BILL REQ. #: Z-0193.8
| State of Washington | 58th Legislature | 2003 Regular Session |
Read first time 02/20/2003. Referred to Committee on Appropriations.
AN ACT Relating to the state budgeting, accounting, and reporting system; amending RCW 43.88.020, 43.88.035, 43.88.060, 43.88.090, 43.88.130, 43.88.150, 43.88.170, 43.88.180, 43.88.190, 43.88.195, 43.88.250, 43.88.260, 43.88.030, 43.88.0301, 43.88.145, 43.88.110, 43.88.160, 43.79.270, 43.79.280, and 43.88.550; adding new sections to chapter 43.88 RCW; creating a new section; recodifying RCW 43.88.010, 43.88.020, 43.88.025, 43.88.035, 43.88.060, 43.88.090, 43.88.070, 43.88.080, 43.88.130, 43.88.150, 43.88.170, 43.88.180, 43.88.190, 43.88.195, 43.88.250, 43.88.260, 43.88.030, 43.88.032, 43.88.033, 43.88.0301, 43.88.145, 43.88.110, 43.88.037, 43.88.160, 43.88.270, 43.88.290, 43.88.300, 43.88.310, 43.88.320, 43.88.570, 43.79.270, 43.79.280, 43.88.550, 43.88.240, 43.88.265, 43.88.027, 43.88.140, 43.88.175, 43.88.200, 43.88.210, 43.88.220, 43.88.230, 43.88.901, 43.88.902, 43.88.903, and 43.88.910; and repealing RCW 43.88.050, 43.88.067, 43.88.093, 43.88.094, 43.88.100, 43.88.120, 43.88.122, 43.88.205, 43.88.280, 43.88.350, 43.88.500, 43.88.505, 43.88.510, 43.88.515, 43.88.560, 43.88.899, 44.40.070, 44.40.080, and 47.08.010.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 43.88.020 and 2000 2nd sp.s. c 4 s 11 are each amended
to read as follows:(1) "Budget" means a proposed plan of expenditures
for a given period or purpose and the proposed means for financing
these expenditures.))
(2) "Budget document" means a formal statement, either written or
provided on any electronic media or both, offered by the governor to
the legislature, as provided in RCW 43.88.030.
(3) "Director of financial management" means the official appointed
by the governor to serve at the governor's pleasure and to whom the
governor may delegate necessary authority to carry out the governor's
duties as provided in this chapter. The director of financial
management shall be head of the office of financial management which
shall be in the office of the governor.
(4) "Agency" means and includes every state office, officer, each
institution, whether educational, correctional, or other, and every
department, division, board, and commission, except as otherwise
provided in this chapter.
(5) "Public funds", for purposes of this chapter, means all moneys,
including cash, checks, bills, notes, drafts, stocks, and bonds,
whether held in trust, for operating purposes, or for capital purposes,
and collected or disbursed under law, whether or not such funds are
otherwise subject to legislative appropriation, including funds
maintained outside the state treasury.
(6) "Regulations" means the policies, standards, and requirements,
stated in writing, designed to carry out the purposes of this chapter,
as issued by the governor or the governor's designated agent, and which
shall have the force and effect of law.
(7) "Ensuing biennium" means the fiscal biennium beginning on July
1st of the same year in which a regular session of the legislature is
held during an odd-numbered year pursuant to Article II, section 12 of
the Constitution and which biennium next succeeds the current biennium.
(8) "Dedicated fund" means a fund in the state treasury, or a
separate account or fund in the general fund in the state treasury,
that by law is dedicated, appropriated, or set aside for a limited
object or purpose; but "dedicated fund" does not include a revolving
fund or a trust fund.
(9) "Revolving fund" means a fund in the state treasury,
established by law, from which is paid the cost of goods or services
furnished to or by a state agency, and which is replenished through
charges made for such goods or services or through transfers from other
accounts or funds.
(10) "Trust fund" means a fund in the state treasury in which
designated persons or classes of persons have a vested beneficial
interest or equitable ownership, or which was created or established by
a gift, grant, contribution, devise, or bequest that limits the use of
the fund to designated objects or purposes.
(11) "Administrative expenses" means expenditures for: (a)
Salaries, wages, and related costs of personnel and (b) operations and
maintenance including but not limited to costs of supplies, materials,
services, and equipment.
(12) "Fiscal year" means the year beginning July 1st and ending the
following June 30th.
(13) "Lapse" means the termination of authority to expend an
appropriation.
(14) "Legislative fiscal committees" means the joint legislative
audit and review committee, the legislative evaluation and
accountability program committee, the ways and means and transportation
committees of the senate and house of representatives, and, where
appropriate, the legislative transportation committee.
(15) "Fiscal period" means the period for which an appropriation is
made as specified within the act making the appropriation.
(16) "Primary budget driver" means the primary determinant of a
budget level, other than a price variable, which causes or is
associated with the major expenditure of an agency or budget unit
within an agency, such as a caseload, enrollment, workload, or
population statistic.
(17) "State tax revenue limit" means the limitation created by
chapter 43.135 RCW.
(18) "General state revenues" means the revenues defined by Article
VIII, section 1(c) of the state Constitution.
(19) "Annual growth rate in real personal income" means the
estimated percentage growth in personal income for the state during the
current fiscal year, expressed in constant value dollars, as published
by the office of financial management or its successor agency.
(20) "Estimated revenues" means estimates of revenue in the most
recent official economic and revenue forecast prepared under RCW
82.33.020, and prepared by the office of financial management for those
funds, accounts, and sources for which the office of the economic and
revenue forecast council does not prepare an official forecast
including estimates of revenues to support financial plans under RCW
44.40.070, that are prepared by the office of financial management in
consultation with the transportation revenue forecast council.
(21) "Estimated receipts" means the estimated receipt of cash in
the most recent official economic and revenue forecast prepared under
RCW 82.33.020, and prepared by the office of financial management for
those funds, accounts, and sources for which the office of the economic
and revenue forecast council does not prepare an official forecast.
(22) "State budgeting, accounting, and reporting system" means a
system that gathers, maintains, and communicates fiscal information.
The system links fiscal information beginning with development of
agency budget requests through adoption of legislative appropriations
to tracking actual receipts and expenditures against approved plans.
(23) "Allotment of appropriation" means the agency's statement of
proposed expenditures, the director of financial management's review of
that statement, and the placement of the approved statement into the
state budgeting, accounting, and reporting system.
(24) "Statement of proposed expenditures" means a plan prepared by
each agency that breaks each appropriation out into monthly detail
representing the best estimate of how the appropriation will be
expended.
(25) "Undesignated fund balance (or deficit)" means unreserved and
undesignated current assets or other resources available for
expenditure over and above any current liabilities which are expected
to be incurred by the close of the fiscal period.
(26) "Internal audit" means an independent appraisal activity
within an agency for the review of operations as a service to
management, including a systematic examination of accounting and fiscal
controls to assure that human and material resources are guarded
against waste, loss, or misuse; and that reliable data are gathered,
maintained, and fairly disclosed in a written report of the audit
findings.
(27) "Performance verification" means an analysis that (a) verifies
the accuracy of data used by state agencies in quantifying intended
results and measuring performance toward those results, and (b)
verifies whether or not the reported results were achieved.
(28) "Performance audit" has the same meaning as it is defined in
RCW 44.28.005.
(1) "Administrative expenses" means expenditures for: (a)
Salaries, wages, and related costs of personnel and (b) operations and
maintenance including but not limited to costs of supplies, materials,
services, and equipment.
(2) "Agency" means and includes every state office, officer, each
institution, whether educational, correctional, or other, and every
department, division, board, and commission, except as otherwise
provided in this chapter.
(3) "Annual growth rate in real personal income" means the
estimated percentage growth in personal income for the state during the
current fiscal year, expressed in constant value dollars, as published
by the office of financial management or its successor agency.
(4) "Budget" means a proposed plan of expenditures for a given
period or purpose and the proposed means for financing these
expenditures.
(5) "Budget document" means a formal statement, either written or
provided by any electronic media or both, offered by the governor to
the legislature, as provided in this chapter.
(6) "Cash deficit" means the amount by which the aggregate of
disbursements charged to an account will exceed the aggregate of
estimated receipts credited to that account in the current fiscal
period, less the extent to which the deficit may have been provided for
from available beginning cash surplus.
(7) "Dedicated fund" means an account in the state treasury, or a
separate account in the general fund in the state treasury, that by law
is dedicated, appropriated, or set aside for a limited object or
purpose; but "dedicated fund" does not include a revolving fund or a
trust fund.
(8) "Disbursements" means payments in cash, including but not
limited to issuance of warrants.
(9) "Director of financial management" means the official appointed
by the governor to serve at the governor's pleasure and to whom the
governor may delegate necessary authority to carry out the governor's
duties as provided in this chapter. The director of financial
management shall be head of the office of financial management which
shall be in the office of the governor.
(10) "Ensuing biennium" means the fiscal biennium beginning on July
1st of the same year in which a regular session of the legislature is
held during an odd-numbered year pursuant to Article II, section 12 of
the Constitution and which biennium next succeeds the current biennium.
(11) "Estimated receipts" means the estimated receipt of cash in
the most recent official economic and revenue forecast prepared under
RCW 82.33.020, and prepared by the office of financial management for
those funds, accounts, and sources for which the office of the economic
and revenue forecast council does not prepare an official forecast.
(12) "Estimated revenues" means estimates of revenue in the most
recent official economic and revenue forecast prepared under RCW
82.33.020, and prepared by the office of financial management for those
funds, accounts, and sources for which the office of the economic and
revenue forecast council does not prepare an official forecast
including estimates of revenues to support financial plans under
section 28 of this act, that are prepared by the office of financial
management in consultation with the transportation revenue forecast
council.
(13) "Fiscal period" means the period for which an appropriation is
made as specified within the act making the appropriation.
(14) "Fiscal year" means the year beginning July 1st and ending the
following June 30th.
(15) "General state revenues" means the revenues defined by Article
VIII, section 1(c) of the state Constitution.
(16) "Internal audit" means an independent appraisal activity
within an agency for the review of operations as a service to
management, including a systematic examination of accounting and fiscal
controls to assure that human and material resources are guarded
against waste, loss, or misuse; and that reliable data are gathered,
maintained, and fairly disclosed in a written report of the audit
findings.
(17) "Lapse" means the termination of authority to expend an
appropriation.
(18) "Legislative fiscal committees" means the joint legislative
audit and review committee, the legislative evaluation and
accountability program committee, the ways and means and transportation
committees of the senate and the appropriations, capital, and
transportation committees of the house of representatives, and, where
appropriate, the legislative transportation committee.
(19) "Performance audit" has the same meaning as it is defined in
RCW 44.28.005.
(20) "Performance verification" means an analysis that (a) verifies
the accuracy of data used by state agencies in quantifying intended
results and measuring performance toward those results, and (b)
verifies whether or not the reported results were achieved.
(21) "Public funds," for purposes of this chapter, means all
moneys, including cash, checks, bills, notes, drafts, stocks, and
bonds, whether held in trust, for operating purposes, or for capital
purposes, and collected or disbursed under law, whether or not such
funds are otherwise subject to legislative appropriation, including
funds maintained outside the state treasury.
(22) "Regulations" means the policies, standards, and requirements,
stated in writing, designed to carry out the purposes of this chapter,
as issued by the governor or the governor's designated agent, and which
shall have the force and effect of law.
(23) "Revolving fund" means an account in the state treasury,
established by law, from which is paid the cost of goods or services
furnished to or by a state agency, and which is replenished through
charges made for such goods or services or through transfers from other
accounts or funds.
(24) "State budgeting, accounting, and reporting system" means a
system that gathers, maintains, and communicates fiscal information.
The system links fiscal information beginning with development of
agency budget requests through adoption of legislative appropriations
to tracking actual receipts and expenditures against approved plans.
(25) "State tax revenue limit" means the limitation created by
chapter 43.135 RCW.
(26) "Statement of proposed expenditures" or "allotment" means a
plan prepared by each agency that breaks each appropriation and
allocation out into monthly detail representing the best estimate of
how the appropriation will be expended.
(27) "Trust fund" means a fund or account in the state treasury in
which designated persons or classes of persons have a vested beneficial
interest or equitable ownership, or which was created or established by
a gift, grant, contribution, devise, or bequest that limits the use of
the fund to designated objects or purposes.
(28) "Undesignated fund balance (or deficit)" means unreserved and
undesignated current assets or other resources available for
expenditure over and above any current liabilities which are expected
to be incurred by the close of the fiscal period.
NEW SECTION. Sec. 2 A new section is added to chapter 43.88 RCW
to read as follows:
NEW SECTION. Sec. 3 A new section is added to chapter 43.88 RCW
to read as follows:
Sec. 4 RCW 43.88.035 and 1973 1st ex.s. c 100 s 9 are each
amended to read as follows:the text)) a special appendix of the capital
or operating budget documents((, in a special appendix thereto,)) or in
an alternative budget document. This explanatory material shall
include, but need not be limited to, estimates of revenues and
expenditures based on the same accounting practices and methods and
existing statutes relating to revenues and expenditure effective for
the then current fiscal period, together with alternative estimates
required by any changes in accounting methods and practices and by any
statutory changes the governor may wish to recommend.
Sec. 5 RCW 43.88.060 and 1977 ex.s. c 247 s 2 are each amended to
read as follows:the)) to the legislature the proposed capital and operating
budget documents for ((the 1975-77 biennium and)) each ((succeeding))
biennium ((to the legislature)) no later than the twentieth day of
December in the year preceding the session during which the budget is
to be considered((: PROVIDED, That where)). When a budget document is
submitted for a fiscal period other than a biennium, ((such)) the
document shall be submitted ((no less than)) at least twenty days prior
to the first day of the session at which ((such)) the budget document
is to be considered. The governor shall also submit ((a budget bill
or)) capital and operating budget bills which for purposes of this
chapter ((is)) are defined to mean the appropriations proposed by the
governor as set forth in the budget documents. ((Such))
Representatives of agencies ((as have been)) designated by the governor
for this purpose shall, when requested, by either house of the
legislature, appear ((to be heard with respect to the)) and testify on
a budget document and the budget bill or bills and ((to)) supply
((such)) additional information as may be required.
Sec. 6 RCW 43.88.090 and 1997 c 372 s 1 are each amended to read
as follows:(1))) For purposes of developing budget proposals to the legislature,
the governor shall have the power, and it shall be the governor's duty,
to require from proper agency officials such detailed estimates and
other information in such form and at such times as the governor shall
direct. The estimates for the legislature and the judiciary shall be
transmitted to the governor and shall be included in the budget without
revision. ((The estimates for state pension contributions shall be
based on the rates provided in chapter 41.45 RCW. Copies of all such
estimates shall be transmitted)) In addition, if the governor believes
the estimates by the judiciary or legislature for additional funds are
problematic because of the state's economic conditions, the governor
may propose an alternative to the judiciary's and legislature's budget
estimates. The office of financial management shall transmit copies of
the estimates to the ((standing)) fiscal committees ((on ways and
means)) of the house of representatives and senate ((at the same time
as they are filed with the governor and the office of financial
management)) including, if appropriate, the transportation committees
of both houses, in a timely manner after the office of financial
management receives them.
((The estimates shall include statements or tables which indicate,
by agency, the state funds which are required for the receipt of
federal matching revenues. The estimates shall be revised as necessary
to reflect legislative enactments and adopted appropriations and shall
be included with the initial biennial allotment submitted under RCW
43.88.110. The estimates must reflect that the agency considered any
alternatives to reduce costs or improve service delivery identified in
the findings of a performance audit of the agency by the joint
legislative audit and review committee. Nothing in this subsection
requires performance audit findings to be published as part of the
budget.))
(2) Each state agency shall define its mission and establish
measurable goals for achieving desirable results for those who receive
its services and the taxpayers who pay for those services. Each agency
shall also develop clear strategies and timelines to achieve its goals.
This section does not require an agency to develop a new mission or
goals in place of identifiable missions or goals that meet the intent
of this section. The mission and goals of each agency must conform to
statutory direction and limitations.
(3) For the purpose of assessing program performance, each state
agency shall establish program objectives for each major program in its
budget. The objectives must be consistent with the missions and goals
developed under this section. The objectives must be expressed to the
extent practicable in outcome-based, objective, and measurable form
unless an exception to adopt a different standard is granted by the
office of financial management and approved by the legislative
committee on performance review. The office of financial management
shall provide necessary professional and technical assistance to assist
state agencies in the development of strategic plans that include the
mission of the agency and its programs, measurable goals, strategies,
and performance measurement systems.
(4) Each state agency shall adopt procedures for continuous self-assessment of each program and activity, using the mission, goals,
objectives, and measurements required under subsections (2) and (3) of
this section.
(5) It is the policy of the legislature that each agency's budget
proposals must be directly linked to the agency's stated mission and
program goals and objectives. Consistent with this policy, agency
budget proposals must include integration of performance measures that
allow objective determination of a program's success in achieving its
goals. The office of financial management shall develop a plan to
merge the budget development process with agency performance assessment
procedures. The plan must include a schedule to integrate agency
strategic plans and performance measures into agency budget requests
and the governor's budget proposal over three fiscal biennia. The plan
must identify those agencies that will implement the revised budget
process in the 1997-1999 biennium, the 1999-2001 biennium, and the
2001-2003 biennium. In consultation with the legislative fiscal
committees, the office of financial management shall recommend
statutory and procedural modifications to the state's budget,
accounting, and reporting systems to facilitate the performance
assessment procedures and the merger of those procedures with the state
budget process. The plan and recommended statutory and procedural
modifications must be submitted to the legislative fiscal committees by
September 30, 1996.
(6) In the year of the gubernatorial election, the governor shall
invite the governor-elect or the governor-elect's designee to attend
all hearings provided in RCW 43.88.100; and the governor shall furnish
the governor-elect or the governor-elect's designee with such
information as will enable the governor-elect or the governor-elect's
designee to gain an understanding of the state's budget requirements.
The governor-elect or the governor-elect's designee may ask such
questions during the hearings and require such information as the
governor-elect or the governor-elect's designee deems necessary and may
make recommendations in connection with any item of the budget which,
with the governor-elect's reasons therefor, shall be presented to the
legislature in writing with the budget document. Copies of all such
estimates and other required information shall also be submitted to the
standing committees on ways and means of the house and senate.
NEW SECTION. Sec. 7 A new section is added to chapter 43.88 RCW
to read as follows:
(2) For the purpose of assessing program performance, each state
agency shall establish program objectives for each major program in its
budget. The objectives must be consistent with the missions and goals
developed under this section. The objectives must be expressed to the
extent practicable in outcome-based, objective, and measurable form.
(3) Each state agency shall adopt procedures for continuous self-assessment of each program and activity, using the mission, goals,
objectives, and measurements required under subsections (1) and (2) of
this section.
NEW SECTION. Sec. 8 A new section is added to chapter 43.88 RCW
to read as follows:
Sec. 9 RCW 43.88.130 and 1965 c 8 s 43.88.130 are each amended to
read as follows:: PROVIDED, That nothing in
this section shall prevent the making of contracts or the spending of
money for capital improvements, nor the making of contracts of lease or
for service for a period exceeding)). No agency is prohibited from
making contracts, spending money, or entering into a lease for capital
improvements for a period longer than the fiscal period in which such
contract is made, when such contract is permitted by law. Any contract
made in violation of this section shall be null and void.
Sec. 10 RCW 43.88.150 and 1995 c 6 s 1 are each amended to read
as follows:
(2) ((Unless otherwise provided by law, if state moneys are
appropriated for a capital project and matching funds or other
contributions are required as a condition of the receipt of the state
moneys, the state moneys shall be disbursed in proportion to and only
to the extent that the matching funds or other contributions have been
received and are available for expenditure.)) The office of financial management shall adopt guidelines for
the implementation of this section and section 26 of this act. The
guidelines may account for federal matching requirements or other
requirements to spend other moneys in a particular manner.
(3)
Sec. 11 RCW 43.88.170 and 1965 c 8 s 43.88.170 are each amended
to read as follows:which))
provides ((for the collection of)) that an agency collect fees or other
payments ((by an agency)) but does not authorize the refund of
erroneous or excessive payments ((thereof, refunds may be made or
authorized by the agency which collected the fees or payments)), the
agency collecting the fees or payments may refund or authorize a refund
of all ((such)) amounts received by the agency in ((consequence of))
error((, either of fact or of law)). The regulations issued by the
governor pursuant to this chapter shall prescribe the procedure to be
employed in making these refunds.
Sec. 12 RCW 43.88.180 and 1973 1st ex.s. c 100 s 8 are each
amended to read as follows:, as provided)) authorized in RCW 43.88.170
(as recodified by this act), ((nor in the case of)) or for payments
((other than for administrative expenses or capital improvements to be
made)) from trust funds specifically created by law to discharge
awards, claims, annuities and other liabilities of the state. ((Said))
Appropriations may be required for payments from these trust funds for
administrative expenses or capital improvements. Trust funds shall
include, but shall not be limited to, the accident fund, medical aid
fund, retirement system fund, Washington state patrol retirement fund
and unemployment trust fund. Appropriations may be required in the
case of public service enterprises defined for the purposes of this
section as proprietary functions conducted by an agency of the state.
Under RCW 43.88.190 (as recodified by this act), an appropriation may
be required to permit payment of obligations by revolving funds((, as
provided in RCW 43.88.190)).
Sec. 13 RCW 43.88.190 and 1965 c 8 s 43.88.190 are each amended
to read as follows:Such)) These
service units where created shall be self-supporting operations
featuring continuous turnover of working capital. The regulations
issued by the governor ((pursuant to)) under this chapter shall
prescribe the procedures to be employed by agencies in accounting and
reporting for revolving funds and may provide ((for the keeping of
such)) that these funds be kept in the custody of the treasurer.
Sec. 14 RCW 43.88.195 and 1996 c 186 s 509 are each amended to
read as follows::
PROVIDED, That)). The office of financial management shall be
authorized to grant permission for the establishment of ((such)) an
account or fund outside of the state treasury only when the requesting
agency presents compelling reasons of economy and efficiency which
could not be achieved by placing ((such)) these funds in the state
treasury. When the director of financial management authorizes the
creation of ((such)) the fund or account, the director shall
((forthwith)) immediately give written notice of the fact to the
standing committees on ways and means of the house and senate((:
PROVIDED FURTHER, That)). Agencies authorized to create local accounts
will utilize the services of the state treasurer's office to ensure
that new or ongoing relationships with financial institutions are in
concert with statewide policies and procedures pursuant to RCW
43.88.160(((1))) (2) (as recodified by this act).
Sec. 15 RCW 43.88.250 and 1975-'76 2nd ex.s. c 83 s 1 are each
amended to read as follows:shall)) arises
necessitating ((an expenditure)) that a state agency expend funds for
the preservation of peace, health, or safety, or for the ((carrying on
of the)) necessary work required by law ((of any state agency)) for
which insufficient or no appropriations have been made, the head of
((such)) an agency shall submit to the governor((, duplicate copies
of)) in a manner determined by the governor a ((sworn)) statement((,))
setting forth the facts constituting the emergency and the estimated
amount of money required ((therefor)) to manage the emergency. If the
governor approves ((such)) the estimate in whole or in part, the
governor shall ((indorse on each copy of the statement the governor's
approval, together with a statement of the amount approved as)) notify
the agency director and provide an allocation ((from any appropriation
available for allocation for emergency purposes and transmit one copy
to the head of the agency thereby authorizing the emergency
expenditures)) to the agency from funds appropriated for emergency
purposes.
Sec. 16 RCW 43.88.260 and 1987 c 502 s 7 are each amended to read
as follows:shall be)) is unlawful for
any agency ((head)) director or disbursing officer to incur any cash
deficiency and any ((appointive)) director or officer ((or employee
violating)) who violates the provisions of this section ((shall be)) is
subject to summary removal.
(2) This section does not apply to:
(a) Temporary cash deficiencies resulting from disbursements under
((a)) an expenditure plan approved under RCW 43.88.110 (as recodified
by this act).
(b) Temporary cash deficiencies authorized by the director of
financial management for funds and accounts in the state treasury or in
the custody of the state treasurer. Each authorization under this
subsection (b) shall distinctly specify the fund or account for which
a deficiency is authorized, the maximum amount of cash deficiency which
may be incurred, and the maximum time period during which the cash
deficiency may continue. Each authorization shall expire at the end of
each fiscal biennium unless renewed by the director of financial
management. The director of financial management shall report each
authorization and renewal to the legislative fiscal committees.
(c) Temporary cash deficiencies in funds or accounts which are
neither in the state treasury, nor in the custody of the treasurer, if
the cash deficiency does not continue past the end of the fiscal
biennium.
(3) Nothing in this section permits the expenditure of moneys in
excess of an applicable appropriation.
NEW SECTION. Sec. 17 A new section is added to chapter 43.88 RCW
to read as follows:
NEW SECTION. Sec. 18 A new section is added to chapter 43.88 RCW
to read as follows:
(2) If, for any applicable account, the estimated receipts for the
next ensuing fiscal period plus cash beginning balance are less than
the aggregate of estimated disbursements proposed by the governor for
the next ensuing fiscal period, the governor shall include in the
budget document proposals on how the anticipated cash deficit shall be
addressed, whether by increasing the indebtedness of the state,
imposing new taxes, increasing tax rates or extending them, or
employing any other proposal. The governor may propose orderly
liquidation of the anticipated cash deficit over a period of one or
more fiscal periods, if, in the governor's discretion that manner of
liquidation would best serve the public interest.
(3) The governor may additionally submit a proposal for
expenditures in the ensuing fiscal period from revenue sources derived
from proposed changes in existing statutes.
Sec. 19 RCW 43.88.030 and 2002 c 371 s 911 are each amended to
read as follows:The
director shall provide agencies and committees that are required under
RCW 44.40.070 to develop comprehensive six-year program and financial
plans with a complete set of instructions for submitting these program
and financial plans at the same time that instructions for submitting
other budget requests are provided. The budget document or documents
shall consist of the governor's budget message which shall be
explanatory of the budget and shall contain an outline of the proposed
financial policies of the state for the ensuing fiscal period, as well
as an outline of the proposed six-year financial policies where
applicable, and shall describe in connection therewith the important
features of the budget. The message shall set forth the reasons for
salient changes from the previous fiscal period in expenditure and
revenue items and shall explain any major changes in financial policy.
Attached to the budget message shall be such supporting schedules,
exhibits and other explanatory material in respect to both current
operations and capital improvements as the governor shall deem to be
useful to the legislature. The budget document or documents shall set
forth a proposal for expenditures in the ensuing fiscal period, or six-year period where applicable, based upon the estimated revenues and
caseloads as approved by the economic and revenue forecast council and
caseload forecast council or upon the estimated revenues and caseloads
of the office of financial management for those funds, accounts,
sources, and programs for which the forecast councils do not prepare an
official forecast, including those revenues anticipated to support the
six-year programs and financial plans under RCW 44.40.070. In
estimating revenues to support financial plans under RCW 44.40.070, the
office of financial management shall rely on information and advice
from the transportation revenue forecast council. Revenues shall be
estimated for such fiscal period from the source and at the rates
existing by law at the time of submission of the budget document,
including the supplemental budgets submitted in the even-numbered years
of a biennium. However, the estimated revenues and caseloads for use
in the governor's budget document may be adjusted to reflect budgetary
revenue transfers and revenue and caseload estimates dependent upon
budgetary assumptions of enrollments, workloads, and caseloads. All
adjustments to the approved estimated revenues and caseloads must be
set forth in the budget document. The governor may additionally
submit, as an appendix to each supplemental, biennial, or six-year
agency budget or to the budget document or documents, a proposal for
expenditures in the ensuing fiscal period from revenue sources derived
from proposed changes in existing statutes.))
Supplemental and biennial documents shall reflect a six-year
expenditure plan consistent with estimated revenues from existing
sources and at existing rates for those agencies required to submit
six-year program and financial plans under RCW 44.40.070. Any
additional revenue resulting from proposed changes to existing statutes
shall be separately identified within the document as well as related
expenditures for the six-year period.
The budget document or documents shall also contain:
(a) Revenues classified by fund and source for the immediately past
fiscal period, those received or anticipated for the current fiscal
period, those anticipated for the ensuing biennium, and those
anticipated for the ensuing six-year period to support the six-year
programs and financial plans required under RCW 44.40.070;
(b) The undesignated fund balance or deficit, by fund;
(c) Such additional information dealing with expenditures,
revenues, workload, performance, and personnel as the legislature may
direct by law or concurrent resolution;
(d) Such additional information dealing with revenues and
expenditures as the governor shall deem pertinent and useful to the
legislature;
(e) Tabulations showing expenditures classified by fund, function,
activity, and agency. However, documents submitted for the 2003-05
biennial budget request need not show expenditures by activity;
(f) A delineation of each agency's activities, including those
activities funded from nonbudgeted, nonappropriated sources, including
funds maintained outside the state treasury;
(g) Identification of all proposed direct expenditures to implement
the Puget Sound water quality plan under chapter 90.71 RCW, shown by
agency and in total; and
(h) Tabulations showing each postretirement adjustment by
retirement system established after fiscal year 1991, to include, but
not be limited to, estimated total payments made to the end of the
previous biennial period, estimated payments for the present biennium,
and estimated payments for the ensuing biennium.
(2) The budget document or documents shall include detailed
estimates of all anticipated revenues applicable to proposed operating
or capital expenditures and shall also include all proposed operating
or capital expenditures. The total of beginning undesignated fund
balance and estimated revenues less working capital and other reserves
shall equal or exceed the total of proposed applicable expenditures.
The budget document or documents shall further include:
(a) Interest, amortization and redemption charges on the state
debt;
(b) Payments of all reliefs, judgments, and claims;
(c) Other statutory expenditures;
(d) Expenditures incident to the operation for each agency;
(e) Revenues derived from agency operations;
(f) Expenditures and revenues shall be given in comparative form
showing those incurred or received for the immediately past fiscal
period and those anticipated for the current biennium and next ensuing
biennium, as well as those required to support the six-year programs
and financial plans required under RCW 44.40.070;
(g) A showing and explanation of amounts of general fund and other
funds obligations for debt service and any transfers of moneys that
otherwise would have been available for appropriation;
(h) Common school expenditures on a fiscal-year basis;
(i) A showing, by agency, of the value and purpose of financing
contracts for the lease/purchase or acquisition of personal or real
property for the current and ensuing fiscal periods; and
(j) A showing and explanation of anticipated amounts of general
fund and other funds required to amortize the unfunded actuarial
accrued liability of the retirement system specified under chapter
41.45 RCW, and the contributions to meet such amortization, stated in
total dollars and as a level percentage of total compensation.
(3) A separate capital budget document or schedule shall be
submitted that will contain the following:
(a) A statement setting forth a long-range facilities plan for the
state that identifies and includes the highest priority needs within
affordable spending levels;
(b) A capital program consisting of proposed capital projects for
the next biennium and the two biennia succeeding the next biennium
consistent with the long-range facilities plan. Insomuch as is
practical, and recognizing emergent needs, the capital program shall
reflect the priorities, projects, and spending levels proposed in
previously submitted capital budget documents in order to provide a
reliable long-range planning tool for the legislature and state
agencies;
(c) A capital plan consisting of proposed capital spending for at
least four biennia succeeding the next biennium;
(d) A strategic plan for reducing backlogs of maintenance and
repair projects. The plan shall include a prioritized list of specific
facility deficiencies and capital projects to address the deficiencies
for each agency, cost estimates for each project, a schedule for
completing projects over a reasonable period of time, and
identification of normal maintenance activities to reduce future
backlogs;
(e) A statement of the reason or purpose for a project;
(f) Verification that a project is consistent with the provisions
set forth in chapter 36.70A RCW;
(g) A statement about the proposed site, size, and estimated life
of the project, if applicable;
(h) Estimated total project cost;
(i) For major projects valued over five million dollars, estimated
costs for the following project components: Acquisition, consultant
services, construction, equipment, project management, and other costs
included as part of the project. Project component costs shall be
displayed in a standard format defined by the office of financial
management to allow comparisons between projects;
(j) Estimated total project cost for each phase of the project as
defined by the office of financial management;
(k) Estimated ensuing biennium costs;
(l) Estimated costs beyond the ensuing biennium;
(m) Estimated construction start and completion dates;
(n) Source and type of funds proposed;
(o) Estimated ongoing operating budget costs or savings resulting
from the project, including staffing and maintenance costs;
(p) For any capital appropriation requested for a state agency for
the acquisition of land or the capital improvement of land in which the
primary purpose of the acquisition or improvement is recreation or
wildlife habitat conservation, the capital budget document, or an
omnibus list of recreation and habitat acquisitions provided with the
governor's budget document, shall identify the projected costs of
operation and maintenance for at least the two biennia succeeding the
next biennium. Omnibus lists of habitat and recreation land
acquisitions shall include individual project cost estimates for
operation and maintenance as well as a total for all state projects
included in the list. The document shall identify the source of funds
from which the operation and maintenance costs are proposed to be
funded;
(q) Such other information bearing upon capital projects as the
governor deems to be useful;
(r) Standard terms, including a standard and uniform definition of
normal maintenance, for all capital projects;
(s) Such other information as the legislature may direct by law or
concurrent resolution.
For purposes of this subsection (3), the term "capital project"
shall be defined subsequent to the analysis, findings, and
recommendations of a joint committee comprised of representatives from
the house capital appropriations committee, senate ways and means
committee, legislative transportation committee, legislative evaluation
and accountability program committee, and office of financial
management.
(4) No change affecting the comparability of agency or program
information relating to expenditures, revenues, workload, performance
and personnel shall be made in the format of any budget document or
report presented to the legislature under this section or RCW
43.88.160(1) relative to the format of the budget document or report
which was presented to the previous regular session of the legislature
during an odd-numbered year without prior legislative concurrence.
Prior legislative concurrence shall consist of (a) a favorable majority
vote on the proposal by the standing committees on ways and means of
both houses if the legislature is in session or (b) a favorable
majority vote on the proposal by members of the legislative evaluation
and accountability program committee if the legislature is not in
session.
(2) Each agency's operating budget request must be directly linked
to the agency's stated mission, program goals, and objectives.
Consistent with this policy, agency budget requests must include
integration of performance measures that allow objective determination
of activities' success in achieving those goals.
NEW SECTION. Sec. 20 A new section is added to chapter 43.88 RCW
to read as follows:
(1) Revenues classified by account and major source for the
immediately past fiscal period, those received or anticipated for the
current fiscal period, and those anticipated for the ensuing biennium;
(2) The undesignated fund balance or deficit, by account;
(3) Expenditures classified by account, function, and agency
including nonappropriated and nonbudgeted accounts outside the state
treasury;
(4) Estimates of all anticipated revenues applicable to proposed
operating or capital expenditures, and all proposed operating or
capital expenditures including but not limited to agency operational
expenses, debt service charges, and payments of claims;
(5) Other supporting exhibits or explanatory material that the
governor considers useful to the legislature or the public;
(6) Expenditures and revenues shall be given in comparative form
showing those incurred or received for the immediately past fiscal
period and those anticipated for the current biennium and next ensuing
biennium, as well as those required to support the six-year programs
and financial plans required under section 28 of this act;
(7) A showing and explanation of amounts of general fund and other
accounts obligations for debt service and any transfers of moneys that
otherwise would have been available for appropriation;
(8) Common school expenditures on a fiscal-year basis;
(9) A showing, by agency, of the value and purpose of financing
contracts for the lease/purchase or acquisition of personal or real
property for the current and ensuing fiscal periods; and
(10) A showing and explanation of anticipated amounts of general
fund and other accounts required to amortize the unfunded actuarial
accrued liability of the retirement system specified under chapter
41.45 RCW, and the contributions to meet such amortization, stated in
total dollars and as a level percentage of total compensation. The
governor may include proposed changes to rates based on chapter 41.45
RCW as a separate step in the budget.
Sec. 21 RCW 43.88.0301 and 2002 c 312 s 1 are each amended to
read as follows:
(2) The office of financial management must include in its capital
budget instructions, beginning with its instructions for the 2003-05
capital budget, a request for "yes" or "no" answers for the following
additional informational questions from capital budget applicants for
all proposed major capital construction projects valued over five
million dollars and required to complete a predesign:
(a) For proposed capital projects identified in this subsection
that are located in or serving city or county planning under RCW
36.70A.040:
(i) Whether the proposed capital project is identified in the host
city or county comprehensive plan, including the capital facility plan,
and implementing rules adopted under chapter 36.70A RCW;
(ii) Whether the proposed capital project is located within an
adopted urban growth area:
(A) If at all located within an adopted urban growth area boundary,
whether a project facilitates, accommodates, or attracts planned
population and employment growth;
(B) If at all located outside an urban growth area boundary,
whether the proposed capital project may create pressures for
additional development;
(b) For proposed capital projects identified in this subsection
that are requesting state funding:
(i) Whether there was regional coordination during project
development;
(ii) Whether local and additional funds were leveraged;
(iii) Whether environmental outcomes and the reduction of adverse
environmental impacts were examined.
(((2))) (3) For projects subject to subsection (((1))) (2) of this
section, the office of financial management shall request the required
information be provided during the predesign process of major capital
construction projects to reduce long-term costs and increase process
efficiency.
(((3))) (4) The office of financial management, in fulfilling its
duties under ((RCW 43.88.030(3))) section 22 of this act to create a
capital budget document, must ((take into account)) consider
information gathered under subsections (((1))) (2) and (((2))) (3) of
this section in an effort to promote state capital facility
expenditures that minimize unplanned or uncoordinated infrastructure
and development costs, support economic and quality of life benefits
for existing communities, and support local government planning
efforts.
(((4))) (5) The office of community development must provide staff
support to the office of financial management and affected capital
budget applicants to help collect data required by subsections (((1)))
(2) and (((2))) (3) of this section.
NEW SECTION. Sec. 22 A new section is added to chapter 43.88 RCW
to read as follows:
(a) A statement setting forth a long-range facilities plan for the
state that identifies and includes the highest priority needs within
affordable spending levels;
(b) A capital program consisting of proposed capital projects for
the next biennium and the two biennia succeeding the next biennium
consistent with the long-range facilities plan. To the extent it is
practical, and recognizing emergent needs, the capital program shall
reflect the priorities, projects, and spending levels proposed in
previously submitted capital budget documents in order to provide a
reliable long-range planning tool for the legislature and state
agencies;
(c) A capital plan consisting of proposed capital spending for at
least two biennia succeeding the next biennium;
(d) A strategic plan for reducing backlogs of maintenance and
repair projects. The plan shall include a prioritized list of specific
facility deficiencies and capital projects to address the deficiencies
for each agency, cost estimates for each project, a schedule for
completing projects over a reasonable period of time, and
identification of normal maintenance activities to reduce future
backlogs;
(e) A statement of the reason or purpose for a project;
(f) Verification that a project is consistent with the provisions
set forth in chapter 36.70A RCW;
(g) A statement about the proposed site, size, and estimated life
of the project, if applicable;
(h) Estimated total project cost;
(i) For major projects valued over five million dollars, estimated
costs for the following project components: Acquisition, consultant
services, construction, equipment, project management, and other costs
included as part of the project. Project component costs shall be
displayed in a standard format defined by the office of financial
management to allow comparisons between projects;
(j) Estimated total project cost for each phase of the project as
defined by the office of financial management;
(k) Estimated ensuing biennium costs;
(l) Estimated costs beyond the ensuing biennium;
(m) Estimated construction start and completion dates;
(n) Source and type of funds proposed;
(o) Estimated ongoing operating budget costs or savings resulting
from the project, including staffing and maintenance costs;
(p) For any capital appropriation requested for a state agency for
the acquisition of land or the capital improvement of land in which the
primary purpose of the acquisition or improvement is recreation or
wildlife habitat conservation, the governor's capital budget document,
or an omnibus list of recreation and habitat acquisitions provided with
the governor's operating budget document, shall identify the projected
costs of operation and maintenance for at least the two biennia
succeeding the next biennium. Omnibus lists of habitat and recreation
land acquisitions shall include individual project cost estimates for
operation and maintenance as well as a total for all state projects
included in the list. The document shall identify the source of funds
from which the operation and maintenance costs are proposed to be
funded;
(q) Such other information bearing upon capital projects as the
governor deems to be useful;
(r) Standard terms, including a standard and uniform definition of
normal maintenance, for all capital projects;
(s) Such other information as the legislature may direct by law or
concurrent resolution.
(2) For purposes of this section, the term "capital project" shall
be defined subsequent to the analysis, findings, and recommendations of
a joint committee comprised of representatives from the house capital
budget committee, senate ways and means committee, legislative
transportation committee, legislative evaluation and accountability
program committee, and office of financial management.
NEW SECTION. Sec. 23 A new section is added to chapter 43.88 RCW
to read as follows:
(a) Appropriations made for capital projects including
transportation projects;
(b) Estimates of total project costs including past, current,
ensuing, and future biennial costs;
(c) Comparisons of actual costs to estimated costs;
(d) Comparisons of estimated construction start and completion
dates with actual dates;
(e) Documentation of fund shifts between projects.
(2) This data may be incorporated into the existing accounting
system or into a separate project management system, as deemed
appropriate by the office of financial management.
(3) State agencies shall submit to the office of financial
management an agency maintenance report for each major campus or site,
as defined by the office of financial management. Reports shall be
prepared in a format prescribed by the office of financial management,
and shall include but not be limited to: Information describing the
number, size, and condition of state-owned facilities; facility
maintenance, repair, and operating expenses paid from the state
operating and capital budgets, including maintenance staffing levels;
the condition of major infrastructure systems; and maintenance
management initiatives undertaken by the agency over the prior year.
Agencies shall submit their annual maintenance summary reports to the
office of financial management by September 1st of each year.
NEW SECTION. Sec. 24 A new section is added to chapter 43.88 RCW
to read as follows:
(2) No expenditure may be incurred or obligation entered into for
such major capital construction projects including, without exception,
land acquisition, site development, predesign, design, construction,
and equipment acquisition and installation, until the allotment of the
funds to be expended has been approved by the office of financial
management. This limitation does not prohibit the continuation of
expenditures and obligations into the succeeding biennium for projects
for which allotments have been approved in the immediate prior
biennium.
Sec. 25 RCW 43.88.145 and 1994 c 219 s 6 are each amended to read
as follows:
(a) ((No such)) This transfer authority may not be used to expand
the capacity or change the intended use of the project beyond that
intended by the legislature in making the appropriation.
(b) The transfer may be effected only between capital projects
within a specific department, commission, agency, or institution of
higher education.
(c) The transfer may be effected only if the project from which the
transfer of funds is made is substantially complete and there are funds
remaining, or bids have been let on the project from which the transfer
of funds is made and it appears to a substantial certainty that the
project can be completed within the biennium for less than the amount
appropriated.
(2) For the purposes of this section, the legislature intends that
each project be defined as proposed to the legislature in the
governor's capital budget document, unless the legislative history
demonstrates that the legislature intended to define the scope of a
project in a different way.
(3) The office of financial management shall notify the legislative
fiscal committees of the senate and the house of representatives at
least thirty days before any transfer is effected under this section
except emergency projects or any transfer under two hundred fifty
thousand dollars, and shall prepare a report to such committees listing
all completed transfers at the close of each fiscal year.
NEW SECTION. Sec. 26 A new section is added to chapter 43.88 RCW
to read as follows:
NEW SECTION. Sec. 27 A new section is added to chapter 43.88 RCW
to read as follows:
(2) The governor's budget shall outline proposed six-year financial
policies, as well as the revenues necessary to support the six-year
transportation program and financial plan. In estimating related
revenues, the office of financial management shall rely on information
and advice from the transportation revenue forecast council.
(3) Both supplemental and biennial budget documents shall reflect
a six-year expenditure plan consistent with estimated revenues from
existing sources and at existing rates for those agencies required to
submit six-year program and financial plans under section 28 of this
act. Any additional revenue resulting from proposed changes to
existing statutes shall be separately identified within the document as
well as related expenditures for the six-year period.
NEW SECTION. Sec. 28 A new section is added to chapter 43.88 RCW
to read as follows:
The comprehensive six-year program and financial plan must state
the general objectives and needs of each agency's major transportation
programs, including workload and performance estimates.
NEW SECTION. Sec. 29 A new section is added to chapter 43.88 RCW
to read as follows:
NEW SECTION. Sec. 30 A new section is added to chapter 43.88 RCW
to read as follows:
NEW SECTION. Sec. 31 A new section is added to chapter 43.88 RCW
to read as follows:
Each agency engaged in the collection of revenues shall prepare
estimated revenues and estimated receipts for the current and ensuing
biennium and shall submit the estimates to the director of financial
management and the director of revenue at times and in the form
specified by the directors, along with any other information which the
directors may request.
A copy of such revenue estimates shall be simultaneously submitted
to the economic and revenue forecast work group when required by the
office of the economic and revenue forecast council.
Sec. 32 RCW 43.88.110 and 1997 c 96 s 6 are each amended to read
as follows:for public funds)). The allotment
and reserve procedures are applicable to all appropriations.
(1) An expenditure may not be incurred or obligation entered into
by any agency until the allotment of the funds to be expended has been
approved by the office of financial management. The office of
financial management may grant temporary expenditure authority
consistent with legislative appropriations prior to approval of
allotments.
(2) The allotment((s)) of an appropriation for any fiscal period
shall conform to the terms, limits, or conditions of the appropriation.
(((2))) (3) The director of financial management shall provide all
agencies with a complete set of ((operating and capital)) instructions
for preparing a statement of proposed expenditures at least thirty days
before the beginning of a fiscal period. The set of instructions need
not include specific appropriation amounts for the agency.
(((3))) (4) Within forty-five days after the beginning of the
fiscal period or within forty-five days after the governor signs the
omnibus biennial operating appropriations act, the capital budget, or
the transportation budget, whichever is later, all agencies shall
submit to the governor a statement of proposed expenditures at such
times and in such form as may be required by the governor.
(((4) The office of financial management shall develop a method for
monitoring capital appropriations and expenditures that will capture at
least the following elements:))
(a) Appropriations made for capital projects including
transportation projects;
(b) Estimates of total project costs including past, current,
ensuing, and future biennial costs;
(c) Comparisons of actual costs to estimated costs;
(d) Comparisons of estimated construction start and completion
dates with actual dates;
(e) Documentation of fund shifts between projects.
This data may be incorporated into the existing accounting system
or into a separate project management system, as deemed appropriate by
the office of financial management.
(5) The office of financial management shall publish agency annual
maintenance summary reports beginning in October 1997. State agencies
shall submit a separate report for each major campus or site, as
defined by the office of financial management. Reports shall be
prepared in a format prescribed by the office of financial management
and shall include, but not be limited to: Information describing the
number, size, and condition of state-owned facilities; facility
maintenance, repair, and operating expenses paid from the state
operating and capital budgets, including maintenance staffing levels;
the condition of major infrastructure systems; and maintenance
management initiatives undertaken by the agency over the prior year.
Agencies shall submit their annual maintenance summary reports to the
office of financial management by September 1 each year.
(6) The office of financial management, prior to approving
allotments for major capital construction projects valued over five
million dollars, shall institute procedures for reviewing such projects
at the predesign stage that will reduce long-term costs and increase
facility efficiency. The procedures shall include, but not be limited
to, the following elements:
(a) Evaluation of facility program requirements and consistency
with long-range plans;
(b) Utilization of a system of cost, quality, and performance
standards to compare major capital construction projects; and
(c) A requirement to incorporate value-engineering analysis and
constructability review into the project schedule.
(7) No expenditure may be incurred or obligation entered into for
such major capital construction projects including, without exception,
land acquisition, site development, predesign, design, construction,
and equipment acquisition and installation, until the allotment of the
funds to be expended has been approved by the office of financial
management. This limitation does not prohibit the continuation of
expenditures and obligations into the succeeding biennium for projects
for which allotments have been approved in the immediate prior
biennium.
(8) If at any time during the fiscal period the governor projects
a cash deficit in a particular fund or account as defined by RCW
43.88.050, the governor shall make across-the-board reductions in
allotments for that particular fund or account so as to prevent a cash
deficit, unless the legislature has directed the liquidation of the
cash deficit over one or more fiscal periods.
(5) Except for the legislative and judicial branches and other
agencies headed by elective officials, the governor shall review the
statement of proposed operating expenditures for reasonableness and
conformance with legislative intent. The governor may only request
revision of proposed allotments submitted by the legislative and
judicial branches and agencies headed by elective officials if those
proposed allotments contain significant technical errors. Once the
governor approves the ((statements of)) proposed ((operating
expenditures)) allotments, further revisions ((shall)) may at the
request of the office of financial management or upon the agency's
initiative be made ((only at the beginning of the second fiscal year
and must be initiated by the governor)) on a quarterly basis and must
be accompanied by an explanation of the reasons for significant
changes. However, changes in appropriation level authorized by the
legislature, changes required by across-the-board reductions mandated
by the governor, changes caused by executive increases to spending
authority, and changes caused by executive decreases to spending
authority for failure to comply with the provisions of chapter 36.70A
RCW may require additional revisions. Revisions shall not be made
retroactively. ((Revisions caused by executive increases to spending
authority shall not be made after June 30, 1987.)) However, the
governor may assign to a reserve status any portion of an agency
appropriation withheld as part of across-the-board reductions made by
the governor and any portion of an agency appropriation conditioned on
a contingent event by the appropriations act. The governor may remove
these amounts from reserve status if the across-the-board reductions
are subsequently modified or if the contingent event occurs.
((The director of financial management shall enter approved
statements of proposed expenditures into the state budgeting,
accounting, and reporting system within forty-five days after receipt
of the proposed statements from the agencies. If an agency or the
director of financial management is unable to meet these requirements,
the director of financial management shall provide a timely explanation
in writing to the legislative fiscal committees.))
(9) It is expressly provided that all agencies shall be required to
maintain accounting records and to report thereon in the manner
prescribed in this chapter and under the regulations issued pursuant to
this chapter. Within ninety days of the end of the fiscal year, all
agencies shall submit to the director of financial management their
final adjustments to close their books for the fiscal year. Prior to
submitting fiscal data, written or oral, to committees of the
legislature, it is the responsibility of the agency submitting the data
to reconcile it with the budget and accounting data reported by the
agency to the director of financial management.
(10) The director of financial management shall monitor agency
operating expenditures against the approved statement of proposed
expenditures and shall provide the legislature with quarterly
explanations of major variances.
(11) The director of financial management may exempt certain public
funds from the allotment controls established under this chapter if it
is not practical or necessary to allot the funds. Allotment control
exemptions expire at the end of the fiscal biennium for which they are
granted. The director of financial management shall report any
exemptions granted under this subsection to the legislative fiscal
committees.
NEW SECTION. Sec. 33 A new section is added to chapter 43.88 RCW
to read as follows:
(2) The director of financial management shall monitor agency
operating expenditures against the approved statement of proposed
expenditures.
NEW SECTION. Sec. 34 A new section is added to chapter 43.88 RCW
to read as follows:
NEW SECTION. Sec. 35 A new section is added to chapter 43.88 RCW
to read as follows:
NEW SECTION. Sec. 36 A new section is added to chapter 43.88 RCW
to read as follows:
(2) These across-the-board reductions shall also apply to
allotments for agencies headed by elected officials as well as to the
legislative and judicial branches of state government. The governor is
not limited in the number of across-the-board reductions he or she may
order to prevent a cash deficit.
(3) The governor may assign to a reserve status any portion of an
agency appropriation withheld as part of across-the-board reductions
made by the governor under this section. The governor shall remove
these amounts from reserve status if the across-the-board reductions
are subsequently modified.
(4) The following are not subject to an across the board reduction:
(a) Appropriations for basic education;
(b) Appropriations for funding necessary to make the state
retirement system actuarially sound; and
(c) Appropriations necessary to pay debt service on state bonds.
Sec. 37 RCW 43.88.160 and 2002 c 260 s 1 are each amended to read
as follows:This section sets forth the major
fiscal duties and responsibilities of officers and agencies of the
executive branch.)) (1) The regulations issued by the governor pursuant
to this chapter shall provide for a comprehensive, orderly basis for
fiscal management and control, including efficient accounting and
reporting ((therefor)), for the executive branch of the state
government and may include, in addition, such requirements as will
generally promote more efficient public management in the state.
(((1) Governor; director of financial management.)) (2) The
governor, through the director of financial management, shall devise
and ((supervise)) maintain a ((modern and)) complete accounting system
for each agency to the end that all revenues, expenditures, receipts,
disbursements, resources, and obligations of the state shall be
properly and systematically accounted for. The accounting system shall
include the development of accurate, timely records and reports of all
financial affairs of the state. The system shall also provide for
central accounts in the office of financial management at the level of
detail deemed necessary by the director to perform central financial
management. The director of financial management shall adopt and
periodically update an accounting procedures manual. Any agency
maintaining its own accounting and reporting system shall comply with
the updated accounting procedures manual and the rules of the director
adopted under this chapter. An agency may receive a waiver from
complying with this requirement if the waiver is approved by the
director. Waivers expire at the end of the fiscal biennium for which
they are granted. The director shall forward notice of waivers granted
to the appropriate legislative fiscal committees. The director of
financial management may require such financial, statistical, and other
reports as the director deems necessary from all agencies covering any
period.
(((2) Except as provided in chapter 43.88C RCW, the director of
financial management is responsible for quarterly reporting of primary
operating budget drivers such as applicable workloads, caseload
estimates, and appropriate unit cost data. These reports shall be
transmitted to the legislative fiscal committees or by electronic means
to the legislative evaluation and accountability program committee.
Quarterly reports shall include actual monthly data and the variance
between actual and estimated data to date. The reports shall also
include estimates of these items for the remainder of the budget
period.))
(3) The director of financial management shall report at least
annually to the appropriate legislative committees regarding the status
of all appropriated capital projects, including transportation
projects, showing significant cost overruns or underruns. If funds are
shifted from one project to another, the office of financial management
shall also reflect this in the annual variance report. Once a project
is complete, the report shall provide a final summary showing estimated
start and completion dates of each project phase compared to actual
dates, estimated costs of each project phase compared to actual costs,
and whether or not there are any outstanding liabilities or unsettled
claims at the time of completion.
(4) In addition, the director of financial management, as agent of
the governor, shall:
(a) Develop and maintain a system of internal controls and internal
audits comprising methods and procedures to be adopted by each agency
that will safeguard its assets, check the accuracy and reliability of
its accounting data, promote operational efficiency, and encourage
adherence to prescribed managerial policies for accounting and
financial controls. The system developed by the director shall include
criteria for determining the scope and comprehensiveness of internal
controls required by classes of agencies, depending on the level of
resources at risk.
Each agency head or authorized designee shall be assigned the
responsibility and authority for establishing and maintaining internal
audits following the standards of internal auditing of the institute of
internal auditors;
(b) Make surveys and analyses of agencies with the object of
determining better methods and increased effectiveness in the use of
manpower and materials; and the director shall authorize expenditures
for employee training to the end that the state may benefit from
training facilities made available to state employees;
(c) Establish policies for allowing the contracting of child care
services;
(d) Report to the governor with regard to duplication of effort or
lack of coordination among agencies;
(e) Review any pay and classification plans, and changes
thereunder, developed by any agency for their fiscal impact: PROVIDED,
That none of the provisions of this subsection shall affect merit
systems of personnel management now existing or hereafter established
by statute relating to the fixing of qualifications requirements for
recruitment, appointment, or promotion of employees of any agency. The
director shall advise and confer with agencies including appropriate
standing committees of the legislature as may be designated by the
speaker of the house and the president of the senate regarding the
fiscal impact of such plans and may amend or alter the plans, except
that for the following agencies no amendment or alteration of the plans
may be made without the approval of the agency concerned: Agencies
headed by elective officials;
(f) Fix the number and classes of positions or authorized employee
years of employment for each agency and during the fiscal period amend
the determinations previously fixed by the director except that the
director shall not be empowered to fix the number or the classes for
the following: Agencies headed by elective officials;
(g) Adopt rules to effectuate provisions contained in (a) through
(f) of this subsection.
(5) The treasurer shall:
(a) Receive, keep, and disburse all public funds of the state not
expressly required by law to be received, kept, and disbursed by some
other persons: PROVIDED, That this subsection shall not apply to those
public funds of the institutions of higher learning which are not
subject to appropriation;
(b) Receive, disburse, or transfer public funds under the
treasurer's supervision or custody;
(c) Keep a correct and current account of all moneys received and
disbursed by the treasurer, classified by fund or account;
(d) Coordinate agencies' acceptance and use of credit cards and
other payment methods, if the agencies have received authorization
under RCW 43.41.180;
(e) Perform such other duties as may be required by law or by
regulations issued pursuant to this law.
It shall be unlawful for the treasurer to disburse public funds in
the treasury except upon forms or by alternative means duly prescribed
by the director of financial management. These forms or alternative
means shall provide for authentication and certification by the agency
head or the agency head's designee that the services have been rendered
or the materials have been furnished; or, in the case of loans or
grants, that the loans or grants are authorized by law; or, in the case
of payments for periodic maintenance services to be performed on state
owned equipment, that a written contract for such periodic maintenance
services is currently in effect; and the treasurer shall not be liable
under the treasurer's surety bond for erroneous or improper payments so
made. When services are lawfully paid for in advance of full
performance by any private individual or business entity other than
equipment maintenance providers or as provided for by RCW 42.24.035,
such individual or entity other than central stores rendering such
services shall make a cash deposit or furnish surety bond coverage to
the state as shall be fixed in an amount by law, or if not fixed by
law, then in such amounts as shall be fixed by the director of the
department of general administration but in no case shall such required
cash deposit or surety bond be less than an amount which will fully
indemnify the state against any and all losses on account of breach of
promise to fully perform such services. No payments shall be made in
advance for any equipment maintenance services to be performed more
than twelve months after such payment. Any such bond so furnished
shall be conditioned that the person, firm or corporation receiving the
advance payment will apply it toward performance of the contract. The
responsibility for recovery of erroneous or improper payments made
under this section shall lie with the agency head or the agency head's
designee in accordance with regulations issued pursuant to this
chapter. Nothing in this section shall be construed to permit a public
body to advance funds to a private service provider pursuant to a grant
or loan before services have been rendered or material furnished.
(6) The state auditor shall:
(a) Report to the legislature the results of current post audits
that have been made of the financial transactions of each agency; to
this end the auditor may, in the auditor's discretion, examine the
books and accounts of any agency, official, or employee charged with
the receipt, custody, or safekeeping of public funds. Where feasible
in conducting examinations, the auditor shall utilize data and findings
from the internal control system prescribed by the office of financial
management. The current post audit of each agency may include a
section on recommendations to the legislature as provided in (c) of
this subsection.
(b) Give information to the legislature, whenever required, upon
any subject relating to the financial affairs of the state.
(c) Make the auditor's official report on or before the thirty-first of December which precedes the meeting of the legislature. The
report shall be for the last complete fiscal period and shall include
determinations as to whether agencies, in making expenditures, complied
with the laws of this state. The state auditor is authorized to
perform or participate in performance verifications and performance
audits as expressly authorized by the legislature in the omnibus
biennial appropriations acts or in the performance audit work plan
approved by the joint legislative audit and review committee. The
state auditor, upon completing an audit for legal and financial
compliance under chapter 43.09 RCW or a performance verification, may
report to the joint legislative audit and review committee or other
appropriate committees of the legislature, in a manner prescribed by
the joint legislative audit and review committee, on facts relating to
the management or performance of governmental programs where such facts
are discovered incidental to the legal and financial audit or
performance verification. The auditor may make such a report to a
legislative committee only if the auditor has determined that the
agency has been given an opportunity and has failed to resolve the
management or performance issues raised by the auditor. If the auditor
makes a report to a legislative committee, the agency may submit to the
committee a response to the report. This subsection (6) shall not be
construed to authorize the auditor to allocate other than de minimis
resources to performance audits except as expressly authorized in the
appropriations acts or in the performance audit work plan. The results
of a performance audit conducted by the state auditor that has been
requested by the joint legislative audit and review committee must only
be transmitted to the joint legislative audit and review committee.
(d) Be empowered to take exception to specific expenditures that
have been incurred by any agency or to take exception to other
practices related in any way to the agency's financial transactions and
to cause such exceptions to be made a matter of public record,
including disclosure to the agency concerned and to the director of
financial management. It shall be the duty of the director of
financial management to cause corrective action to be taken within six
months, such action to include, as appropriate, the withholding of
funds as provided in RCW 43.88.110. The director of financial
management shall annually report by December 31st the status of audit
resolution to the appropriate committees of the legislature, the state
auditor, and the attorney general. The director of financial
management shall include in the audit resolution report actions taken
as a result of an audit including, but not limited to, types of
personnel actions, costs and types of litigation, and value of recouped
goods or services.
(e) Promptly report any irregularities to the attorney general.
(f) Investigate improper governmental activity under chapter 42.40
RCW.
(7) The joint legislative audit and review committee may:
(a) Make post audits of the financial transactions of any agency
and management surveys and program reviews as provided for in chapter
44.28 RCW as well as performance audits and program evaluations. To
this end the joint committee may in its discretion examine the books,
accounts, and other records of any agency, official, or employee.
(b) Give information to the legislature or any legislative
committee whenever required upon any subject relating to the
performance and management of state agencies.
(c) Make a report to the legislature which shall include at least
the following:
(i) Determinations as to the extent to which agencies in making
expenditures have complied with the will of the legislature and in this
connection, may take exception to specific expenditures or financial
practices of any agencies; and
(ii) Such plans as it deems expedient for the support of the
state's credit, for lessening expenditures, for promoting frugality and
economy in agency affairs, and generally for an improved level of
fiscal management.
NEW SECTION. Sec. 38 A new section is added to chapter 43.88 RCW
to read as follows:
(1) Develop and maintain a system of internal controls and internal
audits comprising methods and procedures to be adopted by each agency
that will safeguard its assets, check the accuracy and reliability of
its accounting data, promote operational efficiency, and encourage
adherence to prescribed managerial policies for accounting and
financial controls. The system developed by the director shall include
criteria for determining the scope and comprehensiveness of internal
controls required by classes of agencies, depending on the level of
resources at risk.
Each agency head or authorized designee shall be assigned the
responsibility and authority for establishing and maintaining internal
audits following the standards of internal auditing of the institute of
internal auditors;
(2) Make surveys and analyses of agencies with the object of
determining better methods and increased effectiveness in the use of
manpower and materials; and the director may authorize expenditures for
employee training to the end that the state may benefit from training
facilities made available to state employees;
(3) Report to the governor with regard to duplication of effort or
lack of coordination among agencies;
(4) Review any pay and classification plans, and changes developed
by any agency for their fiscal impact. None of the provisions of this
subsection shall affect merit systems of personnel management now
existing or hereafter established by statute relating to the fixing of
qualifications requirements for recruitment, appointment, or promotion
of employees of any agency. The director shall advise and confer with
agencies including appropriate standing committees of the legislature
as may be designated by the speaker of the house and the president of
the senate regarding the fiscal impact of such plans and may amend or
alter the plans, except that for agencies headed by elective officials
no amendment or alteration of the plans may be made without the
approval of the agency concerned;
(5) Fix the number and classes of positions or authorized employee
years of employment for each agency and during the fiscal period amend
the determinations previously fixed by the director except that the
director shall not be empowered to fix the number or the classes for
agencies headed by elective officials;
(6) Adopt rules to effectuate provisions contained in subsections
(1) through (5) of this section.
NEW SECTION. Sec. 39 A new section is added to chapter 43.88 RCW
to read as follows:
(1) The treasurer shall:
(a) Receive, keep, and disburse all public funds of the state not
expressly required by law to be received, kept, and disbursed by some
other persons. This subsection does not apply to nonappropriated
public funds of higher education institutions;
(b) Receive, disburse, or transfer public funds under the
treasurer's supervision or custody;
(c) Keep a correct and current account of all moneys received and
disbursed by the treasurer, classified by fund or account;
(d) Coordinate agencies' acceptance and use of credit cards and
other payment methods, if the agencies have received authorization
under RCW 43.41.180;
(e) Perform such other duties as may be required by law or by
regulations issued pursuant to this law.
(2) It is unlawful for the treasurer to disburse public funds in
the treasury except upon forms or by alternative means duly prescribed
by the director of financial management. These forms or alternative
means shall provide for authentication and certification by the agency
head or the agency head's designee that (a) the services have been
rendered or the materials have been furnished; (b) in the case of loans
or grants, the loans or grants are authorized by law; or (c) in the
case of payments for periodic maintenance services to be performed on
state owned equipment, a written contract for such periodic maintenance
services is currently in effect. The treasurer shall not be liable
under the treasurer's surety bond for erroneous or improper payments
made under this subsection.
(3) When services are lawfully paid for in advance of full
performance by any private individual or business entity other than
equipment maintenance providers or as provided for by RCW 42.24.035,
the individual or entity other than central stores rendering the
services shall make a cash deposit or furnish surety bond coverage to
the state in an amount fixed by law, or if not fixed by law, then in
such amounts as shall be fixed by the director of the department of
general administration but in no case shall such required cash deposit
or surety bond be less than an amount which will fully indemnify the
state against any and all losses on account of breach of promise to
fully perform such services.
(4) No payments shall be made in advance for any equipment
maintenance services to be performed more than twelve months after such
payment. Any such bond so furnished shall be conditioned that the
person, firm or corporation receiving the advance payment will apply it
toward performance of the contract.
(5) The responsibility for recovery of erroneous or improper
payments made under this section shall lie with the agency head or the
agency head's designee in accordance with rules issued pursuant to this
chapter.
(6) This section does not permit a public body to advance funds to
a private service provider under a grant or loan before services have
been rendered or material furnished.
NEW SECTION. Sec. 40 A new section is added to chapter 43.88 RCW
to read as follows:
(1) The state auditor shall:
(a) Report to the legislature the results of current post audits
that have been made of the financial transactions of each agency. To
this end the auditor may, in the auditor's discretion, examine the
books and accounts of any agency, official, or employee charged with
the receipt, custody, or safekeeping of public funds. Where feasible
in conducting examinations, the auditor shall utilize data and findings
from the internal control system prescribed by the office of financial
management. The current post audit of each agency may include a
section on recommendations to the legislature as provided in subsection
(3) of this section.
(b) Give information to the legislature, whenever required, upon
any subject relating to the financial affairs of the state.
(c) Make the auditor's official report on or before the thirty-first of December which precedes the legislative session. The report
shall be for the last complete fiscal period and shall include
determinations as to whether agencies, in making expenditures, complied
with the laws of this state.
(d) Be empowered to take exception to specific expenditures that
have been incurred by any agency or to take exception to other
practices related in any way to the agency's financial transactions and
to cause such exceptions to be made a matter of public record,
including disclosure to the agency concerned and to the director of
financial management. It shall be the duty of the director of
financial management to cause corrective action to be taken within six
months. This action may include, as appropriate, the withholding of
funds as provided in RCW 43.88.110 (as recodified by this act). The
director of financial management shall annually report by December 31st
the status of audit resolution to the appropriate committees of the
legislature, the state auditor, and the attorney general. The director
of financial management shall include in the audit resolution report
actions taken as a result of an audit including, but not limited to,
types of personnel actions, costs and types of litigation, and value of
recouped goods or services.
(e) Promptly report any irregularities to the attorney general.
(f) Investigate improper governmental activity under chapter 42.40
RCW.
(2) The state auditor is authorized to perform or participate in
performance verifications and performance audits as expressly
authorized by the legislature in the omnibus biennial appropriations
acts or in the performance audit work plan approved by the joint
legislative audit and review committee.
(3) The state auditor, upon completing an audit for legal and
financial compliance under chapter 43.09 RCW or a performance
verification, may report to the joint legislative audit and review
committee or other appropriate committees of the legislature, in a
manner prescribed by the joint legislative audit and review committee,
on facts relating to the management or performance of governmental
programs where such facts are discovered incidental to the legal and
financial audit or performance verification. The auditor may make such
a report to a legislative committee only if the auditor has determined
that the agency has been given an opportunity and has failed to resolve
the management or performance issues raised by the auditor. If the
auditor makes a report to a legislative committee, the agency may
submit to the committee a response to the report. This section shall
not be construed to authorize the auditor to allocate other than de
minimis resources to performance audits except as expressly authorized
in the appropriations acts or in the performance audit work plan. The
results of a performance audit conducted by the state auditor that has
been requested by the joint legislative audit and review committee must
only be transmitted to the joint legislative audit and review
committee.
NEW SECTION. Sec. 41 A new section is added to chapter 43.88 RCW
to read as follows:
The joint legislative audit and review committee may:
(1) Make post audits of the financial transactions of any agency
and management surveys and program reviews as provided for in chapter
44.28 RCW as well as performance audits and program evaluations. To
this end the joint committee may in its discretion examine the books,
accounts, and other records of any agency, official, or employee.
(2) Give information to the legislature or any legislative
committee whenever required upon any subject relating to the
performance and management of state agencies.
(3) Make a report to the legislature which shall include at least
the following:
(a) Determinations as to the extent to which agencies in making
expenditures have complied with the will of the legislature and in this
connection, may take exception to specific expenditures or financial
practices of any agencies; and
(b) Such plans as it deems expedient for the support of the state's
credit, for lessening expenditures, for promoting frugality and economy
in agency affairs, and generally for an improved level of fiscal
management.
NEW SECTION. Sec. 42 A new section is added to chapter 43.88 RCW
to read as follows:
(1) "State revenues" means income or receipts received by the state
from taxes, licenses, permits, fees, fines, and forfeitures levied or
charged by the state for the support of a state-sponsored program.
"State revenues" also includes (a) any receipts or income received by
the state that do not meet the definitions of "federal, private, or
local revenues" devised by the office of financial management under RCW
43.88.160 (as recodified by this act), or (b) any receipts or income
generated from transactions when participants receive value for the
resources provided.
(2) "Nonstate revenues" means any income or receipts received by
the state that are not included under subsection (1) of this section.
(3) "Unanticipated revenues" means income or receipts received by
the state that were not anticipated or expected at the time the
legislature approved the most recent budget.
Sec. 43 RCW 43.79.270 and 1998 c 177 s 1 are each amended to read
as follows:(1))) Whenever any
((money)) nonstate revenues, including revenue from the federal
government, ((or from other sources,)) which ((was)) were not
anticipated in the operating or capital budgets approved by the
legislature ((has)) have actually been received and ((is)) are
designated to be spent for a specific purpose, the head of any
department, agency, board, or commission through which such an
expenditure shall be made is to submit to the governor a statement
((which may be)) in the form ((of a request for an allotment
amendment)) prescribed by the governor setting forth the facts
constituting the need for ((such)) the expenditure and the estimated
amount to be expended((: PROVIDED, That no)). An expenditure under
this section shall not be made ((in excess of)) unless first approved
by the governor in accordance with RCW 43.79.280 (as recodified by this
act). Expenditures may not exceed the actual amount received, and
((no)) the money ((shall)) may be expended only for ((any purpose
except)) the specific purpose for which it was received. ((A copy of
any proposal submitted to the governor to expend money from an
appropriated fund or account in excess of appropriations provided by
law which is based on the receipt of unanticipated revenues shall be
submitted to the joint legislative audit and review committee and also
to the standing committees on ways and means of the house and senate if
the legislature is in session at the same time as it is transmitted to
the governor.)) Unanticipated revenues for
which there is no designated purpose are considered state revenue
subject to legislative appropriation. State revenues cannot be
expended as unanticipated receipts unless specifically authorized by
separate statutes.
(2) Notwithstanding subsection (1) of this section, whenever money
from any source that was not anticipated in the transportation budget
approved by the legislature has actually been received and is
designated to be spent for a specific purpose, the head of a
department, agency, board, or commission through which the expenditure
must be made shall submit to the governor a statement, which may be in
the form of a request for an allotment amendment, setting forth the
facts constituting the need for the expenditure and the estimated
amount to be expended. However, no expenditure may be made in excess
of the actual amount received, and no money may be expended for any
purpose except the specific purpose for which it was received. A copy
of any proposal submitted to the governor to expend money from an
appropriated transportation fund or account in excess of appropriations
provided by law that is based on the receipt of unanticipated revenues
must be submitted, at a minimum, to the standing committees on
transportation of the house and senate, if the legislature is in
session, at the same time as it is transmitted to the governor. During
the legislative interim, any such proposal must be submitted to the
legislative transportation committee.
Sec. 44 RCW 43.79.280 and 1998 c 177 s 2 are each amended to read
as follows:If the
governor approves such estimate in whole or part, he shall endorse on
each copy of the statement his approval, together with a statement of
the amount approved in the form of an allotment amendment, and transmit
one copy to the head of the department, agency, board, or commission
authorizing the expenditure. An identical copy of the governor's
statement of approval and a statement of the amount approved for
expenditure shall be transmitted simultaneously to the joint
legislative audit and review committee and also to the standing
committee on ways and means of the house and senate of all executive
approvals of proposals to expend money in excess of appropriations
provided by law.)) Once the governor receives a
proposal under RCW 43.79.270 (as recodified by this act) to spend money
because of the receipt of unanticipated revenues, the governor shall
transmit a copy of the proposal to the appropriate fiscal committees of
the house of representatives and senate and to the joint legislative
audit and review committee.
(2) If the governor approves an estimate with transportation
funding implications, in whole or part, he shall endorse on each copy
of the statement his approval, together with a statement of the amount
approved in the form of an allotment amendment, and transmit one copy
to the head of the department, agency, board, or commission authorizing
the expenditure. An identical copy of the governor's statement of
approval of a proposal to expend transportation money in excess of
appropriations provided by law and a statement of the amount approved
for expenditure must be transmitted simultaneously to the standing
committees on transportation of the house and senate. During the
legislative interim, all estimate approvals endorsed by the governor
along with a statement of the amount approved in the form of an
allotment amendment must be transmitted simultaneously to the
legislative transportation committee.
(2) The director of financial management may grant to a department,
agency, board, or commission the authority to expend unanticipated
receipts up to the actual amount received for a specific, designated
purpose. Before the governor approves an expenditure of unanticipated
revenues, the department, agency, board, or commission must demonstrate
to the governor's satisfaction how the expenditure of the unanticipated
revenues prevents the loss of funds or increased future costs, is
necessary for the public health and safety, or meets other criteria
that may be established by the governor. If the governor approves the
expenditure authority in whole or part, that information shall be made
available to the legislature.
Sec. 45 RCW 43.88.550 and 1989 c 362 s 3 are each amended to read
as follows:
((Based on schedules submitted by the director of financial
management,)) If the director of financial management, in consultation
with the department of natural resources and the military department,
determines that the appropriations provided by the legislature for
fighting wildland fires are not sufficient to cover expenses incurred
for this purpose, the director shall provide schedules to the state
treasurer who shall transfer from the general fund -- state((, or such
other funds as the state treasurer deems appropriate,)) to the Clarke-McNary ((fund)) account such amounts as are necessary to meet
unbudgeted ((forest)) wildland fire fighting expenses. ((All amounts
borrowed under the authority of this section shall be repaid to the
appropriate fund, together with interest at a rate determined by the
state treasurer to be equivalent to the return on investments of the
state treasury during the period the amounts are borrowed.)) Any
amounts transferred from the general fund--state for this purpose are
considered general fund--state expenditures under chapter 43.135 RCW.
NEW SECTION. Sec. 46 The following acts or parts of acts are
each repealed:
(1) RCW 43.88.050 (Cash deficit) and 1987 c 502 s 4 & 1965 c 8 s
43.88.050;
(2) RCW 43.88.067 (Fee and expense report -- Impact of amounts
awarded to prevailing party in agency action) and 1999 c 372 s 10 &
1995 c 403 s 905;
(3) RCW 43.88.093 (Development of budget -- Tourism development
division, department of community, trade, and economic development) and
1998 c 299 s 3;
(4) RCW 43.88.094 (Development of budget -- Calculation -- Tourism
development division, department of community, trade, and economic
development) and 1998 c 299 s 4;
(5) RCW 43.88.100 (Executive hearings) and 1965 c 8 s 43.88.100;
(6) RCW 43.88.120 (Revenue estimates) and 2000 2nd sp.s. c 4 s 13,
1991 c 358 s 3, 1987 c 502 s 6, 1984 c 138 s 10, 1981 c 270 s 8, 1973
1st ex.s. c 100 s 7, & 1965 c 8 s 43.88.120;
(7) RCW 43.88.122 (Transportation agency revenue forecasts--Variances) and 2000 2nd sp.s. c 4 s 14 & 1991 c 358 s 7;
(8) RCW 43.88.205 (Federal funds and programs -- Participating
agencies to give notice -- Progress reports) and 1996 c 288 s 39, 1979 c
151 s 141, 1975 1st ex.s. c 293 s 10, 1973 2nd ex.s. c 17 s 3, & 1967
ex.s. c 41 s 4;
(9) RCW 43.88.280 (Fiscal responsibilities of state officers and
employees -- "State officer or employee" defined) and 1977 ex.s. c 320 s
1;
(10) RCW 43.88.350 (Legal services revolving fund -- General
administration services account -- Approval of certain changes required)
and 1998 c 105 s 16 & 1981 c 270 s 14;
(11) RCW 43.88.500 (State boards, commissions, councils, and
committees -- Legislative finding and declaration) and 1979 c 151 s 142
& 1977 c 23 s 1;
(12) RCW 43.88.505 (State boards, commissions, councils, and
committees -- Compilation of list, information) and 1979 c 151 s 143 &
1977 c 23 s 2;
(13) RCW 43.88.510 (State boards, commissions, councils, and
committees -- Submission of list and data to legislature) and 1996 c 288
s 42, 1987 c 505 s 37, 1979 c 151 s 144, & 1977 c 23 s 3;
(14) RCW 43.88.515 (State boards, commissions, councils, and
committees -- Agencies to submit lists, information) and 1979 c 151 s 145
& 1977 c 23 s 4;
(15) RCW 43.88.560 (Information technology projects -- Funding
policies and standards) and 1992 c 20 s 7;
(16) RCW 43.88.899 (Intent -- Periodic review) and 1986 c 215 s 8;
(17) RCW 44.40.070 (State transportation agencies -- Comprehensive
programs and financial plans) and 1998 c 245 s 87, 1988 c 167 s 10,
1979 ex.s. c 192 s 3, 1979 c 158 s 112, 1977 ex.s. c 235 s 9, & 1973
1st ex.s. c 201 s 1;
(18) RCW 44.40.080 (State transportation agencies -- Recommended
budget -- Preparation and presentation -- Contents) and 1973 1st ex.s. c
201 s 2; and
(19) RCW 47.08.010 (Control of allocated funds) and 1984 c 7 s 92
& 1961 c 13 s 47.08.010.
NEW SECTION. Sec. 47 The following sections are codified or
recodified within chapter 43.88 RCW in the following order:
RCW 43.88.010.
(1) The following sections are codified or recodified and
designated as a subchapter of chapter 43.88 RCW under the subchapter
designation "Definitions":
RCW 43.88.020;
section 2 of this act; and
RCW 43.88.025.
(2) The following sections are codified or recodified and
designated as a subchapter of chapter 43.88 RCW under the subchapter
designation "Requirements Applicable to All Budgets":
section 3 of this act;
RCW 43.88.035;
RCW 43.88.060;
RCW 43.88.090;
section 7 of this act;
section 8 of this act;
RCW 43.88.070;
RCW 43.88.080;
RCW 43.88.130;
RCW 43.88.150;
RCW 43.88.170;
RCW 43.88.180;
RCW 43.88.190;
RCW 43.88.195;
RCW 43.88.250;
RCW 43.88.260;
section 17 of this act; and
section 18 of this act.
(3) The following sections are codified or recodified and
designated as a subchapter of chapter 43.88 RCW under the subchapter
designation "Operating Budget":
RCW 43.88.030;
section 20 of this act;
RCW 43.88.032; and
RCW 43.88.033.
(4) The following sections are codified or recodified and
designated as a subchapter of chapter 43.88 RCW under the subchapter
designation "Capital Budget":
RCW 43.88.0301;
section 22 of this act;
section 23 of this act;
section 24 of this act;
RCW 43.88.145; and
section 26 of this act.
(5) The following sections are codified and designated as a
subchapter of chapter 43.88 RCW under the subchapter designation
"Transportation":
section 27 of this act;
section 28 of this act;
section 29 of this act;
section 30 of this act; and
section 31 of this act.
(6) The following sections are codified or recodified and
designated as a subchapter of chapter 43.88 RCW under the subchapter
designation "Allotments":
RCW 43.88.110;
section 33 of this act;
section 34 of this act;
section 35 of this act; and
section 36 of this act.
(7) The following sections are codified or recodified and
designated as a subchapter of chapter 43.88 RCW under the subchapter
designation "State Fiscal Management and Control":
RCW 43.88.037;
RCW 43.88.160; and
section 38 of this act.
(8) The following sections are recodified and designated as a
subchapter of chapter 43.88 RCW under the subchapter designation
"Fiscal Responsibilities of State Officers and Employees":
RCW 43.88.270;
RCW 43.88.290;
RCW 43.88.300;
RCW 43.88.310; and
RCW 43.88.320.
(9) The following section is codified and designated as a
subchapter of chapter 43.88 RCW under the subchapter designation "State
Treasurer":
section 39 of this act.
(10) The following sections are codified or recodified and
designated as a subchapter of chapter 43.88 RCW under the subchapter
designation "State Auditor":
section 40 of this act; and
RCW 43.88.570.
(11) The following section is codified and designated as a
subchapter of chapter 43.88 RCW under the subchapter designation "Joint
Legislative Audit and Review Committee":
section 41 of this act.
(12) The following sections are codified or recodified and
designated as a subchapter of chapter 43.88 RCW under the subchapter
designation "Unanticipated Receipts":
section 42 of this act;
RCW 43.79.270; and
RCW 43.79.280.
(13) The following section is recodified and designated as a
subchapter of chapter 43.88 RCW under the subchapter designation
"Clarke-McNary Account":
RCW 43.88.550.
(14) The following sections are recodified and designated as a
subchapter of chapter 43.88 RCW under the subchapter designation
"Exceptions to Application of Chapter":
RCW 43.88.240; and
RCW 43.88.265.
(15) The following sections are recodified and designated as a
subchapter of chapter 43.88 RCW under the subchapter designation
"Miscellaneous":
RCW 43.88.027;
RCW 43.88.140;
RCW 43.88.175;
RCW 43.88.200;
RCW 43.88.210;
RCW 43.88.220;
RCW 43.88.230;
RCW 43.88.901;
RCW 43.88.902;
RCW 43.88.903; and
RCW 43.88.910.
NEW SECTION. Sec. 48 Captions and subchapter headings as used in
this act are not part of the law.