Budget Lessons from States
Senate Committee on the Budget, Fixing a Broken Budget Process: Lessons from States, Wednesday, June 19, 2019
Our budget process reforms have been transmitted to both Budget Committees and the JSC more than once. They reflect what we transmitted to the Joint Select Committee on Budget and Appropriations Process Reform in July 2018 and to this committee on February 27th of this year (which is included in an attachment).
As any political science graduate and former member knows, State legislatures have limited sessions, almost always mandated by state constitutions. At the end of these sessions, the clock is unplugged or its batteries are removed, usually to finish appropriations for the upcoming fiscal year. If the legislature is gridlocked, a special session or even a series of such sessions is called to finish these bills, usually before the start of the new fiscal year on July first. Budget balance requirements, automatic reductions and a line item veto decrease delays, with a scheduled session to review item vetoes.
States can also rely on federal block or categorical grant funds to both control taxes and dictate the amount of revenue required.
City and county grants can also be reduced, although this invites retaliation by local political committed who may support primary or general election challengers.
Methods used by Congress, from year ling sessions to a series of continuing resolutions, are not required. Some states have biennial budgeting. The Congress is currently experimenting with this tool, which was recommended by the JSCBAPR.
A summary of our previous comments to this Committee on February 24th to responding to their proposals is attached. Our proposals include automatic appropriations and an increased control period with higher appropriation levels until 2025, when the temporary provisions of the TCJA expire.
Attachment - The Budget Control Act: A Review of Cap-Adjusted Spending, Wednesday, February 27, 2019
Our budget process reforms have been transmitted to both Budget Committees and the JSC more than once. They reflect what we transmitted to the Joint Select Committee on Budget and Appropriations Process Reform in July 2018 and to this committee on February 27th of this year (which is included in an attachment).
As any political science graduate and former member knows, State legislatures have limited sessions, almost always mandated by state constitutions. At the end of these sessions, the clock is unplugged or its batteries are removed, usually to finish appropriations for the upcoming fiscal year. If the legislature is gridlocked, a special session or even a series of such sessions is called to finish these bills, usually before the start of the new fiscal year on July first. Budget balance requirements, automatic reductions and a line item veto decrease delays, with a scheduled session to review item vetoes.
States can also rely on federal block or categorical grant funds to both control taxes and dictate the amount of revenue required.
City and county grants can also be reduced, although this invites retaliation by local political committed who may support primary or general election challengers.
Methods used by Congress, from year ling sessions to a series of continuing resolutions, are not required. Some states have biennial budgeting. The Congress is currently experimenting with this tool, which was recommended by the JSCBAPR.
A summary of our previous comments to this Committee on February 24th to responding to their proposals is attached. Our proposals include automatic appropriations and an increased control period with higher appropriation levels until 2025, when the temporary provisions of the TCJA expire.
Attachment - The Budget Control Act: A Review of Cap-Adjusted Spending, Wednesday, February 27, 2019
posted by Michael Bindner at 2:30 PM
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