Governor's budget and legislative budget analysis 1999 biennium : agency budgets

580 Pages·1997·27.6 MB·English

by  Montana. Office of the Governor

Montdna* Office of
JJJ the Uovernor
Governor 's
1999 bua^et anU
V. 1 aLneiafliyssliastiv1e999budeet
Uiennium
GOVERNOR'S BUDGET
and
LEGISLATIVE BUDGET ANALYSIS
BIENNIUM
1999
—
Agency Budgets Volume
1
m
7 ' 1357
UESACT
MONTANA STATE
icicMEO.N6TlfA>NAAVE5.9t20
HELENA.
January 1997
OFFICE OF LEGISLATIVE
THE GOVERNOR FISCAL DIVISION
MONTANASTATELIBRARY
3 0864 0009 8069 1
GOVERNOR'S BUDGET
and
LEGISLATIVE BUDGET ANALYSIS
1999 Biennium
—
Agency Budgets Volume
1
Presented to the Fifty-fifth Legislature
by
Office of Legislative
the Governor and Fiscal Division
Helena, Montana
January 1997
Digitized by the Internet Archive
in 2010 with funding from
IVIontana State Library
http://www.archive.org/details/governorsbudgetl19991mont
INTRODUCTION

AGENCY BUDGET ANALYSIS
The followingsub-sections provideadetailed explanation and analysisofthe Executive Budget
foreach agency and agency program forwhich appropriationsare made in HB 2. The agencies
are grouped by functional categories that mirror agency groups by Appropriations
Subcommittee. The groups are summarized below. Selected programs funded with
proprietary funds, and the State Mutual Compensation Fund, are not funded in HB 2.
Explanation and analysis ofthese programs is included in the "Proprietary Funds-Rate Setting
and State Fund" section ofVolume II.
Agency Subcommittee Groupings
GENERAL GOVERNMENT AND INSTITUTIONS AND PUBLIC SAFETY (continued)
TRANSPORTATION (Section A)
Public Service Regulation
Legislative Branch Corrections and Human Services
Consumer Counsel Labor and Industry
Judiciary Military Affairs
Montana Chiropractic Legal Panel
Governor's Office EDUCATION (Section E)
Secretary ofState
Commissioner ofPolitical Practices Office ofPublic Instruction
State Auditor Board ofPublic Education
Transportation School for the Deafand Blind
Revenue Vocational Education Council
Administration Commissioner ofHigher Education
Appellate Defender Community Colleges
Public Employees' Retirement Board Colleges ofTechnology
Teachers' Retirement Board Montana University System (MUS)
Agricultural Experiment Station
HUMAN SERVICES (Section B) Cooperative Extension Service
Forestry and Conservation Experiment
Public Health and Human Services Station
Bureau ofMines
NATURALRESOURCESand COMMERCE(SectionC) Montana Arts Council
State Librarv Commission
Fish, Wildlife, and Parks Fire Services Training School
State Lands Montana Historical Society
Livestock
Natural Resources and Conservation LONG-RANGE PLANNING (Section F)
Agriculture
Commerce Long-Range Building Program
Treasure State Endowment Program
INSTITUTIONS AND PUBLIC SAFETY (Section D) Oil Overcharge Funds
State Building Energy Conservation
Judiciary Resource Indemnity Trust Interest Account
Chiropractic Legal Panel Cultural and Aesthetic Grant Program
Board ofCrime Control Information Technology Bond Proposal
Justice
)
AGENCY BUDGET ANALYSIS
The following summary of the layout and presentation." The joint Executive Budget/LFD
composition ofthe "Agency Budgets and Analysis" Budget Analysis is the result of that directive, and
section is designed to provide the reader with a thestafTofOBPPand LED have endeavoredjointly to
"road map" for reading and utilizing this section. present the budget/analysis in a mannter that
facilitates the budget process.
The agency budget and analysis is designed to
provide a resource for legislators and members of Because the Executive Budget is included with the
the public to understand and allow for action on LED Budget Analysis, differentiation was made
state agency budgets. It does this by detailing the between those sections written directly by the
components of the Executive Budget, and raising agencies and the Office and Budget and Program
issues for legislative consideration with that budget, Planning (OBPP)andthosewritten bythe LFD by the
as well as other issues not specifically related to the use ofa different font. In some agency and program
Executive Budget. descriptions the LFD analyst provided input and
editing to descriptions provided by the agencies and
In particular, the agency budget and analysis is OBPP. However, these joint passages are not
designed to be a working document for the joint differentiated by font.
appropriations subcommittees while deliberating
HB 2 and supplemental requests. It provides the Certain sections were reserved for LFD issues,
subcommittees with an explanation of each including those sections entitled "Agency Issues"
component of the budget recommended by the and "Program Issues". Within other sections, the
executive for each program. LFD analyst directly inputs comments and issue
discussion immediately following the narrative
The section is constructed using the precepts ofHB provided by the agencies and OBPP.
7 (passed duringtheNovember 1993 Special Session),
which required that the budget be presented in The executive has an entirely different purpose in
three tiers: presenting its budget than does the LED in
presenting its analysis. Because this is a joint
base budget, presentation of the budget, rather than a joint
1
2) present law budget, and development of the budget book (which the
3) new proposals. divergent missions and purposes ofthe two offices
do not allow), and in order to recognize the
(For a further explanation of these tiers and how executive's obligation to present a budget and the
they are derived, see page 1 of the "Reference" LFD's to independently analyze that budget without
section in the LED Overview Volume.) The analysis contributing to its determination, the LED analyst
is presented in such away as to allow the legislature did not rewrite, edit, or assist in determining the
to see and act on each present law adjustment and content of any narrative explaining executive
new proposal made to the base budget to derive the initiatives or proposed budgets. Neither did the
Executive Budget, by summarizing and raising issues analyst in any way suggest changes to the actual
with those adjustments. adjustments or policy initiatives included in the
Executive Budget. However, the LFD has an
Joint Book obligation to ensure that the information presented
to the legislature is conducive to informed decision
The 1997 legislature passed legislation requiring that making. Consequently, if the analyst determined
the Legislative Fiscal Analyst, "...in a mutually that further clarification or a more descriptive
prescribed format, publish the Governor's budget explanation was warranted, itwas inserted after the
and incorporate the information required by 17-7- executive explanation, differentiated by font.
123 [the section prescribing the form of the
Executive Budget] in a combined Governor's budget For all multiple program agencies, the narrative is
and Legislative Fiscal Analyst's budget analysis divided into two parts: 1) the agency narrative; and
AGENCY BUDGET ANALYSIS
2) the program narrative. for performance based budgeting, a table showing
the executive recommendation follows the program
Agency Narrative description. Eollowing this table is a discussion of
the performance measures proposed as part ofthe
The agency narrative provides an overview of the performance based budget. LED comments or issues
Executive Budget forthat agency. Only issues raised are included as warranted.
in the analysis with an agency-wide or multiple-
program impact are discussed at this level. A section detailing program funding follows. This
Otherwise, all discussion occurs within the relevant section, and any issues raised with the funding
program narratives, as the legislativeappropriates at methodology employed by the executive, is written
the program level. by the LEDanalyst. Ifthe executive has major issues
or policy discussions within the program, they are
Each agency narrative begins with a table showing discussed next, followed by LED issues orcomments.
the components ofthe Executive Budget, including
present law adjustments and new proposals. The This section is followed by the "Executive Present
table is followed by the agency mission and a brief Law" discussion. This narrative is designed to
description. If the executive has recommended a provide a discussion about present law adjustments
supplemental appropriation for Fiscal 1997, it is proposed by the executive to the base budget. The
discussed next, along with LED comments. If the writeup begins with a table delineating the major
executive has agency-wide policy issues, they are present law adjustments included by the executive,
discussed next in the section entitled "Agency by fiscal year. The individual present law
Narrative". Any LED comments are inserted adjustments were created by the executive. The
following the executive discussion. Any language table is divided into two sections:
proposed by the executive follows, with LED
comments as appropriate. 1) statewide present law adjustments, which
include most personal services adjustments,
Eollowing this discussion is a table comparing and adjustments due to fixed costs and
adjusted actual fiscal 1996 expenditures and inflation; and
appropriations for fiscal 1997 (the 1997 biennium
base) to the 1999 biennium Executive Budget. The 2) other present law adjustments made by
table is followed by a discussion by the LED analyst the executive.
ofany agency-wide issues identified. Otherwise, all
discussions ofadjustments and attendant issues are The table is followed by a narrative, in which each
included in the relevant program narratives. Ifthe significant adjustment is discussed in more detail. If
agency has reorganized, a discussion explaining that the LED analvst has raised an issue with the
reorganization follows. adjustment, it is discussed when the adjustment is
discussed. If the LED analyst feels that a different
Program Narrative explanation orcomment is warranted, it isalso made
when the adjustment is discussed.
Tdehteailaignegnecaychnoafrrtahteiavgeenicsyfporlolgorwaemds.byThenaprrroatgirvaems The present law narrative is followed by the "New
Proposals" narrative, which begins with a table
nfiasrcraalt1i9v9e6bbeagsiensusweidthtoadtearbilveesthhoewbiundggetth;eaanddjutsotteadl elixsetciuntgievae,chboyfytehaernaenwdpfruonpdoisnalgssionucrlcuede(dshboywitnhge
present law adjustments, new proposals, and the
total Executive Budget, by fiscal year. A short bfooltlhowgeednerbavl nfaurnrdatiovretowtrailttfeunntibs)v. thTehisexteacbulteivies
program description follows.
discussing each new proposal in more detail. Ifthe
Ifthe program or a portion therein is recommended LfeEeDlsanaalydisfti'hearsenrtaiseextlplaannaistsiuoenwiitshwtahrerapnrtopeods,ali,t oirs
AGENCY BUDGET ANALYSIS
discussed with that new proposal. were made to each employee's compensation to
reflect actual agency costs in the 1999 biennium. In
For those agencies headed by either an elected addition, any changes made to benefits that an
official or the Board ofRegents, each new proposal agency must pay directly to or in support of an
is discussed in more detail. employee, such as pension, or unemployment and
workers' compensation insurance, are automatically
Statewide Present Law Adjustments reflected in the present law personal services.
"Statewide present law adjustments" are those Vacancy Savings
adjustments applied to each agency based upon
either: 1) factors beyond the individual agency's Vacancy savings is (generally) a reduction in
control; or 2) other underlying factors. Because of personal services costs that results when positions
the global application ofthese factors and the need are not filled for the entire year. Vacancy savings
for consistency among agencies, these adjustments will fluctuate within agencies and programs from
are included in the "statewide" section of the year toyear. In orderto provide the legislaturewith
present law table to alert subcommittees and other the opportunity to make all policy decisions
decision makers that, if adjustments are made to regardingvacancy savings, each position is funded as
these costs, adjustments should be made to the if the position were filled for the entire year,
underlying factors upon which the adjustments are regardless of any vacancy savings that may have
based. The Legislative Finance Committee (LFC) will occurred in fiscal 1996. The executive is proposing
make a recommendation on these and other a 3 percent vacancy savings rate on most programs
adjustments to the legislature. included in the personal services budget. (For a
furtherdiscussion,seethe "Overview"volumeofthe
Personal services costs are derived by taking a LFD analysis.)
"snapshot" of state employee positions and the
factors determining compensation rates at a Termination Pay
particular point in time. A number of underlying
factors will make 1999 biennium personal services Costs incurred by agencies due to termination of
costsdifferentfromactual fiscal 1996costs. The most employment, such as accrued sick or annual leave,
important are: are not included in present law.
1997 Biennium Pay Plan and Other Benefits Upgrades/Downgrades
The 199S legislature adopted a pay plan which, All upgrades and downgrades of individuals or
among other features, provided for: classes ofpositions authorized by the Department of
Administration during the biennium through the
1) establishmentofatarget market ratio, and "snapshot" date (June 1996) are included in present
adjustment ofemployees' salaries that were law.
below the market ratio determined to be
appropriate for the employee's grade and Any adjustments to personal services from means
experience; and within the control of the executive, such as
overtime, new or deleted positions, or proposed
2) continuance ofthe target market ratio in transfers, should not be included in the statewide
fiscal 1997, along with an adjustment in the adjustments. Ifthe LFD analyst has identified any of
target market salary against which the ratio the adjustments in the statewide adjustment line.,
was compared. they are discussed as an LFD issue.
Becausethe pay plan was increased in fiscal 1997and
notfully implemented in the base year, adjustments