Abatement
Abolishment of
Fund
The closure of a fund pursuant to
the operation of law. 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.
Accrual basis of accounting
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. (See also
“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)
Agency
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 deficiency 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, authorized positions represent a
point-in-time number as of July 1 of the current year. For past year, authorized positions
represents 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 because of continued vacancy. For budget year, the number of
authorized positions is the same as current year except for adjustments for any
positions that will expire by the end of the current year. The detail of authorized positions
by department and classification is published in the annual “Salaries and Wages
Supplement.” Changes in authorized
positions are listed at the end of each department's budget presentation in the
Governor's Budget. (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
See Workload Budget Adjustment.
Baseline
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.
Board of Control, State
Previous name for the California
Victim Compensation and Government Claims Board.
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. This bill is prepared by the Department
of Finance and submitted to each house of the Legislature in January
(accompanying the Governor's Budget).
The bills' 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, usually one
year, 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 (mostly done 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 that reflects staffing
changes made subsequent to the adoption of the current year budget. This schedule documents transfers,
positions established, and selected reclassifications, as well as proposed new
positions for the budget year.
(SAM 6406)
Change
Tables
Department Change
tables 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 Change Tables include three
adjustment categories: workload, policy, and infrastructure. Within the workload section, issues are further
differentiated between budget change proposals and other workload budget
adjustments. Below are the standard change table categories or headings including
definitions:
- Workload Budget Adjustments - See “Workload
Budget Adjustments.”
- Policy Adjustments
-
See "Policy Adjustments".
- Employee Compensation Adjustments
- 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
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 Adjustments
- 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.
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 agency 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.
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
code and other statutes. Section
30.00 of the annual Budget Act traditionally extends the continuous
appropriations for one additional fiscal year. (GC 13340; SAM
8382)
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.
A lack or shortage of (1) money 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
9840 Items.
Department
Department of Finance
(Finance)
The department that is delegated
the responsibility for preparation of the Governor's Budget. The Director of Finance functions as the
Governor's chief fiscal advisor.
Major activities of the department include:
(GC 13000 et seq.)
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
(Summary by Object)
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
(Summary of Program
Requirements)
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 2006 means the period beginning October 1, 2005 and ending
September 30, 2006. (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
2008, this is the time period beginning July 1, 2008 and ending June 30,
2009. (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
6454)
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
Excess of a fund’s assets over its
liabilities and reserves.
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
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.
Hot
Books
Binders or other compilations of
reference materials the Department of Finance budget staff use when testifying
on the Governor’s Budget before the Legislature.
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
$400,000, with specified exemptions in the Resources
Agency.
Modified Accrual
Basis
For legal basis accounting purposes,
the basis of accounting that accrues revenue earned but not received, if it is
measurable and estimated to be collected in the ensuing fiscal year, and
expenditures 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 budgeting
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
Department of Finance 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,
reviewed 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 into that fund
appropriate amounts from its other funds for their shares 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.)
Policy
Adjustments
Changes to existing law or
Administration policies. These adjustments require action by the
Governor and/or Legislature and modify the workload
budget.
Planning Estimate
Line
A separate planning estimate
adjustment or entry for a particular expenditure or type. (See “Planning
Estimate.”)
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,
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 Department Finance for the general administration of state
government) chargeable to and recovered from special funds (other than the
General 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
9220)
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)
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)
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 expenditure
authority.
Section
20.00
An outdated term sometimes used to refer to
Abolished Vacant Positions. Prior
to 1982, the authority to abolish continuously vacant positions was contained in
Section 20.00 of the Budget Act.
See “Continuously Vacant Positions.” Current authority to abolish
continuously vacant positions is in Government Code Section
12439.
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 6555‑6557)
Section
30.00
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, 6620,
6621)
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.
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 and reserves (or
obligations). 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.
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))
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 8041 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
(Rev. December 2008) (FO
Principal)