Budget Instructions
The State Budget Director is required, by Sections 33.220 and 33.240 of the Revised Statutes of Missouri, to prescribe the format for department budget submissions each year by September 1st. These instructions are usually issued in July.
TO: Department Directors, Deputy Directors, and Budget Officers
FROM: Linda Luebbering
DATE: July 15, 2011
RE: Fiscal Year 2013 Budget Instructions
Below is a summary of the highlights and major changes to the budget instructions. The following pages include detailed instructions for the completion of the Fiscal Year 2013 budget request.
- Fiscal Outlook – The national recession ended almost two years ago, but the economy has been unable to sustain vigorous growth. Employers and consumers remain cautious, more so since gasoline prices increased during the spring. Equity markets have recently experienced significant headwinds as investors have been uncertain about future economic growth.
State general revenue growth returned in Fiscal Year 2011. Statewide employment has been slowly improving in recent months. Unfortunately, the same downside risks that were evident last summer remain evident today, including continued declines in housing prices, market reactions to European fiscal troubles, and consumers hesitant to make significant expenditures.
For Fiscal Years 2012 and 2013 we are currently projecting modest growth in collections. However, even with state revenue collection growth, we are currently estimating a budget gap for Fiscal Year 2013, largely driven by the need to replace $460 million of one-time federal budget stabilization and state education funds. - Core Budget Issues - Because of the large anticipated budget gap, departments need to submit budget requests that make permanent their June expenditure restriction amounts for Fiscal Year 2012. In addition to those reductions, Budget and Planning will be working with each department to reduce core budgets to bridge the remaining budget gap.
- New Decision Items -
- Mandatory – departments may request mandatory new decision items. However, before doing so, departments should submit a preliminary list of such items to Budget and Planning. We will be working with all departments that have mandatory general revenue increases to find other reductions in their budgets to offset those costs.
- Discretionary – new decision items that require general revenue should not be requested. Any exceptions to this instruction will be extremely rare and will need to receive pre-approval from Budget and Planning.
- Other State Funds – the guidance regarding general revenue also applies to funds which support functions that are also supported by general revenue or are considered a general revenue equivalent. If you have questions about which funds fall under this category, please contact your Budget and Planning analyst.
- Pay Plan – do not include any budget requests for salary increases in the Fiscal Year 2013 budget submission.
- Fund Financial Summary Forms- The Fund Financial Summary forms must be submitted with the department’s budget request and updated with the Governor’s recommendations. If, throughout the budget process, departments anticipate cash flow, fund balance or other potential issues with the department-administered funds, they should work with their Budget and Planning analyst to address the issues. Questions regarding the completion of this form should be directed to Lynn Struemph (751-9325) in the Division of Budget and Planning.
- Supplemental Requests Forms - Supplemental requests are to be submitted in a separate document from your FY 2013 budget request. These forms are part of a comprehensive packet for the Legislature. Do not make formatting changes to these forms.
- Fringe Benefit Rate - The initial fringe benefit rates included in the applicable budget form templates should be used in the October budget submission. Budget and Planning will provide an updated fringe rate for the Governor’s recommendations budget submission. We are also providing a separate fringe rate for decision items for overtime. Supplemental requests should use the fringe rate for Fiscal Year 2012.
- Capital Improvements - Since a biennial capital budget was approved in the 2011 legislative process, we do not plan to have a capital improvements budget in Fiscal Year 2013.
- Re-appropriations - There will not be a re-appropriations bill for the Fiscal Year 2013 budget submission.
- Federal Budget Stabilization Fund - current budget items funded with federal budget stabilization funds (funds #2000, #2082, #2092) must be reduced from agencies’ Fiscal Year 2013 requests. Agencies cannot request new decision items from these funds, including Fiscal Year 2012 supplemental requests. If an appropriation from these funds is an ongoing expense (e.g., the foundation formula), the department will need to request a new decision item from general revenue.
- Timely Submission - It is essential that agencies submit completed budget requests by October 1st as required by state statute. Leasing information must be provided to OA Facilities Management, Design and Construction by September 1st in order for them to have work completed for the October 1st submission. The specifications and distribution list is attached..
- Combined Budget Forms - Departments are encouraged to combine requests on a single budget form when doing so will facilitate decision making (e.g. funding changes that impact multiple budgeting units).
- Missouri Sunset Act - Programs created after passage of the Missouri Sunset Act in 2003 will have to be extended or face elimination. A form is provided to serve as an aid in tracking which programs have a sunset.
- Reorganizations - Agencies must consult with Budget and Planning prior to conducting any reorganization within their department or between departments. These actions may require document filings separate from the budget process. Reorganizations must be submitted to Budget & Planning and approved by the Governor prior to making changes to the budget in BRASS; they may also require filing by the Governor under the Reorganization Act of 1974. Reorganizations or transfers of program/functions between departments must be approved by the Governor and submitted to the General Assembly.
- Web-ready Budget Books - A PDF copy of the department’s October budget request submission and the January Governor’s recommended budget will be posted on the Internet by Budget and Planning. If the OA Print Shop prints your budget, they will provide a PDF copy to Budget and Planning, otherwise the department is responsible for submitting a PDF copy to Budget and Planning. These submissions must include a table of contents.
- Organization Chart - Executive branch agencies should submit an electronic copy of their organization chart, complete with, at a minimum, the salaries and employee names of persons considered to be part of your management team.
- These budget instructions, including forms and examples are available on Budget and Planning’s web site (http://oa.mo.gov/bp/index.htm), and an electronic copy of the form will be forwarded. Please contact Pamela McQuary (751-2345), in the Division of Budget and Planning, if you do not receive the electronic copy.
Supporting Documents
Forms
- Auditor's Report Form
- Missouri Sunset Act Form
- FY 13 Core Form
- FY 13 Core Form for Big Numbers
- FY 13 New Decision Item Form
- FY 13 New Decision Item Form for Big Numbers
- Flexibility Form
- Estimated Appropriations and Flexibility Requests
- Fund Financial Summary Form
- Supplemental New Decision Item Form
- Program Description Form
- Tax Credit Analysis Form
- Vehicle Request Form (new and replacement)
- Fuel Request Form
