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 22, 2009

RE: Fiscal Year 2011 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 2011 budget request.

  1. Fiscal Outlook – National economic conditions are the worst in a generation, as nearly double-digit unemployment and dramatic declines in equity markets have forced consumers to sharply cut back on spending. While an economic turnaround may be in the offing, it often takes six to eighteen months for such improvements to be fully realized in Missouri's revenue collections.

    Fiscal Year 2009 ended with general revenue collections down by a higher percentage than has been seen in over 30 years. Collections declined 6.9% below Fiscal Year 2008 collections. This was $779 million below the 3.4% increase that was assumed when the budget was passed last year.

    For Fiscal Year 2010, we are currently projecting a continued decline in collections of 1%, which would result in a shortfall of over $380 million in revenue collections compared to the estimate used for the Fiscal Year 2010 TAFP budget.

    The next few years will be made yet more challenging by the phase-out of the federal budget stabilization funds. Even assuming a turnaround in the economy and state revenue collections in Fiscal Year 2011 and Fiscal Year 2012, there will likely be a significant gap between available revenue and normal spending growth. Therefore, the state's normal spending growth trends must be curtailed.

  2. Core Budget Issues - After your October budget submission, Budget and Planning will be working with each department to reduce core budgets based on the total amount of the department's Fiscal Year 2010 expenditure restriction plan. Other core reductions may also be necessary, depending upon revenue collections.

  3. New Decision Items - Departments may request mandatory new decision items. However, due to the revenue situation, Budget and Planning 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 will only be considered if a department provides options to offset the full cost with other reductions in its budget. These reductions would have to be above those noted in item 2. Any exceptions to this instruction will be extremely rare and will need to receive pre-approval from Budget and Planning. This guidance also applies to funds which support functions that are also supported by general revenue. If you have questions about which funds fall under this category, please contact Budget and Planning.

  4. Timely submission - It is essential that agencies submit completed budget requests by October 1st as required by state statute. In addition to three paper copies, a PDF version should be emailed to Pamela.McQuary@oa.mo.gov. Leasing and capital improvement 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.

  5. American Recovery and Reinvestment Act - The federal economic recovery effort will continue to provide a limited amount of budget relief and economic stimulus funding for Missouri. Special instructions (attached) have been developed for stabilization and stimulus funds.

  6. 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).

  7. 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.

  8. Information Technology Items - Requests of funds for information technology items will continue to be coordinated with the Information Technology Services Division in the Office of Administration. Requests for new funds for agencies that are part of the information technology consolidation must come from the Information Technology Services Division. Appropriations containing minor IT costs will be made directly to the agency, with transfers of ongoing costs to ITSD in Fiscal Year 2012. Agencies not part of the IT consolidation are required to submit information on new project requests to ITSD by September 1, 2009.

  9. Replacement of Vehicles - While the Office of Administration, State Fleet Management Program will continue to approve vehicle purchases and supply information about the state fleet to the administration and the general assembly, all requests for vehicles in Fiscal Year 2011 will appear in agency budgets. A statewide decision item number will not be used for replacement vehicle requests.

  10. Fuel Inflation - Statewide decision item numbers will not be used for Fiscal Year 2010 supplemental requests or for Fiscal Year 2011 cost-to-continue requests for the increased costs of providing vehicle fuel.

  11. Pay plan - At this time, agencies should not include any budget requests for pay increases in their Fiscal Year 2011 budget submission. Additional instructions may be distributed after the release of the Personnel Advisory Board's pay recommendations.

  12. 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 approved by the Governor and submitted to Budget & Planning 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.

  13. Capital Improvements - The capital improvements budget will be an annual appropriation for Fiscal Year 2011. Facilities Management Design and Construction (FMDC) personnel will share potential maintenance and repair and new construction capital budget requests generated by the Facility Assessment Database with various agencies. Key submittal dates are provided in a separate document.

  14. Web-ready Budget Books - The January budget requests with Governor's recommendations will again be made available on the Internet. Please be sure to include a table of contents to make this on-line document more user-friendly.

  15. 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.

Supporting Documents

Forms

Examples

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