1 / 43

Candidate Budget Basics

Candidate Budget Basics. Let 's talk budget process!. SD Budget & Policy Institute. Mission - to promote responsible and equitable fiscal policy through research and education Nonpartisan, not-for-profit 501(c)3 [not a state government function]

raymond-dickson
Download Presentation

Candidate Budget Basics

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Candidate Budget Basics Let 's talk budget process!

  2. SD Budget & Policy Institute Mission - to promote responsible and equitable fiscal policy through research and education Nonpartisan, not-for-profit 501(c)3 [not a state government function] Funding from Northwest Area Foundation and donations from people and businesses in South Dakota

  3. Are you fluent in budget basics? You might say the state budget is the ultimate policy document…

  4. How SD BPI talks about fiscal policy

  5. …. a guide to understanding • the components of the state budget, • how it is created, and • the priorities and choices it reflects. download free from sdBPI.org

  6. In a balanced budget: expenses = revenues

  7. Balancing the Budget Increase revenue? decrease expenditures? combination of both?

  8. A budget is born Page 6, SD Budget Primer

  9. A budget is born Page 6, SD Budget Primer

  10. Challenges in our budget process

  11. Fiscal tools that inform SD budget decisions • Governor’s budget address and proposed budget are available at bfm.sd.gov • Budget in Brief includes a tax expenditure report • LRC briefings on agency budget requests and other documentation available at legis.sd.us • Revenue estimates for upcoming year • Fiscal notes on legislation

  12. BFM WebsiteState Budget http://bfm.sd.gov/budget/

  13. BFM WebsiteGovernor’s budget and supporting documents http://bfm.sd.gov/budget/rec15/index.htm

  14. LRC Website legis.sd.gov

  15. LRC Websitebudget documents http://legis.sd.gov/Budget/Reference_Documents/default.aspx

  16. LRC WebsiteHearing Schedule and Materials http://legis.sd.gov/Budget/Budget_Hearing_Schedule_and_Materials/default.aspx

  17. LRC WebsiteMaterials from Dept. of Education hearing http://legisonenote.sd.gov/Web/default.aspx?id=1196

  18. LRC WebsiteRevenue Estimate http://legisonenote.sd.gov/Web/default.aspx?id=1185

  19. LRC WebsiteAmendmentPacket http://legisonenote.sd.gov/Web/default.aspx?id=1226

  20. Fiscal tools used by other states that could help inform South Dakota budget decisions • Current services budget • Revenue review • Tax incidence analysis

  21. Current services budget

  22. Revenue review

  23. Projecting structural deficits and surpluses

  24. Tax incidence analysis

  25. Balancing the Budget Increase revenue? decrease expenditures? combination of both?

  26. RevenueWhat are the main state and local revenue sources? http://dor.sd.gov/Publications/Annual_Reports/PDFs/2013%20Annual%20Report%20final%2001212014.pdf

  27. South Dakota - a low tax state not a low income state Revenue Who do the $ come from? http://bea.gov/regional/bearfacts/action.cfm?geoType=3&fips=46000&areatype=46000

  28. Taxes as share of income Source: http://www.itep.org/pdf/sd.pdf

  29. The fundamental purpose of taxation is to raise the money needed to fund public services TAXES

  30. Expenditures Where does the money go?

  31. SPENDING:1. General Funds2. Federal Funds3. Other Funds

  32. General Fund expenditures

  33. Will there be an increase or decrease in provider reimbursements in the upcoming fiscal year?

  34. FMAP fluctuates based on state per capita income(wealthier states get less federal assistance!) 50% Floor

  35. EXAMPLE OF SOCIAL SERVICES BUDGET RECOMMENDATION Governor’s FY15 Budget

  36. K-12 Education Funding Concepts to understand: • School Funding Formula • Per Student Allocation (PSA)

  37. How SD funds k-12 education Source of funds to support SD k-12 education Federal State Local

  38. Total per student funding & funding sources for SD school districts FY11 (in thousands)

  39. School Funding Formulapage 19 of Budget Primer

  40. Cumulative per student allocations compared to CPI-W (inflation)

  41. Thank-you for your willingness to serve your fellow citizens as a state legislator

More Related