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[Utah Code Table of Contents]
[TITLE 63. Table of Contents]
63-38-1 Short title.
This act shall be known and may be cited as the "Budgetary
Procedures Act."
1969
63-38-2 Governor to submit budget to Legislature - Contents - Preparation - Appropriations based on current tax laws and not to exceed estimated revenues.
(1) (a) The governor shall, within three days after the convening of the Legislature in the annual general session, submit a budget for the ensuing fiscal year by delivering it to the presiding officer of each house of the Legislature together with a schedule for all of the proposed appropriations of the budget, clearly itemized and classified.
(b) The budget message shall include:
(i) a projection of estimated revenues and expenditures for the next fiscal year; and
(ii) the source of all direct, indirect, or in-kind matching funds for all federal grants or assistance programs included in the budget.
(2) At least 34 days before the submission of any budget, the governor shall deliver a confidential draft copy of his proposed budget recommendations to the Office of the Legislative Fiscal Analyst.
(3) (a) The budget shall contain a complete plan of proposed expenditures and estimated revenues for the next fiscal year based upon the current fiscal year state tax laws and rates.
(b) The budget may be accompanied by a separate document showing proposed expenditures and estimated revenues based on changes in state tax laws or rates.
(4) The budget shall be accompanied by a statement showing:
(a) the revenues and expenditures for the last fiscal year;
(b) the current assets, liabilities, and reserves, surplus or deficit, and the debts and funds of the state;
(c) an estimate of the state's financial condition as of the beginning and the end of the period covered by the budget;
(d) a complete analysis of lease with an option to purchase arrangements entered into by state agencies;
(e) the recommendations for each state agency for new full-time employees for the next fiscal year; which recommendation should be provided also to the State Building Board under Subsection 63A-5-103 (2);
(f) any explanation the governor may desire to make as to the important features of the budget and any suggestion as to methods for the reduction of expenditures or increase of the state's revenue; and
(g) the information detailing certain regulatory fee increases required by Section 63-38-3.2 .
(5) The budget shall include an itemized estimate of the appropriations for:
(a) the Legislative Department as certified to the governor by the president of the Senate and the speaker of the House;
(b) the Executive Department;
(c) the Judicial Department as certified to the governor by the state court administrator;
(d) payment and discharge of the principal and interest of the indebtedness of the state;
(e) the salaries payable by the state under the Utah Constitution or under law for the lease agreements planned for the next fiscal year;
(f) other purposes that are set forth in the Utah Constitution or under law; and
(g) all other appropriations.
(6) Deficits or anticipated deficits shall be included in the budget.
(7) (a) (i) For the purpose of preparing and reporting the budget, the governor shall require from the proper state officials, including public and higher education officials, all heads of executive and administrative departments and state institutions, bureaus, boards, commissions, and agencies expending or supervising the expenditure of the state moneys, and all institutions applying for state moneys and appropriations, itemized estimates of revenues and expenditures.
(ii) (A) The governor may also require other information under these guidelines and at times as the governor may direct.
(B) These guidelines may include a requirement for program productivity and performance measures, where appropriate, with emphasis on outcome indicators.
(b) The estimate for the Legislative Department as certified by the presiding officers of both houses shall be included in the budget without revision by the governor.
(c) The estimate for the Judicial Department, as certified by the state court administrator, shall also be included in the budget without revision, but the governor may make separate recommendations on it.
(d) The governor may require the attendance at budget meetings of representatives of public and higher education, state departments and institutions, and other institutions or individuals applying for state appropriations.
(e) The governor may revise all estimates, except those relating to the Legislative Department, the Judicial Department, and those providing for the payment of principal and interest to the state debt and for the salaries and expenditures specified by the Utah Constitution or under the laws of the state.
(8) The total appropriations requested for expenditures authorized by the budget may not exceed the estimated revenues from taxes, fees, and all other sources for the next ensuing fiscal year.
(9) If any item of the budget as enacted is held invalid upon any ground, the invalidity does not affect the budget itself or any other item in it.
(10) (a) In submitting the budgets for the Departments of Health and Human Services and the Office of the Attorney General, the governor shall consider a separate recommendation in his budget for funds to be contracted to:
(i) local mental health authorities under Section 62A-15-110 ;
(ii) local substance abuse authorities under Section 62A-15-110 ;
(iii) area agencies under Section 62A-3-104.2 ;
(iv) programs administered directly by and for operation of the Divisions of Substance Abuse and Mental Health and Aging and Adult Services;
(v) local health departments under Title 26A, Chapter 1, Local Health Departments; and
(vi) counties for the operation of Children's Justice Centers under Section 67-5b-102 .
(b) In his budget recommendations under Subsections (10)(a)(i), (ii), and (iii), the governor shall consider an amount sufficient to grant local health departments, local mental health authorities, local substance abuse authorities, and area agencies the same percentage increase for wages and benefits that he includes in his budget for persons employed by the state.
(c) If the governor does not include in his budget an amount sufficient to grant the increase described in Subsection (10)(b), he shall include a message to the Legislature regarding his reason for not including that amount.
(11) (a) In submitting the budget for the Department of Agriculture, the governor shall consider an amount sufficient to grant local soil conservation districts and Utah Association of Conservation District employees the same percentage increase for wages and benefits that he includes in his budget for persons employed by the state.
(b) If the governor does not include in his budget an amount sufficient to grant the increase described in Subsection (11)(a), he shall include a message to the Legislature regarding his reason for not including that amount.
(12) (a) In submitting the budget for the Utah State Office of Rehabilitation and the Division of Services for People with Disabilities, the Division of Child and Family Services, and the Division of Juvenile Justice Services within the Department of Human Services, the governor shall consider an amount sufficient to grant employees of corporations that provide direct services under contract with those divisions, the same percentage increase for cost-of-living that he includes in his budget for persons employed by the state.
(b) If the governor does not include in his budget an amount sufficient to grant the increase described in Subsection (12)(a), he shall include a message to the Legislature regarding his reason for not including that amount.
(13) (a) The Families, Agencies, and Communities Together Council may propose to the governor under Subsection 63-75-4 (4)(e) a budget recommendation for collaborative service delivery systems operated under Section 63-75-6.5 .
(b) The Legislature may, through a specific program schedule, designate funds appropriated for collaborative service delivery systems operated under Section 63-75-6.5 .
(14) The governor shall include in his budget the state's portion of the budget for the Utah Communications Agency Network established in Title 63C, Chapter 7, Utah Communications Agency Network Act.
(15) (a) The governor shall include a separate recommendation in the governor's budget for funds to maintain the operation and administration of the Utah Comprehensive Health Insurance Pool.
(b) In making the recommendation the governor may consider:
(i) actuarial analysis of growth or decline in enrollment projected over a period of at least three years;
(ii) actuarial analysis of the medical and pharmacy claims costs projected over a period of at least three years;
(iii) the annual Medical Care Consumer Price Index;
(iv) the annual base budget for the pool established by the Commerce and Revenue Appropriations Subcommittee for each fiscal year;
(v) the growth or decline in insurance premium taxes and fees collected by the tax commission and the insurance department; and
(vi) the availability of surplus General Fund revenue under Section 63-38-2.5 and Subsection 59-14-204 (5)(b).
(16) In adopting a budget for each fiscal year, the Legislature shall consider an amount sufficient to grant local health departments, local mental health authorities, local substance abuse authorities, area agencies on aging, soil conservation districts, and Utah Association of Conservation District employees the same percentage increase for wages and benefits that is included in the budget for persons employed by the state.
(17) (a) In adopting a budget each year for the Utah Comprehensive Health Insurance Pool, the Legislature shall determine an amount that is sufficient to fund the pool for each fiscal year.
(b) When making a determination under Subsection (17)(a), the Legislature shall consider factors it determines are appropriate, which may include:
(i) actuarial analysis of growth or decline in enrollment projected over a period of at least three years;
(ii) actuarial analysis of the medical and pharmacy claims costs projected over a period of at least three years;
(iii) the annual Medical Care Consumer Price Index;
(iv) the annual base budget for the pool established by the Commerce and Revenue Appropriations Subcommittee for each fiscal year;
(v) the growth or decline in insurance premium taxes and fees collected by the tax commission and the insurance department from the previous fiscal year; and
(vi) the availability of surplus General Fund revenue under Section 63-38-2.5 and Subsection 59-14-204 (5)(b).
(c) The funds appropriated by the Legislature to fund the Utah Comprehensive Health Insurance Pool as determined under Subsection (17)(a):
(i) shall be deposited into the enterprise fund established by Section 31A-29-120 ; and
(ii) are restricted and are to be used to maintain the operation, administration, and management of the Utah Comprehensive Health Insurance Pool created by Section 31A-29-104 .
(18) In considering the factors in Subsections (15)(b)(i),
(ii), and (iii) and Subsections (17)(b)(i), (ii), and (iii),
the governor and the Legislature may consider the actuarial
data and projections prepared for the board of the Utah Comprehensive
Health Insurance Pool as it develops its financial statements
and projections for each fiscal year.
2006
63-38-2.5 Establishing a General Fund Budget Reserve Account - Providing for deposits and expenditures from the account.
(1) There is created within the General Fund a restricted account to be known as the General Fund Budget Reserve Account, which is designated to receive the surplus revenue required by this section.
(2) (a) (i) At the end of any fiscal year in which the Division of Finance, in conjunction with the completion of the annual audit by the state auditor, determines that there is a General Fund surplus, 25% of the surplus shall be transferred to the General Fund Budget Reserve Account, except that the amount in the combined totals of the General Fund Budget Reserve Account and the Education Budget Reserve Account created in Section 63-38-2.6 may not exceed 6% of the total of the General Fund appropriation amount and the Uniform School Fund appropriation amount for the fiscal year in which the surplus occurred.
(ii) In addition to Subsection (2)(a)(i), if a surplus exists and if, within the last ten years, the Legislature has appropriated any money from the General Fund Budget Reserve Account that has not been replaced by appropriation or as provided in this Subsection (2)(a)(ii), the Division of Finance shall, before any contingent appropriations or other transfers required by law are made, transfer up to 25% more of the surplus to the General Fund Budget Reserve Account to replace the amounts appropriated until transfers of the surplus under this Subsection (2)(a)(ii) have replaced the appropriations from the fund.
(b) The amount to be transferred to the General Fund Budget Reserve Account shall be determined before any other contingency appropriation using surplus funds.
(3) (a) If, at the close of any fiscal year, there appear to be insufficient monies to pay additional debt service for any bonded debt authorized by the Legislature, the Division of Finance may hold back monies from any General Fund surplus sufficient to pay the additional debt service requirements resulting from issuance of bonded debt that was authorized by the Legislature.
(b) The Division of Finance may not spend the hold back amount for debt service under Subsection (3)(a) unless and until it is appropriated by the Legislature.
(c) If, after calculating the amount for transfers to the General Fund Budget Reserve Account, the remaining surplus is insufficient to cover the hold back for debt service required by Subsection (3)(a), the Division of Finance shall reduce the transfer to the General Fund Budget Reserve Account by the amount necessary to cover the debt service hold back.
(d) Notwithstanding Subsection (2), the Division of Finance shall hold back the General Fund balance for debt service authorized by this Subsection (3) before making any transfers to the General Fund Budget Reserve Account or any other designation or allocation of surplus.
(4) (a) Any appropriation made by the Legislature from the General Fund Budget Reserve Account may only be used to cover operating deficits, state settlement agreements approved under Title 63, Chapter 38b, State Settlement Agreements, or retroactive tax refunds.
(b) The General Fund Budget Reserve Account is available for appropriation to fund operating deficits in public education appropriations.
(5) All interest generated from investments of money in
the General Fund Budget Reserve Account shall be deposited
into the account.
2003
63-38-2.6 Establishing an Education Budget Reserve Account - Providing for deposits and expenditures from the account.
(1) There is created within the Uniform School Fund a restricted account to be known as the Education Budget Reserve Account, which is designated to receive the surplus revenue required by this section.
(2) (a) (i) At the end of any fiscal year in which the Division of Finance, in conjunction with the completion of the annual audit by the state auditor, determines that there is a Uniform School Fund surplus, 25% of the surplus shall be transferred to the Education Budget Reserve Account, except that the amount in the combined totals of the Education Budget Reserve Account and the General Fund Budget Reserve Account created in Section 63-38-2.5 may not exceed 6% of the total of the Uniform School Fund appropriation amount and the General Fund appropriation amount for the fiscal year in which the surplus occurred.
(ii) In addition to Subsection (2)(a)(i), if a surplus exists and if, within the last ten years, the Legislature has appropriated any money from the Education Budget Reserve Account that has not been replaced by appropriation or as provided in this Subsection (2)(a)(ii), the Division of Finance shall, before any contingent appropriations or other transfers required by law are made, transfer up to 25% more of the surplus to the Education Budget Reserve Account to replace the amounts appropriated until transfers of the surplus under this Subsection (2)(a)(ii) have replaced the appropriations from the fund.
(b) The amount to be transferred to the Education Budget Reserve Account shall be determined before any other contingency appropriation using surplus funds.
(3) Any appropriation made by the Legislature from the Education Budget Reserve Account may only be used to cover operating deficits in the state's public and higher education system.
(4) All interest generated from investments of money in
the Education Budget Reserve Account shall be deposited into
the account.
2003
63-38-3 Appropriations governed by chapter - Restrictions on expenditures - Transfer of funds.
(1) All moneys appropriated by the Legislature are appropriated upon the terms and conditions set forth in this chapter, and any department, agency, or institution, except the Legislature and its committees, or where specifically exempted by the appropriating act, which accepts moneys appropriated by the Legislature, does so subject to this chapter.
(2) (a) In providing that certain appropriations are to be expended in accordance with a schedule or other restrictions, if any, set forth after each appropriations item, it is the intent of the Legislature to limit the amount of money to be expended from each appropriations item for certain specified purposes.
(b) Each schedule:
(i) is a restriction or limitation upon the expenditure of the respective appropriation made;
(ii) does not itself appropriate any money; and
(iii) is not itself an item of appropriation.
(c) An appropriation or any surplus of any appropriation may not be diverted from any department, agency, institution, or division to any other department, agency, institution, or division.
(d) The money appropriated subject to a schedule or restriction may be used only for the purposes authorized.
(e) (i) If any department, agency, or institution for which money is appropriated requests the transfer of moneys appropriated to it from one purpose or function to another purpose or function within an item of appropriation, the director of the Governor's Office of Planning and Budget shall require a new work program to be submitted for the fiscal year involved setting forth the purpose and necessity for such transfer.
(ii) The director and fiscal officer shall review the proposed change and submit their findings and recommendations to the governor, who may permit the transfer.
(iii) The state fiscal officer shall notify the Legislature through the Office of the Legislative Fiscal Analyst of action taken by the governor.
(f) Monies may not be transferred from one item of appropriation to any other item of appropriation.
(3) This section does not apply to the Investigation Account
of the Water Resources Construction Fund. The investigation
account shall continue to be governed by Section
73-10-8
.
2006
63-38-3.1 Restrictions on agency expenditures of monies - Lobbyists.
(1) As used in this section:
(a) (i) "Agency" means each department, commission, board, council, agency, institution, officer, corporation, fund, division, office, committee, authority, laboratory, library, unit, bureau, panel, or other administrative unit of the state.
(ii) "Agency" includes the legislative branch, the judicial branch, the Board of Regents, the board of trustees of each higher education institution, each higher education institution, or a public education entity.
(b) "Executive action" means action undertaken by the governor, including signing or vetoing legislation, and action undertaken by any official in the executive branch of government.
(c) "Legislative action" means action undertaken by the Utah Legislature or any part of it.
(d) "Lobbyist" means a person who is not an employee of an agency who is hired as an independent contractor by the agency to communicate with legislators or the governor for the purpose of influencing the passage, defeat, amendment, or postponement of legislative or executive action.
(2) A state agency or entity to which monies are appropriated
by the Legislature may not expend any monies to pay a lobbyist.
2001
63-38-3.2 Fees - Adoption, procedure, and approval - Establishing and assessing fees without legislative approval.
(1) As used in this section:
(a) (i) "Agency" means each department, commission, board, council, agency, institution, officer, corporation, fund, division, office, committee, authority, laboratory, library, unit, bureau, panel, or other administrative unit of the state.
(ii) "Agency" does not mean the Legislature or its committees.
(b) "Fee agency" means any agency that is authorized to establish regulatory fees.
(c) "Fee schedule" means the complete list of regulatory fees charged by a fee agency and the amount of those fees.
(d) "Regulatory fees" means fees established for licensure, registration, or certification.
(2) Each fee agency shall:
(a) adopt a schedule of fees assessed for services provided by the fee agency that are:
(i) reasonable, fair, and reflect the cost of services provided; and
(ii) established according to a cost formula determined by the director of the Governor's Office of Planning and Budget and the director of the Division of Finance in conjunction with the agency seeking to establish the regulatory fee;
(b) conduct a public hearing on any proposed regulatory fee and increase or decrease the proposed regulatory fee based upon the results of the public hearing;
(c) except as provided in Subsection (6), submit the fee schedule to the Legislature as part of the agency's annual appropriations request;
(d) where necessary, modify the fee schedule to implement the Legislature's actions; and
(e) deposit all regulatory fees collected under the fee schedule into the General Fund.
(3) A fee agency may not:
(a) set regulatory fees by rule; or
(b) charge or collect any regulatory fee without approval by the Legislature unless the fee agency has complied with the procedures and requirements of Subsection (5).
(4) The Legislature may approve, increase or decrease and approve, or reject any regulatory fee submitted to it by a fee agency.
(5) (a) After the public hearing required by this section, a fee agency may establish and assess regulatory fees without legislative approval if:
(i) the Legislature creates a new program that is to be funded by regulatory fees to be set by the Legislature; and
(ii) the new program's effective date is before the Legislature's next annual general session; or
(iii) the Division of Occupational and Professional licensing makes a special assessment against qualified beneficiaries under the Residence Lien Restriction and Lien Recovery Fund Act as provided in Subsection 38-11-206 (1).
(b) Each fee agency shall submit its fee schedule or special assessment amount to the Legislature for its approval at a special session, if allowed in the governor's call, or at the next annual general session of the Legislature, whichever is sooner.
(c) Unless the fee schedule is approved by the Legislature, the fee agency may not collect a regulatory fee set according to this subsection after the adjournment of the annual general session following the session that established the new program.
(6) (a) Each fee agency that wishes to increase any regulatory fee by 5% or more shall obtain legislative approval for the fee increase as provided in this subsection before assessing the new regulatory fee.
(b) Each fee agency that wishes to increase any regulatory fee by 5% or more shall submit to the governor as part of the agency's annual appropriation request a list that identifies:
(i) the title or purpose of the regulatory fee;
(ii) the present amount of the regulatory fee;
(iii) the proposed new amount of the regulatory fee;
(iv) the percent that the regulatory fee will have increased if the Legislature approves the higher fee; and
(v) the reason for the increase in the regulatory fee.
(c) (i) The governor may review and approve, modify and approve, or reject the regulatory fee increases.
(ii) The governor shall transmit the list required by Subsection (6)(b), with any modifications, to the Legislative Fiscal Analyst with the governor's budget recommendations.
(d) Bills approving any regulatory fee increases of 5%
or more shall be filed before the beginning of the Legislature's
annual general session, if possible.
2003
63-38-3.3 Payment of fees prerequisite to service - Exception.
(1) (a) State and county officers required by law to charge fees may not perform any official service unless the fees prescribed for that service are paid in advance.
(b) When the fee is paid, the officer shall perform the services required.
(c) An officer is liable upon the officer's official bond for every failure or refusal to perform an official duty when the fees are tendered.
(2) (a) Except as provided in Subsection (2)(b), no fees may be charged:
(i) to the officer's state, or any county or subdivision of the state;
(ii) to any public officer acting for the state, county, or subdivision;
(iii) in cases of habeas corpus;
(iv) in criminal causes before final judgment;
(v) for administering and certifying the oath of office;
(vi) for swearing pensioners and their witnesses; or
(vii) for filing and recording bonds of public officers.
(b) Fees may be charged for payment:
(i) of recording fees for county and municipal improvement district recordings in compliance with Sections 17A-3-207 and 17A-3-307 ;
(ii) of recording fees for judgments recorded in compliance with Sections 57-3-106 and 78-5-119; and
(iii) to the state engineer under Section
73-2-14
.
2005
63-38-3.4 Parking fees at court buildings.
(1) State-owned or leased court facilities may not charge or collect fees for parking without prior approval by the Legislature.
(2) The Legislature may approve, increase, decrease and
approve, or reject any parking fee submitted to it by the
courts.
2001
63-38-3.5 Internal service funds - Governance and review.
(1) For purposes of this section:
(a) "Agency" means a department, division, office, bureau, or other unit of state government, and includes any subdivision of an agency.
(b) "Do not replace vehicles" means a vehicle accounted for in the Division of Fleet Operations for which charges to an agency for its use do not include amounts to cover depreciation or to accumulate assets to replace the vehicle at the end of its useful life.
(c) "Internal service fund agency" means an agency that provides goods or services to other agencies of state government or to other governmental units on a capital maintenance and cost reimbursement basis, and which recovers costs through interagency billings.
(d) "Revolving loan fund" means each of the revolving loan funds defined in Section 63A-3-205 .
(2) An internal service fund agency is not subject to this section with respect to its administration of a revolving loan fund.
(3) An internal service fund agency may not bill another agency for services that it provides, unless the Legislature has:
(a) reviewed and approved the internal service fund agency's budget request;
(b) reviewed and approved the internal service fund agency's rates, fees, and other amounts that it charges those who use its services and included those rates, fees, and amounts in an appropriation act;
(c) approved the number of full-time, permanent positions of the internal service fund agency as part of the annual appropriation process; and
(d) appropriated to the internal service fund agency the internal service fund's estimated revenue based upon the rates and fee structure that are the basis for the estimate.
(4) (a) Except as provided in Subsection (4)(b), an internal service fund agency may not charge rates, fees, and other amounts that exceed the rates, fees, and amounts established by the Legislature in the appropriations act.
(b) (i) An internal service fund agency that begins a new service or introduces a new product between annual general sessions of the Legislature may establish and charge an interim rate or amount for that service or product.
(ii) The internal service fund agency shall submit that interim rate or amount to the Legislature for approval at the next annual general session.
(5) The internal service fund agency budget request shall separately identify the capital needs and the related capital budget.
(6) In the fiscal year that the accounting change referred to in Subsection 51-5-6 (2) is implemented by the Division of Finance, the Division of Finance shall transfer equity created by that accounting change to any internal service fund agency up to the amount needed to eliminate any long-term debt and deficit working capital in the fund.
(7) No new internal service fund agency may be established unless reviewed and approved by the Legislature.
(8) (a) Except as provided in Subsection (8)(f), an internal service fund agency may not acquire capital assets unless legislative approval for acquisition of the assets has been included in an appropriations act for the internal service fund agency.
(b) An internal service fund agency may not acquire capital assets after the transfer mandated by Subsection (6) has occurred unless the internal service fund agency has adequate working capital.
(c) The internal service fund agency shall provide working capital from the following sources in the following order:
(i) first, from operating revenues to the extent allowed by state rules and federal regulations;
(ii) second, from long-term debt, subject to the restrictions of this section; and
(iii) last, from an appropriation.
(d) (i) To eliminate negative working capital, an internal service fund agency may incur long-term debt from the General Fund or Special Revenue Funds to acquire capital assets.
(ii) The internal service fund agency shall repay all long-term debt borrowed from the General Fund or Special Revenue Funds by making regular payments over the useful life of the asset according to the asset's depreciation schedule.
(e) (i) The Division of Finance may not allow an internal service fund agency's borrowing to exceed 90% of the net book value of the agency's capital assets as of the end of the fiscal year.
(ii) If an internal service fund agency wishes to purchase authorized assets or enter into equipment leases that would increase its borrowing beyond 90% of the net book value of the agency's capital assets, the agency may purchase those assets only with monies appropriated from another fund, such as the General Fund or a special revenue fund.
(f) (i) Except as provided in Subsection (8)(f)(ii), capital assets acquired through agency appropriation may not be transferred to any internal service fund agency without legislative approval.
(ii) Vehicles acquired by agencies from appropriated funds or monies appropriated to agencies to be used for vehicle purchases may be transferred to the Division of Fleet Operations and, when transferred, become part of the Fleet Operations Internal Service Fund.
(iii) Vehicles acquired with funding from sources other than state appropriations or acquired through the federal surplus property donation program may be transferred to the Division of Fleet Operations and, when transferred, become part of the Fleet Operations Internal Service Fund.
(iv) Unless otherwise approved by the Legislature, vehicles acquired under Subsection (8)(f)(iii) shall be accounted for as "do not replace" vehicles.
(9) The Division of Finance shall adopt policies and procedures
related to the accounting for assets, liabilities, equity,
revenues, expenditures, and transfers of internal service
funds agencies.
2003
63-38-3.6 Appropriating from restricted accounts.
(1) As used in this section, "operating deficit" means that estimated General Fund or Uniform School Fund revenues are less than budgeted for the current or next fiscal year.
(2) Notwithstanding any other statute that limits the
Legislature's power to appropriate from a restricted account,
if the Legislature determines that an operating deficit exists,
unless prohibited by federal law or court order, the Legislature
may, in eliminating the deficit, appropriate monies from
a restricted account into the General Fund.
2002
63-38-4 Duplicate payment of claims prohibited.
No claim against the state, the payment of which is provided
for, shall be duplicated, and the amount of any appropriation
for the payment of any such claim shall be withheld if it
is covered by any other appropriation.
1969
63-38-5 Appropriations from special funds or accounts - Transfer by proper official only.
Whenever appropriations are made from special funds,
or a fund account, the transfer of moneys from such funds,
or accounts, to the General Fund or any other fund for budgetary
purposes shall be made by the proper state fiscal officer.
1987
63-38-6 Warrants - Not to be drawn until claim processed - Redemption.
(1) No warrant to cover any claim against any appropriation or fund shall be drawn until such claim has been processed as provided by law.
(2) The state treasurer shall return all redeemed warrants
to the state fiscal officer for purposes of reconciliation,
post-audit and verification of the state treasurer's fund
balances.
2001
63-38-7 Cash funds - Petty cash, application for - Cash advances - Revolving fund established by law excepted.
(1) Before any new petty cash funds may be established, the commission, department, or agency requesting the fund or funds shall apply in writing to the state fiscal officer, setting out the reasons for which it is needed and the amount requested.
(2) The state fiscal officer shall review the application and submit it to the governor with his recommendations, and the governor may establish the fund or funds from moneys in the state treasury.
(3) The state fiscal officer may, in lieu of establishing petty cash, imprest cash, or revolving funds for state institutions of higher education, permit advances to be made from allotments to the institutions in sufficient amounts to provide necessary working bank balances to facilitate an orderly management of institutional affairs. The institutions shall make reports as required by the state fiscal officer for the expenditure of funds included in any advances.
(4) Revolving funds established by law are not subject
to the provisions of this section.
1997
63-38-8 End of fiscal year - Unexpended balances - Funds not to be closed out - Pending claims - Transfer of amounts from item of appropriation.
(1) As used in this section, "transaction control number" means the unique numerical identifier established by the Department of Health to track each medical claim, which indicates the date upon which the claim is entered.
(2) On or before August 31 of each fiscal year, the director of the Division of Finance shall close out to the proper fund or account all remaining unexpended and unencumbered balances of appropriations made by the Legislature, except:
(a) those funds classified under Title 51, Chapter 5, Funds Consolidation Act as:
(i) enterprise funds;
(ii) internal service funds;
(iii) trust and agency funds;
(iv) capital projects funds;
(v) college and university funds;
(vi) debt service funds; and
(vii) permanent funds;
(b) appropriations made to the Legislature and its committees;
(c) restricted special revenue funds, unless specifically directed to close out the fund in the fund's enabling legislation;
(d) acquisition and development funds appropriated to the Division of Parks and Recreation;
(e) funds encumbered to pay purchase orders issued prior to May 1 for capital equipment if delivery is expected before June 30;
(f) unexpended and unencumbered balances of appropriations that meet the requirements of Section 63-38-8.1 ; and
(g) any other appropriations excepted by statute or by an annual appropriations act.
(3) (a) Liabilities and related expenses for goods and services received on or before June 30 shall be recognized as expenses due and payable from appropriations made prior to June 30.
(b) The liability and related expense shall be recognized within time periods established by the Division of Finance but shall be recognized not later than August 31.
(c) Liabilities and expenses not so recognized may be paid from regular departmental appropriations for the subsequent fiscal year, if these claims do not exceed unexpended and unencumbered balances of appropriations for the years in which the obligation was incurred.
(d) No amounts may be transferred from an item of appropriation of any department, institution, or agency into the Capital Projects Fund or any other fund without the prior express approval of the Legislature.
(4) (a) For purposes of this chapter, claims processed under the authority of Title 26, Chapter 18, Medical Assistance Act:
(i) may not be considered a liability or expense to the state for budgetary purposes unless they are received by the Division of Health Care Financing within the time periods established by the Division of Finance under Subsection (3)(b); and
(ii) are not subject to the requirements of Subsection (3)(c).
(b) The transaction control number recorded on each claim
invoice by the division is considered the date of receipt.
2004
63-38-8.1 Nonlapsing authority.
(1) As used in this section:
(a) (i) "Agency" means each department, commission, board, council, agency, institution, officer, corporation, fund, division, office, committee, authority, laboratory, library, unit, bureau, panel, or other administrative unit of the state.
(ii) "Agency" does not include those entities whose unappropriated and unencumbered balances are made nonlapsing by the operation of Subsection 63-38-8 (2).
(b) "Appropriation balance" means the unexpended and unencumbered balance of a line item appropriation made by the Legislature to an agency that exists at the end of a fiscal year.
(c) "Nonlapsing" means that an agency's appropriation balance is not closed out to the appropriate fund at the end of a fiscal year as required by Section 63-38-8 .
(d) "One-time project" means a project or program that can be completed with the appropriation balance and includes such items as employee incentive awards and bonuses, purchase of equipment, and one-time training.
(e) "One-time projects list" means:
(i) a prioritized list of one-time projects, upon which an agency would like to spend any appropriation balance; and
(ii) for each project, the maximum amount the agency is estimating for the project.
(f) "Program" means a service provided by an agency to members of the public, other agencies, or to employees of the agency.
(2) Notwithstanding the requirements of Section 63-38-8 , an agency may, by following the procedures and requirements of this section, retain and expend any appropriation balance.
(3) (a) Each agency that wishes to preserve any part or all of its appropriation balance as nonlapsing shall include a one-time projects list as part of the budget request that it submits to the governor and the Legislature at the annual general session of the Legislature immediately before the end of the fiscal year in which the agency may have an appropriation balance.
(b) An agency may not include a proposed expenditure on its one-time projects list if:
(i) the expenditure creates a new program;
(ii) the expenditure enhances the level of an existing program; or
(iii) the expenditure will require a legislative appropriation in the next fiscal year.
(c) The governor:
(i) may approve some or all of the items from an agency's one-time projects list; and
(ii) shall identify and prioritize any approved one-time projects in the budget that he submits to the Legislature.
(4) The Legislature:
(a) may approve some or all of the specific items from an agency's one-time projects list as authorized expenditures of an agency's appropriation balance;
(b) shall identify any authorized one-time projects in the appropriate line item appropriation; and
(c) may prioritize one-time projects in intent language.
2006
63-38-8.2 Internal service funds - End of fiscal year - Unused authority for capital acquisition.
(1) An internal service fund agency's authority to acquire capital assets under Subsection 63-38-3.5 (8)(a) shall lapse if the acquisition of the capital asset does not occur in the fiscal year in which the authorization is included in the appropriations act, unless the Legislature identifies the authority to acquire the capital asset as nonlapsing authority:
(a) for a specific one-time project and a limited period of time in the Legislature's initial appropriation to the agency; or
(b) in a supplemental appropriation in accordance with Subsection (2).
(2) (a) An internal service fund agency's authority to acquire capital assets may be retained as nonlapsing authorization if the internal service fund agency includes a one-time project's list as part of the budget request that it submits to the governor and the Legislature at the annual general session of the Legislature immediately before the end of the fiscal year in which the agency may have unused capital acquisition authority.
(b) The governor:
(i) may approve some or all of the items from an agency's one-time project's list; and
(ii) shall identify and prioritize any approved one-time projects in the budget that he submits to the Legislature.
(c) The Legislature:
(i) may approve some or all of the specific items from an agency's one-time project's list as an approved capital acquisition for an agency's appropriation balance;
(ii) shall identify any authorized one-time projects in the appropriate line item appropriation; and
(iii) may prioritize one-time projects in intent language.
(3) An internal service fund agency shall submit a status
report of outstanding nonlapsing authority to acquire capital
assets and associated one-time projects to the Governor's
Office of Planning and Budget and the Legislative Fiscal
Analyst's Office with the proposed budget required by Section
63-38-2
.
2004
63-38-9 Revenue types - Disposition of funds collected or credited by a state agency.
(1) (a) The revenues enumerated in this section are established as major revenue types.
(b) The Division of Finance shall:
(i) account for revenues in accordance with generally accepted accounting principles; and
(ii) use the major revenue types in internal accounting.
(c) Each agency shall:
(i) use the major revenue types enumerated in this section to account for revenues;
(ii) deposit revenues and other public funds received by them by following the procedures and requirements of Title 51, Chapter 7, State Money Management Act; and
(iii) expend revenues and public funds as required by this chapter.
(2) The major revenue types are:
(a) free revenue;
(b) restricted revenue;
(c) dedicated credits; and
(d) fixed collections.
(3) (a) Free revenue includes:
(i) collections that are required by law to be deposited in the General Fund, the Uniform School Fund, or the Transportation Fund;
(ii) collections that are not otherwise designated by law;
(iii) collections that are not externally restricted; and
(iv) collections that are not included in an approved work program.
(b) Each agency shall deposit its free revenues into the appropriate fund.
(c) An agency may expend free revenues up to the amount specifically appropriated by the Legislature.
(d) Any free revenue funds appropriated by the Legislature to an agency that remain unexpended at the end of the fiscal year lapse to the source fund unless the Legislature provides by law that those funds are nonlapsing.
(4) (a) Restricted revenues are collections deposited by law into a separate fund or subfund that are designated for a specific program or purpose.
(b) Each agency shall deposit its restricted revenues into a restricted fund.
(c) The Legislature may appropriate restricted revenues from a restricted fund for the specific purpose or program designated by law.
(d) If the fund equity of a restricted fund is insufficient to provide the funds appropriated from it by the Legislature, the Division of Finance may reduce the appropriation to a level that ensures that the fund equity is not less than zero.
(e) Any restricted revenue funds appropriated by the Legislature to an agency that remain unexpended at the end of the fiscal year lapse to the restricted fund unless the Legislature provides by law that those funds, or the program or line item financed by those funds, are nonlapsing.
(5) (a) Dedicated credits and federal revenues are collections by an agency that are deposited directly into an account for expenditure on a separate line item and program.
(b) An agency may expend dedicated credits for any purpose within the program or line item.
(c) (i) An agency may expend dedicated credits in excess of the amount appropriated as dedicated credits by the Legislature by following the procedures contained in this Subsection (5)(c).
(ii) The agency shall develop a new work program and the justification for the work program and submit it to the Division of Finance and the director of the Governor's Office of Planning and Budget. Except for monies deposited as dedicated credits in the Drug Stamp Tax Fund under Section 59-19-105 or line items covering tuition and federal vocational funds at institutions of higher learning, any expenditure of dedicated credits in excess of amounts appropriated as dedicated credits by the Legislature may not be used to permanently increase personnel within the agency unless approved by the Legislature.
(iii) The Division of Finance and the director of the Governor's Office of Planning and Budget shall review the program and submit their findings and recommendations to the governor.
(iv) The governor may authorize the agency to expend its excess dedicated credits by approving the submitted work program.
(v) The state's fiscal officer shall notify the Legislature by providing notice of the governor's action to the Office of Legislative Fiscal Analyst.
(d) (i) All excess dedicated credits lapse to the appropriate fund at the end of the fiscal year unless the Legislature has designated the entire program or line item that is partially or fully funded from dedicated credits as nonlapsing.
(ii) The Division of Finance shall determine the appropriate fund into which the dedicated credits lapse.
(6) (a) Fixed collections are collections:
(i) fixed by law or by the appropriation act at a specific amount; and
(ii) required by law to be deposited into a separate line item and program.
(b) The Legislature may establish by law the maximum amount of fixed collections that an agency may expend.
(c) If an agency receives less than the maximum amount of expendable fixed collections established by law, the agency's authority to expend is limited to the amount of fixed collections that it receives.
(d) If an agency receives fixed collections greater than the maximum amount of expendable fixed collections established by law, those excess amounts lapse to the General Fund, the Uniform School Fund, or the Transportation Fund as designated by the director of the Division of Finance at the end of the fiscal year.
(7) (a) Unless otherwise specifically provided by law, when an agency has a program or line item that is funded by more than one major revenue type, the agency shall expend its dedicated credits and fixed collections first.
(b) Unless otherwise specifically provided by law, when
programs or line items are funded by more than one major
revenue type and include both free revenue and restricted
revenue, an agency shall expend those sources based upon
a proration of the amounts appropriated from each of those
major revenue types.
2003
63-38-9.5 Agency exempt from act.
The Utah Housing Corporation is exempt from this act.
2005
63-38-10 Overexpenditure of budget by agency - Prorating budget income shortfall.
(1) In providing for appropriations, the Legislature intends that expenditures of departments, agencies, and institutions of state government be kept within revenues available for such expenditures.
(2) (a) The Legislature also intends that line items of appropriation not be overexpended.
(b) If an agency's line item is overexpended at the close of a fiscal year:
(i) the director of the Division of Finance may make payments from the line item to vendors for goods or services that were received on or before June 30; and
(ii) the director of the Division of Finance shall immediately reduce the agency's line item budget in the current year by the amount of the overexpenditure.
(c) Each agency with an overexpended line item shall produce a written report explaining the reasons for the overexpenditure and shall present the report to the Board of Examiners as required by Section 63-6-10 .
(3) If the total of all revenues accruing in any given fiscal year to the General Fund, or any other major fund type, collections, or dedicated credits, from which appropriations are made, are not sufficient to cover the appropriations made for that period, the governor shall reduce the budgetary allotments and transfer of funds by the amount of the deficiency.
(4) (a) No department may receive any advance allotment, or allotments in excess of regular monthly allotments, that cannot be covered by anticipated revenue within the work program of the fiscal year, unless the governor allocates moneys from his emergency appropriations.
(b) All allocations made from the governor's emergency appropriations shall be reported to the budget subcommittee of the Legislative Management Committee by notifying the Office of the Legislative Fiscal Analyst at least 15 days before the effective date of the allocation.
(c) Emergency appropriations shall be allocated only to
support activities having existing legislative approval and
appropriation, and may not be allocated to any activity or
function rejected directly or indirectly by the Legislature.
1987
63-38-11 Director of finance to exercise accounting control - Work programs - Allotments and expenditures.
(1) The director of finance shall exercise accounting control over all state departments, institutions, and agencies other than the Legislature and legislative committees.
(2) (a) The director shall require the head of each department to submit, by May 15 of each year, a work program for the next fiscal year.
(b) The director may require any department to submit a work program for any other period.
(3) The work program shall include appropriations and all other funds from any source made available to the department for its operation and maintenance for the period and program authorized by the appropriation act.
(4) The director of finance shall, upon request from the governor, revise, alter, decrease, or change work programs.
(5) Notwithstanding the requirements of Title 63, Chapter 38a, Revenue Procedures and Control Act, the aggregate of the work program changes may not exceed the total appropriations or other funds from any source that are available to the department line item for the fiscal year in question.
(6) The director of finance shall transmit a copy of the changes when approved by the governor to the head of the department concerned and also a copy to the legislative analyst.
(7) Upon request, review, and approval by the governor, the director of finance shall permit all expenditures to be made from the appropriations or other funds from any source on the basis of those work programs.
(8) (a) Except as provided by Subsection (c), the director shall, through statistical sampling methods or other means, examine and approve or disapprove all requisitions and requests for proposed expenditures of the departments.
(b) No requisitions of any of the departments shall be allowed nor shall any obligation be created without the approval and the certification of the director.
(c) Notwithstanding the requirements of Subsection (a),
the director need only certify the availability of funds
when the requisitions or proposed expenditures are for the
judicial branch or to pay the salaries or compensation of
officers fixed by law.
1994
63-38-11.5 Reduction in federal funds - Agencies to reduce budgets.
(1) In any fiscal year in which federal grants to be received by state agencies, departments, divisions, or institutions are reduced below the level estimated in the appropriations acts for that year, the programs supported by those grants must be reduced commensurate with the amount of the federal reduction unless the Legislature appropriates state funds to offset the loss in federal funding.
(2) This program modification shall be reported to the
Legislature through the Executive Appropriations Committee
and the Office of the Legislative Fiscal Analyst.
2004
63-38-12 Uniform School Fund - Appropriations.
Appropriations made from the General Fund to the Uniform School Fund to assist in financing the state's portion of the minimum school program as provided by law, shall be conditioned upon available revenue.
If revenues to the General Fund are not sufficient to
permit transfers to the Uniform School Fund as provided by
appropriation, the state fiscal officers, with the approval
of the governor, shall withhold such transfers during the
fiscal period, as in their judgment the available revenues
justify, after other appropriations made by law have been
provided for, and after any modifications in department and
agency work program and allotments have been made; and provided
further, that transfers to the Uniform School Fund shall
be made at such times as required to equalize the property
levy for each fiscal year.
1969
63-38-13 Conditions on appropriations binding.
Any and all conditions as may be attached to items of
appropriation made by the appropriations act not inconsistent
with law shall be binding upon the recipient of any such
appropriation.
1969
63-38-14 Request for in-depth budget review of agency or program - Form of budget submitted.
The Legislative Management Committee, upon recommendation
of an appropriations subcommittee of the Legislature, may
request of the governor for any designated fiscal year, an
in-depth budget review of any state department, agency, institution
or program. When responding to a request for an in-depth
budget review, the governor shall submit for the department,
agency, institution or program for the fiscal year indicated
a budget prepared in accordance with Section
63-38-15
and using the format and procedures developed
by the director of the Governor's Office of Planning and
Budget in cooperation with the legislative fiscal analyst.
This format shall be constructed to assist the analyst and
the Legislature in reviewing the justification for selected
departments, agencies, and institutions or any of their programs
and activities.
2003
63-38-15 Purpose of review - Information submitted.
The purpose of an in-depth budget review is to determine whether each department, agency, institution or program warrants continuation of its current level of expenditure or at a different level, or if it should be terminated. The budget for a state department, agency, institution or program subject to an in-depth budget review shall be a detailed plan in which programs and activities within programs are organized and budgeted after analysis and evaluation are made of all proposed expenditures. In the presentation of the budget of a department, agency, institution or program subject to in-depth budget review, the governor shall include the following:
(1) a statement of agency and program objectives, effectiveness measures, and program size indicators;
(2) alternative funding levels for each program with effectiveness measures and program size indicators detailed for each alternative funding level. Alternative funding levels shall be determined as percentages of the appropriations level authorized by the Legislature for the current fiscal year. The percentages shall be determined for each in-depth budget review by the director of the Governor's Office of Planning and Budget in consultation with the legislative fiscal analyst;
(3) a priority ranking of all programs and activities in successively increasing levels of performance and funding;
(4) other budgetary information requested by the legislative fiscal analyst; and
(5) a statement containing further recommendations of
the governor as appropriate.
2003
63-38-16 Selection of activities for review - Coordination with audits.
The legislative auditor general shall consult with the
Legislative Management Committee to determine the programs
or activities to audit which will best assist the executive
branch in preparing the in-depth budget and the Legislature
in reviewing the in-depth budget for funding. The scope of
the audits shall be determined by the legislative auditor
general based upon need, manpower considerations and other
audit priorities. It is the intent of the Legislature that
the legislative fiscal analyst and the legislative auditor
general coordinate the in-depth budget reviews insofar as
possible with the audits performed by the legislative auditor
general.
1983
