TO: Department Directors, Deputy Directors, and Budget Officers

FROM: Larry Schepker

DATE: July 30, 2007

RE: Fiscal Year 2009 Budget Instructions

Summary of Highlights and Major Changes to Instructions

1. Fiscal Outlook – Moderate revenue growth in Fiscal Years 2008 and 2009 is expected to be comparable to long-term averages. However, collections will be reduced due to the phased implementation of Amendment 3 and new legislation such as the Senior Tax Justice Act.
   
   
2. 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.
   
   
3. Core Budgets/FTE – - State agencies should continue to review all operations for ways to streamline services and administrative functions to reduce costs and FTE. It is the Governor's intent to submit a budget to the General Assembly that contains no net increase in the total FTE count. Agencies should eliminate excess FTE authority in all funds. Do not retain any unfunded positions.
   
   
4. New budget requests - Again in Fiscal Year 2009, new decision items proposed by Executive Branch agencies must be approved for consideration by your department's liaison in the Governor's office prior to entering them into BRASS and submitting your completed budget request to Budget and Planning. Departments are expected to find offsetting FTE reductions if requesting new staff. Requests for one-time funding that would generate returns, savings, or create cost avoidance are encouraged. Do not make requests for "core restoration"; any request for additional funding must be included in a new decision item and qualified on its own merits.
   
   
5. Federal appropriations - Agencies should reduce their federal appropriations (funds and FTE) to a realistic anticipated level. In lieu of Es on specific federal appropriations, agencies who do not already have a generic, open-ended federal appropriation for funds that become available between sessions should request that authority. See, for example, Section 10.640 in the Department of Health and Senior Services.
   
   
6. 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. However, the requests will appear in agency budgets, appropriated for the use of the Information Technology Services Division. Unique appropriation numbers will, therefore, be required for information technology requests. Appropriations containing minor IT costs will be made directly to the agency, with transfers of on-going costs to ITSD in Fiscal Year 2010.
   
   
7. Replacement of Vehicles - The Office of Administration, State Fleet Management Program will prepare requests for the following general revenue funded light duty vehicles based on data in the State Fleet Information System:
   • vehicles assigned to individuals or agency pools that are required to accrue 15,000 miles per year as set forth in the State Vehicle Policy (SP-4); and
   • Vehicles dedicated to inmate or client transportation.
   Exceptions to this include:
   • Vehicles for the Highway Patrol; and
   • Vehicles for non-executive branch agencies.
   All other General Revenue replacement vehicle requests will remain in agencies' budgets.
   
   
8. Pay plan - At this time, agencies should not include any budget requests for pay increases in their Fiscal Year 2009 budget submission. Additional instructions may be distributed after the release of the Personnel Advisory Board's pay recommendations.
   
   
9. 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). See Attachment #1 for more information.
   
   
10. Reorganizations - Must be approved by the Governor and submitted to Budget & Planning prior to making changes in the budget.
    
    
11. Program Transfers - Three programs were transferred between departments last year. Therefore, appropriate budget transfers should be completed for Fiscal Year 2009. The programs are: Breath Alcohol Testing from Health and Senior Services to Transportation; Crime Victims Compensation from Labor and Industrial Relations to Public Safety; and Surplus Lines Insurance from Insurance to Revenue.
    
    
12. Capital Improvements - Because a capital bill did not pass last session, there may be a one-year bill during the Fiscal Year 2009 budget cycle. Any potential requests should be submitted to the Division of Facilities Management, Design and Construction by September 1st.
    
    
13. 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.
    
    

LIST OF ATTACHMENTS TO FY 2009 BUDGET INSTRUCTIONS