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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: Colorado, Missouri, Vermont, Utah, Virginia

      Williams Report - October 20, 2014

      State Budget Solutions | by Bob Williams | October 20, 2014

      Join us on Twitter today by following @StateBudgets and tweeting with the hashtag #SBSBob.

    • HEADLINES: California, Connecticut, Iowa, Kansas, Louisiana, Maryland, New Jersey, New York, North Carolina , Vermont, Virginia, Washington, Wisconsin

      Williams Report - August 19, 2014

      State Budget Solutions | by Bob Williams | August 19, 2014

      Join us on Twitter today by following @StateBudgets and tweeting with the hashtag #SBSBob.

    • BLOG: West Virginia

      The Greenbrier's subsidized sport's affinity

      State Budget Solutions | by Elia Peterson | July 23, 2014

      The New Orleans Saints should thank the lawmakers in the “Wild and Wonderful” state for being so accommodating.

    • HEADLINES: Illinois, Maryland, Minnesota, New Hampshire , North Carolina

      Williams Report - July 7, 2014

      State Budget Solutions | by Bob Williams | July 7, 2014

      We hope you had a great Independence Day weekend! Join us on Twitter today by following @StateBudgets and tweeting with the hashtag #SBSBob.

    • HEADLINES: Alaska, Delaware, Louisiana, Missouri, New Jersey, North Carolina , Pennsylvania, Virginia, Washington

      Williams Report - June 30, 2014

      June 30, 2014

      Join us on Twitter today by following @StateBudgets and tweeting with the hashtag #SBSBob.

    • HEADLINES: Virginia

      Virginia's budget drama ends; Medicaid expansion on hold

      State Budget Solutions | by Elia Peterson | June 27, 2014

      After a long, drawn out battle in Richmond, Virginia's legislature approved a budget that sidestepped several key vetoes from Governor Terry McAuliffe.

    • HEADLINES: Virginia

      Va. officials plan for possible state shutdown

      Associated Press | by Alan Suderman | May 27, 2014

      Some local government officials in Virginia are starting to consider contingency plans for worst case scenarios as a budget impasse drags on toward a possible unprecedented state shutdown on July 1.

    • HEADLINES: New Jersey

      NJ state budget primer: It's more than you think

      The Daily Record | by Michael Symons | May 27, 2014

      In general, the bottom-line number that gets used - which for the 2015 state budget, starting in July, was trimmed nearly 5 percent last week to $32.7 billion - reflects state appropriations, meaning the spending the state controls through the taxes it collects for general purposes. Federal funds and dedicated funds, all of which are required to be used for a specific purpose or program, aren't included in that number.

    • BLOG

      Ravitch and SBS agree that GAAP and making required pension contributions are keys to fiscal stability

      by Shannan Younger | May 19, 2014

      Richard Ravitch warned in an op-ed in the Wall Street Journal echoes what State Budget Solutions has been saying for a while: more Detroits are on the way.

    • HEADLINES: Illinois

      Madigan: Pass budget now, round up tax hike votes later

      The Chicago Tribune | by Monique Garcia and Ray Long | May 15, 2014

      Illinois Democrats are taking a spend first, find-the-money-later approach as they craft a new state budget.