GOVERNOR'S BUDGET

The publications and documents which comprise the Governor’s Budget are basically determined by the Governor and the Director of Finance. Although there are certain constitutional and statutory provisions regarding the requirements for the Governor’s Budget, there is sufficient flexibility for an Administration to change the format, style, content and volume structure and still meet the legal requirements.

The Constitution requires the Governor to submit a budget to the Legislature by January 10 which includes an explanatory message and provides a budget for the ensuing year with itemized expenditures and revenues. If proposed expenditures exceed estimated revenues, the Governor must recommend the sources for the additional revenues.

Government Code sections require that the Budget include a three-year presentation (past, current and ensuing years), a uniform coding structure, and a program budget format. Section 13337 states "The Governor’s Budget shall be prepared in accordance with guidelines and instructions adopted by the Department of Finance."

Historically, the Department of Finance has prepared the following volumes to comprise the Governor’s Budget package:

• Governor’s Budget
• Salaries and Wages Supplement
• Governor’s Budget Summary
• Governor’s Budget Highlights (spiral bound booklet)
• Budget Bills

The Governor’s Budget, Budget Summary, Budget Highlights, and Salaries and Wages Supplement are available at the DOF Home Page, California Budget, http://www.dof.ca.gov/html/bud_docs/bud_link.htm

These volumes and the budget development process are described in the write-up Budget Process, Explanation of. In addition to the above volumes, press packet information containing highlight charts and write-ups may be distributed on January 10. Shortly after the release of the budget, the Department of Finance traditionally provides the Legislature with the following materials:

• Supplementary Schedule of Federal Funds
• Supplementary Schedule of Reimbursements
• Supplementary Schedule of Operating Expenses and Equipment
• Supplementary Schedule of Equipment
• Section 29.00 Report Personnel Years and Salaries and Wages

The departmental displays in the Governor’s Budget generally include the following:

• 3-yr Expenditures and Positions
• Detailed Expenditures by Program
• Expenditures by Category
• Detail of Appropriations and Adjustments
• Fund Condition Statements
• Changes in Authorized Positions

Please refer to presentations in that volume for examples of these displays.

The budget format has remained relatively stable for a number of years. In fact, the printing process for the new budget begins with the printing of initial budget galley by the Office of State Printing using the computer files of the previous Governor’s Budget. Any format change instructions are issued by the Department of Finance through Budget Letters.

(February 2006) (FO/PPBA)