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2003 Session

Budget Amendments - HB1400 (Conference Report)

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Reductions Due to Revenue Shortfalls (language only)

Item 4-1.04 #1c

Item 4-1.04 #1c

Appropriations
Appropriation Reductions

Language
Page 576, strike lines 6 through 15, and insert:
"4.a.  During the period when the General Assembly is not in regular or special session and in the event that general fund revenues are estimated by the Governor to be insufficient to pay in full all general fund appropriations authorized by the General Assembly, including the currently estimated expenditures from sum sufficient appropriations, the Governor shall, subject to the qualifications herein contained, withhold general fund and nongeneral fund spending authority, by withholding allotments of appropriations to the extent necessary to prevent any expenditure in excess of the estimated general fund revenues.  However, the Governor shall take no action to reduce general fund or nongeneral fund allotments of appropriations on account of reduced revenues until such time as a formal written re-estimate of general fund revenues for the current and next biennia, prepared within the previous 90 days, in accordance with the process specified in § 2.2-1503, Code of Virginia, has been reported to the Chairmen of the House Appropriations, House Finance, and Senate Finance Committees.
b. The Governor shall take no action to withhold allotments until a written plan detailing specific reduction actions approved by the Governor, identified by program and appropriation item, has been presented to the Chairmen of the House Appropriations and Senate Finance Committees.  Subsequent modifications to the approved reduction plan also must be submitted to the Chairmen of the House Appropriations and Senate Finance Committees, prior to withholding allotments of appropriations.  This reduction plan, with modifications thereto, shall be the sole basis for withholding spending authority due to reduced revenues.
c. In addition to the budget reduction plan approved by the Governor, all budget reduction proposals submitted by state agencies to the Governor or the Governor’s staff, including but not limited to the Department of Planning and Budget, the Governor’s Cabinet Secretaries, or the Chief of Staff, whether submitted electronically or otherwise, shall be forwarded within five calendar days of submission to the Chairmen of the Senate Finance and House Appropriations Committees."
Page 576, line 16, strike “b.” and insert “d.”
Page 576, strike lines 25 through 29 and insert:
"5. In effecting the reduction of expenditures for the above-stated purpose, the Governor shall not withhold allotment of appropriations for:
a) More than 15 percent of the annual general fund appropriation and 15 percent of the annual nongeneral fund appropriation for operating expenses of any one state or nonstate agency or institution designated in this act by title and a three-digit agency code, subject to § 4-1.02 c. of this act.  The exact amount withheld, by state or nonstate agency or institution, shall be reported within five calendar days to the Chairmen of the House Appropriations and Senate Finance Committees.  State agencies providing funds directly to grantees named in this Act shall not apportion a larger cut to the grantee than the proportional cut apportioned to the agency.  Without regard to § 4-5.07 b 4 of this Act, the remaining appropriation to the grantee which is not subject to the cut, equal to at least 85 percent of the annual appropriation, shall be made by July 31, or in two equal installments, one payable by July 31 and the other payable by December 31, if the remaining appropriation is less than or equal to $500,000, except in cases where the normal conditions of the grant dictate a different payment schedule."


Explanation
(This amendment clarifies the Governor's authority to withhold appropriations when estimated revenues are insufficient to cover appropriations.)