News Release
Process and Timeline for Stabilizing State Budget Revenue Shortfall
5/24/2002
Mary Schwarz
406-444-5523
mschwarz@state.mt.us
Background which initiated this procedure and the timeline for final decisions on what, if any, budget reductions will be necessary are as follows:
Based on revenue projections, the Office of Budget and Program Planning requested the Governor notify each agency to submit detailed plans for budget reductions of 3% and 10% and an explanation of the impact of those reductions. The Office of Budget and Program Planning received those plans on May 10.
May 24
Office of Budget and Program Planning submits to the Governor and Legislative Fiscal Analyst revenue projections and initial spending reduction recommendations for Fiscal Year 2003.
By June 7
The Legislative Fiscal Analyst will provide an analysis of the Budget Office's spending reduction recommendations to the Legislative Finance Committee and revenue estimates to the Revenue and Transportation Committee.
June 13 and 14
The Legislative Finance and Revenue and Transportation Committees will meet to determine what recommendations it will make to the Governor on revenue and spending reductions. The Committees agreed to delay their meeting from June 6 and 7 to June 13 and 14 -- at the Administration's request - so that the Budget Office could receive additional revenue numbers.
On or about June 21
Should revenues fall such that the projected fund balance is below 2% of the general fund expenditures for fiscal year 2003, the State Budget Director is required to certify such to the Governor. This would statutorily require budget reductions. The final amount of these reductions are determined by the Governor.
The process requires that if the state's projected ending fund balance falls below 2% of the next fiscal year's general fund appropriation, spending reductions of no more than 10% are required. According to the statute, the Governor must ensure that the projected ending general fund balance for the biennium will be at least 1% of all general fund appropriations during the biennium.
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