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BUDGET PROCESSES AND SYSTEMS

Budget Processes and Systems

There are many ways to approach drafting and states are learning the hard way that many of their attempts have been unsuccessful.  State Budget Solutions believes that zero-base budgeting is the solution. In its original form, it is a system of budgeting that begins every budget cycle at zero, rejecting any assumption that the activities that were funded in the last budget will continue in the coming one. It requires a rationale for each activity that will be funded for the new budget. It is intended to foster analysis of every activity, prioritization of budget activities, cost-effectiveness and economy.  This section has information on zero-base budgeting and also covers different aspects of the budget process, including annual versus biannual budgets.

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    • RESEARCH: Delaware

      Delaware’s Public Employees’ Retirement System: A Complete and Transparent Accounting

      The Mercatus Center | by Eileen Norcross | March 21, 2013

      To be fully funded, Delaware must increase its annual contribution to the pension system based on a market valuation of plan liabilities. This paper analyzes Delaware’s pension system on a fair-market or government- guaranteed basis, with reference to the average US Treasury rate on 10- and 20-year bonds in June 2012. A discussion of the discrepancy between current government accounting conventions and the fair-market value approach and the implications for plan management follows.

    • RESEARCH

      Performances measurements used by states

      State Budget Solutions | March 18, 2013

      The accountability measurements identify societal goals and iterates specific means of achieving them. While many states list specific goals they want to attain and the means to measure the goals, there is still little accountability for failure to reach stated goals. The measures in place are primarily numerical. By comparing rates and statistics annually, each state can determine the success of the specific tactics used to attain the accountability measures. No states compare their own success with that of neighboring or similarly situated states.

    • RESEARCH

      Municipal Bankruptcy: An Overview for Local Officials

      This guide serves as an overview of the basics of municipal bankruptcy, and boils down the municipal bankruptcy process so that officials and citizens have a framework within which to discuss whether bankruptcy is a viable option. It outlines who, what, where and when, as well as costs and benefits.

    • RESEARCH

      Federal Aid to the States 2008-2011

      by Kristen De Pena | February 21, 2013

      It is well understood that the federal government must make spending cuts-these cuts will most likely drastically change the amount of federal dollars that are allocated to the states. Unfortunately for most states, dependence on federal funding has continually risen since 2008.

    • RESEARCH

      Forecasting the Recovery from the Great Recession: Is This Time Different?

      The National Bureau of Economic Research | by Kathryn Dominguez & Matthew Shapiro | February 4, 2013

      Was the slow recovery of the U.S. economy from the trough of the Great Recession anticipated? 

    • SOLUTIONS

      The State Budget Process for the Lay Person

      by Bob Williams | December 17, 2012

      An introduction to how the state budget process works and a glossary of terms used in the process.

    • SOLUTIONS

      How Reality-Based Budgeting Can Permanently Resolve State Budget Gaps

      State Budget Solutions | by Bob Williams | November 7, 2012

      State Budget Solutions recommends that state legislators take action in 2013 to resolve the serious state financial crises by changing their focus from inputs to outcomes by redesigning budgets from the ground up based on priorities and performance.

    • SOLUTIONS: North Carolina

      A Blueprint for Budget Reform

      Civitas Institute | by Brian Balfour | September 12, 2012

      The ongoing state budget "crisis" strongly underscores the urgent need for North Carolina to adapt significant state budget reforms, including putting North Carolina taxpayers back in charge of approving new debt, and forcing legislators and state agencies at reasonable intervals to justify all spending, not just spending increases.

    • SOLUTIONS: New Hampshire

      On Highways, The One Good Idea in Washington

      The Josiah Bartlett Center for Public Policy | by Charles M. Arlinghaus | December 7, 2011

      Highway spending in New Hampshire is not funded by general taxation. Our highway spending is supported entirely by user fees like the gas tax and turnpike tolls. So, if we're developing a real plan, let's start by figuring out how much money those fees will raise over the next ten years.

    • SOLUTIONS: Pennsylvania

      Reality-Based Budgeting

      Commonwealth Foundation | by Bob Williams, Matthew J. Brouillette | December 7, 2011

      This is the year to resolve Pennsylvania's serious financial crises by changing the budget focus from inputs to outcomes. In other words, legislators and the governor should junk the old conventional model and start designing a reality-based budget from the ground up based on priorities and performance.

    • HEADLINES: Virginia

      McAuliffe quietly amends bills to add budget catch

      The Virginian-Pilot | by Julian Walker | April 8, 2014

      The Democratic governor has quietly amended at least 11 bills - mostly Republican - so they wouldn't take effect until Virginia has a budget, an assertion of authority by McAuliffe.

    • HEADLINES: Washington

      Who is the leading budget reformer in Washington? Olympia, Washington that is

      State Budget Solutions | by Joe Luppino-Esposito | April 8, 2014

      Although Washington's budget debate was simpler than in past years, lawmakers kept Jason Mercier of the Washington Policy Center busy with fiscal reforms and budget gimmicks.

    • HEADLINES: New York

      NY Legislature passes $140B state budget just minutes before deadline

      The Associated Press | April 1, 2014

      The New York Legislature on Monday passed a $140 billion election-year budget that will expand pre-kindergarten statewide and provide tax relief to homeowners and corporations.

    • HEADLINES: Kentucky

      Kentucky Budget bill goes to governor's desk

      Associated Press | April 1, 2014

      The Kentucky General Assembly approved a $20.3 billion biennial spending plan Monday that authorizes $20.3 billion in spending for education, Medicaid, pensions, and other state government services while cutting spending in many state agencies by 5 percent through fiscal 2016.

    • HEADLINES: New York

      A New York Debate: Is the Budget Late?

      The Wall Street Journal | by Mike Vilensky | March 31, 2014

      While the matter might not appear particularly complex, the question has stumped even some veteran Albany insiders. 

    • HEADLINES: Kentucky

      NKY priorities funded in state budget compromise

      Cincinnati.com | by Amanda Van Benschoten | March 31, 2014

      Legislative leaders spent 18 hours at the negotiating table overnight, but they emerged early Sunday morning with a $20 billion two-year state budget that includes three of Northern Kentucky's top priorities. 

    • HEADLINES: New York

      State budget deal includes bailout package for Yonkers

      The Journal News | by Jon Campbell | March 31, 2014

      The city of Yonkers' school system would be in line for a significant state bailout under a budget deal reached early Saturday by Gov. Andrew Cuomo and legislative leaders. 

    • BLOG: Ohio

      Ohio finds a new way to cheetah the taxpayers

      State Budget Solutions | by Joe Luppino-Esposito | March 27, 2014

      Everyone loves a trip to the zoo, but in Ohio, lawmakers are relying on taxpayer dollars to enable those visits.

    • HEADLINES: New York

      State Budget Talks Break Down as Deadline Nears

      Gannett | by Jon Campbell | March 24, 2014

      No one can say for sure what happened in closed-door state budget negotiations Friday morning, aside from the four men and their aides who were in the room.

      This much, however, is for certain: It didn't go well.
    • HEADLINES: Idaho

      Otter orders more transparency on federal spending, preparation for cuts

      Idaho Reporter | by Dustin Hurst | March 24, 2014

      Idaho Gov. Butch Otter has issued an executive order that will help Idahoans identify the sources of funding for government programs and initiatives.