Share |

State Accounting and Budgetary Procedures  

Title 19 | Chapter 4 | Subchapter 2

SUBCHAPTER 2 - DUTIES AND RESPONSIBILITIES GENERALLY

19-4-201. Authority of Governor.

(a) The Governor shall direct the execution of the state budget as approved by the General Assembly. The Governor, or Governor-elect, shall:
(1) Review the budget requests and estimates of resources;
(2) Evaluate long-range programs and consider possible alternatives to existing state agency programs, policies, and goals;
(3) Formulate and recommend for consideration by the Legislative Council and the General Assembly a proposed comprehensive state budget of programs and proposed financing which shall include all estimated receipts and expenditures of the state government.
(b)(1) Proposed expenditures shall not exceed estimated available resources. Should the Governor, or Governor-elect, propose increased taxes in order to finance all proposed programs, two (2) sets of budgets must be submitted to the Legislative Council and the General Assembly, one (1) set based on the resources available from the then-existing tax laws and another showing the additional expenditures proposed to be financed from recommended tax increases.
(2) Budget requests for administration and operation of the legislative branch, the judicial branch, the elective constitutional offices, the Arkansas State Highway and Transportation Department, the Arkansas Lottery Commission , and the Arkansas State Game and Fish Commission shall be submitted directly to the Legislative Council without any recommendation by the Governor.
(c) In order to carry out the provisions of this section, the Governor, or Governor-elect, shall:
(1) Have the power, and it shall be his duty, to provide for hearings, if required, with the administrative head, or any other persons having knowledge thereof, of any agency submitting a budget request, in order for him to make his determinations and recommendations.
(2) Appear, or appoint a designated representative to appear, before the General Assembly, or any committees or interim committees thereof, to present his recommendations for the forthcoming budgetary period.
History. Acts 1973, No. 876, § 3; A.S.A. 1947, § 13-329; Acts 2009, No. 605, 14; 2009, No. 606, 14.

19-4-202. Authority of Legislative Council.

(a) Meetings.
(1) At any time he deems advisable, the Chairman of the Legislative Council shall have the authority to call into meeting the membership of the council for consideration of budget matters.
(2) For preliminary budget studies, the council shall have the authority to call before it the Chief Fiscal Officer of the State, the director of the research department of the Legislative Council, the Legislative Auditor, and any constitutional officer or administrative head of any state agency for the purpose of making available to the council any information it deems advisable. 
(3) The Legislative Council shall have the power to visit and inspect any agency for the purpose of obtaining first-hand information as to the condition and needs of the agency and may appoint committees from its membership for the purpose of reporting upon these findings.

(b) Budget Estimates.
(1) The Legislative Council shall require from the Chief Fiscal Officer of the State, not later than sixty (60) days prior to the convening of the General Assembly, the budget estimates and recommendations prepared by him.
(2) From time to time when called upon by the Legislative Council, the Chief Fiscal Officer of the State or his representative shall appear before the Legislative Council or attend meetings of the Legislative Council when required to do so for the purpose of preparing or submitting additional information on budget matters.

(c) Assisting Governor-Elect.
(1) It shall be the duty and responsibility of the Chief Fiscal Officer of the State and any administrative head of any agency, when requested to do so, to lend any reasonable aid, assistance, or personnel and to supply any reports or information when required to the Governor-elect for the purpose of assisting him in the preparation of his budget recommendations to be submitted to the Legislative Council.
(2) The Legislative Council shall call upon the Governor-elect or any newly elected constitutional officer, or their designated representatives, for the purpose of submitting any final recommendations or modifications of the proposed budget requests.

(d) Recommendations.
(1) The Legislative Council, acting upon the facts submitted to it and from such other studies and hearings as the Legislative Council shall deem advisable, shall proceed to modify, revise, approve, or disallow the budget requests. The Legislative Council shall make its recommendations with respect to the approved items of the budget and publish them in a report to be made available to every member of the General Assembly when it convenes in regular session.
(2) The Legislative Council shall have the authority, in recommending the proposed state budget to the General Assembly, to recommend the form of the appropriation bills to be submitted and may draw or cause to be drawn the bills conforming to these recommendations for presentation to the General Assembly.
History. Acts 1973, No. 876, § 4; A.

19-4-203. Authority of General Assembly.

The General Assembly, and the Joint Budget Committee thereof, shall: (1) Consider the current programs and financial plan included in the budget requests and the proposed resources for financing recommended by the Governor, or Governor-elect, including proposed goals and policies, recommended budgets, revenue proposals, and long-range programs;
(2) Adopt or recommend programs and alternatives to the financial plan recommended by the Governor, or Governor-elect, as it deems appropriate;
(3) Adopt or recommend legislation to authorize implementation of a comprehensive program and financial plan;
(4) Provide for a postaudit of financial transactions, program performance, and execution of legislative policy decisions;
(5) Provide for hearings, if required, with the administrative head, or any other persons having knowledge thereof, of any state agency submitting a budget request, in order to make determinations and formulate recommendations;
(6) If found necessary, visit and inspect any agency;
(7) Propose the form of appropriation bills and write or direct the writing thereof.
History. Acts 1973, No. 876, § 5; A.S.A. 1947, § 13-331.

19-4-204. Recommendations by Governor.

(a) Budgetary Programs and Financial Plans.
(1) The Governor, or Governor-elect, shall formulate the programs and financial plans to be recommended to the Legislative Council and the General Assembly after considering the state agency-proposed programs and financial plans and other programs and alternatives he deems appropriate.
(2) The program and financial plan submitted by him shall include:
(A) His goals and policies;
(B) Recommended plans to implement the goals and policies;
(C) Recommended budgets for each year for which an appropriation is being requested; and
(D) Recommended revenue measures to finance the budget.

(b) Presentation to General Assembly.
(1) The Governor, or Governor-elect, shall present his proposed comprehensive program and financial plan to the Legislative Council for their timely consideration and in a message to a joint session of the General Assembly. The message shall be accompanied by an explanatory report which summarizes recommended goals, policies, plans, and appropriations.
(2) The explanatory report shall be furnished to each member of the General Assembly and each agency. The report shall contain the following information:
(A) The coordinated programs, goals, and objectives that the Governor, or Governor-elect, recommends to guide the decisions on program plans and budget appropriations;
(B) The program and budget recommendations of the Governor, or Governor-elect, for each year of the succeeding biennium;
(C) A summary of state receipts in the previous fiscal year, an estimate for the current fiscal year, and an estimate for each year of the succeeding biennium;
(D) A summary of expenditures during the last fiscal year, those estimated for the current fiscal year, and those recommended by the Governor, or Governor-elect, for each year for which appropriations are requested; and
(E) Any additional information which will facilitate understanding the Governor's, or Governor-elect's, proposed program and financial plan by the General Assembly and the public.
History. Acts 1973, No. 876, § 7; A.S.A. 1947, 13-333.  

19-4-205. Legislative review.

The General Assembly, the Legislative Council, and the Joint Budget Committee shall consider the Governor's, or Governor-elect's, recommendations and determine the comprehensive program and financial plan to support the services to be provided the citizens of the state, while keeping authorized expenditures within the estimated receipts and other available resources.
History. Acts 1973, No. 876, § 8; A.S.A. 1947, 13-334.

19-4-206. Conservation of appropriations in changes of administration.

(a) Proportionate Amounts. In those instances in which any constitutional or elective official of the State of Arkansas is due to retire from office and another constitutional official is to take his place, the appropriations and funds provided by the General Assembly for the operation of any such office shall be conserved so as to provide his successor in office with a proportionate amount of available appropriations and funds for the remainder of the fiscal year during which the change of office takes place. For the purpose of carrying out the provisions of this section it is provided that:
(1) No constitutional official shall cause, or cause to be incurred, any obligation or issue any voucher against the appropriations of his agency in excess of a true proportion which his time of service during the fiscal year of retirement bears to the fiscal year. For the purpose of establishing the time of service of any such official, the time of retirement shall be construed to be that established by the Arkansas Constitution and statutes of this state for the retirement of the constitutional and elective officials of this state;
(2)(A) Within thirty (30) days after each general election, the Auditor of State shall notify all retiring constitutional officials that they will be required to file in his office a statement, duly sworn to, setting out:
(i) The total of all vouchers issued against the appropriations of the agency;
(ii) A list of all outstanding obligations; and
(iii) A detailed list of all proposed expenditures to be made prior to the time of retirement.
(B) In the event that the Auditor of State is retiring, the Chief Fiscal Officer of the State shall notify the Auditor of State to file the aforementioned statement required of the Auditor of State with the office of the Chief Fiscal Officer of the State;
(3) The Auditor of State shall not issue any warrant in payment of the voucher of any agency coming under the provisions of this section in excess of the proportion provided for in this section. He shall be liable under his official bond for issuing any such warrant in excess of such proportion. However, in cases of calamity or emergency, the Governor may, by proclamation, authorize any agency to exceed the limitations of this section. Under such conditions the Auditor of State and the disbursing officer shall be relieved of any liability under this section if, in making the proclamation, the Governor states the reasons for the emergency and the probable amount of the excess obligations which the agency is authorized to incur.
(b) Purpose. It is the purpose of this section to provide for the conservation of appropriations for the normal operations of agencies, and the provisions of this section are not applicable to appropriations for improvements or to special appropriations.
History. Acts 1973, No. 876, § 17; 1981, No. 741, § 2; 1985, No. 365, § 8; A.S.A. 1947, § 13-343.  

R1-19-4-206 General Conservation Activities
In any year that changes in Constitutional Officers will occur, the Chief Fiscal Officer of the State, through the DFA-Office of Budget and Office of Accounting, will survey the condition of the various State budgets and take whatever actions he/she deems necessary in order to conserve appropriate portions of the applicable budgets to ensure adequate funding will be available for incoming officers.

R2-19-4-206 Governor-Elect Transition Guidelines
The administration of funds, as may be appropriated by the General Assembly and provided to an individual who has been elected to a first term as Governor for the use in preparing for his or her forthcoming administration, must comply with the provisions of ACA §25-16-205 and this policy.

General Limitations
The expenditure of funds is limited to direct expenses of the activities relating to the new office holder preparing to take office in January following the general election. Only those expenses incurred from the date of the general election until the date of inauguration, which are directly related to assuming the office, shall be considered eligible for payment. No transition funds will be used to pay a salary to a newly elected official prior to his or her assuming the office.

Specific Guidelines
A budget for proposed use of such funds must be prepared by the Governor-Elect and presented to the Director of the Department of Finance and Administration prior to the release of transition funds. The individual(s) authorized to disburse the funds will be designated in writing by the Director of the Department of Finance and Administration (DFA). Person(s) authorized to approve the following items must be designated in writing by the Director of DFA: employment and payroll documents, purchasing documents, contracts, invoices for payment, and travel reimbursement requests.

All employees of the transition team are exempt from the overtime pay requirements of the Fair Labor Standards Act (FLSA) and, therefore, are not eligible for overtime pay.

The business affairs of the transitional team must comply with the policies, regulations and procedures established by the Director of the Department of Finance and Administration for the conduct of State business. All financial transactions shall be recorded on the State’s Financial Management System, and all original documentation shall be kept on file in the Office of the Chief Fiscal Officer of the State.