Finance Glossary of
Accounting and Budgeting Terms
The following budgetary terms are used frequently
throughout the Governor’s Budget, the Governor’s Budget Summary, and the annual
Budget (Appropriations) Bill.
Definitions are provided for terminology that is common to all
publications. For definitions of terms
unique to a specific program area, please refer to the individual budget
presentation.
Abatement
Abolishment of
Fund
The closure of
a fund pursuant to the operation of law.
Funds may also be administratively abolished by the Department of
Finance with the concurrence of the State Controller’s Office. When a special fund is abolished, all of its
assets and liabilities are transferred by the State Controller's Office to a
successor fund, or if no successor fund is specified, then to the General Fund. (GC 13306.)
The basis of
accounting in which revenue is recorded when earned and expenditures are
recorded when obligated, regardless of when the cash is received or paid.
Administration
Program Costs
The indirect
cost of a program, typically a share of the costs of the administrative units
serving the entire department (e.g., the Director's Office, Legal, Personnel,
Accounting, and Business Services).
"Distributed Administration" costs represent the distribution
of the indirect costs to the various program activities of a department. In most departments, all administrative costs
are distributed. (Also see “Indirect
Costs” and “SWCAP.”)
Administratively
Established Positions
Positions
authorized by the Department of Finance during a fiscal year that were not
included in the Budget and are necessary for workload or administrative
reasons. Such positions terminate at the
end of the fiscal year, or, in order to continue, must meet certain criteria
under Control Section 31.00. (SAM 6406, Control Section 31.00)
Or:
A government organization belonging to the highest
level of the state organizational hierarchy as defined in the UCM. An organization whose head (Agency Secretary)
is designated by Governor's order as a cabinet member. (SAM 6610)
Allocation
A distribution
of funds or costs from one account or appropriation to one or more accounts or
appropriations (e.g., the allocation of approved unanticipated cost funding
from the statewide 9840 Budget Act items to departmental Budget Act items).
The approved
division of an amount (usually of an appropriation) to be expended for a
particular purpose during a specified time period. An allotment is generally authorized on a
line item expenditure basis by program or organization. (SAM 8300 et seq)
Amendment
A proposed or
accepted change to a bill in the Legislature, the California Constitution,
statutes enacted by the Legislature, or ballot initiative.
A-pages
A common
reference to the Governor's Budget Summary.
Budget highlights now contained in the Governor's Budget Summary were
once contained in front of the Governor's Budget on pages A-1, A‑2, etc.,
and were, therefore, called the A-pages.
Appropriated
Revenue
Revenue which,
as it is earned, is reserved and appropriated for a specific purpose. An example is student fees received by state
colleges that are by law appropriated for the support of the colleges. The
revenue does not become available for expenditure until it is earned.
Appropriation
Authorization
for a specific agency to make expenditures or incur liabilities from a specific
fund for a specific purpose. It is usually limited in amount and period of time
during which the expenditure is to be incurred.
For example, appropriations made by the Budget Act are available for
encumbrance for one year, unless otherwise specified. Appropriations made by other legislation are
available for encumbrance for three years, unless otherwise specified, and
appropriations stating “without regard to fiscal year” shall be available from
year to year until expended. Legislation
or the California Constitution can provide continuous appropriations, and the
voters can also make appropriations.
An
appropriation shall be available for encumbrance during the period specified
therein, or if not specified, for a period of three years after the date upon
which it first became available for encumbrance. Except for federal funds, liquidation of
encumbrances must be within two years of the expiration date of the period of
availability for encumbrance, at which time the undisbursed (i.e., unliquidated ) balance of the
appropriation is reverted back into the fund.
Federal funds have four years to liquidate.
Appropriation Without Regard
To Fiscal Year (AWRTFY)
An
appropriation for a specified amount that is available from year to year until
expended.
Appropriations
Limit, State (SAL)
The constitutional
limit on the growth of certain appropriations from tax proceeds, generally set
to the level of the prior year's appropriation limit as adjusted for changes in
cost of living and population. Other adjustments may be made for such reasons
as the transfer of services from one government entity to another. (Article
XIII B, § 8; GC Sec. 7900
et seq; CS 12.00)
Appropriation
Schedule
The detail of
an appropriation (e.g., in the Budget Act), showing the distribution of the
appropriation to each of the categories, programs, or projects thereof.
Assembly
California's
lower house of the Legislature composed of 80 members who are elected for
two-year terms and may serve a maximum of three terms. (Article IV, § 2 (a))
Augmentation
An authorized
increase to a previously authorized appropriation or allotment. This increase can be authorized by Budget Act
provisional language, control sections, or other legislation. Usually a Budget Revision or an Executive
Order is processed to implement the increase.
As reflected in the Governor’s Budget (Expenditures by
Category and Changes in Authorized Positions), corresponds with the “Total,
Authorized Positions” shown in the Salaries and Wages Supplement (Schedule
7A).
For past year, authorized positions represent the number of
actual personnel years for that year.
For current year, authorized positions include all regular ongoing
positions approved in the Budget Act for that year, less positions abolished by
the State Controller per Government Code 12439, adjustments to limited term
positions, and positions authorized in enacted legislation. For budget year, the number of authorized
positions is the same as current year except for adjustments for any positions
that have been removed due to expiring limited positions. (GC 19818; SAM 6406.)
Availability
Period
The time period
during which an appropriation may be encumbered (i.e., committed for
expenditure), usually specified by the law creating the appropriation. If no specific time is provided in financial
legislation, the period of availability automatically becomes three years. Unless otherwise provided, Budget Act
appropriations are available for one year.
However, based on project phase, capital outlay projects may have up to
three years to encumber. An
appropriation with the term "without regard to fiscal year" has an
unlimited period of availability and may be encumbered at any time until the
funding is exhausted. (See also
"Encumbrances")
Baseline
Adjustment
Also referred as Workload Budget
Adjustment. See Workload Budget Adjustment.
Baseline Budget
Also referred as Workload Budget. See Workload
Budget.
Bill
A draft of a
proposed law presented to the Legislature for enactment. (A bill has greater legal formality and
standing than a resolution.)
OR An invoice,
or itemized statement, of an amount owing for goods and services received.
Bond Funds
For legal basis
budgeting purposes, funds used to account for the receipt and disbursement of
non-self liquidating general obligation bond proceeds. These funds do not
account for the debt retirement since the liability created by the sale of
bonds is not a liability of bond funds.
Depending on the provisions of the bond act, either the General Fund or
a sinking fund pays the principal and interest on the general obligation
bonds. The proceeds and debt of bonds
related to self-liquidating bonds are included in nongovernmental cost funds. (SAM 14400)
Budget
A plan of
operation expressed in terms of financial or other resource requirements for a
specific period of time. (GC 13320,
13335; SAM 6120)
Budget Act (BA)
An annual
statute authorizing state departments to expend appropriated funds for the
purposes stated in the Governor's Budget and amended by the Legislature. (SAM 6333)
Budget Bill
Legislation
presenting the Governor’s proposal for spending authorization for the next
fiscal year. The Budget Bill is prepared by the Department of Finance and
submitted to each house of the Legislature in January (accompanying the
Governor's Budget). The Budget Bill’s
authors are typically the budget committee chairpersons.
The California
Constitution requires the Legislature to pass the Budget Bill and send it by
June 15 each year to the Governor for signature. After signature by the
Governor, the Budget Bill becomes the Budget Act. (Art. IV. § 12(c); GC 13338; SAM 6325,
6333)
Budget Change
Proposal (BCP)
A proposal to
change the level of service or funding sources for activities authorized by the
Legislature, propose new program activities not currently authorized, or to
delete existing programs. The Department of Finance annually issues a Budget
Letter with specific instructions for preparing BCPs. (SAM 6120)
Budget Cycle
The period of
time required to prepare a state financial plan and enact that portion of it
applying to the budget year. Significant events in the cycle include:
·
preparation of the Governor's
proposed budget (usually prepared between July 1st and January 10)
·
submission of the Governor's Budget
and Budget Bill to the Legislature (by January 10)
·
submission to the Legislature of
proposed adjustments to the Governor’s Budget
o
April 1 - adjustments other than
Capital Outlay and May Revision
o
May 1 - Capital Outlay appropriation
adjustments
o
May 14 - May Revision adjustments for
changes in General Fund revenues, necessary expenditure reductions to reflect
updated revenue, and funding for Proposition 98, caseload, and population
·
review and revision of the Governor's
Budget by the Legislature
·
return of the revised budget to the
Governor for signature after any line-item vetoes (which the California
Constitution requires be done by June 15)
·
signing of the
budget by the Governor (ideally by June 30).
(SAM 6150) (GC 13308)
Budget, Program
or Traditional
A program
budget expresses the operating plan in terms of the costs of activities
(programs) to be undertaken to achieve specific goals and objectives. A traditional (or object of expenditure)
budget expresses the plan in terms of categories of costs of the goods or
services to be used to perform specific functions.
The Governor's
Budget is primarily a program budget but also includes detailed categorization
of proposed expenditures for goods and services (Expenditures by Category) for
State Operations for each department. (GC
13336; SAM 6210, 6220)
Budget Revision
(BR)
A document,
usually approved by the Department of Finance, that cites a legal authority to
authorize a change in an appropriation. Typically, BRs either increase the
appropriation or make adjustments to the categories or programs within the
appropriation as scheduled. (SAM
6533, 6542, 6545)
Budget Year
(BY)
The next state
fiscal year, beginning July 1 and ending June 30, for which the Governor's
Budget is submitted (i.e., the year following the current fiscal year).
CALSTARS
The acronym for
the California State Accounting and Reporting System, the state's primary accounting
system. Most departments now use CALSTARS. (GC
13300)
Capital Outlay
(CO)
A character of
expenditure of funds to acquire land, plan and construct new buildings, expand
or modify existing buildings, and/or purchase equipment related to such
construction. (CS 3.00)
Carryover
The
unencumbered balance of an appropriation available for expenditure in years
subsequent to the year of enactment. For
example, if a three-year appropriation is not fully encumbered in the first
year, the remaining amount is carried over to the next fiscal year.
Cash Basis
The basis of
accounting that records receipts and disbursements when cash is received or
paid.
Cash Flow
Statement
A statement of
cash receipts and disbursements for a specified period of time. Amounts recorded as accruals, which do not
affect cash, are not reflected in this statement.
Category
Category Transfer
An allowed
transfer between categories or functions within the same schedule of an
appropriation. Such transfers are
presently authorized by Control Section 26.00 of the Budget Act (and prior to
1996‑97, by Section 6.50 of the Budget Act). The control section specifies the amounts of
the allowable transfers and reporting requirements.
Change Book
System
The system the
Department of Finance uses to record all the legislative changes made to the
Governor's Budget and the final actions on the budget taken by the Legislature
and Governor. A “Final Change Book” is
published after enactment of the Budget Act.
It includes detailed fiscal information on the changes made by the
Legislature and by the Governor's vetoes.
(SAM 6355)
Changes in Authorized Positions
(“Schedule 2”)
A schedule in
the Governor’s Budget that reflects staffing changes made subsequent to the
adoption of the current year budget and enacted legislation. This schedule documents changes in positions
due to various reasons. Some examples
are: transfers, positions established, and selected reclassifications, as well
as proposed new positions included in BCPs for the current or budget year. (SAM 6406)
Chapter
The reference
assigned by the Secretary of State to an enacted bill, numbered sequentially in
order of enactment each calendar year.
The enacted bill is then referred to by this "chapter" number
and the year in which it became law. For
example, Chapter 1, Statutes of 1997, would refer to the first bill enacted in 1997.
Character of
Expenditure
Claim Schedule
A request from
a state department to the State Controller's Office to disburse payment from an
appropriation or account for a lawful state obligation. The claim schedule identifies the
appropriation or account to be charged, the payee, the amount to be paid, and
an affidavit attesting to the validity of the request.
COBCP
Capital outlay
budgets are zero-based each year, therefore, the department must submit a
written capital outlay budget change proposal for each new project or
subsequent phase of an existing project for which the department requests
funding. (SAM 6818)
Codes, Uniform
See ”Uniform
Codes Manual.”
Conference
Committee
A committee of
three members (two from the majority party, one from the minority party) from
each house, appointed to meet and resolve differences between versions of a
bill (e.g., when one house of the Legislature does not concur with bill
amendments made by the other house). If
resolution cannot be reached, another conference committee can be selected, but
no more than three different conference committees can be appointed on any one
bill. Budget staff commonly refer to the
conference committee on the annual budget bill as the "Conference
Committee.” (SAM 6340)
Continuing Appropriation
An appropriation for
a set amount that is available for more than one year. (SAM
8382)
Constitutional
or statutory expenditure authorization which is renewed each year without
further legislative action. The amount
available may be a specific, recurring sum each year; all or a specified
portion of the proceeds of specified revenues which have been dedicated
permanently to a certain purpose; or it may be whatever amount is designated
for the purpose as determined by formula, e.g., school apportionments. Note:
Government Code Section 13340 sunsets statutory continuous
appropriations on June 30 with exceptions specified in the section and other
statutes. Section 30.00 of the annual
Budget Act traditionally extends the continuous appropriations for one
additional fiscal year. (GC 13340)
Continuously
Vacant Positions
On July 1,
positions which were continuously vacant for six consecutive monthly pay
periods during the preceding fiscal year are abolished by the State
Controller's Office. The six consecutive
monthly pay periods may occur entirely within one fiscal year or between two
consecutive fiscal years. The exceptions
to this rule are positions exempt from civil service and instructional
positions authorized for the California State University. The Department of Finance may authorize the
reestablishment of positions in cases where the vacancies were (1) due to a
hiring freeze, (2) the department has diligently attempted to fill the position
but was unable to complete all steps to fill the position within six months,
(3) the position is determined to be hard-to-fill, (4) the position has been
designated as a management position for the purposes of collective bargaining
and has been held vacant pending the appointment of the director or other chief
executive officer of the department as part of the transition from one Governor
to the suceeding Governor, or, (5) late enactment of the budget causes the
department to delay filling the position, and the Department of Finance
approves an agency’s written appeal to continue the positions. In addition, departments may self-certify
reestablishments by August 15 for positions that meet specified conditions
during the vacancy period.
By October 15 of each year, the State Controller’s
Office is required to notify the Joint Legislative Budget Committee and the
Department of Finance of the continously vacant positions identified for the
preceding fiscal year. (GC 12439)
Control
Sections
Sections of the
Budget Act (i.e., 3.00 to the end) providing specific controls on the
appropriations itemized in Section 2.00 of the Budget Act. See more detail under “Sections.”
Conversion Code
Listing
See “Finance
Conversion Code Listing.”
Cost-of-Living
Adjustments (COLA)
Increases
provided in state-funded programs that include periodic adjustments
predetermined in state law (statutory, such as K-12 education apportionments),
or established at optional levels (discretionary) by the Administration and the
Legislature each year through the budget process.
Current Year
(CY)
A term used in
budgeting and accounting to designate the operations of the present fiscal year
in contrast to past or future periods.
(See also “Fiscal Year.”)
Debt Service
The amount of
money required to pay interest on outstanding bonds and the principal of
maturing bonds.
Department
Department of
Finance (Finance)
Finance is delegated
the responsibility for preparation of the Governor's Budget. The Director of Finance functions as the
Governor's chief fiscal policy advisor. Primary
functions of the department include:
·
Prepare, explain, and administer the state’s annual financial
plan (budget), which the Governor is required under the State Constitution to
present by January 10 of each year.
·
Analyze legislation which has a fiscal impact.
·
Establish appropriate fiscal policies to carry out the
state’s programs.
·
Develop and maintain the California State Accounting and
Reporting System (CALSTARS), which is used by most state departments to record
their accounting transactions.
·
Monitor and audit expenditures by state departments to ensure
compliance with the law, approved standards and policies.
·
Develop economic forecasts and revenue estimates.
·
Develop population and enrollment estimates and projections.
·
Review expenditures for information technology activities of
state departments.
·
Support the Director or designee in their role as member of
approximately 90 state boards and commissions.
(GC 13000 et
seq.)
Detailed
Budget Adjustments
Department
Detailed Budget Adjustments are included in department budget displays to
provide the reader a snapshot of proposed expenditure and position adjustments
in the department, why those changes are being proposed, and their dollar and
position impact.
The Detailed
Budget Adjustments include two adjustment categories: workload and policy.
Within the workload section, issues are further differentiated between budget
change proposals and other workload budget adjustments. Below are the standard categories or headings
including definitions: Additional
categories or headings may be used as needed in any particular year.
· Workload
Budget Adjustments - See “Workload Budget Adjustments.”
· Policy
Adjustments - See “Policy Adjustments.”
· Employee
Compensation Adjustments - See “Employee
Compensation/Retirement.”
· Retirement Rate Adjustment –
See “Employee Compensation/Retirement.”
· Limited
Term Positions/ Expiring Programs - Reduction of the
budget-year funding and positions for expiring programs or positions.
· Abolished Vacant Positions –
Positions abolished that are vacant for six consecutive monthly pay periods,
irrespective of fiscal years, per Government Code 12439.
· One-Time
Cost Reductions - Reductions of the budget-year funding and positions to
account for one-time costs budgeted in the current year.
· Full-Year
Cost of New/Expanded Programs - Increases to the budget year funding and positions to reflect
the full-year costs of programs authorized to begin after July 1 of the current
fiscal year (does not include the full year effect of employee compensation
adjustments that are displayed separately).
· Carryover/Reappropriation –
See “Carryover” and “Reappropriation.”
· Legislation With an Appropriation –
New legislation with funding to carry out its purpose.
· Expenditure Transfers –
Transfers of expenditures between two departments but within the same fund.
· Lease Revenue Debt Service Adjustment –
Expenditures related to changes in lease revenue costs.
· Miscellaneous Adjustments –
This category includes all workload budget adjustments not included in one of
the aforementioned categories. This
category may include Pro Rata and Statewide Costs Allocation Plan (SWCAP) adjustments. See Pro Rata and Statewide Cost Allocation.
Detail of
Appropriations and Adjustments
A budget
display, for each organization, that reflects appropriations and adjustments by
fund source for each character of expenditure, (i.e., State Operations, Local
Assistance, and Capital Outlay). (SAM
6478)
Element
A subdivision
of a budgetary program and the second level of the program structure in the
Uniform Codes Manual.
Employee
Compensation/Retirement
Salary,
benefit, employer retirement rate contribution adjustments, and any other
related statewide compensation adjustments for state employees. Various 9800 Items of the Budget Act
appropriate funds for compensation increases for most state employees
(excluding Higher Education and some others), that is, they appropriate the
incremental adjustment proposed for the salary and benefit adjustments for the
budget year. The base salary and benefit
levels are included in individual agency/departmental budgets.
Encumbrance
The commitment
of all or part of an appropriation for future expenditures. Encumbrances are accrued as expenditures by
departments at year-end and included in expenditure totals in individual budget
displays. On a state-wide basis, an
adjustment is made for the General Fund to remove from the expenditure totals
the amount of encumbrances where goods and services have not been
received. The amount of encumbrances
where goods and services have not been received is shown in the Reserve for
Encumbrances. This adjustment and the
use of the Reserve for Encumbrances are in accordance with Generally Accepted
Accounting Principles and is required by Government Code Section 13306.
Enrolled Bill
Report (EBR)
An analysis
prepared on Legislative measures passed by both houses and referred to the
Governor, to provide the Governor’s Office with information concerning the
measure with a recommendation for action by the Governor. While approved bill
analyses become public information, EBRs do not. Note that EBRs are not prepared for
Constitutional Amendments, or for Concurrent, Joint, or single house
resolutions, since these are not acted upon by the Governor. (SAM 6965)
Enrollment,
Caseload, & Population Adjustments
These
adjustments are generally formula or population driven.
Excess Vacant
Positions
Positions in
excess of those necessary to meet budgeted salary savings. For example, a department which had 95
budgeted personnel years (100 authorized positions less 5 for salary savings)
but actual expenditure of only 91 personnel years, would have had 4 “excess
vacant positions” (plus or minus other adjustments pursuant to Department of
Finance instructions and review).
Executive
Branch
One of the
three branches of state government, responsible for implementing and administering
the state's laws and programs. The
Governor's Office and those individuals, departments, and offices reporting to
it (the Administration) are part of the Executive Branch.
Executive Order
(EO)
A budget
document, issued by the Department of Finance, requesting the State
Controller’s Office to make an adjustment in their accounts. The adjustments are typically authorized by
appropriation language, Budget Act control sections, and other statutes. An EO is used when the adjustment makes
increases or decreases on a state-wide basis, involves two or more
appropriations, or makes certain transfers or loans between funds.
State employees
exempt from civil service pursuant to subdivision (e), (f), or (g) of Section 4
of Article VII of the California Constitution.
Examples include department directors and other gubernatorial
appointees. (SAM 0400)
Where accounts
are kept on a cash basis, the term designates only actual cash
disbursements. For individual
departments, where accounts are kept on an accrual or a modified accrual basis,
expenditures represent the amount of an appropriation used for
goods and services ordered, whether paid or unpaid.
However for the
General Fund, expenditures are adjusted on a statewide basis to reflect only
amounts where goods and services have been received.
Expenditure
Authority
The authorization
to make an expenditure (usually by a budget act appropriation, provisional
language or other legislation).
Expenditures
by Category
A budget
display, for each department, that reflects actual past year, estimated current
year, and proposed budget year expenditures presented by character of
expenditure (e.g., State Operations and/or Local Assistance) and category of
expenditure (e.g., Personal Services, Operating Expenses and Equipment).
3-year
Expenditures and Positions
A display at
the start of each departmental budget that presents the various departmental
programs by title, dollar totals, personnel years, and source of funds for the
past, current, and budget years.
Feasibility
Study Report (FSR)
A document
proposing an information technology project that contains analyses of options,
cost estimates, and other information. (SAM
4920-4930)
Federal Fiscal
Year (FFY)
The 12-month
accounting period of the federal government, beginning on October 1 and ending
the following September 30. For example,
a reference to FFY 2012 means the period beginning October 1, 2011 and ending
September 30, 2012. (See also “Fiscal
Year.”)
Federal Funds
For legal basis
budgeting purposes, classification of funds into which money received in trust
from an agency of the federal government will be deposited and expended by a
state department in accordance with
state and/or federal rules and regulations.
State departments must deposit federal grant funds in the Federal Trust
Fund, or other appropriate federal fund in the State Treasury. (GC 13326 (Finance approval), 13338
approp. of FF, CS 8.50)
Feeder Funds
For legal basis
accounting purposes, funds into which certain taxes or fees are deposited upon
collection. In some cases administrative
costs, collection expenses, and refunds are paid. The balance of these funds is transferable at
any time by the State Controller’s Office to the receiving fund.
Final Budget
Generally refers to the Governor’s
Budget as amended by actions taken on the Budget Bill (e.g. legislative
changes, Governor’s vetoes). Note: Subsequent legislation (law enacted after the
Budget Bill is chaptered) may add, delete, or change appropriations or require
other actions that affect a budget appropriation.
Final Budget
Summary
A document
produced by the Department of Finance after enactment of the Budget Act which
reflects the Budget Act, any vetoes to language and/or appropriations,
technical corrections to the Budget Act, and summary budget information. (See also “Budget Act,” “Change Book.”) (SAM 6130, 6350)
Finance
Conversion Code (FCC) Listing
A listing
distributed by the State Controller's Office to departments each spring, which
based upon departmental coding updates, will dictate how the salaries and wages
detail will be displayed in the Salaries and Wages publication. (SAM 6430)
Finance Letter
(FL)
Proposals made,
by the Director of Finance to the chairpersons of the budget committees in each
house, to amend the Budget Bill and the Governor's Budget from that submitted
on January 10 to reflect a revised plan of expenditure for the budget year
and/or current year. Specifically, the
Department of Finance is required to provide the Legislature with updated
expenditure and revenue information for all policy adjustments by April 1,
capital outlay technical changes by May 1, and changes for caseload,
population, enrollment, updated revenues, and Proposition 98 by May 14. (GC 13308)
Fiscal
Committees
Committees of
members in each house of the Legislature that review the fiscal impact of
proposed legislation, including the Budget Bill. Currently, the fiscal committees include the
Senate Budget and Fiscal Review Committee, Senate Appropriations Committee,
Assembly Appropriations Committee, and the Assembly Budget Committee. The Senate Budget and Fiscal Review Committee
and the Assembly Budget Committee are broken into subcommittees responsible for
specific state departments or subject areas.
Both houses also have Revenue and Taxation Committees that are often
considered fiscal committees.
Fiscal Impact
Analysis
Typically
refers to a section of an analysis (e.g., bill analysis) that identifies the
costs and revenue impact of a proposal and, to the extent possible, a specific
numeric estimate for applicable fiscal years.
Fiscal Year
(FY)
A 12-month
period during which income is earned and received, obligations are incurred,
encumbrances are made, appropriations are expended, and for which other fiscal
transactions are recorded. In California
state government, the fiscal year begins July 1 and ends the following June
30. If reference is made to the state’s
FY 2012 , this is the time period beginning July 1, 2012 and ending June 30, 2013. (See also “Federal Fiscal Year.”) (GC 13290)
Floor
The
Assembly or Senate chambers or the term used to describe the location of a bill
or the type of session. Matters may be
referred to as “on the floor”.
Form 9
A request by a
department for space planning services (e.g., new or additional space lease
extensions, or renewals in noninstututional) and also reviewed by the
Department of Finance. (SAM 6453)
A department’s
request to transfer money to the Architectural Revolving Fund (e.g., for
building improvements), reviewed by the Department of Finance. (GC 14957; SAM 1321.1)
Fund
A legal
budgeting and accounting entity that provides for the segregation of moneys or
other resources in the State Treasury for obligations in accordance with
specific restrictions or limitations. A
separate set of accounts must be maintained for each fund to show its assets,
liabilities, reserves, and balance, as well as its income and expenditures.
Fund Balance
For accounting
purposes, the excess of a
fund’s assets over its liabilities. For budgeting
purposes, the excess of a fund’s resources over its expenditures.
Fund Condition
Statement
A budget
display, included in the Governor’s Budget, summarizing the operations of a
fund for the past, current, and budget years.
The display includes the beginning balance, prior year adjustments,
revenue, transfers, loans, expenditures, the ending balance, and any
reserves. Fund Condition Statements are
required for all special funds. The Fund
Condition Statement for the General Fund is Summary Schedule 1. Other funds are displayed at the discretion
of the Department of Finance.
General Fund (GF)
For legal basis
accounting and budgeting purposes, the predominant fund for financing state
government programs, used to account for revenues which are not specifically
designated to be accounted for by any other fund. The primary sources of revenue
for the General Fund are the personal income tax, sales tax, and corporation
taxes. The major uses of the General
Fund are education (K-12 and higher education), health and human service
programs, and correctional programs.
Governmental
Cost Funds
For legal basis
accounting and budgeting purposes, funds that
derive revenue from taxes, licenses, and fees.
Governor's
Budget
The publication
the Governor presents to the Legislature, by January 10 each year. It contains
recommendations and estimates for the state’s financial operations for
the budget year. It also displays the
actual revenues and expenditures of the state for the prior fiscal year and
updates estimates for the current year revenues and expenditures. This publication is also produced in a web
format known as the Proposed Budget Detail on the Department of Finance
website. (Article IV, § 12; SAM 6120,
et seq)
Governor's
Budget Summary (or A-Pages)
A companion
publication to the Governor’s Budget that outlines the Governor’s policies,
goals, and objectives for the budget year.
It provides a perspective on significant fiscal and/or structural proposals. This publication is also produced in a web
format known as the Proposed Budget Summary on the Department of Finance web
site.
Grants
Typically used
to describe amounts of money received by an organization for a specific purpose
but with no obligation to repay (in contrast to a loan, although the award may
stipulate repayment of funds under certain circumstances). For example, the state receives some federal
grants for the implementation of health and community development programs, and
the state also awards various grants to local governments, private
organizations and individuals according to criteria applicable to the program.
Indirect Costs
Costs which by
their nature cannot be readily associated with a specific organization unit or
program. Like general administrative
expenses, indirect costs are distributed to the organizational unit(s) or
program(s) which benefit from their incurrence.
The power of
the electors to propose statutes or Constitutional amendments and to adopt or
reject them. An initiative must be
limited to a single subject and be filed with the Secretary of State with the
appropriate number of voter signatures in order to be placed on the
ballot. (Article II, § 8)
Judgments
Usually refers
to decisions made by courts against the state. Payment of judgments is subject
to a variety of controls and procedures.
Language Sheets
Copies of the
current Budget Act appropriation items provided to Finance and departmental
staff each fall to update for the proposed Governor’s Budget. These updated language sheets become the
proposed Budget Bill. In the spring,
language sheets for the Budget Bill are updated to reflect revisions to the
proposed appropriation amounts, Item schedule(s), and provisions, and become
the Budget Act.
Legislative
Analyst’s Office (LAO)
A non-partisan
organization that provides advice to the Legislature on fiscal and policy
matters. For example, the LAO annually
publishes a detailed analysis of the Governor's Budget and this document
becomes the initial basis for legislative hearings on the Budget Bill. (SAM 7360)
Legislative
Counsel Bureau
A staff of
attorneys who draft legislation (bills) and proposed amendments, and review,
analyze and render opinions on legal matters for the legislative members.
Legislative
Counsel Digest
A summary of
what a legislative measure does contrasting existing law and the proposed
change. This summary appears on the
first page of a bill.
Legislative
Information System (LIS)
An on-line
system developed and used by the Department of Finance to maintain current
information about all bills introduced in the Assembly and Senate for the
current two-year session, and for other recently completed sessions. Finance analysts use this system to prepare
bill analyses.
Legislature,
California
A two-house
body of elected representatives vested with the responsibility and power to
make laws affecting the state (except as limited by the veto power of the
Governor). See also “Assembly” and
“Senate.”
Limited-Term
Position (LT)
Any position
that has been authorized only for a specific length of time with a set
termination date. Limited-term positions may be authorized during the budget
process or in transactions approved by the Department of Finance. (SAM 6515)
Line Item
See “Objects of
Expenditure.”
Local
Assistance (LA)
The character
of expenditures made for the support of local government or other locally
administered activities.
Mandates
See
“State-Mandated Local Program.” (UCM)
May Revision
An annual
update to the Governor’s Budget containing a revised estimate of General Fund
revenues for the current and ensuing fiscal years, any proposals to adjust
expenditures to reflect updated revenue estimates, and all proposed adjustments
to Proposition 98, presented by the Department of Finance to the Legislature by
May 14 of each year. (See also “Finance
Letter.”) (SAM 6130 and GC 13308)
Merit Salary
Adjustment (MSA)
A cost factor
resulting from the periodic increase in salaries paid to personnel occupying
authorized positions. Personnel
generally receive a salary increase of five percent per year up to the upper
salary limit of the classification, contingent upon the employing agency
certifying that the employee’s job performance meets the level of quality and
quantity expected by the agency, considering the employee’s experience in the
position.
Merit salary
adjustments for employees of the University of California and the California
State University are determined in accordance with rules established by the
regents and the trustees, respectively.
Minor Capital
Outlay
Construction
projects, or equipment acquired to complete a construction project, estimated
to cost less than $600,000, with specified exemptions in the Resources Agency.
Modified Accrual Basis
For legal/budgetary basis
accounting purposes, revenues are accrued at the end of the fiscal year if the
underlying transaction has occurred as the last day of the fiscal year, the
amount is measurable, and the actual collection will occur either during the
current period or after the end of the current period but in time to pay
current year-end liabilities. Expenditures are accrued when incurred, except
for amounts payable from future fiscal year appropriations. This basis is generally used for the General
Fund.
Non-add
Refers to a
numerical value that is displayed in parentheses for informational purposes but
is not included in computing totals, usually because the amounts are already
accounted for in the system or display.
Nongovernmental
Cost Funds
For legal basis
purposes, used to budget and account for revenues other than general and
special taxes, licenses, and fees or certain other state revenues.
Object of
Expenditure (Objects)
Amounts that a
governmental unit may legally be required to pay out of its resources. These
may include unliquidated accruals representing goods or services received but
not yet paid for and liabilities not encumbered.
One-Time Cost
A proposed or
actual expenditure that is non-recurring (usually only in one annual budget)
and not permanently included in baseline expenditures. Departments make baseline adjustments to
remove prior year one-time costs and appropriately reduce their expenditure
authority in subsequent years’ budgets.
Operating
Expenses and Equipment (OE&E)
A category of a
support appropriation which includes objects of expenditure such as general
expenses, printing, communication, travel, data processing, equipment, and
accessories for the equipment. (SAM
6451)
Organization
Code
The four-digit
code assigned to each state governmental entity (and sometimes to unique
budgetary programs) for fiscal system purposes.
The organization code is the first segment of the budget
item/appropriation number. (UCM)
Out-of-State
Travel (OST) blanket
A request by a
state agency for Governor’s Office approval of the proposed out-of-state trips
to be taken by that agency’s personnel during the fiscal year. (SAM 0760-0765)
Overhead
Those elements
of cost necessary in the production of an article or the performance of a
service that are of such a nature that the amount applicable to the product or
service cannot be determined directly.
Usually they relate to those costs that do not become an integral part
of the finished product or service, such as rent, heat, light, supplies,
management, or supervision. See also
“Indirect Costs.”
Overhead Unit
An
organizational unit that benefits the production of an article or a service but
that cannot be directly associated with an article or service to distribute all
of its expenditures to elements and/or work authorizations. The cost of
overhead units are distributed to operating units or programs within the
department. (See “Administration Program
Costs.”)
Past Year
The most
recently completed fiscal year. (See also “Fiscal Year.”)
Performance
Budget
A budget
wherein proposed expenditures are organized and tracked primarily by measurable
performance objectives for activities or work programs. A performance budget may also incorporate
other bases of expenditure classification, such as character and object, but
these are given a subordinate status to activity performance.
Personal
Services
A category of
expenditure which includes such objects of expenditures as the payment of
salaries and wages of state employees and employee benefits, including the
state's contribution to the Public Employees' Retirement Fund, insurance
premiums for workers' compensation, and the state's share of employees' health
insurance. See also “Objects of Expenditure.” (SAM 6403, 6506)
Personnel Year
(PY)
The actual or
estimated portion of a position expended for the performance of work. For example, a full-time position that was
filled by an employee for half of a year would result in an expenditure of 0.5
personnel year. This may also be referred
to as a personnel year equivalent.
Plan of
Financial Adjustment (PFA)
A plan proposed
by a department, approved by the Department of Finance, and accepted by the
State Controller's Office (SCO), to permit the SCO to transfer monies from one
item to another within a department's appropriations. A PFA might be used, for example, to allow
the department to pay all administrative costs out of its main fund and then to
transfer the appropriate costs to the correct items for their share of the
costs paid. The SCO transfers the funds
upon receipt of a letter from the department stating the amount to be
transferred based on the criteria for cost distribution in the approved
PFA. (SAM 8715)
Planning
Estimate (PE)
A document used
to record and monitor those current and budget year expenditure adjustments
including budget change proposals approved for inclusion in the Governor's
Budget. PEs are broken down by
department, fund type, character, Budget Bill/Act appropriation number, and
"lines"(i.e., expenditure groupings such as employee compensation,
price increases, one-time costs). PEs
are primarily used to record the incremental decisions made about changes to
each base budget, are updated at frequent intervals, and can be used for quick
planning or "what if" analyses.
PEs identify all proposed expenditure changes (baseline and policy) to
the previous year's Budget Act, and once budget preparation is complete, PEs
will tie to all other fiscal characterizations of the proposed Governor's
Budget. (The term is sometimes used
synonymously with Planning Estimate Line, which is one specific expenditure
grouping.)
Planning
Estimate Line
A separate
planning estimate adjustment or entry for a particular expenditure or
type. (See “Planning Estimate.”)
Policy Adjustments
Changes
to existing law or Administration policies. These adjustments require action by the
Governor and/or Legislature and modify the workload budget.
Pooled Money
Investment Account (PMIA)
A State
Treasurer's Office accountability account maintained by the State Controller's
Office to account for short-term investments purchased by the State Treasurer's
Office as designated by the Pooled Money Investment Board on behalf of various
funds.
Pooled Money
Investment Board (PMIB)
A board
comprised of the Director of Finance, State Treasurer, and the State
Controller, the purpose of which is to design an effective cash management and
investment program, using all monies flowing through the Treasurer’s bank
accounts and keeping all available monies invested consistent with the goals of
safety, liquidity, and yield. (SAM
7350)
Positions
See “Authorized
Positions.”
Price Increase
A budget
adjustment to reflect the inflation factors for specified operating expenses
consistent with the budget instructions from the Department of Finance.
Pro Rata
The amount of
state administrative costs, paid from the General Fund and the Central Service
Cost Recovery Fund (e.g., amounts expended by central service departments such
as the State Treasurer's Office, State Personnel Board, State Controller's
Office, and Department Finance for the general administration of state
government), that are chargeable to and recovered from special funds (other
than the General Fund, Central Service Cost Recovery Fund, and federal funds)
as determined by the Department of Finance.
(GC 11270-11277, 13332.03; 22828.5; SAM 8753, 8754)
Program Budget
See “Budget,
Program or Traditional.”
Program Cost Accounting
(PCA)
A level of
accounting that identifies costs by activities performed in achievement of a
purpose in contrast to the traditional line-item format. The purpose of
accounting at this level is to produce cost data sufficiently accurate for
allocating and managing its program resources.
(SAM 9200)
Programs
Activities of
an organization grouped on the basis of common objectives. Programs are comprised of elements, which can
be further divided into components and tasks.
Proposed New
Positions
A request for
an authorization to expend funds to employ additional people to perform
work. Proposed new positions may be for
limited time periods (limited term) and for full or less than full time.
Proposed new positions may be for an authorization sufficient to employ one
person, or for a sum of funds (blanket) from which several people may be
employed. (See also “Changes in
Authorized Positions.”)
Proposition 98
An initiative
passed in November 1988, and amended in the June 1990 election, that provides a
minimum funding guarantee for school districts, community college districts,
and other state agencies that provide direct elementary and secondary
instructional programs for kindergarten through grade 14 (K-14) beginning with
fiscal year 1988-89. The term is also
used to refer to any expenditures which fulfill the guarantee. (Article XVI, § 8)
Provision
Language in a
bill or act that imposes requirements or constraints upon actions or
expenditures of the state. Provisions
are often used to constrain the expenditure of appropriations but may also be
used to provide additional or exceptional authority. (Exceptional authority usually begins with
the phrase "notwithstanding...".)
Public Service
Enterprise Funds
For legal basis
accounting purposes, the fund classification that identifies funds used to
account for the transactions of self-supporting enterprises that render goods
or services for a direct charge to the user (primarily the general
public). Self-supporting enterprises,
that render goods or services for a direct charge to other state departments or
governmental entities, account for their transactions in a Working Capital and
Revolving Fund. (UCM, Fund
Codes—Structure)
Reappropriation
The extension
of an appropriation’s availability for encumbrance and/or expenditure beyond
its set termination date and/or for a new purpose. Reappropriations are typically authorized by
statute for one year at a time but may be for some greater or lesser period.
Recall
The power of
the electors to remove an elected officer.
(Article II, § 13)
Redemption
The act of
redeeming a bond or other security by the issuing agency.
Reference Code
A three-digit
code identifying whether the item is from the Budget Act or some other source
(e.g., legislation), and its character (e.g., state operations). This is the middle segment of the budget
item/appropriation number.
Referendum
The power of
the electors to approve or reject statutes or parts of statutes, with specified
exceptions and meeting specified deadlines and number of voters'
signatures. (Article II, § 9)
Refund to
Reverted Appropriations
A receipt
account to record abatements and reimbursements to appropriations that have reverted.
Regulations
A directive,
rule, order, or standard of general application issued by a state agency to
implement, interpret, or make specific the law enforced or administered by
it. With state government, the process
of adopting or changing most regulations is subject to the Administrative
Procedures Act and oversight of the Office of Administrative Law (OAL). The
Department of Finance must also review and approve any non-zero estimate of
state or local fiscal impact included in a regulation package before it can be
approved by OAL. (GC 13075, 11342;
SAM 6601-6680) (GC 11342 was repealed.)
Reimbursement
Warrant (or Revenue Anticipation Warrant)
A warrant that
has been sold by the State Controller’s Office, as a result of a cash shortage
in the General Fund, the proceeds of which will be used to reimburse the
General Cash Revolving Fund. The
Reimbursement Warrant may or may not be registered by the State Treasurer’s
Office. The registering does not affect
the terms of repayment or other aspects of the Reimbursement Warrant.
Reimbursements
An amount
received as a payment for the cost of services performed, or of other
expenditures made for, or on behalf of, another entity (e.g., one department
reimbursing another for administrative work performed on its behalf). Reimbursements represent the recovery of an
expenditure. Reimbursements are
available for expenditure up to the budgeted amount (scheduled in an
appropriation), and a budget revision must be prepared and approved by the
Department of Finance before any reimbursements in excess of the budgeted
amount can be expended. (SAM 6463)
Reserve
An amount of a
fund balance set aside to provide for expenditures from the unencumbered
balance for continuing appropriations, economic uncertainties, future
apportionments, pending salary or price increase appropriations, and
appropriations for capital outlay projects.
Revenue
Revenue
Anticipation Notes (RANs)
A cash
management tool generally used to eliminate cash flow imbalances in the General
Fund within a given fiscal year. RANs
are not a budget deficit-financing tool.
Revenue Anticipation Warrant (RAW)
See Reimbursement
Warrant.
Reversion
The return of
the unused portion of an appropriation to the fund from which the appropriation
was made, normally two years (four years for federal funds) after the last day
of an appropriation’s availability period.
The Budget Act often provides for the reversion of unused portions of
appropriations when such reversion is to be made prior to the statutory limit.
Reverted
Appropriation
An appropriation
that is reverted to its fund source after the date its liquidation period has
expired.
Revolving Fund
Generally refers to a cash account
known as an office revolving fund (ORF).
It is not a fund but an advance from an appropriation. Agencies may use the cash advance to disburse
ORF checks for immediate needs, as specified in SAM. The cash account is subsequently replenished
by a State Controlloer’s Office warrant.
The size of departmental revolving funds is subject to Department of
Finance approval within statutory limits. (SAM 8100, et seq)
SAL
See
“Appropriations Limit, State”.
Salaries and
Wages Supplement
An annual
publication issued shortly after the Governor's Budget, containing a summary of
all positions by department, unit, and classification for the past, current,
and budget years, as of July 1 of the current year. This publication is also displayed on the
Department of Finance website.
Salary Savings
The estimated
or actual personnel cost savings resulting from all authorized positions not
being filled at the budgeted level for the entire year due to absences,
turnovers (which results in vacancies and downward reclassifications), and
processing time when hiring for new positions.
The amount of savings is estimated on the basis of the past experience
of departments. For new positions that
will be authorized on July 1, five percent is a generally acceptable minimum
for the salary savings estimate.
Schedule
The detail of
an appropriation in the Budget Bill or Act, showing its distribution to each of
the categories, programs, or projects thereof.
OR
A supplemental
schedule submitted by departments to detail certain expenditures. OR
A summary
listing in the Governor's Budget.
Schedule 2
See “Changes in
Authorized Positions.”
Schedule 7A
A summary
version of the State Controller’s Office detailed Schedule 8 position listing
for each department. The information
reflected in this schedule is the basis for the “Salaries and Wages Supplement”
displayed on the Department of Finance website. (SAM 6415-6419)
Schedule 8
A detailed
listing generated from the State Controller's Office payroll records for a
department of its past, current, and budget year positions as of June 30 and
updated for July 1. This listing must be
reconciled with each department's personnel records and becomes the basis for
centralized payroll and position control.
The reconciled data should coincide with the level of authorized
positions for the department per the final Budget. (SAM
6424-6429, 6448)
Schedule 10 (Supplementary Schedule of Appropriations)
A Department of
Finance control document listing all appropriations and allocations of funds
available for expenditure during the past, current, and budget years. These documents are sorted by state
operations, local assistance, and capital outlay. The Schedule 10s reconcile expenditures by
appropriation (fund source) and the adjustments made to appropriations,
including allocation of new funds. These documents also show savings and
carryovers by item. The information
provided in this document is summarized in the Detail of Appropriations and
Adjustments in the Governor's Budget. (SAM
6484)
Schedule 10R
(Supplementary Schedule of Revenues and
Transfers)
A Department of Finance control document reflecting information for
revenues, transfers, and inter-fund loans for the past, current, and budget
years. Schedule
10Rs are required for the General Fund and all special funds. Schedule
10R information for special funds is displayed in the Fund Condition Statement
for that fund in the Governor’s Budget.
Schedule 11
Outdated term
for “Supplementary Schedule of Operating Expenses and Equipment.”
Schedule of
Federal Funds and Reimbursements, Supplementary
A supplemental
schedule submitted by departments during budget preparation which displays the
federal receipts and reimbursements by source.
(SAM 6460)
Schedule of
Operating Expenses and Equipment, Supplementary
A supplemental
schedule submitted by departments during budget preparation which details by
object the expenses included in the Operating Expenses and Equipment
category. (SAM 6454, 6457)
Section 1.50
Section of the
Budget Act that 1) specifies a certain format and style for the codes used in
the Budget Act, 2) authorizes the Department of Finance to revise codes used in
the Budget Act in order to provide compatibility with the Governor’s Budget and
records of the State Controller’s Office, and 3) authorizes the Department of
Finance to revise the schedule of an appropriation in the Budget Act for
technical changes that are consistent with legislative intent. Examples of such technical changes to the
schedule of an appropriation include the elimination of amounts payable, the
distribution of administration costs, the distribution of unscheduled amounts
to programs or categories, and the augmentation of reimbursement amounts when
the Legislature has approved the budget for the department providing the
reimbursement.
Section 1.80
Section
of the Budget Act that includes periods of availability for Budget Act
appropriations.
Section 8.50
The Control
Section of the Budget Act that provides the authority to increase federal funds
spending authority.
Section 26.00
A Control
Section of the Budget Act that provides the authority for the transfer of funds
from one category, program or function within a schedule to another category,
program or function within the same schedule, subject to specified limitations
and reporting requirements. (Prior to
1996-97, this authority was contained in Section 6.50 of the Budget Act.) (SAM 6548)
Section 28.00
A Control
Section of the Budget Act which authorizes the Director of Finance to approve
the augmention or reduction of items of expenditure for the receipt of
unanticipated federal funds or other non-state funds, and that specifies the
related reporting requirements.
Appropriation authority for unanticipated federal funds is contained in
Section 8.50. (SAM 6551-6557)
Section 28.50
A Control
Section of the Budget Act that authorizes the Department of Finance to augment
or reduce the reimbursement line of an appropriation schedule for
reimbursements received from other state agencies. It also contains specific reporting
requirements. (SAM 6551‑6557)
A Control
Section of the Budget Act that amends Government Code Section 13340 to sunset
continuous appropriations.
Section 31.00
A Control
Section of the Budget Act that specifies certain administrative procedures. For
example, the section subjects the Budget Act appropriations to various sections
of the Government Code, limits the new positions a department may establish to
those authorized in the Budget, requires Finance approval and legislative
notification of certain position transactions, requires all administratively
established positions to terminate on June 30 and allows for such positions to
continue if they were established after the Governor's Budget was submitted to
the Legislature, and prohibits increases in salary ranges and other employee
compensation which require funding not authorized by the budget unless the
Legislature is informed.
Senate
The upper house
of California’s Legislature consisting of 40 members who serve a maximum of two
four-year terms. Twenty members are elected every two years. (Article IV, § 2 (a))
Service
Revolving Fund
A fund used to
account for and finance many of the client services rendered by the Department
of General Services. Amounts expended by
the fund are reimbursed by sales and services priced at rates sufficient to
keep the fund solvent. (SAM 8471.1)
Settlements
Refers to any
proposed or final settlement of a legal claim (usually a suit) against the
state. Approval of settlements and
payments for settlements are subject to numerous controls. See also
“Judgments.” (GC 965)
Shared Revenue
A state-imposed
tax, such as the gasoline tax, which is shared with local governments in
proportion, or substantially in proportion, to the amount of tax collected or
produced in each local unit. The tax may
be collected either by the state and shared with the localities, or collected locally
and shared with the state.
Sinking Fund
A fund or
account in which money is deposited at regular intervals to provide for the
retirement of bonded debt.
Special Fund
for Economic Uncertainties
A fund in the
General Fund (a similar reserve is included in each special fund) authorized to
be established by statutes and Budget Act Control Section 12.30 to provide for
emergency situations. (GC 16418
, 16418.5)
Special Funds
For legal basis
budgeting purposes, funds created by statute, or administratively per
Government Code Section 13306, used to budget and account for taxes, licenses,
and fees that are restricted by law for particular activities of the
government.
Special Items
of Expense
An expenditure
category that covers nonrecurring large expenditures or special purpose
expenditures that generally require a separate appropriation (or otherwise
require separation for clarity).
(SAM 6469; UCM)
Sponsor
An individual,
group, or organization that initiates or brings to a Legislator's attention a
proposed law change.
Spot Bill
An introduced
bill that makes non-substantive changes in a law, usually with the intent to
amend the bill at a later date to include substantive law changes. This procedure provides a means for
circumventing the deadline for the introduction of bills.
Staff Benefits
An object of
expenditure representing the state costs of contributions for employees'
retirement, OASDI, health benefits, and nonindustrial disability leave
benefits. (SAM 6412; UCM)
State Fiscal
Year
The period
beginning July 1 and continuing through the following June 30.
State-Mandated
Local Program
State
reimbursements to local governments for the cost of activities required by
legislative and executive acts. This
reimbursement requirement was established by Chapter 1406, Statutes of 1972 (SB
90) and further ratified by the adoption of Proposition 4 (a constitutional
amendment) at the 1979 general election.
(Article XIII B, § 6; SAM 6601)
State
Operations (SO)
A character of
expenditure representing expenditures for the support of state government,
exclusive of capital investments and expenditures for local assistance
activities.
Statewide Cost
Allocation Plan (SWCAP)
The amount of
state administrative, General Fund costs (e.g., amounts expended by central
service departments such as the State Treasurer’s Office, State Personnel
Board, State Controller’s Office, and the Department of Finance for the general
administration of state government) chargeable to and recovered from federal
funds, as determined by the Department of Finance. These statewide administrative costs are for
administering federal programs, which the federal government allows
reimbursement. (GC 13332.01-13332.02;
SAM 8753, 8755-8756 et seq.)
Statute
A written law
enacted by the Legislature and signed by the Governor (or a vetoed bill
overridden by a two-thirds vote of both houses), usually referred to by its
chapter number and the year in which it is enacted. Statutes that modify a state code are
"codified" into the respective Code (e.g., Government Code, Health and
Safety Code). See also “Bill” and
“Chapter”. (Article IV, § 9)
Subcommittee
The smaller
groupings into which Senate or Assembly committees are often divided. For example, the fiscal committees that hear
the Budget Bill are divided into subcommittees generally by departments/subject
area (e.g., Education, Resources, General Government).
Subventions
Typically used
to describe amounts of money expended as local assistance based on a formula,
in contrast to grants that are provided selectively and often on a competitive
basis. For the
purposes of Article XIII B, state subventions include only money received by a
local agency from the state, the use of which is unrestricted by the statutes
providing the subvention. (GC Section
7903)
Summary
Schedules
Various
schedules in the Governor’s Budget Summary which summarize state revenues,
expenditures and other fiscal and personnel data for the past, current, and
budget years.
Sunset Clause
Language
contained in a law that states the expiration date for that statute.
Surplus
An outdated
term for a fund’s excess of assets (or resources) over liabilities. See “Fund Balance.”
Tax
Expenditures
Subsidies
provided through the taxation systems by creating deductions, credits and
exclusions of certain types of income or expenditures that would otherwise be
taxable.
Technical
In the budget
systems, refers to an amendment that clarifies, corrects, or otherwise does not
materially affect the intent of a bill.
Tort
A civil wrong,
other than a breach of contract, for which the court awards damages.
Traditional torts include negligence, malpractice, assault and battery.
Recently, torts have been broadly expanded such that interference with a
contract and civil rights claims can be torts.
Torts result in either settlements or judgments. (GC 948, 965-965.9; SAM 6472, 8712; BA
Item 9670)
Traditional
Budget
See “Budget,
Program or Traditional.”
Transfers
As used in
Schedule 10Rs and fund condition statements, transfers reflect the movement of
resources from one fund to another based on statutory authorization or specific
legislative transfer appropriation authority.
See also “Category Transfer.”
Trigger
An event that
causes an action or actions. Triggers can be active (such as pressing the
update key to validate input to a database) or passive (such as a tickler file
to remind of an activity). For example,
budget "trigger" mechanisms have been enacted in statute under
which various budgeted programs are automatically reduced if revenues fall
below expenditures by a specific amount.
Unanticipated
Cost/Funding Shortage
A lack or
shortage of (1) cash in a fund, (2) expenditure authority due to an
insufficient appropriation, or (3) expenditure authority due to a cash problem
(e.g., reimbursements not received on a timely basis). See Budget Act Items 9840 and 9850.
Unappropriated
Surplus
An outdated
term for that portion of the fund balance not reserved for specific
purposes. See “Fund Balance” and
“Reserve.”
Unencumbered
Balance
The balance of
an appropriation not yet committed for specific purposes. See “Encumbrance.”
Uniform Codes
Manual (UCM)
A document
maintained by the Department of Finance which sets standards for codes and
various other information used in state fiscal reporting systems. These
codes identify, for example, organizations, programs, funds, receipts, line
items, and objects of expenditure.
Unscheduled
Reimbursements
Reimbursements
collected by an agency that were not budgeted and are accounted for by a
separate reimbursement category of an appropriation. To expend unscheduled reimbursements, a
budget revision must be approved by the Department of Finance, subject to any
applicable legislative reporting requirements (e.g., Section 28.50).
Urgency
Statute/Legislation
A measure that
contains an “urgency clause” requiring it to take effect immediately upon the
signing of the measure by the Governor and the filing of the signed bill with
the Secretary of State. Urgency statutes
are generally those considered necessary for immediate preservation of the public
peace, health or safety, and such measures require approval by a two-thirds
vote of the Legislature, rather than a majority. (Article IV, § 8 (d)). However, the Budget Bill and other bills
providing for appropriations related to the Budget Bill may be passed by a
majority vote to take effect immediately upon being signed by the Governor or
upon a date specified in the legislation.
(Article IV § 12 (e) (1)).
Veto
The Governor's
Constitutional authority to reduce or eliminate one or more items of
appropriation while approving other portions of a bill. (Article IV, §10 (e); SAM 6345)
Victim
Compensation and Government Claims Board, California
An
administrative body in state government exercising quasi-judicial powers (power
to make rules and regulations) to establish an orderly procedure by which the
Legislature will be advised of claims against the state when no provision has
been made for payment. This board was
known as the Board of Control prior to January 2001. The rules and regulations
adopted by the former Board of Control are in the California Code of
Regulations, Title 2, Division 2, Chapter 1.
Warrant
An order drawn
by the State Controller directing the State Treasurer to pay a specified
amount, from a specified fund, to the person or entity named. A warrant generally corresponds to a bank
check but is not necessarily payable on demand and may not be negotiable. (SAM 8400 et seq)
Without Regard
To Fiscal Year (WRTFY)
Where an appropriation
has no period of limitation on its availability.
Working Capital
and Revolving Fund
For legal basis
accounting purposes, fund classification for funds used to account for the
transactions of self-supporting enterprises that render goods or services for a
direct charge to the user, which is usually another state
department/entity. Self-supporting
enterprises that render goods or services for a direct charge to the public
account for their transactions in a Public Service Enterprise Fund.
Workload
The measurement
of increases and decreases of inputs or demands for work, and a common basis
for projecting related budget needs for both established and new programs. This approach to BCPs is often viewed as an
alternative to outcome or performance based budgeting where resources are
allocated based on pledges of measurable performance.
Workload Budget
Workload Budget means
the budget year cost of currently authorized services, adjusted for changes in
enrollment, caseload, population, statutory cost-of-living adjustments,
chaptered legislation, one-time expenditures, full-year costs of partial-year
programs, costs incurred pursuant to Constitutional requirements, federal
mandates, court-ordered mandates, state employee merit salary adjustments, and
state agency operating expense and equipment cost adjustments to reflect
inflation. The compacts with Higher
Education and the Courts are commitments by this Administration and therefore
are included in the workload budget and considered workload adjustments. A
workload budget is also referred to as a baseline budget. (GC 13308.05)
Workload Budget Adjustment
Any adjustment to the
currently authorized budget necessary to maintain the level of service required
to fund a Workload Budget, as defined in Government Code Section 13308.05. A workload budget adjustment is also referred
to as a baseline adjustment.
Year of
Appropriation (YOA)
Refers to the
initial year of an appropriation.
Year of Budget
(YOB)
The budget year
involved (e.g., in Schedule 10s).
Year of Completion
(YOC)
The last fiscal
year for which the appropriation is available for expenditure or encumbrance.
* Abbreviations used in the references
cited:
Article Article of California Constitution
BA Budget Act
CS Control
Section of Budget Act
GC Government
Code
SAM State
Administrative Manual
UCM Uniform
Codes Manual
Revised
1/3/2012 (FO Principal)