2021 -- H 5810

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LC002087

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2021

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A N   A C T

RELATING TO PUBLIC FINANCE -- STATE BUDGET

     Introduced By: Representatives Place, and Nardone

     Date Introduced: February 24, 2021

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Sections 35-3-4, 35-3-7 and 35-3-9 of the General Laws in Chapter 35-3

entitled "State Budget" are hereby amended to read as follows:

     35-3-4. Estimates submitted by department heads.

     (a) On dates determined by the budget officer, but not later than the first day of October in

each year, each head of a department of the state government, not including the general assembly

or the judiciary, shall assemble, correlate, and revise, with power to increase or decrease, the

estimates for expenditures and requests for appropriations for the next ensuing fiscal year of each

of the divisions, boards, commissions, officers, bureaus, institutions, or agencies of the state

included within his or her department, and, after this revision, shall prepare an itemized

departmental estimate of the appropriations necessary to meet the financial needs of the department,

including a statement in detail of all moneys for which any general or special appropriation is

desired at the ensuing session of the general assembly. The estimate shall be in such form, and in

such number of copies, and with such explanation as the budget officer may require, and, on dates

determined by the budget officer, but not later than the first day of October in each year, shall be

submitted to the governor through the budget officer and to the fiscal advisors of the house and

senate.

     (b) The estimates shall also include a supplemental presentation of estimates of

expenditures for information resources and information technologies as defined in § 29-8-2

[repealed], regardless of source of financing. The estimate shall include a detailed listing and

explanation of expenses and the source of funds and shall be in such form, and in such number of

copies, and with such explanation as the budget officer may require. Copies shall be provided

directly to the house fiscal advisor, the senate fiscal advisor, and the Rhode Island information

resources management board.

     (c) Commencing with the fiscal year beginning on July 1, 2022, and in accordance with

the schedule provided herein, the estimates for expenditures and requests for appropriations shall

be based upon a justification by each department head of the budget of the department from a zero

base. The budget request shall be accompanied by a statement giving facts and explanations of

reasons for each item requested. It shall include a brief explanation of the functions of each of the

divisions, boards, commissions, officers, bureaus, institutions, or agencies of the state included

within the department and comments on its policies and plans, with such descriptive, quantitative,

comparative and other data as to work done and other information as is considered necessary or

desirable. "Zero-based budget" requests, so-called, are requests for appropriations based upon a

justification of a department from a zero base as if the budget for the department was being initiated

for the first time and shall be required based upon the following schedule:

     (1) Beginning with the fiscal year beginning July 1, 2023, zero-based budgets shall be

submitted by twenty percent (20%) of state departments, being those departments which submitted

the lowest budget requests for the fiscal year beginning July 1, 2022;

     (2) Beginning with the next fiscal year, zero-based budgets shall be submitted by twenty

percent (20%) of state departments, being those submitting the lowest budget requests for the fiscal

year beginning July 1, 2023, except for those departments included in subsection (c)(1) of this

section;

     (3) Beginning with the next fiscal year, zero-based budget requests shall be submitted by

twenty percent (20%) of state departments submitting the lowest budget requests for the fiscal year

beginning July 1, 2024, except for those departments included in subsections (c)(1) and (2) of this

section;

     (4) Beginning with the next fiscal year, zero-based budget requests shall be submitted by

twenty percent (20%) of state departments submitting the lowest budget requests for the fiscal year

beginning July 1, 2025, except for those departments included in subsections (c)(1),(2), and (3) of

this section;

     (d) For the fiscal year beginning July 1, 2026, and thereafter, zero-based budgets shall be

submitted by all remaining state departments.

     The budget officer shall provide copies to the house fiscal advisor and senate fiscal advisor.

     35-3-7. Submission of budget to general assembly -- Contents.

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     (a) On or before the third Thursday in January in each year of each January session of the

general assembly, the governor shall submit to the general assembly a budget containing a complete

plan of estimated revenues and proposed expenditures, with a personnel supplement detailing the

number and titles of positions of each agency and the estimates of personnel costs for the next fiscal

year, and with the inventory required by § 35-1.1-3(b)(4). Provided, however, in those years that a

new governor is inaugurated, the new governor shall submit the budget on or before the first

Thursday in February. Beginning with the fiscal year beginning July 1, 2022, and in accordance

with the schedule set forth in § 35-3-4, the budget submitted by the governor shall be a "zero-based

budget," a budget based upon a justification of each department's estimate of expenditures and

requests for appropriations from a zero base. In accordance with the schedule set forth in § 35-3-4,

the entire budget for the fiscal year beginning July 1, 2026, shall be a zero based budget.

     In the budget the governor may set forth in summary and detail:

     (1) Estimates of the receipts of the state during the ensuing fiscal year under laws existing

at the time the budget is transmitted and also under the revenue proposals, if any, contained in the

budget, and comparisons with the estimated receipts of the state during the current fiscal year, as

well as actual receipts of the state for the last two (2) completed fiscal years.

     (2) Estimates of the expenditures and appropriations necessary in the governor's judgment

for the support of the state government for the ensuing fiscal year, and comparisons with

appropriations for expenditures during the current fiscal year, as well as actual expenditures of the

state for the last two (2) complete fiscal years; provided, further, in the event the budget submission

includes any transfers of resources from public corporations to the general fund, the budget

submission shall also include alternatives to said transfers.

     (3) Financial statements of the:

     (i) Condition of the treasury at the end of the last completed fiscal year;

     (ii) The estimated condition of the treasury at the end of the current fiscal year; and

     (iii) Estimated condition of the treasury at the end of the ensuing fiscal year if the financial

proposals contained in the budget are adopted.

     (4) All essential facts regarding the bonded and other indebtedness of the state.

     (5) A report indicating those program revenues and expenditures whose funding source is

proposed to be changed from state appropriations to restricted receipts, or from restricted receipts

to other funding sources.

     (6) Such other financial statements and data as in the governor's opinion are necessary or

desirable.

     (b) Any other provision of the general laws to the contrary notwithstanding, the proposed

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appropriations submitted by the governor to the general assembly for the next ensuing fiscal year

should not be more than five and one-half percent (5.5%) in excess of total state appropriations,

excluding any estimated supplemental appropriations, enacted by the general assembly for the

fiscal year previous to that for which the proposed appropriations are being submitted; provided

that the increased state-share provisions required to achieve fifty percent (50%) state financing of

local school operations as provided for in P.L. 1985, ch. 182, shall be excluded from the definition

of total appropriations.

     (c) Notwithstanding the provisions of § 35-3-7(a), the governor shall submit to the general

assembly a budget for the fiscal year ending June 30, 2006, not later than the fourth (4th) Thursday

in January 2005.

     (d) Notwithstanding the provisions of § 35-3-7(a), the governor shall submit to the general

assembly a supplemental budget for the fiscal year ending June 30, 2006, and/or a budget for the

fiscal year ending June 30, 2007, not later than Thursday, January 26, 2006.

     (e) Notwithstanding the provisions of § 35-3-7(a), the governor shall submit to the general

assembly a supplemental budget for the fiscal year ending June 30, 2007, and/or a budget for the

fiscal year ending June 30, 2008, not later than Wednesday, January 31, 2007.

     (f) Notwithstanding the provisions of § 35-3-7(a), the governor shall submit to the general

assembly a budget for the fiscal year ending June 30, 2012, not later than Thursday, March 10,

2011.

     (g) Notwithstanding the provisions of § 35-3-7(a), the governor shall submit to the general

assembly a budget for the fiscal year ending June 30, 2013, not later than Tuesday, January 31,

2012.

     (h) Notwithstanding the provisions of § 35-3-7(a), the governor shall submit to the general

assembly a budget for the fiscal year ending June 30, 2016, not later than Thursday, March 12,

2015.

     35-3-9. Action on bills by house committee -- Hearings.

     The budget plan and bill or bills for proposed appropriations, when sent by the governor to

the general assembly, shall be referred as soon as practicable to an appropriate committee of the

house of representatives, and the committee shall forthwith proceed to the consideration of the bill.

and upon receipt of the budget plan the committee shall refer it to a budget panel consisting of three

(3) persons: one of whom shall be appointed by the speaker of the house; one of whom shall be

appointed by the house minority leader; and one of whom shall be appointed by the senate

president. The members of the panel shall be persons with expertise and experience in the areas of

finance or accounting. The panel shall review the budget plan and shall consider the objectives,

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operations, and costs of all activities of each department; explore alternative means of conducting

the activities of each department; evaluate alternative budget amounts for various levels of effort

for each activity of each department. The panel shall report its findings and make its

recommendations as to the needs of each department, the programs and activities of each

department and all other recommendations and information that it deems appropriate, to the

committee, within thirty (30) days after the budget plan is referred to it.

     The committee shall proceed to the consideration of the bill upon receipt of this

recommendation of the panel. The committee shall hear the budget officer upon the bill as a whole

or upon any item thereof or any proposed amendment thereto as each may elect, and the committee

may summon the budget officer to appear before it and to furnish such information relative to the

bill or any item therein, or any proposed amendment thereto, as it may require, and the committee

may in its discretion hear the proper person representing any department or agency desiring to be

heard with respect to any item or amendment in the bill relating to the department or agency;

provided, that nothing contained in this section shall be construed to limit the right of the committee

to hold public hearings upon the bill as a whole or upon any item therein, or to summon any person

for examination regarding any item contained therein, or for the purpose of obtaining information

necessary for a full and proper consideration of the bill. The committee, after the consideration of

the bill, shall report the bill with its recommendation endorsed thereon to the house of

representatives.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC FINANCE -- STATE BUDGET

***

     This act would require that the governor submit a zero-based budget to the general

assembly. The zero-based budget shall be phased in over a five (5) year period.

     This act would take effect upon passage.

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LC002087

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