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Board Report #01-2

Appendix A

Major Budget Policies 2001-03

 

CUTTING TAXES

The Governor's highest budget priority in the next biennium will be to further reduce taxes. Agencies should anticipate that the bulk of any discretionary revenue will be earmarked for cutting taxes before agency requests for new spending items are considered.

BUDGET TARGETS

Based on current projections FY01 is expected to have a structural budget deficit of about $475 million.

Eliminating the FY01 structural deficit will be an overriding factor in GPR spending decisions for the next budget. Because of the projected size of this structural deficit, there will need to be restraint in all types of GPR appropriations in the next budget: state operations, aids to individuals and local assistance.

While agency base resources should be reallocated to meet higher priorities, the overall FY02 GPR budget for most agencies and programs will not exceed the FY01 adjusted base level.

Agencies should limit their overall FY02 GPR budget request to 100% of their FY01 adjusted base level. For FY03, agency GPR budget requests should be limited to 101% of their FY01 adjusted base level.

Except for standard budget adjustments, routine budget items should be handled in agencies' base budgets regardless of fund source. Consistent with overall targets, limit requests to spending items associated with significant policy and operational changes. The State Budget Office will notify agencies by November 30 of any items to be funded out of the base budget.

PLANNING FOR OPERATIONS CUTS/DOWNSIZING THE STATE WORKFORCE

Reduced base budget plans are not required to be submitted at this time. However, agencies with GPR-funded state operations should anticipate that the final 2001-03 budget may require them to absorb up to a 5% unallocated base cut.

To prepare for possible cuts agencies should internally identify lower priority, discrete programs or organizational units that could be eliminated, rather than trying to absorb an across-the-board appropriation reduction.

Given expected increases in employe retirements and continued tight labor markets statewide, agencies should also expect to operate with a smaller workforce than they are currently authorized to have, regardless of their sources of funding or budget outlook.

Increased employe retirements present an obvious challenge to program managers but also an opportunity to reduce state operations spending, reshape organizations to mesh with 21st century needs and free up funds for higher priorities.

PERFORMANCE MEASUREMENT IN BUDGETING

A continuing tight budget environment necessitates a shift in thinking away from requests for new money and toward achieving results. Performance measures can help to facilitate this shift.

Appendix K in the detailed budget instructions will provide more information on performance measurement.

BUDGETING FOR INFORMATION TECHNOLOGY

Wisconsin is a leader in using technology to improve services. There are five principles that agencies should follow in developing budget requests for information technology.

INCREASING PRODUCTIVITY/ADDING VALUE FOR STATE TAXPAYERS

Budget requests should strive to assess and remove barriers to employe and agency productivity.

INCREASING FEDERAL FUNDS

Agencies are reminded the state has a goal of increasing the receipt of federal funds where consistent with state program goals.

The DOA Division of Housing and Intergovernmental Relations will be working with agencies to increase the receipt of federal funds.

STATUTORY LANGUAGE GUIDELINES

Agencies should not submit policy items unrelated to appropriation changes for inclusion in the Governor's budget. Please contact your DOA budget analyst to discuss whether a particular initiative is appropriate for submission as a budget request.

Agencies should not submit extensive lists of technical or housekeeping changes for inclusion in the Governor's budget. Proposed changes for separate non-budget legislation can be submitted to the Department of Administration for review and approval, separate from the budget request. Please contact your DOA budget analyst if these types of changes are sought.

As in past budgets, prior to September 15 agencies may work directly with the Legislative Reference Bureau in preparing statutory language items related to the budget. After September 15 all drafting and redrafting requests related to the budget must come from the State Budget Office.

The Legislative Reference Bureau strongly discourages agencies from submitting budget bill drafts that agencies have drafted. Instead, agencies should submit memoranda identifying what they are seeking to accomplish.

Appendix I in the detailed budget instructions will provide more information on statutory language.

BUDGET SUBMISSION DUE DATES AND PROCEDURES

Formal budget requests including statutory language related to decision items are due September 15, 2000. Send four (4) copies to the State Budget Office and two (2) copies directly to the Legislative Fiscal Bureau.

Agency budget directors will be required to include with their budget submissions a signed Budget Checklist of budget elements completed. This will help ensure all required materials have been included in the budget. The formal instructions for 2001-03 will include this checklist.

State Budget Office staff will present a technical workshop on budget instructions and "best practices" on July 20. This will cover basic budgeting and things to note when developing budgets. It may be of particular interest to smaller agencies and new staff of all agencies.

State Budget Office staff will also meet with individual agencies to explain budget policies and procedures and discuss any agency concerns.

INFORMATION ON THE WEB

The 2001-03 Budget Instructions manual contains a subject index at the end, listing topics and page numbers where the topics are found. Many of the items in bold type are included in the subject index.

The Budget Instructions, along with various budget forms, will be available on the State Budget Office website at http://www.doa.state.wi.us/debf/sbo/index.asp

 

TIMETABLE FOR BUDGET DEVELOPMENT

June 12, 2000 Budget Instructions are mailed.
June 19, 2000 Preliminary B-9's (Excel and paper) distributed to agencies.
June 20, 2000 Program/Appropriation printouts mailed.
June 26, 2000 B-2 file maintenance correcting errors on preliminary B-9's is due.
July 6, 2000 GPR-Earned printouts are mailed for FY01 reestimate.
July 10, 2000 B-9 files and reports are distributed.
July 13, 2000 Program/Appropriations are verified to DOA.
July 20, 2000 Budget Workshop, 8:30, St. Croix Room, DOA Bldg.
July 22, 2000 Adjusted base levels are locked by or before this date.
July 24 (week of) B-1 position printouts and electronic files are (E-)mailed.
August 3, 2000 Reestimated GPR-earned printouts due in DOA.
September 15, 2000 Agency budgets are due in DOA and Legislative Fiscal Bureau.
November 30, 2000 Agencies are advised by DOA of requests to fund within base.

 

Board Report #01-2

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