This glossary provides a subject title and short description of those Government Code sections which are frequently utilized and referred to by Finance budget analysts during all phases of budget work. It is not intended to be all-inclusive as there are numerous other sections pertaining to the Department of Finance. Any questions, regarding the technicalities of these sections may be referred to the Budget Operations Unit. Also, if there are additional sections which staff believe should be added to this glossary, please call the Budget Operations Unit.


Subject Title



Settlements and Judgments

Provides that the head of an agency, upon recommendation of the Attorney General, may settle adjust, or compromise any pending action with the approval of the DOF.

1231, 1231.1,

Late Budget and Employee Rights

Provisions preserving employees’ employment rights and making lawful the payments of salaries and other expenditures between July 1 and date Budget Act is enacted.


Subsequent Legislation

Presumes that statute which is enacted later prevails over statute enacted earlier.

11005 - 11005.1


Requires DOF to approve gifts unless Legislature specifies otherwise. Provides Director of Finance may accept any gift of real or personal property if deemed in the best interests of the State.



Authorizes DOF to allocate funds for deficiencies. Note: 1) SCO has established policy that case law precludes use of this authority for General Fund deficiencies. 2) Language in Item 9840 of Budget Act precludes use of this authority but there is specific language in some Budget Act items which supersede this restriction.


Out-of-State Travel

Allows travel expenses when approved by Governor and DOF.


Successor Agencies

Provisions regarding changes when agencies are abolished.


and 22828.5

Pro Rata

Provides for the recovery of General Fund costs for statewide general administrative expenditures (Pro Rata) from special funds.

12020 and 12021

Accounts Payable and Cash Flow

Requires accounts payable and cash flow statements for the past, current and budget years to be included in the budget.

12080 - 12081

Governor’s Reorganization Plan

Provides for the Governor to submit reorganization plans to the Legislature.


Vacant Positions

Abolishes any State position that is vacant for six consecutive monthly pay periods. The six consecutive monthly pay periods may occur entirely within one fiscal year or between two consecutive fiscal years.


State Controller warrants

Authorizes Controller to issue warrants on the Treasury only if authorized by law and if a specific appropriation is available.

13000 - 13881

Department of Finance

General provisions regarding powers and fiscal affairs.


General Powers of DOF

Provides that DOF has general powers of supervision over all matters concerning the financial and business policies of the State.


Accounting System

Provides that DOF shall devise, install, and supervise a modern and complete accounting system for the State.


Accrual Accounting

Provides for accrual accounting and defines "accounts payable" and "encumbrances".


Special Accounts in the General Fund

Provides that accounts, special accounts and funds established in the General Fund shall, for accounting and budgeting purposes, be excluded from financial statements on the condition of the General Fund.


Establishing/Abolishing Funds and Conformance to GAAP

Provides that DOF with SCO concurrence may establish and abolish funds under certain circumstances. Provides for deviation from GAAP.


General Fund Balance and Encumbrances

Provides that encumbrances shall not be counted as an expenditure and that unencumbered balances of appropriations, shall be an item of disclosure but shall not be deducted from the fund balance.


Budget Amendment Deadlines

Requires DOF to submit to the Legislature the following budget information at the specified times:

February 1- Proposed trailer bill language as prepared by the Legislative Counsel.

April 1- Non-May Revision and non-Capital Outlay adjustments.

May 1- Capital Outlay adjustments.

May 14- May Revision: Estimate of CY and BY GF revenues; any needed budget balancing adjustments; update for caseload, enrollment and population changes; and update of Proposition 98.

Director may suspend any CY provision with a 30 day notice to the Legislature.


Amending Budgets

Provides that DOF may amend budgets until enactment of the Budget Act. Note: Prior to 1983, this section allowed amendments before and after budget enactment and was used to make statewide across-the-board reductions to budget.


Liability for Overexpending Budget

Proves that a person who incurs expenditure in excess of budget is liable both personally and on official bond for the excess expenditure.


Federal Funds - DOF

Provides for Agency requests for Federal Funds to be reviewed/approved by DOF.

13332.01 and 13332.02

Statement Cost Allocation Plan (SWCAP)

Provides for collection of indirect costs from federal government and for transfer of such funds to the General Fund.


General Administrative Costs (Pro Rata)

Provides for Pro Rata costs to be recovered directly from a fund if there is no appropriation which can be charged for the cost.



Similar language to Section 27.00 of the Budget Act. Requires notification to Legislature for approvals of deficiencies per Gov. Code 11006 and approval at a rate which will require a deficiency.


CEA Red Circle Rate

Provides for paying (for up to 90 days) a salary that is higher than the max for a classification following termination of CEA appointment.


Previous Denial of Expenditure by Legislature

Provides that no appropriation may be combined or used in any manner to avoid budgeting the salary or operating expenses of any position or to achieve any purpose which has been denied by any formal action of the Legislature.

13335 - 13336

Program Budgets

Provides that DOF shall develop guidelines and a format for program budgets.


Governor’s Budget

Provides for:

Three year presentation;
A program budget format;
Budget materials be provided to the Legislature; and
DOF to develop a fiscal information system.


Balanced Budget Act

Prohibits projected expenditures in excess of projected revenues. States legislative intent that revenues and expenditures be kept in balance for the fiscal year.


Budget Bill and Budget

Provides that Budget Bill shall closely follow Governor’s Budget including program structure and coding scheme.  Provides that Budget Bill shall provide for the appropriation of federal funds.


Sunset of Continuous Appropriation

Provides for the sunsetting of all continuous appropriations. Since the first sunset date of July 1, 1984, a Budget Act provision (Control Section 30.00) has delayed the sunset date for another fiscal year.


Appropriation Availability

Provides that, unless otherwise specified, an appropriation is available for encumbrance for three years.


Liquidation Period for Encumbrances Payments for Unpaid Encumbrance related to Reverted Appropriation

Provides that disbursements in liquidation of encumbrances may be made during the two years following the last day an appropriation is available for encumbrance. Two additional years are authorized for liquidation of encumbrances from federal fund appropriations. This section also provides that subsequent to reversion, any unpaid encumbrances against the appropriation may be paid from any current year appropriation available for the same purposes.


Abolishment of Powers or Duties of State Officer or Agency

Provides that balance of appropriation reverts to fund from which appropriation was made.


Change in Fund

Provides that DOF shall determine adjustments to be made if an act makes a change to a fund from which an appropriation is made.


Change in Powers and Duties of State Officer or Agency

Provides that DOF shall determine the portion of an appropriation intended to be used for the agency to which powers were transferred.

16305 - 16310

Centralized State Treasury System

Provides for the centralized system and General Fund borrowing from the Surplus Money Investment Fund.


Loans of State Funds

Provides that the Pooled Money Investment Board shall establish the interest rates for short term and long term loans where the stature authorizing the loan does not prohibit or specify an interest rate or method of computing a rate. Authorizes Director of Finance to waive interest rate under specified conditions and to extend loan repayment date.


Abolishment of Fund and Successor

Provides that when a fund is abolished, the assets, liabilities and surplus go to the successor fund which is specified. If no successor fund is specified, the General Fund becomes the successor fund.


Loan to Exhausted Fund

Provides that the Controller shall report to the Governor and Treasurer when a Special Fund is exhausted. If money is not needed in General Fund, the Governor may loan money to the Special Fund.


Reversion of Capitol Outlay Appropriation

Authorizes Director of Finance, with approval of Public Works Board, to revert savings of a Special Fund appropriation to the unappropriated balance.


Augmentation of Capital Outlay Appropriation

Authorizes Director of Finance, with approval of the Public Works Board, to augment appropriation for increased project costs from Special Fund balances.

16360 - 16361

Federal Trust Fund

Created for the deposit of all federal moneys received by the State and a continuous appropriation therefrom. Note: The general policy has been to appropriate federal funds in the Budget Act. Budget Act appropriations generally supersede the continuous appropriation. In cases where only a small portion of available funds are appropriated in the Budget Act, the continuous appropriation may be available/operative for the other available funds.


Special Deposit Fund

Creates this fund for the receipt of moneys paid into it in trust and provides continuous appropriation therefrom.


Special Fund for Economic Uncertainties (SFEU), State Appropriations Limit (SAL)

Creates the Special Fund for Economic Uncertainties within the General Fund to create a reserve fund within the meaning of Article XIII B of the Constitution (Prop 4). Provides for transfers between the General Fund and the SFEU.


Contingency Reserves for Economic Uncertainties

Creates contingency reserve for economic uncertainties in each Special Fund within the meaning of Article XIII B of the Constitution.

(April 2004) (BOS/FO PPBA)