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Transcript of 2009-2011 Continuation Budget NC Office of State Budget and Management State Budget Conference...
2009-2011 Continuation Budget
NC Office of State Budget and ManagementState Budget Conference
October 15, 2008
Office of State Budget and ManagementElizabeth Grovenstein, Assistant State Budget Officer
Agenda
Introductions Authorizing Legislation 2009-11 Continuation Budget
Process 2009-11 Attachments and Examples Questions
Authorizing Legislation
Chapter 143C, Article 3 G.S. 143C-3-5. (a) The Governor
shall present budget recommendations at a mutually agreeable time fixed by joint resolution.
G.S. 143C-3-5.(d) The budget shall include all Governmental and Proprietary (State) Funds.
Authorizing Legislation
Chapter 143C, Article 3 G.S. 143C-3-5.(b)(1) Includes goals
for improving the State and performance information for each program; and distinguishes continuation, reductions, eliminations, expansions, and all capital improvements.
Authorizing Legislation
Chapter 143C, Article 3 G.S. 143C-3-5.(b)(2) Budget uses
NCAS chart of accounts (2-digit level) with actual expenditures/receipts, certified budget, authorized budget, continuation budget with proposed increases and decreases for each year of the biennium.
Authorizing Legislation
Chapter 143C, Article 3 G.S. 143C-3-5.(b)(2) Budget shall
include accurate projections of receipts, expenditures, and fund balance. Receipts shall be adjusted to actual level of collections, unless there is a more reasonable basis upon which to budget.
What is the Continuation Budget
The continuation budget is the part of the state budget necessary to continue the current level of services when adjusted for inflation, enrollment growth, mandated rate increases such as social security, annualization of programs, and operation of new facilities.
2009-11 Continuation Budget Process
Basis of budget is the 2008-09 BD307 certified after modifications by the 2008 Short Session of the General Assembly in HB2436.
Type 11, 12, and 14 budget revisions are then added to the budget. One-time changes to the budget must be coded “O” to ensure they are not brought into the budget.
Continuation budget = Worksheet I (generated by BPS) plus supporting attachments (Excel)
2009-11 Continuation Budget Process
Any fund and account titles errors must be corrected.
2007-08 actual expenditures and revenues are as reported to NCAS. These must match the certified June 2007-08 BD701 report.
Actual position counts should be entered into BPS at purpose code and account levels.
2009-11 Continuation Budget Process
Agencies should review budgeted requirements for possible realignment via a type 14 606.
Agencies should review budgeted receipts for over or under-realization. Type 11 or 12 606s should be submitted to make permanent receipt budget adjustments. Agencies must be able to justify when receipts are not budgeted to actual levels.
2009-11 Continuation Budget Process
Changes allowed in Worksheet I:1. Adjustments for enrollment or
population currently served in education, prisons, and entitlement programs.
2. Receipt-supported activities3. Clothing, telephone service,
textbooks and education supplies
2009-11 Continuation Budget Process
Changes allowed in Worksheet I (continued):
4. Personnel-related items – social security, retirement, health benefits, longevity
5. Annualization6. Operating reserves for new
facilities7. Removal of nonrecurring items
2009-11 Continuation Budget Process
Changes allowed in Worksheet I (continued):
8. Replacement of existing equipment NOTE: replacement of office furniture/equipment and IT equipment are NOT allowable
9. Replacement of existing motor vehicles
10. Replacement of other vehicles
2009-11 Continuation Budget Process
Changes allowed in Worksheet I (continued):
11. Statutorily established salary increases
12. Office leases13. Transfers to state management
agencies14. Allowable inflationary adjustments
2009-11 Attachments
5-1 Explanation of Increases and Decreases
5-2 Equipment Schedule 5-3 Motor Vehicle Schedule 5-4 Other Vehicle Schedule 5-5 Building Reserves 5-6 Lease Schedule 5-7 Inflationary Schedule (except
gasoline) 5-8 Inflationary Schedule for Gasoline
Attachment 5-1 Example EXPLANATION OF INCREASES AND DECREASES SCHEDULE Section 4
(For continuation requests only) Attachment 5-1
(Due 10/31/08)
Department ABC Division or Institution XYZ Budget Code 1XXXX
Fund 1XXX
ACCOUNT TITLE EXPLANATION Attachmt AMOUNT TITLE EXPLANATION AMOUNT Attachmt
Requirements
531810 Social Security
Increase to reflect social security on scheduled salaries at 7.65% (or 1.45%)
5-10 $95,648 Social Security
Increase to reflect social security on scheduled salaries at 7.65% (or 1.45%)
$95,648 5-10
531830 Medical InsuranceIncrease to reflect medical insurance at $4,157 5-10 $20,408 Medical Insurance
Increase to reflect medical insurance at $4,157 $20,408 5-10
531870 Optional RetirementIncrease to reflect optional retirement on scheduled salaries at 13.14% 5-10 $14,525
Optional Retirement
Increase to reflect optional retirement on scheduled salaries at 13.14% $14,525 5-10
532721 In-State LodgingSubsistence Inflationary Increases
5-7$6,890 In-State Lodging
Subsistence Inflationary Increases $6,890
5-7
534541 Motor Vehicles Motor Vehicle Replacement 5-3 $18,000 5-3
Total Requirements $155,471 $137,471
Receipts
434321 Sale of Surplus Property Proceeds from the trade-in of vehicle5-3
$5005-3
Total Receipts $500 $0
Appropriation $154,971 $137,471
Submit 2 copies on 8 1/2 x 11-inch paper.
2009-10 2010-11
2009-11 Attachments
Replacement of Existing Equipment – (Attachment 5-2, was Attachment 9 in 07-09) An equipment schedule will be required only
when the request is greater than the amount of the recurring authorized budget.
Equipment requests must have sufficient justification.
Justification should include the specific reasons why the equipment is essential and why the existing equipment is no longer usable.
PRIORITIZE!
Attachment 5-2 ExampleSection 5
Attachment 5-2
(Due 10/31/08)
Department ABC Division or Institution XYZ Budget Code 1XXXX
EQUIPMENT QUANTITY COST TOTAL QUANTITY COST TOTAL
FUND ACCOUNT* PRIORITY DESCRIPTION JUSTIFICATION NUMBER PER UNIT COST NUMBER PER UNIT COST
1XXX 534523 1
Replace Refrigerant Recovery Unit 003 (VanSteenburgh)
Unit was purchased in 1992 and has been condemned. This is a critical item to meet EPA requirements.
1 $5,000 $5,000
1XXX 534524 2
Thunderbold XL 225 AC Arch Welder
Replaces 30 year old arc welder that has many safety issues. Wireing input on the welder does not meet and electracal code and insullation on the welding feed has began to deteriorate. The machine will not maintain a set amperage while welding. 1 $400 $400
Total by Fund/Account $5,400 Total by Fund/Account $0
$0 $0
*Prepare a separate schedule for each Fund/Account. $5,400 $0
(R) = Replacement (I) = Installment
EQUIPMENT PURCHASE SCHEDULE
PURCHASE OR INSTALLMENT PAYMENTS
(For continuation requests only)
Net Amount to Worksheet I (Columns 6 & 8)
Net Amount to Worksheet I (Columns 6 & 8)
2009-10 2010-11
Less: 2008-09 authorized equipment budget
Less: 2008-09 authorized equipment budget
2009-11 Attachments
Licensed Motor Vehicles – (Attachment 5-3, was Attachment 10 in 07-09) > 110,000 miles < 110,000 miles must have sufficient written
justification EXCEPT law enforcement. >70,000 miles Highway Patrol and DMV,
80,000 miles all other law enforcement Justification needs to include priority, safety
issues, whether or not the vehicle is operational, and the specific nature causing the replacement request.
Attachment 5-3 ExampleLICENSED MOTOR VEHICLE PURCHASE SCHEDULE Section 5
(For continuation requests only) Attachment5- 3
(Due 10/31/08)
Department ABC Division or Institution XYZ Budget Code 1XXXX
DATE 2009-10 2010-11
DESCRIPTION PURCHASED ESTIMATED TRADE-IN TRADE-IN
(MAKE, MODEL, (MONTH MILEAGE AS TYPE JUSTIFICATION TOTAL VALUE** TOTAL VALUE**
FUND ACCOUNT PRIORITY YEAR AND VIN) AND YEAR) OF 6-30-09 OF USE* (IF APPLICABLE) COST (IF APPLIC.) COST (IF APPLIC.)
1XXX 534541 1 FORD AEROSTAR 1988 May-89 46,314 OTH bad rusted body frame around $14,276 $200
1FTCA14U8JZB12135 base of truck and inside wheel
compartment-needs complete
body work-rust has eaten
holes throughout body1XXX 534541 2 1989 Chev Cheyenne
1GBGC24K3KE212060Apr-89 87,000 OTH transmission slips
doors will not lock - bed door won't close securelynumerous fluid leaks - uses lot of oilspeed/odometer broken - actual mileage much higherside door falls off when openedmirrors rusted out - driver side window crank broken
$22,500 $500
Total Request by Fund/Account $14,276 $200 $22,500 $500
Less: FY 2008-09 Authorized Licensed Motor Vehicle Budget (Column 5) $0 $0 $0 $0
Net Amount to Add (Subtract) to Worksheet I (Columns 6 & 8) $14,276 $200 $22,500 $500
(Requirements to Motor Vehicle Account (Object) and Trade-in to Sale of Surplus Property Receipt Account (Object)
*Type of use will either be State Highway Patrol (SHP), Division of Motor Vehicles (DMV), other Law Enforcement (OLE) or other (OTH).**Trade-in value will be shown as estimated receipts - "Sale of Surplus Property."
2009-11 Attachments
Other Motor Vehicles – (Attachment 5-4, was Attachment 11 in 07-09) A request should be made only when it
exceeds the recurring authorized budget. Only replaced on an irregular basis like
tractors, front-end loaders, lawn mowers, back-hoes, etc.
Only with sufficient justification emphasizing priority, necessity to agency mission, use, and safety.
Attachment 5-4 ExampleOTHER VEHICLE PURCHASE SCHEDULE Section 5
(For continuation requests only) Attachment 5-4
(Due 10/31/08)
Department ABC Division or Institution XYZ Budget Code 1XXXX
DATE 2009-10 2010-11
DESCRIPTION PURCHASED TRADE-IN TRADE-IN
(MAKE, TYPE (MONTH NUMBER JUSTIFICATION/CONDITION* TOTAL VALUE** TOTAL VALUE**
FUND ACCOUNT PRIORITY YEAR AND MODEL AND YEAR) REQUESTED COST (IF APPLIC.) COST (IF APPLIC.)
1XXX 534549 1Kawasaki Mule KAF620-E1 CAMS#857402 May-01 1
Will not crank often times; constantly needs repairs and parts/service are no longer avail to us in this area; dangerous to drive when loaded due to aging mechanical parts; repair costs exceed value of equipment; not dependable $12,500
1XXX 534549 2 Trailer (hay) CAMS#850116 Mar-89 1
17 year old trailer not dependable for hauling weight of hay; constant breakdowns due to mechanical and stress $4,000
1XXX 534549 3 Melex golf cart Jun-90 2Parts are obsolete; one is non functional as of 01/08 $13,000 $13,000
Total Request by Fund/Account $29,500 $0 $13,000 $0
Less: FY 2008-09 Authorized Licensed Motor Vehicle Budget (Column 5) $0 $0 $0 $0
Net Amount to Add (Subtract) to Worksheet I (Columns 6 & 8) $29,500 $0 $13,000 $0
(Requirements to Motor Vehicle Account (Object) and Trade-in to Sale of Surplus Property Receipt Account (Object)
*Provide information from maintenance records, frequency of repairs, and other pertinent information such as mileage or hours of operation to assist in determining condition.**Trade-in value will be shown as estimated receipts - "Sale of Surplus Property."
2009-11 Attachments
Building Reserve – (Attachment 5-5, was Attachment 12 in 07-09)
Operating costs to make facilities operational and functional are allowed in the continuation budget for authorized capital projects scheduled for completion during the 2009-11 biennium
A detailed account breakdown of each reserve must be submitted separately, with the estimated completion date of the facility provided by the Office of State Construction, number of positions required, proposed classification of each position, and other operating costs.
Attachment 5-5 ExampleThe University of North Carolina2009-2011 Operating Reserves MASTER Continuation Budget CP 07-18-08 Attachment 5-5
0180 General Institutional Support
Budget Code #####0180 - 71XXReserve for Maintenance and Operating of
Generic Building ##### GSFC.I. Code: Item:Date Const. Authorized Construction CostEst. Substantial Completion Date Fund Release DateBuilding Type 1 Adm/Acad/ClassroomNumber of Months Budgeted 12 12Number of Smart Classrooms Annual Annual
Budget BudgetSUBHEAD DESCRIPTION 2009-10 2010-11
0180 - 1210SPA Reg. Salaries StaffFactor (FTE per) Staff Rounded Rate
Building Environmental Service Technician (BEST) 18,000 GSF 5.56 5.6 22,380 $125,328 $125,328Building Environmental Service Supervisor (BESS) 12Hskpr. 0.46 0.5 30,239 15,120 15,120Facilities Maintenance Technician Mechanical (FMTM) 25,000 GSF 4.00 4.0 40,000 160,000 160,000Public Safety Officer 100,000 GSF 1.00 1.0 35,263 35,263 35,263EHS Technician 300,000 GSF 0.33 0.3 47,401 14,220 14,220IT Neworking Technician (Infrastructure) 250,000 GSF 0.40 0.4 46,100 18,440 18,440IT Networking Technician (Classroom Support) 15 CLS 0.00 0.0 46,100 0 0Facilities Maintenance Technician Trades (FMTT) 57,000 GSF 1.75 1.8 27,120 48,816 48,816________ ________
Subtotal 13.51 13.6 417,187 417,1870180 - 1232Shift Differential 10.00 % 16,059 16,0590180 - 1810Social Security 7.65 % 31,915 31,9150180 - 1820State Retirement 8.140 % PSO add 5.00 % 35,722 35,7220180 - 1830Medical Insurance 4,157 ea. 56,535 56,5350180 - 2100Hskpng. Supplies
Initial Supplies 1 Mth. 1,158 0Regular Supplies 0.139$/GSF 13,899 13,899________ ________Subtotal 15,057 13,899
0180 - 2400Repair SuppliesInitial Repair Supplies 1 Mth. 6,003 0Regular Supplies 0.720$/GSF 72,042 72,042
0180 - 2900Other SuppliesInitial Police Supplies 4,616 $/Officer 4,616 0Police Supplies 728 $/Officer 728 728IT Supplies (Infrastructure) 0.112$/GSF 11,247 11,247IT Supplies (Clsrm. Support) 2,251 $/ Classroom 0 0________ ________Subtotal 94,636 84,016
Fctr.0180 - 3300Utilities 1.00 0.51$/GSF 51,000 51,0000180 - 3200 Communications 0.122$/GSF 12,202 12,202
0180 - 3900 Other Current Services Moving Costs 10,000 Est. 10,000 0
0180 - 4400 Maint. ContractsElev. Maint. (# of Elev.) 2 700Est. @. 1,400 1,400Pest Control 450 Est. 450 450Refuse Removal 1,200 Est. 1,200 1,200Uniforms (# of New Employees) 11.9 100 Est.@ 1,190 1,190Security 1,200 Est. 1,200 1,200Controls/Chillers 1,200 Est. 1,200 1,200________ ________Subtotal 6,640 6,640
0180 - 4500 InsuranceReal Property Est. 0 0Vehicle 1 301Est. @ 301 301________ ________Subtotal 301 301
0180 - 5400Vehicles 1 15,125Est. @ 15,125 00180 - 5500Other Equipment 92,784 $/FTE/GSF/Bld (see page 2) 92,784 00180 - 5500Other Equipment 0 Att. List or Basis Page 2 0 0
TOTAL – RESERVE FOR OPERATION OFGeneric Building $855,164 $725,476
Institution:
2009-11 Attachments
Building Lease – (Attachment 5-6, was Attachment 13 in 07-09)
A building/office lease schedule is required only when the request is greater than the amount of the authorized budget.
Attachment 5-6 Example
LEASE SCHEDULE Section 5
Building/Office Leases Schedule Attachment 5-6
(For continuation requests only) (Due 10/31/08)
Department ABC Division or Institution XYZ Budget Code 1XXXX
Net Cost Per Annual Term of Effective 2009-10 2010-11
FUND ACCT. LESSOR LOCATION Sq. Ft. Sq. Ft. Rent Lease Annual Rent* Amount Amount
1XXX 532512 Carolina Financial Management Inc171 ComTech Driv, Pembroke NC 1700 $15.44 $26,250 Four years - effective July 1, 2008 $37,800 $37,800 $39,690
1XXX 532512 WillLow T. Enterprises 49 Desse Rd. Pembroke, NC 2600 $3.23 $8,400 Two year - effective July 1, 2008 $12,180 $12,180 $12,369
1XXX 532512 GE Equipment Services 815 Purser Dr, Raleigh, NC 3000 $10.15 $30,450 Three year - effective July 1, 2008 $35,700 $35,700 $37,485
1XXX 532512 Mint Museum of Craft & Design 200 N. Tyron St. Charlotte, NC 13,133 $15.30 $200,935Four years - effective July 1, 2007 with
one 5-yr renewal option $201,000 $201,000 $201,000
Total Lease Cost $286,680 $290,544Authorized Budget for Building/Office Lease Requirements $281,435 $281,435Authorized Budget for Receipts $0 $0Increase (Decrease) Amount $5,245 $9,109
* - Effective Annual Rent might include costs negotiated in the lease such as utilities, housekeeping, etc. if charged in addition to the cost per square foot.
Prepare a separate schedule for each Fund.
2009-11 Attachments
Allowable Inflationary Factors Water and Sewer, Electricity, Natural Gas,
Subsistence, and Library Books (2007-08 Actual Expenditures X Inflationary
Rate) minus (2008-09 Authorized Budget) = allowable change
Example: The 2007-08 Actual Expenditures are $500,000, the 2008-09 Authorized Budget is $520,000, and the water/sewer rate is 1.087 for 2009-10 and 1.125 for 2010-11
2009-10: $500,000 x 1.087 = $543,500 - $520,000=$23,500
Attachment 5-7 Example
INFLATIONARY INCREASE FOR ALLOWABLE ITEMS
(For continuation requests only) Section 5
Attachment 5-7(Due 10/31/08)
Department ABC Division or Institution XYZ Budget Code 1XXXX
2007-2008 2008-2009 2009-2010 2009-2010 2009-2010 2010-2011 2010-2011 2010-2011
ACTUAL AUTHORIZED INFLATION CALCULATED INCREASE INFLATION CALCULATED INCREASE
FUND* ACCOUNT EXPENDITURE BUDGET FACTOR TOTAL (DECREASE) FACTOR TOTAL (DECREASE)
1XXX 532230 $1,154,880 $1,056,315 1.087 $1,255,355 $199,040 1.125 $1,299,240 $242,925
1XXX 532210 $4,525,150 $4,138,946 1.070 $4,841,911 $702,965 1.070 $4,841,911 $702,965
1XXX 532220 $3,334,844 $3,435,988 1.253 $4,178,560 $742,572 1.251 $4,171,890 $735,902
1XXX 532721 $83,825 $70,600 1.077 $90,280 $19,680 1.098 $92,040 $21,440
TOTAL $9,098,699 $8,701,849 $10,366,104 $1,664,255 $10,405,080 $1,703,231
*Prepare a separate schedule for each Fund.
Items Account Number Items Account Number
Food 533410xxx Gasoline, Regular Grade 533310Drugs 533610xxx Deisel #2 Fuel Oil 533320Medical Supplies 533630-90xxx Residual Fuel Oil 532241Water and Sewer 532230 Text Books 534620 or 5365xxElectricity 532210 Ed. Supplies, Materials, Equip 533720Natural Gas/Propane 532220 Library Books and PeriodicalsSubsistence 53272x
Allowable Inflationary Items
2009-11 Attachments
Allowable Inflationary Factors Gasoline (Rate per Gallon)
(2007-08 Actual Gallons X Inflationary Rate Per Gallon) minus Authorized Budget = allowable change
Example: Actual Gallons = 100,000 Inflationary
Rate/Gallon = 2.976Authorized Budget =
$100,000 (100,000 X 2.976) - $100,000) = $197,600
Attachment 5-8 Example
INFLATIONARY INCREASE FOR GASOLINE AND FUEL OIL Section 5
(For continuation requests only) Attachment 5-8(Due 10/31/08)
Department ABC Division or Institution XYZ Budget Code 1XXXX
2007-2008 2008-2009 2009-2010 2009-2010 2009-2010 2010-2011 2010-2011 2010-2011
ACTUAL AUTHORIZED ESTIMATED CALCULATED INCREASE ESTIMATED CALCULATED INCREASE
FUND* ACCOUNT GALLONS BUDGET $ PER GALLON TOTAL (DECREASE) $ PER GALLON TOTAL (DECREASE)
1XXX 533310 56,060 $36,824 2.98 $166,835 $130,011 3.25 $181,915 $145,091
*Prepare a separate schedule for each Fund.
2009-11 Budget Instructions Fringe Benefits
Social Security: 7.65% < $102,000 Use 7.65% for all salaries < $102,000 Use 1.45% for all salaries > $102,000
Retirement: Teachers & State Employees: 8.14% State Law Enforcement Officers: 13.14% University Employees Optional Retirement: 11.46%
Health Benefits: $4,157 per year or $3,165 if Medicare-eligible
Continuation Budget Submission 10-31-08 2 hard copies and all attachments electronically
2009-11 Budget Instructions Useful Websites
For WSI budget attachments and system manuals
http://www.osbm.state.nc.us To download X/TND or see X/TND
documentation: http://sccb.its.state.nc.us/sysware/sysware.h
tm NC Budget Systems (BRS/BPS/Allotments)
http://www.osbm.state.nc.us/budget_systems.html
Questions
2009-11 Results-Based Budgeting (RBB) Requirements
Most RBB elements should already be complete Agency overviews, missions, goals, strategies, key
indicators, fund purposes, services, and measures were due June 27, 2008
Submissions that are still incomplete or require changes need to be finalized as soon as possible
Remaining requirements are due October 17 Service analysis data Key agency indicator data Fund-level performance measure data
2009-11 Results-Based Budgeting (RBB) Requirements
Key agency indicator and fund-level performance measure data Enter data for three fiscal years (2005-06,
2006-07, 2007-08) For previously reported measures, verify that
historical data are complete and accurate and provide data for 2006-07 and 2007-08.
For newly reported measures, provide all available historical data.
If data are not available for all three years, data must be entered for the most recent year (2007-08) in order for the indicator/measure to be printed.
2009-11 Results-Based Budgeting (RBB) Requirements
Service Analysis Enter 2007-08 actual requirements and FTEs
for each service statement. Actual requirements should be allocated using
the methodology agreed upon with your OSBM analyst.
FTE identified for each service should include staff supporting the service function, as well as positions that are vacant or were vacant for part of the year.
Why is RBB important? Communicates your budget in terms of
the services and programs you provide. Provides the foundation for the expansion
budget process. Priority consideration will be given to expansion requests that:
Clearly support agencies’ goals, and Demonstrate a positive impact on key agency
indicators and performance measures
Promotes greater transparency and accountability