The Life Cycle of a Budget. The Full Cycle of a State of Alaska Operating Budget Request. Budget Definitions and Flow of Budget Process. See handout—Glossary of Key Budget Terms, published by the Office of Management and Budget http://www.gov.state.ak.us/omb/Glossary/index.htm
The Full Cycle of a State of Alaska Operating Budget Request
See handout—Flow chart of a typical operating budget flow process.
Alaska’s budget process is continuous and iterative, involving all levels and branches of government. Those involved in the budget process deal with different references in time—looking backward to gain from experience, implementing and monitoring the current year budget, and planning for future public needs.
Preparation of the operating budget begins long before the legislature convenes.
The budget cycle begins in late-July, early-August of each year. This begins establishing the succeeding, or next fiscal year’s budget, e.g. in July of FY09, Management begins the development of the FY10 operating budget.
Management first identifies “big picture” items—significant changes in the agency’s budget from the prior fiscal year operating budget appropriations. These items are reviewed with the Governor’s Office (OMB). Approved items are then submitted in the Governor’s Budget Request.
The narrative portion of an operating budget provides information about a budget entity (department, division, or component).
Narratives describe core services, key challenges, and measures for determining the entity’s success.
The division narrative consists of:
After narratives, Budget Unit begins entering operating budget information into the Alaska Budget System (ABS)
There are separate modules in ABS that data is entered:
What is restricted revenue?
Funding is restricted for a particular purpose, e.g. federal funding can occur only for that particular purpose, as stipulated by federal grant requirements.
Unrestricted revenues do not need to be reconciled in the operating budget exercise. Unrestricted revenue is General Fund dollars that are appropriated for any purpose within the constraints of the appropriations structure and mission.
Expenditure detail provides descriptions of expenditures relating to the following items, and budgeted to the appropriated amount:
A personal services module is located in components that have positions reporting directly to that component. A personal services module contains:
*Note: The DOC received full funding for ALL Institutional positions in FY09.
The division’s balanced budget has been submitted to the department level, what happens next?
Finance Committee Closeout include:
Conference Committee Process include:
If an appropriation bill is transmitted to the governor after session, the governor has 20 working days to review the bill and exercise line item veto power. The bill becomes law and is typically effective with the beginning of the fiscal year on July 1. Some sections of the appropriations bills may have other effective dates.
Management Plan is the final exercise to the operating budget. This typically begins in late-July to mid-August
The following is a listing of common RPs used within DOC that require additional approval by the Office of Management & Budget (OMB) within the Governor’s office.