Remember email • Need to decide on department or unit for class assignments

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