Presentation Outline
bull ISC Funds amp Operating Budget Revenues
bull The State Budget Process
bull Summary of Amendments to the Work Plan Process
0
ISC Funds amp Operating Budget Revenues
bull How Revenues are Budgeted
bull General Fund
bull Trust Funds ndash Irrigation Works Construction Fund
ndash Improvement to the Rio Grande Income Fund
bull Emergency Drought Water Revenue (EDWA)
bull Strategic Water Reserve
bull Pecos Land Management Fund
bull Ute Revenues
bull Capital Outlay Revenues
1
2
How Revenues are Budgeted
bull Appropriation Request Process
ndash Revenue Budgeted in the Operating Budget
bull General authority usually given in the General Appropriation Act
bull Budget Adjustment Request (BAR) authority requested in the Appropriation Process
bull Other Acts of the Legislature
ndash Funds set up by Statute
bull Infrastructure Capital Improvement Plan Request Process
3
General Fund
The general fund is the primary fund from which the operations of state government
are financed and is the largest fund in terms of annual revenues It is also the
default fund into which revenue sources are deposited Section 6-4-2 NMSA 1978
provides that the state treasurer shall credit all revenues not otherwise allocated by
law to the general fund General Fund revenues consist of gross receipts and
compensating tax selective sales taxes income taxes and interest earnings
including distributions from the land grant permanent fund and severance tax
permanent fund and earnings on balances held by the state treasurer
4
Irrigation Works Construction Fund (IWCF) amp Improvement to the Rio Grande Income Fund (IRGIF)
Trust Funds
The Trust Funds Revenue Source Background The Ferguson Act of 1898 designated about one-ninth of all land in the state as trust land to
benefit certain public institutions The legislation identified the beneficiaries of the trust land
dedicated the amount of land to be held in trust for each beneficiary and provided for a board
made up of the public land commissioner territorial Governor and solicitor general of the
territory to assign specific tracts of trust land to each beneficiary
The act designated 500000 trust land acres to benefit reservoirs and other irrigation
works and 100000 acres to fund improvements to the Rio Grande These lands and the
trust lands set aside for 19 other beneficiaries are managed by the State Land Office which
transfers the income from certain revenue-raising activities directly to the beneficiaries
and deposits the revenue from activities that deplete the resource ndash such as mining ndash in
the Land Grant Permanent Fund That fund is invested by the State Investment Council and
the investment income is distributed to the trust beneficiaries
6
Land Grant Permanent Fund
The Land Grant Permanent Fund (LGPF) also known as the Permanent School Fund is one
of the largest funds of its kind in the country and every year provides more than a half-
billion dollars in benefits to New Mexicorsquos public schools universities and other
beneficiaries ($638 million in FY17)
Established through New Mexicorsquos entry into statehood in 1912 the LGPF has evolved and
grown over time due to revenue from leases and royalties produced by non-renewable
natural resources in New Mexico (primarily oil and gas) and income from returns on
invested capital
The 11-member State Investment Council and its staff are fiduciaries to the Fund and invest
the LGPF in accordance with the Uniform Prudent Investor Act standard
7
8
9
10
11
12
Irrigation Works Construction Fund (IWCF) Projections
ACTUAL PRE-AUDIT
FY16 FY17 FY18 FY19
BEGINNING BALANCE $15207005 $13509420 $14379216 $7027116
REVENUE
Permanent Fund $6633195 $5818195 $6000000 $6000000
InterestLoans $23408 $21427 $25000 $25000
Lease Income $747611 $2961863 $1000000 $1000000
Investment Income (Loss) $342433 $1768626 $400000 $400000
Miscellaneous $35800 $6000 $35000 $35000
TOTAL REVENUE $7782447 $10576111 $7460000 $7460000
EXPENDITURES
Specials amp BAR Authority $2500000 $2175000
Operating Budget $9480032 $9706315 $12312100 $12312100
TOTAL EXPENDITURES $9480032 $9706315 $14812100 $14487100
ADJUSTED BALANCE $13509420 $14379216 $7027116 $16
IRRIGATION WORKS CONSTRUCTION FUND (326)
PROJECTED
13
IWCF Distribution by Program for the FY18 appropriated budget amount of $123121M
Water Rights
Allocation
Program 184460$ 15
Interstate
Stream
Commission 704640$ 57
Litigation amp
Adjudication
Program 249200$ 20
Program
Support 92910$ 8
14
IRGIF
72-14-4 Budget and plan submitted to governor annually
The interstate stream commission shall annually prepare and submit a budget together
with a complete and detailed plan looking toward the improvement of the Rio Grande in
this state and increasing the surface flow of water in the river during the ensuing
fiscal year The plan and budget shall be submitted annually in accordance with the
provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
History Laws 1935 ch 24 sect 1 1941 Comp sect 77-3304 Laws 1947 ch 131 sect 1 1953
Comp sect 75-34-4 Laws 1973 ch 201 sect 1 1997 ch 241 sect 1 1997 ch 246 sect 1
15
Improvement to the Rio Grande Income Fund (IRGIF)
ACTUAL PRE-AUDIT
FY16 FY17 FY18 FY19
BEGINNING BALANCE $6502230 $6574788 $8830893 $6648293
REVENUE
Permanent Fund $1495407 $1329890 $1400000 $1400000
Lease Income $90505 $1443926 $100000 $100000
Investment Income (Loss) $35837 $245214 $50000 $50000
TOTAL REVENUE $1621749 $3019030 $1550000 $1550000
EXPENDITURES
Specials amp BAR Authority $1200000 $272000
Operating Budget $1549191 $762925 $2532600 $2532600
TOTAL EXPENDITURES $1549191 $762925 $3732600 $2804600
ADJUSTED BALANCE $6574788 $8830893 $6648293 $5393693
IMPROVEMENT OF THE RIO GRANDE INCOME FUND (328)
PROJECTED
16
IRGIF Distribution for the FY18 appropriated budget amount of $25326
Water Rights
Allocation
Program 14760$ 6
Interstate
Stream
Commission 238500$ 94
17
Emergency Drought Water Agreement Revenue
bull Revenue Source Relinquishment credit stored amp released pursuant to the EDWA agreement
bull Fund Balance $2691342
bull Revenue Budget Process
ndash For FY19 budgeted $668k in the FY19 appropriation request for personnel costs
ndash Also budget funds on an as needed basis through the Budget Adjustment Process but need authority in the GAA
18
19
20
21
22
23
24
25
26
27
28
29
30
Ute Revenues
bull Fund originally set up to pay bond debt issued years ago for Ute Dam
bull Revenues from bulk water sale encroachment license fees amp easements deposited into the fund
bull Revenues historically have been used for operation amp maintenance costs for Ute dam
bull Fund Balance $626593
bull Revenue Budget Process
ndash Budget revenue on an as needed basis through the budget adjustment request process (BAR) bull Need to request specific BAR language in the appropriation request process in order to
budget the funds since the Ute Construction Fund does not give the Commission authority to budget the revenue
31
Active Capital Outlay Appropriations
bull $1M to purchase land and water rights within the interstate stream commissions existing pricing guidelines
and for the development of augmentation well fields and pipelines and related professional services for the Pecos River Compact settlement for the Pecos Settlement to purchase water rights (funded from the Attorney General Settlement Fund) ndashAvailable Balance = $4266k
bull $2M - notwithstanding the provisions of the Water Project Finance Act to the contrary is appropriated from
the water project fund to the office of the state engineer for expenditure in fiscal years 2016 through 2020 unless otherwise provided in Section 2 of this act to plan design and construct an engineered levee in the San Acacia reach in Socorro county- Available Balance = $14M
bull $2M to plan design renovate construct and equip improvements to acequias statewide (Attorney
General Settlement Fund) Available Balance Available Balance = $1005k bull $900k to rehab the LLSMR to plan design remodel rebuild construct and equip conservation rearing
ponds and hatcheries for a silvery minnow refugium production facility in Los Lunas in Valencia county (STB revenue bonds) Available Balance $0
bull $450k to plan design and construct habitat restoration projects in the middle Rio Grande conservancy
district or habitat restoration in the MRG (STB revenue Bonds) Available Balance = $1455k bull IWR appropriations ndash $58M Fund Balance for Taos Settlement bull Flow through appropriations to the ISC to act as fiscal agent for specific acequia projects ndash 28 current
appropriations that total approximately $13M
32
State Budget Process
bull Statutory Deadlines amp Submittals of Required Documents
bull Analysis amp Recommendation Process
bull What Happens During the Session (executive perspective)
33
Important to remember throughout this process
bull The Governor is our boss and controls what we will officially request in the appropriation request process
bull The Governor through the Department of Finance and Administration and the Legislature control the budget budget increases what is allowable to budget the dollar amount and time period and the request to move budget between appropriated budget categories
bull There are always exceptions to the appropriation request process
ndash Every administration interprets policies processes and laws differently and applies it based on their interpretation
bull Take inventory of our budget needs in July to be prepared to discuss and try and persuade the Governors office and DFA to allow us to make the official request on paper
ndash If not allowed to make the official budget request then cannot lobby for the budget need (need to be careful on how to respond when asked about the need)
bull Another chance to make a difference to the recommendation is the first few weeks of January to persuade the DFA andor LFC that their recommendation will not work for the agency before their recommendation is adopted in HAFC for the GAA (HB2)
34
Budget Requests Time Line
bullInfrastructure Capital Improvement Plan Due (ICIP) Statutory Deadline
July 1st
bullAppropriation Request Statutory Deadline September 1st
bullDFA State Budget Division amp Legislative Finance Committee staff analyze agency budget requests amp hold meetings and hearings to pursue issues pertinent to requests
Sept - Dec
bullInstructions amp deadlines for the Special Appropriations Deficiencies Supplemental and Budget Adjustment Request Authority submittals
October - November
bullState law requires the Governor to prepare a budget to the LFC January 5th (even yrs) January10th (odd years)
bullLFC amp SBD prepare different sheets that shows major differences in revenues expenditures amp total budget between the executive and LFC recommendations
January
bullHAFC holds budget hearings in which the different sheets are presented and the committee will either adopt the executive recommendation
Session
bullOperating Budget Submittal Statutory Deadline May 1st
35
Capital Improvement Plan (ICIP) (July 1)
bull Governor amp DFA do not usually restrict agencies from submitted their capital outlay needs in the 5 year plan
bull Purchase of assets ie water rights equipment etc
bull Construction ie pipelines buildings etc
bull Long term in nature
bull Personnel costs not allowed
bull Appropriated for longer time frame 4 years amp 3 years to purchase an asset
bull If bonds are certified for project than 5 of appropriation must be expended within 6 months and 85 expended within 3 years
bull Funding Sources for projects from either GO Bonds Severance Tax Bonds or General Fund
36
37
38
The State Budget Act (sect6-3A-7 NMSA 1978) and the
Accountability in Government Act (sect6-3A-1 to 6-3A-8 NMSA
1978) set forth the framework and requirements for state
government budgeting in New Mexico
39
State Budget Act
6-3-19 Agencies to complete budget forms
Each state agency shall fill out the budget forms provided for in Section 6-3-18 NMSA 1978 in the
manner prescribed by the state budget division Each state agency in completing the budget forms
shall include information for all divisions subdivisions and offices of the agency Related agencies
upon approval of the state budget division may join in submitting one set of budget forms
Completed budget forms shall be returned to the state budget division not later than September 1 in
each year
History 1953 Comp sect 11-4-75 enacted by Laws 1955 ch 114 sect 10 1963 ch 147 sect 3 1977
ch 247 sect 130 1999 ch 5 sect 11 1999 ch 15 sect 11
40
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
ISC Funds amp Operating Budget Revenues
bull How Revenues are Budgeted
bull General Fund
bull Trust Funds ndash Irrigation Works Construction Fund
ndash Improvement to the Rio Grande Income Fund
bull Emergency Drought Water Revenue (EDWA)
bull Strategic Water Reserve
bull Pecos Land Management Fund
bull Ute Revenues
bull Capital Outlay Revenues
1
2
How Revenues are Budgeted
bull Appropriation Request Process
ndash Revenue Budgeted in the Operating Budget
bull General authority usually given in the General Appropriation Act
bull Budget Adjustment Request (BAR) authority requested in the Appropriation Process
bull Other Acts of the Legislature
ndash Funds set up by Statute
bull Infrastructure Capital Improvement Plan Request Process
3
General Fund
The general fund is the primary fund from which the operations of state government
are financed and is the largest fund in terms of annual revenues It is also the
default fund into which revenue sources are deposited Section 6-4-2 NMSA 1978
provides that the state treasurer shall credit all revenues not otherwise allocated by
law to the general fund General Fund revenues consist of gross receipts and
compensating tax selective sales taxes income taxes and interest earnings
including distributions from the land grant permanent fund and severance tax
permanent fund and earnings on balances held by the state treasurer
4
Irrigation Works Construction Fund (IWCF) amp Improvement to the Rio Grande Income Fund (IRGIF)
Trust Funds
The Trust Funds Revenue Source Background The Ferguson Act of 1898 designated about one-ninth of all land in the state as trust land to
benefit certain public institutions The legislation identified the beneficiaries of the trust land
dedicated the amount of land to be held in trust for each beneficiary and provided for a board
made up of the public land commissioner territorial Governor and solicitor general of the
territory to assign specific tracts of trust land to each beneficiary
The act designated 500000 trust land acres to benefit reservoirs and other irrigation
works and 100000 acres to fund improvements to the Rio Grande These lands and the
trust lands set aside for 19 other beneficiaries are managed by the State Land Office which
transfers the income from certain revenue-raising activities directly to the beneficiaries
and deposits the revenue from activities that deplete the resource ndash such as mining ndash in
the Land Grant Permanent Fund That fund is invested by the State Investment Council and
the investment income is distributed to the trust beneficiaries
6
Land Grant Permanent Fund
The Land Grant Permanent Fund (LGPF) also known as the Permanent School Fund is one
of the largest funds of its kind in the country and every year provides more than a half-
billion dollars in benefits to New Mexicorsquos public schools universities and other
beneficiaries ($638 million in FY17)
Established through New Mexicorsquos entry into statehood in 1912 the LGPF has evolved and
grown over time due to revenue from leases and royalties produced by non-renewable
natural resources in New Mexico (primarily oil and gas) and income from returns on
invested capital
The 11-member State Investment Council and its staff are fiduciaries to the Fund and invest
the LGPF in accordance with the Uniform Prudent Investor Act standard
7
8
9
10
11
12
Irrigation Works Construction Fund (IWCF) Projections
ACTUAL PRE-AUDIT
FY16 FY17 FY18 FY19
BEGINNING BALANCE $15207005 $13509420 $14379216 $7027116
REVENUE
Permanent Fund $6633195 $5818195 $6000000 $6000000
InterestLoans $23408 $21427 $25000 $25000
Lease Income $747611 $2961863 $1000000 $1000000
Investment Income (Loss) $342433 $1768626 $400000 $400000
Miscellaneous $35800 $6000 $35000 $35000
TOTAL REVENUE $7782447 $10576111 $7460000 $7460000
EXPENDITURES
Specials amp BAR Authority $2500000 $2175000
Operating Budget $9480032 $9706315 $12312100 $12312100
TOTAL EXPENDITURES $9480032 $9706315 $14812100 $14487100
ADJUSTED BALANCE $13509420 $14379216 $7027116 $16
IRRIGATION WORKS CONSTRUCTION FUND (326)
PROJECTED
13
IWCF Distribution by Program for the FY18 appropriated budget amount of $123121M
Water Rights
Allocation
Program 184460$ 15
Interstate
Stream
Commission 704640$ 57
Litigation amp
Adjudication
Program 249200$ 20
Program
Support 92910$ 8
14
IRGIF
72-14-4 Budget and plan submitted to governor annually
The interstate stream commission shall annually prepare and submit a budget together
with a complete and detailed plan looking toward the improvement of the Rio Grande in
this state and increasing the surface flow of water in the river during the ensuing
fiscal year The plan and budget shall be submitted annually in accordance with the
provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
History Laws 1935 ch 24 sect 1 1941 Comp sect 77-3304 Laws 1947 ch 131 sect 1 1953
Comp sect 75-34-4 Laws 1973 ch 201 sect 1 1997 ch 241 sect 1 1997 ch 246 sect 1
15
Improvement to the Rio Grande Income Fund (IRGIF)
ACTUAL PRE-AUDIT
FY16 FY17 FY18 FY19
BEGINNING BALANCE $6502230 $6574788 $8830893 $6648293
REVENUE
Permanent Fund $1495407 $1329890 $1400000 $1400000
Lease Income $90505 $1443926 $100000 $100000
Investment Income (Loss) $35837 $245214 $50000 $50000
TOTAL REVENUE $1621749 $3019030 $1550000 $1550000
EXPENDITURES
Specials amp BAR Authority $1200000 $272000
Operating Budget $1549191 $762925 $2532600 $2532600
TOTAL EXPENDITURES $1549191 $762925 $3732600 $2804600
ADJUSTED BALANCE $6574788 $8830893 $6648293 $5393693
IMPROVEMENT OF THE RIO GRANDE INCOME FUND (328)
PROJECTED
16
IRGIF Distribution for the FY18 appropriated budget amount of $25326
Water Rights
Allocation
Program 14760$ 6
Interstate
Stream
Commission 238500$ 94
17
Emergency Drought Water Agreement Revenue
bull Revenue Source Relinquishment credit stored amp released pursuant to the EDWA agreement
bull Fund Balance $2691342
bull Revenue Budget Process
ndash For FY19 budgeted $668k in the FY19 appropriation request for personnel costs
ndash Also budget funds on an as needed basis through the Budget Adjustment Process but need authority in the GAA
18
19
20
21
22
23
24
25
26
27
28
29
30
Ute Revenues
bull Fund originally set up to pay bond debt issued years ago for Ute Dam
bull Revenues from bulk water sale encroachment license fees amp easements deposited into the fund
bull Revenues historically have been used for operation amp maintenance costs for Ute dam
bull Fund Balance $626593
bull Revenue Budget Process
ndash Budget revenue on an as needed basis through the budget adjustment request process (BAR) bull Need to request specific BAR language in the appropriation request process in order to
budget the funds since the Ute Construction Fund does not give the Commission authority to budget the revenue
31
Active Capital Outlay Appropriations
bull $1M to purchase land and water rights within the interstate stream commissions existing pricing guidelines
and for the development of augmentation well fields and pipelines and related professional services for the Pecos River Compact settlement for the Pecos Settlement to purchase water rights (funded from the Attorney General Settlement Fund) ndashAvailable Balance = $4266k
bull $2M - notwithstanding the provisions of the Water Project Finance Act to the contrary is appropriated from
the water project fund to the office of the state engineer for expenditure in fiscal years 2016 through 2020 unless otherwise provided in Section 2 of this act to plan design and construct an engineered levee in the San Acacia reach in Socorro county- Available Balance = $14M
bull $2M to plan design renovate construct and equip improvements to acequias statewide (Attorney
General Settlement Fund) Available Balance Available Balance = $1005k bull $900k to rehab the LLSMR to plan design remodel rebuild construct and equip conservation rearing
ponds and hatcheries for a silvery minnow refugium production facility in Los Lunas in Valencia county (STB revenue bonds) Available Balance $0
bull $450k to plan design and construct habitat restoration projects in the middle Rio Grande conservancy
district or habitat restoration in the MRG (STB revenue Bonds) Available Balance = $1455k bull IWR appropriations ndash $58M Fund Balance for Taos Settlement bull Flow through appropriations to the ISC to act as fiscal agent for specific acequia projects ndash 28 current
appropriations that total approximately $13M
32
State Budget Process
bull Statutory Deadlines amp Submittals of Required Documents
bull Analysis amp Recommendation Process
bull What Happens During the Session (executive perspective)
33
Important to remember throughout this process
bull The Governor is our boss and controls what we will officially request in the appropriation request process
bull The Governor through the Department of Finance and Administration and the Legislature control the budget budget increases what is allowable to budget the dollar amount and time period and the request to move budget between appropriated budget categories
bull There are always exceptions to the appropriation request process
ndash Every administration interprets policies processes and laws differently and applies it based on their interpretation
bull Take inventory of our budget needs in July to be prepared to discuss and try and persuade the Governors office and DFA to allow us to make the official request on paper
ndash If not allowed to make the official budget request then cannot lobby for the budget need (need to be careful on how to respond when asked about the need)
bull Another chance to make a difference to the recommendation is the first few weeks of January to persuade the DFA andor LFC that their recommendation will not work for the agency before their recommendation is adopted in HAFC for the GAA (HB2)
34
Budget Requests Time Line
bullInfrastructure Capital Improvement Plan Due (ICIP) Statutory Deadline
July 1st
bullAppropriation Request Statutory Deadline September 1st
bullDFA State Budget Division amp Legislative Finance Committee staff analyze agency budget requests amp hold meetings and hearings to pursue issues pertinent to requests
Sept - Dec
bullInstructions amp deadlines for the Special Appropriations Deficiencies Supplemental and Budget Adjustment Request Authority submittals
October - November
bullState law requires the Governor to prepare a budget to the LFC January 5th (even yrs) January10th (odd years)
bullLFC amp SBD prepare different sheets that shows major differences in revenues expenditures amp total budget between the executive and LFC recommendations
January
bullHAFC holds budget hearings in which the different sheets are presented and the committee will either adopt the executive recommendation
Session
bullOperating Budget Submittal Statutory Deadline May 1st
35
Capital Improvement Plan (ICIP) (July 1)
bull Governor amp DFA do not usually restrict agencies from submitted their capital outlay needs in the 5 year plan
bull Purchase of assets ie water rights equipment etc
bull Construction ie pipelines buildings etc
bull Long term in nature
bull Personnel costs not allowed
bull Appropriated for longer time frame 4 years amp 3 years to purchase an asset
bull If bonds are certified for project than 5 of appropriation must be expended within 6 months and 85 expended within 3 years
bull Funding Sources for projects from either GO Bonds Severance Tax Bonds or General Fund
36
37
38
The State Budget Act (sect6-3A-7 NMSA 1978) and the
Accountability in Government Act (sect6-3A-1 to 6-3A-8 NMSA
1978) set forth the framework and requirements for state
government budgeting in New Mexico
39
State Budget Act
6-3-19 Agencies to complete budget forms
Each state agency shall fill out the budget forms provided for in Section 6-3-18 NMSA 1978 in the
manner prescribed by the state budget division Each state agency in completing the budget forms
shall include information for all divisions subdivisions and offices of the agency Related agencies
upon approval of the state budget division may join in submitting one set of budget forms
Completed budget forms shall be returned to the state budget division not later than September 1 in
each year
History 1953 Comp sect 11-4-75 enacted by Laws 1955 ch 114 sect 10 1963 ch 147 sect 3 1977
ch 247 sect 130 1999 ch 5 sect 11 1999 ch 15 sect 11
40
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
2
How Revenues are Budgeted
bull Appropriation Request Process
ndash Revenue Budgeted in the Operating Budget
bull General authority usually given in the General Appropriation Act
bull Budget Adjustment Request (BAR) authority requested in the Appropriation Process
bull Other Acts of the Legislature
ndash Funds set up by Statute
bull Infrastructure Capital Improvement Plan Request Process
3
General Fund
The general fund is the primary fund from which the operations of state government
are financed and is the largest fund in terms of annual revenues It is also the
default fund into which revenue sources are deposited Section 6-4-2 NMSA 1978
provides that the state treasurer shall credit all revenues not otherwise allocated by
law to the general fund General Fund revenues consist of gross receipts and
compensating tax selective sales taxes income taxes and interest earnings
including distributions from the land grant permanent fund and severance tax
permanent fund and earnings on balances held by the state treasurer
4
Irrigation Works Construction Fund (IWCF) amp Improvement to the Rio Grande Income Fund (IRGIF)
Trust Funds
The Trust Funds Revenue Source Background The Ferguson Act of 1898 designated about one-ninth of all land in the state as trust land to
benefit certain public institutions The legislation identified the beneficiaries of the trust land
dedicated the amount of land to be held in trust for each beneficiary and provided for a board
made up of the public land commissioner territorial Governor and solicitor general of the
territory to assign specific tracts of trust land to each beneficiary
The act designated 500000 trust land acres to benefit reservoirs and other irrigation
works and 100000 acres to fund improvements to the Rio Grande These lands and the
trust lands set aside for 19 other beneficiaries are managed by the State Land Office which
transfers the income from certain revenue-raising activities directly to the beneficiaries
and deposits the revenue from activities that deplete the resource ndash such as mining ndash in
the Land Grant Permanent Fund That fund is invested by the State Investment Council and
the investment income is distributed to the trust beneficiaries
6
Land Grant Permanent Fund
The Land Grant Permanent Fund (LGPF) also known as the Permanent School Fund is one
of the largest funds of its kind in the country and every year provides more than a half-
billion dollars in benefits to New Mexicorsquos public schools universities and other
beneficiaries ($638 million in FY17)
Established through New Mexicorsquos entry into statehood in 1912 the LGPF has evolved and
grown over time due to revenue from leases and royalties produced by non-renewable
natural resources in New Mexico (primarily oil and gas) and income from returns on
invested capital
The 11-member State Investment Council and its staff are fiduciaries to the Fund and invest
the LGPF in accordance with the Uniform Prudent Investor Act standard
7
8
9
10
11
12
Irrigation Works Construction Fund (IWCF) Projections
ACTUAL PRE-AUDIT
FY16 FY17 FY18 FY19
BEGINNING BALANCE $15207005 $13509420 $14379216 $7027116
REVENUE
Permanent Fund $6633195 $5818195 $6000000 $6000000
InterestLoans $23408 $21427 $25000 $25000
Lease Income $747611 $2961863 $1000000 $1000000
Investment Income (Loss) $342433 $1768626 $400000 $400000
Miscellaneous $35800 $6000 $35000 $35000
TOTAL REVENUE $7782447 $10576111 $7460000 $7460000
EXPENDITURES
Specials amp BAR Authority $2500000 $2175000
Operating Budget $9480032 $9706315 $12312100 $12312100
TOTAL EXPENDITURES $9480032 $9706315 $14812100 $14487100
ADJUSTED BALANCE $13509420 $14379216 $7027116 $16
IRRIGATION WORKS CONSTRUCTION FUND (326)
PROJECTED
13
IWCF Distribution by Program for the FY18 appropriated budget amount of $123121M
Water Rights
Allocation
Program 184460$ 15
Interstate
Stream
Commission 704640$ 57
Litigation amp
Adjudication
Program 249200$ 20
Program
Support 92910$ 8
14
IRGIF
72-14-4 Budget and plan submitted to governor annually
The interstate stream commission shall annually prepare and submit a budget together
with a complete and detailed plan looking toward the improvement of the Rio Grande in
this state and increasing the surface flow of water in the river during the ensuing
fiscal year The plan and budget shall be submitted annually in accordance with the
provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
History Laws 1935 ch 24 sect 1 1941 Comp sect 77-3304 Laws 1947 ch 131 sect 1 1953
Comp sect 75-34-4 Laws 1973 ch 201 sect 1 1997 ch 241 sect 1 1997 ch 246 sect 1
15
Improvement to the Rio Grande Income Fund (IRGIF)
ACTUAL PRE-AUDIT
FY16 FY17 FY18 FY19
BEGINNING BALANCE $6502230 $6574788 $8830893 $6648293
REVENUE
Permanent Fund $1495407 $1329890 $1400000 $1400000
Lease Income $90505 $1443926 $100000 $100000
Investment Income (Loss) $35837 $245214 $50000 $50000
TOTAL REVENUE $1621749 $3019030 $1550000 $1550000
EXPENDITURES
Specials amp BAR Authority $1200000 $272000
Operating Budget $1549191 $762925 $2532600 $2532600
TOTAL EXPENDITURES $1549191 $762925 $3732600 $2804600
ADJUSTED BALANCE $6574788 $8830893 $6648293 $5393693
IMPROVEMENT OF THE RIO GRANDE INCOME FUND (328)
PROJECTED
16
IRGIF Distribution for the FY18 appropriated budget amount of $25326
Water Rights
Allocation
Program 14760$ 6
Interstate
Stream
Commission 238500$ 94
17
Emergency Drought Water Agreement Revenue
bull Revenue Source Relinquishment credit stored amp released pursuant to the EDWA agreement
bull Fund Balance $2691342
bull Revenue Budget Process
ndash For FY19 budgeted $668k in the FY19 appropriation request for personnel costs
ndash Also budget funds on an as needed basis through the Budget Adjustment Process but need authority in the GAA
18
19
20
21
22
23
24
25
26
27
28
29
30
Ute Revenues
bull Fund originally set up to pay bond debt issued years ago for Ute Dam
bull Revenues from bulk water sale encroachment license fees amp easements deposited into the fund
bull Revenues historically have been used for operation amp maintenance costs for Ute dam
bull Fund Balance $626593
bull Revenue Budget Process
ndash Budget revenue on an as needed basis through the budget adjustment request process (BAR) bull Need to request specific BAR language in the appropriation request process in order to
budget the funds since the Ute Construction Fund does not give the Commission authority to budget the revenue
31
Active Capital Outlay Appropriations
bull $1M to purchase land and water rights within the interstate stream commissions existing pricing guidelines
and for the development of augmentation well fields and pipelines and related professional services for the Pecos River Compact settlement for the Pecos Settlement to purchase water rights (funded from the Attorney General Settlement Fund) ndashAvailable Balance = $4266k
bull $2M - notwithstanding the provisions of the Water Project Finance Act to the contrary is appropriated from
the water project fund to the office of the state engineer for expenditure in fiscal years 2016 through 2020 unless otherwise provided in Section 2 of this act to plan design and construct an engineered levee in the San Acacia reach in Socorro county- Available Balance = $14M
bull $2M to plan design renovate construct and equip improvements to acequias statewide (Attorney
General Settlement Fund) Available Balance Available Balance = $1005k bull $900k to rehab the LLSMR to plan design remodel rebuild construct and equip conservation rearing
ponds and hatcheries for a silvery minnow refugium production facility in Los Lunas in Valencia county (STB revenue bonds) Available Balance $0
bull $450k to plan design and construct habitat restoration projects in the middle Rio Grande conservancy
district or habitat restoration in the MRG (STB revenue Bonds) Available Balance = $1455k bull IWR appropriations ndash $58M Fund Balance for Taos Settlement bull Flow through appropriations to the ISC to act as fiscal agent for specific acequia projects ndash 28 current
appropriations that total approximately $13M
32
State Budget Process
bull Statutory Deadlines amp Submittals of Required Documents
bull Analysis amp Recommendation Process
bull What Happens During the Session (executive perspective)
33
Important to remember throughout this process
bull The Governor is our boss and controls what we will officially request in the appropriation request process
bull The Governor through the Department of Finance and Administration and the Legislature control the budget budget increases what is allowable to budget the dollar amount and time period and the request to move budget between appropriated budget categories
bull There are always exceptions to the appropriation request process
ndash Every administration interprets policies processes and laws differently and applies it based on their interpretation
bull Take inventory of our budget needs in July to be prepared to discuss and try and persuade the Governors office and DFA to allow us to make the official request on paper
ndash If not allowed to make the official budget request then cannot lobby for the budget need (need to be careful on how to respond when asked about the need)
bull Another chance to make a difference to the recommendation is the first few weeks of January to persuade the DFA andor LFC that their recommendation will not work for the agency before their recommendation is adopted in HAFC for the GAA (HB2)
34
Budget Requests Time Line
bullInfrastructure Capital Improvement Plan Due (ICIP) Statutory Deadline
July 1st
bullAppropriation Request Statutory Deadline September 1st
bullDFA State Budget Division amp Legislative Finance Committee staff analyze agency budget requests amp hold meetings and hearings to pursue issues pertinent to requests
Sept - Dec
bullInstructions amp deadlines for the Special Appropriations Deficiencies Supplemental and Budget Adjustment Request Authority submittals
October - November
bullState law requires the Governor to prepare a budget to the LFC January 5th (even yrs) January10th (odd years)
bullLFC amp SBD prepare different sheets that shows major differences in revenues expenditures amp total budget between the executive and LFC recommendations
January
bullHAFC holds budget hearings in which the different sheets are presented and the committee will either adopt the executive recommendation
Session
bullOperating Budget Submittal Statutory Deadline May 1st
35
Capital Improvement Plan (ICIP) (July 1)
bull Governor amp DFA do not usually restrict agencies from submitted their capital outlay needs in the 5 year plan
bull Purchase of assets ie water rights equipment etc
bull Construction ie pipelines buildings etc
bull Long term in nature
bull Personnel costs not allowed
bull Appropriated for longer time frame 4 years amp 3 years to purchase an asset
bull If bonds are certified for project than 5 of appropriation must be expended within 6 months and 85 expended within 3 years
bull Funding Sources for projects from either GO Bonds Severance Tax Bonds or General Fund
36
37
38
The State Budget Act (sect6-3A-7 NMSA 1978) and the
Accountability in Government Act (sect6-3A-1 to 6-3A-8 NMSA
1978) set forth the framework and requirements for state
government budgeting in New Mexico
39
State Budget Act
6-3-19 Agencies to complete budget forms
Each state agency shall fill out the budget forms provided for in Section 6-3-18 NMSA 1978 in the
manner prescribed by the state budget division Each state agency in completing the budget forms
shall include information for all divisions subdivisions and offices of the agency Related agencies
upon approval of the state budget division may join in submitting one set of budget forms
Completed budget forms shall be returned to the state budget division not later than September 1 in
each year
History 1953 Comp sect 11-4-75 enacted by Laws 1955 ch 114 sect 10 1963 ch 147 sect 3 1977
ch 247 sect 130 1999 ch 5 sect 11 1999 ch 15 sect 11
40
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
How Revenues are Budgeted
bull Appropriation Request Process
ndash Revenue Budgeted in the Operating Budget
bull General authority usually given in the General Appropriation Act
bull Budget Adjustment Request (BAR) authority requested in the Appropriation Process
bull Other Acts of the Legislature
ndash Funds set up by Statute
bull Infrastructure Capital Improvement Plan Request Process
3
General Fund
The general fund is the primary fund from which the operations of state government
are financed and is the largest fund in terms of annual revenues It is also the
default fund into which revenue sources are deposited Section 6-4-2 NMSA 1978
provides that the state treasurer shall credit all revenues not otherwise allocated by
law to the general fund General Fund revenues consist of gross receipts and
compensating tax selective sales taxes income taxes and interest earnings
including distributions from the land grant permanent fund and severance tax
permanent fund and earnings on balances held by the state treasurer
4
Irrigation Works Construction Fund (IWCF) amp Improvement to the Rio Grande Income Fund (IRGIF)
Trust Funds
The Trust Funds Revenue Source Background The Ferguson Act of 1898 designated about one-ninth of all land in the state as trust land to
benefit certain public institutions The legislation identified the beneficiaries of the trust land
dedicated the amount of land to be held in trust for each beneficiary and provided for a board
made up of the public land commissioner territorial Governor and solicitor general of the
territory to assign specific tracts of trust land to each beneficiary
The act designated 500000 trust land acres to benefit reservoirs and other irrigation
works and 100000 acres to fund improvements to the Rio Grande These lands and the
trust lands set aside for 19 other beneficiaries are managed by the State Land Office which
transfers the income from certain revenue-raising activities directly to the beneficiaries
and deposits the revenue from activities that deplete the resource ndash such as mining ndash in
the Land Grant Permanent Fund That fund is invested by the State Investment Council and
the investment income is distributed to the trust beneficiaries
6
Land Grant Permanent Fund
The Land Grant Permanent Fund (LGPF) also known as the Permanent School Fund is one
of the largest funds of its kind in the country and every year provides more than a half-
billion dollars in benefits to New Mexicorsquos public schools universities and other
beneficiaries ($638 million in FY17)
Established through New Mexicorsquos entry into statehood in 1912 the LGPF has evolved and
grown over time due to revenue from leases and royalties produced by non-renewable
natural resources in New Mexico (primarily oil and gas) and income from returns on
invested capital
The 11-member State Investment Council and its staff are fiduciaries to the Fund and invest
the LGPF in accordance with the Uniform Prudent Investor Act standard
7
8
9
10
11
12
Irrigation Works Construction Fund (IWCF) Projections
ACTUAL PRE-AUDIT
FY16 FY17 FY18 FY19
BEGINNING BALANCE $15207005 $13509420 $14379216 $7027116
REVENUE
Permanent Fund $6633195 $5818195 $6000000 $6000000
InterestLoans $23408 $21427 $25000 $25000
Lease Income $747611 $2961863 $1000000 $1000000
Investment Income (Loss) $342433 $1768626 $400000 $400000
Miscellaneous $35800 $6000 $35000 $35000
TOTAL REVENUE $7782447 $10576111 $7460000 $7460000
EXPENDITURES
Specials amp BAR Authority $2500000 $2175000
Operating Budget $9480032 $9706315 $12312100 $12312100
TOTAL EXPENDITURES $9480032 $9706315 $14812100 $14487100
ADJUSTED BALANCE $13509420 $14379216 $7027116 $16
IRRIGATION WORKS CONSTRUCTION FUND (326)
PROJECTED
13
IWCF Distribution by Program for the FY18 appropriated budget amount of $123121M
Water Rights
Allocation
Program 184460$ 15
Interstate
Stream
Commission 704640$ 57
Litigation amp
Adjudication
Program 249200$ 20
Program
Support 92910$ 8
14
IRGIF
72-14-4 Budget and plan submitted to governor annually
The interstate stream commission shall annually prepare and submit a budget together
with a complete and detailed plan looking toward the improvement of the Rio Grande in
this state and increasing the surface flow of water in the river during the ensuing
fiscal year The plan and budget shall be submitted annually in accordance with the
provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
History Laws 1935 ch 24 sect 1 1941 Comp sect 77-3304 Laws 1947 ch 131 sect 1 1953
Comp sect 75-34-4 Laws 1973 ch 201 sect 1 1997 ch 241 sect 1 1997 ch 246 sect 1
15
Improvement to the Rio Grande Income Fund (IRGIF)
ACTUAL PRE-AUDIT
FY16 FY17 FY18 FY19
BEGINNING BALANCE $6502230 $6574788 $8830893 $6648293
REVENUE
Permanent Fund $1495407 $1329890 $1400000 $1400000
Lease Income $90505 $1443926 $100000 $100000
Investment Income (Loss) $35837 $245214 $50000 $50000
TOTAL REVENUE $1621749 $3019030 $1550000 $1550000
EXPENDITURES
Specials amp BAR Authority $1200000 $272000
Operating Budget $1549191 $762925 $2532600 $2532600
TOTAL EXPENDITURES $1549191 $762925 $3732600 $2804600
ADJUSTED BALANCE $6574788 $8830893 $6648293 $5393693
IMPROVEMENT OF THE RIO GRANDE INCOME FUND (328)
PROJECTED
16
IRGIF Distribution for the FY18 appropriated budget amount of $25326
Water Rights
Allocation
Program 14760$ 6
Interstate
Stream
Commission 238500$ 94
17
Emergency Drought Water Agreement Revenue
bull Revenue Source Relinquishment credit stored amp released pursuant to the EDWA agreement
bull Fund Balance $2691342
bull Revenue Budget Process
ndash For FY19 budgeted $668k in the FY19 appropriation request for personnel costs
ndash Also budget funds on an as needed basis through the Budget Adjustment Process but need authority in the GAA
18
19
20
21
22
23
24
25
26
27
28
29
30
Ute Revenues
bull Fund originally set up to pay bond debt issued years ago for Ute Dam
bull Revenues from bulk water sale encroachment license fees amp easements deposited into the fund
bull Revenues historically have been used for operation amp maintenance costs for Ute dam
bull Fund Balance $626593
bull Revenue Budget Process
ndash Budget revenue on an as needed basis through the budget adjustment request process (BAR) bull Need to request specific BAR language in the appropriation request process in order to
budget the funds since the Ute Construction Fund does not give the Commission authority to budget the revenue
31
Active Capital Outlay Appropriations
bull $1M to purchase land and water rights within the interstate stream commissions existing pricing guidelines
and for the development of augmentation well fields and pipelines and related professional services for the Pecos River Compact settlement for the Pecos Settlement to purchase water rights (funded from the Attorney General Settlement Fund) ndashAvailable Balance = $4266k
bull $2M - notwithstanding the provisions of the Water Project Finance Act to the contrary is appropriated from
the water project fund to the office of the state engineer for expenditure in fiscal years 2016 through 2020 unless otherwise provided in Section 2 of this act to plan design and construct an engineered levee in the San Acacia reach in Socorro county- Available Balance = $14M
bull $2M to plan design renovate construct and equip improvements to acequias statewide (Attorney
General Settlement Fund) Available Balance Available Balance = $1005k bull $900k to rehab the LLSMR to plan design remodel rebuild construct and equip conservation rearing
ponds and hatcheries for a silvery minnow refugium production facility in Los Lunas in Valencia county (STB revenue bonds) Available Balance $0
bull $450k to plan design and construct habitat restoration projects in the middle Rio Grande conservancy
district or habitat restoration in the MRG (STB revenue Bonds) Available Balance = $1455k bull IWR appropriations ndash $58M Fund Balance for Taos Settlement bull Flow through appropriations to the ISC to act as fiscal agent for specific acequia projects ndash 28 current
appropriations that total approximately $13M
32
State Budget Process
bull Statutory Deadlines amp Submittals of Required Documents
bull Analysis amp Recommendation Process
bull What Happens During the Session (executive perspective)
33
Important to remember throughout this process
bull The Governor is our boss and controls what we will officially request in the appropriation request process
bull The Governor through the Department of Finance and Administration and the Legislature control the budget budget increases what is allowable to budget the dollar amount and time period and the request to move budget between appropriated budget categories
bull There are always exceptions to the appropriation request process
ndash Every administration interprets policies processes and laws differently and applies it based on their interpretation
bull Take inventory of our budget needs in July to be prepared to discuss and try and persuade the Governors office and DFA to allow us to make the official request on paper
ndash If not allowed to make the official budget request then cannot lobby for the budget need (need to be careful on how to respond when asked about the need)
bull Another chance to make a difference to the recommendation is the first few weeks of January to persuade the DFA andor LFC that their recommendation will not work for the agency before their recommendation is adopted in HAFC for the GAA (HB2)
34
Budget Requests Time Line
bullInfrastructure Capital Improvement Plan Due (ICIP) Statutory Deadline
July 1st
bullAppropriation Request Statutory Deadline September 1st
bullDFA State Budget Division amp Legislative Finance Committee staff analyze agency budget requests amp hold meetings and hearings to pursue issues pertinent to requests
Sept - Dec
bullInstructions amp deadlines for the Special Appropriations Deficiencies Supplemental and Budget Adjustment Request Authority submittals
October - November
bullState law requires the Governor to prepare a budget to the LFC January 5th (even yrs) January10th (odd years)
bullLFC amp SBD prepare different sheets that shows major differences in revenues expenditures amp total budget between the executive and LFC recommendations
January
bullHAFC holds budget hearings in which the different sheets are presented and the committee will either adopt the executive recommendation
Session
bullOperating Budget Submittal Statutory Deadline May 1st
35
Capital Improvement Plan (ICIP) (July 1)
bull Governor amp DFA do not usually restrict agencies from submitted their capital outlay needs in the 5 year plan
bull Purchase of assets ie water rights equipment etc
bull Construction ie pipelines buildings etc
bull Long term in nature
bull Personnel costs not allowed
bull Appropriated for longer time frame 4 years amp 3 years to purchase an asset
bull If bonds are certified for project than 5 of appropriation must be expended within 6 months and 85 expended within 3 years
bull Funding Sources for projects from either GO Bonds Severance Tax Bonds or General Fund
36
37
38
The State Budget Act (sect6-3A-7 NMSA 1978) and the
Accountability in Government Act (sect6-3A-1 to 6-3A-8 NMSA
1978) set forth the framework and requirements for state
government budgeting in New Mexico
39
State Budget Act
6-3-19 Agencies to complete budget forms
Each state agency shall fill out the budget forms provided for in Section 6-3-18 NMSA 1978 in the
manner prescribed by the state budget division Each state agency in completing the budget forms
shall include information for all divisions subdivisions and offices of the agency Related agencies
upon approval of the state budget division may join in submitting one set of budget forms
Completed budget forms shall be returned to the state budget division not later than September 1 in
each year
History 1953 Comp sect 11-4-75 enacted by Laws 1955 ch 114 sect 10 1963 ch 147 sect 3 1977
ch 247 sect 130 1999 ch 5 sect 11 1999 ch 15 sect 11
40
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
General Fund
The general fund is the primary fund from which the operations of state government
are financed and is the largest fund in terms of annual revenues It is also the
default fund into which revenue sources are deposited Section 6-4-2 NMSA 1978
provides that the state treasurer shall credit all revenues not otherwise allocated by
law to the general fund General Fund revenues consist of gross receipts and
compensating tax selective sales taxes income taxes and interest earnings
including distributions from the land grant permanent fund and severance tax
permanent fund and earnings on balances held by the state treasurer
4
Irrigation Works Construction Fund (IWCF) amp Improvement to the Rio Grande Income Fund (IRGIF)
Trust Funds
The Trust Funds Revenue Source Background The Ferguson Act of 1898 designated about one-ninth of all land in the state as trust land to
benefit certain public institutions The legislation identified the beneficiaries of the trust land
dedicated the amount of land to be held in trust for each beneficiary and provided for a board
made up of the public land commissioner territorial Governor and solicitor general of the
territory to assign specific tracts of trust land to each beneficiary
The act designated 500000 trust land acres to benefit reservoirs and other irrigation
works and 100000 acres to fund improvements to the Rio Grande These lands and the
trust lands set aside for 19 other beneficiaries are managed by the State Land Office which
transfers the income from certain revenue-raising activities directly to the beneficiaries
and deposits the revenue from activities that deplete the resource ndash such as mining ndash in
the Land Grant Permanent Fund That fund is invested by the State Investment Council and
the investment income is distributed to the trust beneficiaries
6
Land Grant Permanent Fund
The Land Grant Permanent Fund (LGPF) also known as the Permanent School Fund is one
of the largest funds of its kind in the country and every year provides more than a half-
billion dollars in benefits to New Mexicorsquos public schools universities and other
beneficiaries ($638 million in FY17)
Established through New Mexicorsquos entry into statehood in 1912 the LGPF has evolved and
grown over time due to revenue from leases and royalties produced by non-renewable
natural resources in New Mexico (primarily oil and gas) and income from returns on
invested capital
The 11-member State Investment Council and its staff are fiduciaries to the Fund and invest
the LGPF in accordance with the Uniform Prudent Investor Act standard
7
8
9
10
11
12
Irrigation Works Construction Fund (IWCF) Projections
ACTUAL PRE-AUDIT
FY16 FY17 FY18 FY19
BEGINNING BALANCE $15207005 $13509420 $14379216 $7027116
REVENUE
Permanent Fund $6633195 $5818195 $6000000 $6000000
InterestLoans $23408 $21427 $25000 $25000
Lease Income $747611 $2961863 $1000000 $1000000
Investment Income (Loss) $342433 $1768626 $400000 $400000
Miscellaneous $35800 $6000 $35000 $35000
TOTAL REVENUE $7782447 $10576111 $7460000 $7460000
EXPENDITURES
Specials amp BAR Authority $2500000 $2175000
Operating Budget $9480032 $9706315 $12312100 $12312100
TOTAL EXPENDITURES $9480032 $9706315 $14812100 $14487100
ADJUSTED BALANCE $13509420 $14379216 $7027116 $16
IRRIGATION WORKS CONSTRUCTION FUND (326)
PROJECTED
13
IWCF Distribution by Program for the FY18 appropriated budget amount of $123121M
Water Rights
Allocation
Program 184460$ 15
Interstate
Stream
Commission 704640$ 57
Litigation amp
Adjudication
Program 249200$ 20
Program
Support 92910$ 8
14
IRGIF
72-14-4 Budget and plan submitted to governor annually
The interstate stream commission shall annually prepare and submit a budget together
with a complete and detailed plan looking toward the improvement of the Rio Grande in
this state and increasing the surface flow of water in the river during the ensuing
fiscal year The plan and budget shall be submitted annually in accordance with the
provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
History Laws 1935 ch 24 sect 1 1941 Comp sect 77-3304 Laws 1947 ch 131 sect 1 1953
Comp sect 75-34-4 Laws 1973 ch 201 sect 1 1997 ch 241 sect 1 1997 ch 246 sect 1
15
Improvement to the Rio Grande Income Fund (IRGIF)
ACTUAL PRE-AUDIT
FY16 FY17 FY18 FY19
BEGINNING BALANCE $6502230 $6574788 $8830893 $6648293
REVENUE
Permanent Fund $1495407 $1329890 $1400000 $1400000
Lease Income $90505 $1443926 $100000 $100000
Investment Income (Loss) $35837 $245214 $50000 $50000
TOTAL REVENUE $1621749 $3019030 $1550000 $1550000
EXPENDITURES
Specials amp BAR Authority $1200000 $272000
Operating Budget $1549191 $762925 $2532600 $2532600
TOTAL EXPENDITURES $1549191 $762925 $3732600 $2804600
ADJUSTED BALANCE $6574788 $8830893 $6648293 $5393693
IMPROVEMENT OF THE RIO GRANDE INCOME FUND (328)
PROJECTED
16
IRGIF Distribution for the FY18 appropriated budget amount of $25326
Water Rights
Allocation
Program 14760$ 6
Interstate
Stream
Commission 238500$ 94
17
Emergency Drought Water Agreement Revenue
bull Revenue Source Relinquishment credit stored amp released pursuant to the EDWA agreement
bull Fund Balance $2691342
bull Revenue Budget Process
ndash For FY19 budgeted $668k in the FY19 appropriation request for personnel costs
ndash Also budget funds on an as needed basis through the Budget Adjustment Process but need authority in the GAA
18
19
20
21
22
23
24
25
26
27
28
29
30
Ute Revenues
bull Fund originally set up to pay bond debt issued years ago for Ute Dam
bull Revenues from bulk water sale encroachment license fees amp easements deposited into the fund
bull Revenues historically have been used for operation amp maintenance costs for Ute dam
bull Fund Balance $626593
bull Revenue Budget Process
ndash Budget revenue on an as needed basis through the budget adjustment request process (BAR) bull Need to request specific BAR language in the appropriation request process in order to
budget the funds since the Ute Construction Fund does not give the Commission authority to budget the revenue
31
Active Capital Outlay Appropriations
bull $1M to purchase land and water rights within the interstate stream commissions existing pricing guidelines
and for the development of augmentation well fields and pipelines and related professional services for the Pecos River Compact settlement for the Pecos Settlement to purchase water rights (funded from the Attorney General Settlement Fund) ndashAvailable Balance = $4266k
bull $2M - notwithstanding the provisions of the Water Project Finance Act to the contrary is appropriated from
the water project fund to the office of the state engineer for expenditure in fiscal years 2016 through 2020 unless otherwise provided in Section 2 of this act to plan design and construct an engineered levee in the San Acacia reach in Socorro county- Available Balance = $14M
bull $2M to plan design renovate construct and equip improvements to acequias statewide (Attorney
General Settlement Fund) Available Balance Available Balance = $1005k bull $900k to rehab the LLSMR to plan design remodel rebuild construct and equip conservation rearing
ponds and hatcheries for a silvery minnow refugium production facility in Los Lunas in Valencia county (STB revenue bonds) Available Balance $0
bull $450k to plan design and construct habitat restoration projects in the middle Rio Grande conservancy
district or habitat restoration in the MRG (STB revenue Bonds) Available Balance = $1455k bull IWR appropriations ndash $58M Fund Balance for Taos Settlement bull Flow through appropriations to the ISC to act as fiscal agent for specific acequia projects ndash 28 current
appropriations that total approximately $13M
32
State Budget Process
bull Statutory Deadlines amp Submittals of Required Documents
bull Analysis amp Recommendation Process
bull What Happens During the Session (executive perspective)
33
Important to remember throughout this process
bull The Governor is our boss and controls what we will officially request in the appropriation request process
bull The Governor through the Department of Finance and Administration and the Legislature control the budget budget increases what is allowable to budget the dollar amount and time period and the request to move budget between appropriated budget categories
bull There are always exceptions to the appropriation request process
ndash Every administration interprets policies processes and laws differently and applies it based on their interpretation
bull Take inventory of our budget needs in July to be prepared to discuss and try and persuade the Governors office and DFA to allow us to make the official request on paper
ndash If not allowed to make the official budget request then cannot lobby for the budget need (need to be careful on how to respond when asked about the need)
bull Another chance to make a difference to the recommendation is the first few weeks of January to persuade the DFA andor LFC that their recommendation will not work for the agency before their recommendation is adopted in HAFC for the GAA (HB2)
34
Budget Requests Time Line
bullInfrastructure Capital Improvement Plan Due (ICIP) Statutory Deadline
July 1st
bullAppropriation Request Statutory Deadline September 1st
bullDFA State Budget Division amp Legislative Finance Committee staff analyze agency budget requests amp hold meetings and hearings to pursue issues pertinent to requests
Sept - Dec
bullInstructions amp deadlines for the Special Appropriations Deficiencies Supplemental and Budget Adjustment Request Authority submittals
October - November
bullState law requires the Governor to prepare a budget to the LFC January 5th (even yrs) January10th (odd years)
bullLFC amp SBD prepare different sheets that shows major differences in revenues expenditures amp total budget between the executive and LFC recommendations
January
bullHAFC holds budget hearings in which the different sheets are presented and the committee will either adopt the executive recommendation
Session
bullOperating Budget Submittal Statutory Deadline May 1st
35
Capital Improvement Plan (ICIP) (July 1)
bull Governor amp DFA do not usually restrict agencies from submitted their capital outlay needs in the 5 year plan
bull Purchase of assets ie water rights equipment etc
bull Construction ie pipelines buildings etc
bull Long term in nature
bull Personnel costs not allowed
bull Appropriated for longer time frame 4 years amp 3 years to purchase an asset
bull If bonds are certified for project than 5 of appropriation must be expended within 6 months and 85 expended within 3 years
bull Funding Sources for projects from either GO Bonds Severance Tax Bonds or General Fund
36
37
38
The State Budget Act (sect6-3A-7 NMSA 1978) and the
Accountability in Government Act (sect6-3A-1 to 6-3A-8 NMSA
1978) set forth the framework and requirements for state
government budgeting in New Mexico
39
State Budget Act
6-3-19 Agencies to complete budget forms
Each state agency shall fill out the budget forms provided for in Section 6-3-18 NMSA 1978 in the
manner prescribed by the state budget division Each state agency in completing the budget forms
shall include information for all divisions subdivisions and offices of the agency Related agencies
upon approval of the state budget division may join in submitting one set of budget forms
Completed budget forms shall be returned to the state budget division not later than September 1 in
each year
History 1953 Comp sect 11-4-75 enacted by Laws 1955 ch 114 sect 10 1963 ch 147 sect 3 1977
ch 247 sect 130 1999 ch 5 sect 11 1999 ch 15 sect 11
40
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
Irrigation Works Construction Fund (IWCF) amp Improvement to the Rio Grande Income Fund (IRGIF)
Trust Funds
The Trust Funds Revenue Source Background The Ferguson Act of 1898 designated about one-ninth of all land in the state as trust land to
benefit certain public institutions The legislation identified the beneficiaries of the trust land
dedicated the amount of land to be held in trust for each beneficiary and provided for a board
made up of the public land commissioner territorial Governor and solicitor general of the
territory to assign specific tracts of trust land to each beneficiary
The act designated 500000 trust land acres to benefit reservoirs and other irrigation
works and 100000 acres to fund improvements to the Rio Grande These lands and the
trust lands set aside for 19 other beneficiaries are managed by the State Land Office which
transfers the income from certain revenue-raising activities directly to the beneficiaries
and deposits the revenue from activities that deplete the resource ndash such as mining ndash in
the Land Grant Permanent Fund That fund is invested by the State Investment Council and
the investment income is distributed to the trust beneficiaries
6
Land Grant Permanent Fund
The Land Grant Permanent Fund (LGPF) also known as the Permanent School Fund is one
of the largest funds of its kind in the country and every year provides more than a half-
billion dollars in benefits to New Mexicorsquos public schools universities and other
beneficiaries ($638 million in FY17)
Established through New Mexicorsquos entry into statehood in 1912 the LGPF has evolved and
grown over time due to revenue from leases and royalties produced by non-renewable
natural resources in New Mexico (primarily oil and gas) and income from returns on
invested capital
The 11-member State Investment Council and its staff are fiduciaries to the Fund and invest
the LGPF in accordance with the Uniform Prudent Investor Act standard
7
8
9
10
11
12
Irrigation Works Construction Fund (IWCF) Projections
ACTUAL PRE-AUDIT
FY16 FY17 FY18 FY19
BEGINNING BALANCE $15207005 $13509420 $14379216 $7027116
REVENUE
Permanent Fund $6633195 $5818195 $6000000 $6000000
InterestLoans $23408 $21427 $25000 $25000
Lease Income $747611 $2961863 $1000000 $1000000
Investment Income (Loss) $342433 $1768626 $400000 $400000
Miscellaneous $35800 $6000 $35000 $35000
TOTAL REVENUE $7782447 $10576111 $7460000 $7460000
EXPENDITURES
Specials amp BAR Authority $2500000 $2175000
Operating Budget $9480032 $9706315 $12312100 $12312100
TOTAL EXPENDITURES $9480032 $9706315 $14812100 $14487100
ADJUSTED BALANCE $13509420 $14379216 $7027116 $16
IRRIGATION WORKS CONSTRUCTION FUND (326)
PROJECTED
13
IWCF Distribution by Program for the FY18 appropriated budget amount of $123121M
Water Rights
Allocation
Program 184460$ 15
Interstate
Stream
Commission 704640$ 57
Litigation amp
Adjudication
Program 249200$ 20
Program
Support 92910$ 8
14
IRGIF
72-14-4 Budget and plan submitted to governor annually
The interstate stream commission shall annually prepare and submit a budget together
with a complete and detailed plan looking toward the improvement of the Rio Grande in
this state and increasing the surface flow of water in the river during the ensuing
fiscal year The plan and budget shall be submitted annually in accordance with the
provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
History Laws 1935 ch 24 sect 1 1941 Comp sect 77-3304 Laws 1947 ch 131 sect 1 1953
Comp sect 75-34-4 Laws 1973 ch 201 sect 1 1997 ch 241 sect 1 1997 ch 246 sect 1
15
Improvement to the Rio Grande Income Fund (IRGIF)
ACTUAL PRE-AUDIT
FY16 FY17 FY18 FY19
BEGINNING BALANCE $6502230 $6574788 $8830893 $6648293
REVENUE
Permanent Fund $1495407 $1329890 $1400000 $1400000
Lease Income $90505 $1443926 $100000 $100000
Investment Income (Loss) $35837 $245214 $50000 $50000
TOTAL REVENUE $1621749 $3019030 $1550000 $1550000
EXPENDITURES
Specials amp BAR Authority $1200000 $272000
Operating Budget $1549191 $762925 $2532600 $2532600
TOTAL EXPENDITURES $1549191 $762925 $3732600 $2804600
ADJUSTED BALANCE $6574788 $8830893 $6648293 $5393693
IMPROVEMENT OF THE RIO GRANDE INCOME FUND (328)
PROJECTED
16
IRGIF Distribution for the FY18 appropriated budget amount of $25326
Water Rights
Allocation
Program 14760$ 6
Interstate
Stream
Commission 238500$ 94
17
Emergency Drought Water Agreement Revenue
bull Revenue Source Relinquishment credit stored amp released pursuant to the EDWA agreement
bull Fund Balance $2691342
bull Revenue Budget Process
ndash For FY19 budgeted $668k in the FY19 appropriation request for personnel costs
ndash Also budget funds on an as needed basis through the Budget Adjustment Process but need authority in the GAA
18
19
20
21
22
23
24
25
26
27
28
29
30
Ute Revenues
bull Fund originally set up to pay bond debt issued years ago for Ute Dam
bull Revenues from bulk water sale encroachment license fees amp easements deposited into the fund
bull Revenues historically have been used for operation amp maintenance costs for Ute dam
bull Fund Balance $626593
bull Revenue Budget Process
ndash Budget revenue on an as needed basis through the budget adjustment request process (BAR) bull Need to request specific BAR language in the appropriation request process in order to
budget the funds since the Ute Construction Fund does not give the Commission authority to budget the revenue
31
Active Capital Outlay Appropriations
bull $1M to purchase land and water rights within the interstate stream commissions existing pricing guidelines
and for the development of augmentation well fields and pipelines and related professional services for the Pecos River Compact settlement for the Pecos Settlement to purchase water rights (funded from the Attorney General Settlement Fund) ndashAvailable Balance = $4266k
bull $2M - notwithstanding the provisions of the Water Project Finance Act to the contrary is appropriated from
the water project fund to the office of the state engineer for expenditure in fiscal years 2016 through 2020 unless otherwise provided in Section 2 of this act to plan design and construct an engineered levee in the San Acacia reach in Socorro county- Available Balance = $14M
bull $2M to plan design renovate construct and equip improvements to acequias statewide (Attorney
General Settlement Fund) Available Balance Available Balance = $1005k bull $900k to rehab the LLSMR to plan design remodel rebuild construct and equip conservation rearing
ponds and hatcheries for a silvery minnow refugium production facility in Los Lunas in Valencia county (STB revenue bonds) Available Balance $0
bull $450k to plan design and construct habitat restoration projects in the middle Rio Grande conservancy
district or habitat restoration in the MRG (STB revenue Bonds) Available Balance = $1455k bull IWR appropriations ndash $58M Fund Balance for Taos Settlement bull Flow through appropriations to the ISC to act as fiscal agent for specific acequia projects ndash 28 current
appropriations that total approximately $13M
32
State Budget Process
bull Statutory Deadlines amp Submittals of Required Documents
bull Analysis amp Recommendation Process
bull What Happens During the Session (executive perspective)
33
Important to remember throughout this process
bull The Governor is our boss and controls what we will officially request in the appropriation request process
bull The Governor through the Department of Finance and Administration and the Legislature control the budget budget increases what is allowable to budget the dollar amount and time period and the request to move budget between appropriated budget categories
bull There are always exceptions to the appropriation request process
ndash Every administration interprets policies processes and laws differently and applies it based on their interpretation
bull Take inventory of our budget needs in July to be prepared to discuss and try and persuade the Governors office and DFA to allow us to make the official request on paper
ndash If not allowed to make the official budget request then cannot lobby for the budget need (need to be careful on how to respond when asked about the need)
bull Another chance to make a difference to the recommendation is the first few weeks of January to persuade the DFA andor LFC that their recommendation will not work for the agency before their recommendation is adopted in HAFC for the GAA (HB2)
34
Budget Requests Time Line
bullInfrastructure Capital Improvement Plan Due (ICIP) Statutory Deadline
July 1st
bullAppropriation Request Statutory Deadline September 1st
bullDFA State Budget Division amp Legislative Finance Committee staff analyze agency budget requests amp hold meetings and hearings to pursue issues pertinent to requests
Sept - Dec
bullInstructions amp deadlines for the Special Appropriations Deficiencies Supplemental and Budget Adjustment Request Authority submittals
October - November
bullState law requires the Governor to prepare a budget to the LFC January 5th (even yrs) January10th (odd years)
bullLFC amp SBD prepare different sheets that shows major differences in revenues expenditures amp total budget between the executive and LFC recommendations
January
bullHAFC holds budget hearings in which the different sheets are presented and the committee will either adopt the executive recommendation
Session
bullOperating Budget Submittal Statutory Deadline May 1st
35
Capital Improvement Plan (ICIP) (July 1)
bull Governor amp DFA do not usually restrict agencies from submitted their capital outlay needs in the 5 year plan
bull Purchase of assets ie water rights equipment etc
bull Construction ie pipelines buildings etc
bull Long term in nature
bull Personnel costs not allowed
bull Appropriated for longer time frame 4 years amp 3 years to purchase an asset
bull If bonds are certified for project than 5 of appropriation must be expended within 6 months and 85 expended within 3 years
bull Funding Sources for projects from either GO Bonds Severance Tax Bonds or General Fund
36
37
38
The State Budget Act (sect6-3A-7 NMSA 1978) and the
Accountability in Government Act (sect6-3A-1 to 6-3A-8 NMSA
1978) set forth the framework and requirements for state
government budgeting in New Mexico
39
State Budget Act
6-3-19 Agencies to complete budget forms
Each state agency shall fill out the budget forms provided for in Section 6-3-18 NMSA 1978 in the
manner prescribed by the state budget division Each state agency in completing the budget forms
shall include information for all divisions subdivisions and offices of the agency Related agencies
upon approval of the state budget division may join in submitting one set of budget forms
Completed budget forms shall be returned to the state budget division not later than September 1 in
each year
History 1953 Comp sect 11-4-75 enacted by Laws 1955 ch 114 sect 10 1963 ch 147 sect 3 1977
ch 247 sect 130 1999 ch 5 sect 11 1999 ch 15 sect 11
40
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
The Trust Funds Revenue Source Background The Ferguson Act of 1898 designated about one-ninth of all land in the state as trust land to
benefit certain public institutions The legislation identified the beneficiaries of the trust land
dedicated the amount of land to be held in trust for each beneficiary and provided for a board
made up of the public land commissioner territorial Governor and solicitor general of the
territory to assign specific tracts of trust land to each beneficiary
The act designated 500000 trust land acres to benefit reservoirs and other irrigation
works and 100000 acres to fund improvements to the Rio Grande These lands and the
trust lands set aside for 19 other beneficiaries are managed by the State Land Office which
transfers the income from certain revenue-raising activities directly to the beneficiaries
and deposits the revenue from activities that deplete the resource ndash such as mining ndash in
the Land Grant Permanent Fund That fund is invested by the State Investment Council and
the investment income is distributed to the trust beneficiaries
6
Land Grant Permanent Fund
The Land Grant Permanent Fund (LGPF) also known as the Permanent School Fund is one
of the largest funds of its kind in the country and every year provides more than a half-
billion dollars in benefits to New Mexicorsquos public schools universities and other
beneficiaries ($638 million in FY17)
Established through New Mexicorsquos entry into statehood in 1912 the LGPF has evolved and
grown over time due to revenue from leases and royalties produced by non-renewable
natural resources in New Mexico (primarily oil and gas) and income from returns on
invested capital
The 11-member State Investment Council and its staff are fiduciaries to the Fund and invest
the LGPF in accordance with the Uniform Prudent Investor Act standard
7
8
9
10
11
12
Irrigation Works Construction Fund (IWCF) Projections
ACTUAL PRE-AUDIT
FY16 FY17 FY18 FY19
BEGINNING BALANCE $15207005 $13509420 $14379216 $7027116
REVENUE
Permanent Fund $6633195 $5818195 $6000000 $6000000
InterestLoans $23408 $21427 $25000 $25000
Lease Income $747611 $2961863 $1000000 $1000000
Investment Income (Loss) $342433 $1768626 $400000 $400000
Miscellaneous $35800 $6000 $35000 $35000
TOTAL REVENUE $7782447 $10576111 $7460000 $7460000
EXPENDITURES
Specials amp BAR Authority $2500000 $2175000
Operating Budget $9480032 $9706315 $12312100 $12312100
TOTAL EXPENDITURES $9480032 $9706315 $14812100 $14487100
ADJUSTED BALANCE $13509420 $14379216 $7027116 $16
IRRIGATION WORKS CONSTRUCTION FUND (326)
PROJECTED
13
IWCF Distribution by Program for the FY18 appropriated budget amount of $123121M
Water Rights
Allocation
Program 184460$ 15
Interstate
Stream
Commission 704640$ 57
Litigation amp
Adjudication
Program 249200$ 20
Program
Support 92910$ 8
14
IRGIF
72-14-4 Budget and plan submitted to governor annually
The interstate stream commission shall annually prepare and submit a budget together
with a complete and detailed plan looking toward the improvement of the Rio Grande in
this state and increasing the surface flow of water in the river during the ensuing
fiscal year The plan and budget shall be submitted annually in accordance with the
provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
History Laws 1935 ch 24 sect 1 1941 Comp sect 77-3304 Laws 1947 ch 131 sect 1 1953
Comp sect 75-34-4 Laws 1973 ch 201 sect 1 1997 ch 241 sect 1 1997 ch 246 sect 1
15
Improvement to the Rio Grande Income Fund (IRGIF)
ACTUAL PRE-AUDIT
FY16 FY17 FY18 FY19
BEGINNING BALANCE $6502230 $6574788 $8830893 $6648293
REVENUE
Permanent Fund $1495407 $1329890 $1400000 $1400000
Lease Income $90505 $1443926 $100000 $100000
Investment Income (Loss) $35837 $245214 $50000 $50000
TOTAL REVENUE $1621749 $3019030 $1550000 $1550000
EXPENDITURES
Specials amp BAR Authority $1200000 $272000
Operating Budget $1549191 $762925 $2532600 $2532600
TOTAL EXPENDITURES $1549191 $762925 $3732600 $2804600
ADJUSTED BALANCE $6574788 $8830893 $6648293 $5393693
IMPROVEMENT OF THE RIO GRANDE INCOME FUND (328)
PROJECTED
16
IRGIF Distribution for the FY18 appropriated budget amount of $25326
Water Rights
Allocation
Program 14760$ 6
Interstate
Stream
Commission 238500$ 94
17
Emergency Drought Water Agreement Revenue
bull Revenue Source Relinquishment credit stored amp released pursuant to the EDWA agreement
bull Fund Balance $2691342
bull Revenue Budget Process
ndash For FY19 budgeted $668k in the FY19 appropriation request for personnel costs
ndash Also budget funds on an as needed basis through the Budget Adjustment Process but need authority in the GAA
18
19
20
21
22
23
24
25
26
27
28
29
30
Ute Revenues
bull Fund originally set up to pay bond debt issued years ago for Ute Dam
bull Revenues from bulk water sale encroachment license fees amp easements deposited into the fund
bull Revenues historically have been used for operation amp maintenance costs for Ute dam
bull Fund Balance $626593
bull Revenue Budget Process
ndash Budget revenue on an as needed basis through the budget adjustment request process (BAR) bull Need to request specific BAR language in the appropriation request process in order to
budget the funds since the Ute Construction Fund does not give the Commission authority to budget the revenue
31
Active Capital Outlay Appropriations
bull $1M to purchase land and water rights within the interstate stream commissions existing pricing guidelines
and for the development of augmentation well fields and pipelines and related professional services for the Pecos River Compact settlement for the Pecos Settlement to purchase water rights (funded from the Attorney General Settlement Fund) ndashAvailable Balance = $4266k
bull $2M - notwithstanding the provisions of the Water Project Finance Act to the contrary is appropriated from
the water project fund to the office of the state engineer for expenditure in fiscal years 2016 through 2020 unless otherwise provided in Section 2 of this act to plan design and construct an engineered levee in the San Acacia reach in Socorro county- Available Balance = $14M
bull $2M to plan design renovate construct and equip improvements to acequias statewide (Attorney
General Settlement Fund) Available Balance Available Balance = $1005k bull $900k to rehab the LLSMR to plan design remodel rebuild construct and equip conservation rearing
ponds and hatcheries for a silvery minnow refugium production facility in Los Lunas in Valencia county (STB revenue bonds) Available Balance $0
bull $450k to plan design and construct habitat restoration projects in the middle Rio Grande conservancy
district or habitat restoration in the MRG (STB revenue Bonds) Available Balance = $1455k bull IWR appropriations ndash $58M Fund Balance for Taos Settlement bull Flow through appropriations to the ISC to act as fiscal agent for specific acequia projects ndash 28 current
appropriations that total approximately $13M
32
State Budget Process
bull Statutory Deadlines amp Submittals of Required Documents
bull Analysis amp Recommendation Process
bull What Happens During the Session (executive perspective)
33
Important to remember throughout this process
bull The Governor is our boss and controls what we will officially request in the appropriation request process
bull The Governor through the Department of Finance and Administration and the Legislature control the budget budget increases what is allowable to budget the dollar amount and time period and the request to move budget between appropriated budget categories
bull There are always exceptions to the appropriation request process
ndash Every administration interprets policies processes and laws differently and applies it based on their interpretation
bull Take inventory of our budget needs in July to be prepared to discuss and try and persuade the Governors office and DFA to allow us to make the official request on paper
ndash If not allowed to make the official budget request then cannot lobby for the budget need (need to be careful on how to respond when asked about the need)
bull Another chance to make a difference to the recommendation is the first few weeks of January to persuade the DFA andor LFC that their recommendation will not work for the agency before their recommendation is adopted in HAFC for the GAA (HB2)
34
Budget Requests Time Line
bullInfrastructure Capital Improvement Plan Due (ICIP) Statutory Deadline
July 1st
bullAppropriation Request Statutory Deadline September 1st
bullDFA State Budget Division amp Legislative Finance Committee staff analyze agency budget requests amp hold meetings and hearings to pursue issues pertinent to requests
Sept - Dec
bullInstructions amp deadlines for the Special Appropriations Deficiencies Supplemental and Budget Adjustment Request Authority submittals
October - November
bullState law requires the Governor to prepare a budget to the LFC January 5th (even yrs) January10th (odd years)
bullLFC amp SBD prepare different sheets that shows major differences in revenues expenditures amp total budget between the executive and LFC recommendations
January
bullHAFC holds budget hearings in which the different sheets are presented and the committee will either adopt the executive recommendation
Session
bullOperating Budget Submittal Statutory Deadline May 1st
35
Capital Improvement Plan (ICIP) (July 1)
bull Governor amp DFA do not usually restrict agencies from submitted their capital outlay needs in the 5 year plan
bull Purchase of assets ie water rights equipment etc
bull Construction ie pipelines buildings etc
bull Long term in nature
bull Personnel costs not allowed
bull Appropriated for longer time frame 4 years amp 3 years to purchase an asset
bull If bonds are certified for project than 5 of appropriation must be expended within 6 months and 85 expended within 3 years
bull Funding Sources for projects from either GO Bonds Severance Tax Bonds or General Fund
36
37
38
The State Budget Act (sect6-3A-7 NMSA 1978) and the
Accountability in Government Act (sect6-3A-1 to 6-3A-8 NMSA
1978) set forth the framework and requirements for state
government budgeting in New Mexico
39
State Budget Act
6-3-19 Agencies to complete budget forms
Each state agency shall fill out the budget forms provided for in Section 6-3-18 NMSA 1978 in the
manner prescribed by the state budget division Each state agency in completing the budget forms
shall include information for all divisions subdivisions and offices of the agency Related agencies
upon approval of the state budget division may join in submitting one set of budget forms
Completed budget forms shall be returned to the state budget division not later than September 1 in
each year
History 1953 Comp sect 11-4-75 enacted by Laws 1955 ch 114 sect 10 1963 ch 147 sect 3 1977
ch 247 sect 130 1999 ch 5 sect 11 1999 ch 15 sect 11
40
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
Land Grant Permanent Fund
The Land Grant Permanent Fund (LGPF) also known as the Permanent School Fund is one
of the largest funds of its kind in the country and every year provides more than a half-
billion dollars in benefits to New Mexicorsquos public schools universities and other
beneficiaries ($638 million in FY17)
Established through New Mexicorsquos entry into statehood in 1912 the LGPF has evolved and
grown over time due to revenue from leases and royalties produced by non-renewable
natural resources in New Mexico (primarily oil and gas) and income from returns on
invested capital
The 11-member State Investment Council and its staff are fiduciaries to the Fund and invest
the LGPF in accordance with the Uniform Prudent Investor Act standard
7
8
9
10
11
12
Irrigation Works Construction Fund (IWCF) Projections
ACTUAL PRE-AUDIT
FY16 FY17 FY18 FY19
BEGINNING BALANCE $15207005 $13509420 $14379216 $7027116
REVENUE
Permanent Fund $6633195 $5818195 $6000000 $6000000
InterestLoans $23408 $21427 $25000 $25000
Lease Income $747611 $2961863 $1000000 $1000000
Investment Income (Loss) $342433 $1768626 $400000 $400000
Miscellaneous $35800 $6000 $35000 $35000
TOTAL REVENUE $7782447 $10576111 $7460000 $7460000
EXPENDITURES
Specials amp BAR Authority $2500000 $2175000
Operating Budget $9480032 $9706315 $12312100 $12312100
TOTAL EXPENDITURES $9480032 $9706315 $14812100 $14487100
ADJUSTED BALANCE $13509420 $14379216 $7027116 $16
IRRIGATION WORKS CONSTRUCTION FUND (326)
PROJECTED
13
IWCF Distribution by Program for the FY18 appropriated budget amount of $123121M
Water Rights
Allocation
Program 184460$ 15
Interstate
Stream
Commission 704640$ 57
Litigation amp
Adjudication
Program 249200$ 20
Program
Support 92910$ 8
14
IRGIF
72-14-4 Budget and plan submitted to governor annually
The interstate stream commission shall annually prepare and submit a budget together
with a complete and detailed plan looking toward the improvement of the Rio Grande in
this state and increasing the surface flow of water in the river during the ensuing
fiscal year The plan and budget shall be submitted annually in accordance with the
provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
History Laws 1935 ch 24 sect 1 1941 Comp sect 77-3304 Laws 1947 ch 131 sect 1 1953
Comp sect 75-34-4 Laws 1973 ch 201 sect 1 1997 ch 241 sect 1 1997 ch 246 sect 1
15
Improvement to the Rio Grande Income Fund (IRGIF)
ACTUAL PRE-AUDIT
FY16 FY17 FY18 FY19
BEGINNING BALANCE $6502230 $6574788 $8830893 $6648293
REVENUE
Permanent Fund $1495407 $1329890 $1400000 $1400000
Lease Income $90505 $1443926 $100000 $100000
Investment Income (Loss) $35837 $245214 $50000 $50000
TOTAL REVENUE $1621749 $3019030 $1550000 $1550000
EXPENDITURES
Specials amp BAR Authority $1200000 $272000
Operating Budget $1549191 $762925 $2532600 $2532600
TOTAL EXPENDITURES $1549191 $762925 $3732600 $2804600
ADJUSTED BALANCE $6574788 $8830893 $6648293 $5393693
IMPROVEMENT OF THE RIO GRANDE INCOME FUND (328)
PROJECTED
16
IRGIF Distribution for the FY18 appropriated budget amount of $25326
Water Rights
Allocation
Program 14760$ 6
Interstate
Stream
Commission 238500$ 94
17
Emergency Drought Water Agreement Revenue
bull Revenue Source Relinquishment credit stored amp released pursuant to the EDWA agreement
bull Fund Balance $2691342
bull Revenue Budget Process
ndash For FY19 budgeted $668k in the FY19 appropriation request for personnel costs
ndash Also budget funds on an as needed basis through the Budget Adjustment Process but need authority in the GAA
18
19
20
21
22
23
24
25
26
27
28
29
30
Ute Revenues
bull Fund originally set up to pay bond debt issued years ago for Ute Dam
bull Revenues from bulk water sale encroachment license fees amp easements deposited into the fund
bull Revenues historically have been used for operation amp maintenance costs for Ute dam
bull Fund Balance $626593
bull Revenue Budget Process
ndash Budget revenue on an as needed basis through the budget adjustment request process (BAR) bull Need to request specific BAR language in the appropriation request process in order to
budget the funds since the Ute Construction Fund does not give the Commission authority to budget the revenue
31
Active Capital Outlay Appropriations
bull $1M to purchase land and water rights within the interstate stream commissions existing pricing guidelines
and for the development of augmentation well fields and pipelines and related professional services for the Pecos River Compact settlement for the Pecos Settlement to purchase water rights (funded from the Attorney General Settlement Fund) ndashAvailable Balance = $4266k
bull $2M - notwithstanding the provisions of the Water Project Finance Act to the contrary is appropriated from
the water project fund to the office of the state engineer for expenditure in fiscal years 2016 through 2020 unless otherwise provided in Section 2 of this act to plan design and construct an engineered levee in the San Acacia reach in Socorro county- Available Balance = $14M
bull $2M to plan design renovate construct and equip improvements to acequias statewide (Attorney
General Settlement Fund) Available Balance Available Balance = $1005k bull $900k to rehab the LLSMR to plan design remodel rebuild construct and equip conservation rearing
ponds and hatcheries for a silvery minnow refugium production facility in Los Lunas in Valencia county (STB revenue bonds) Available Balance $0
bull $450k to plan design and construct habitat restoration projects in the middle Rio Grande conservancy
district or habitat restoration in the MRG (STB revenue Bonds) Available Balance = $1455k bull IWR appropriations ndash $58M Fund Balance for Taos Settlement bull Flow through appropriations to the ISC to act as fiscal agent for specific acequia projects ndash 28 current
appropriations that total approximately $13M
32
State Budget Process
bull Statutory Deadlines amp Submittals of Required Documents
bull Analysis amp Recommendation Process
bull What Happens During the Session (executive perspective)
33
Important to remember throughout this process
bull The Governor is our boss and controls what we will officially request in the appropriation request process
bull The Governor through the Department of Finance and Administration and the Legislature control the budget budget increases what is allowable to budget the dollar amount and time period and the request to move budget between appropriated budget categories
bull There are always exceptions to the appropriation request process
ndash Every administration interprets policies processes and laws differently and applies it based on their interpretation
bull Take inventory of our budget needs in July to be prepared to discuss and try and persuade the Governors office and DFA to allow us to make the official request on paper
ndash If not allowed to make the official budget request then cannot lobby for the budget need (need to be careful on how to respond when asked about the need)
bull Another chance to make a difference to the recommendation is the first few weeks of January to persuade the DFA andor LFC that their recommendation will not work for the agency before their recommendation is adopted in HAFC for the GAA (HB2)
34
Budget Requests Time Line
bullInfrastructure Capital Improvement Plan Due (ICIP) Statutory Deadline
July 1st
bullAppropriation Request Statutory Deadline September 1st
bullDFA State Budget Division amp Legislative Finance Committee staff analyze agency budget requests amp hold meetings and hearings to pursue issues pertinent to requests
Sept - Dec
bullInstructions amp deadlines for the Special Appropriations Deficiencies Supplemental and Budget Adjustment Request Authority submittals
October - November
bullState law requires the Governor to prepare a budget to the LFC January 5th (even yrs) January10th (odd years)
bullLFC amp SBD prepare different sheets that shows major differences in revenues expenditures amp total budget between the executive and LFC recommendations
January
bullHAFC holds budget hearings in which the different sheets are presented and the committee will either adopt the executive recommendation
Session
bullOperating Budget Submittal Statutory Deadline May 1st
35
Capital Improvement Plan (ICIP) (July 1)
bull Governor amp DFA do not usually restrict agencies from submitted their capital outlay needs in the 5 year plan
bull Purchase of assets ie water rights equipment etc
bull Construction ie pipelines buildings etc
bull Long term in nature
bull Personnel costs not allowed
bull Appropriated for longer time frame 4 years amp 3 years to purchase an asset
bull If bonds are certified for project than 5 of appropriation must be expended within 6 months and 85 expended within 3 years
bull Funding Sources for projects from either GO Bonds Severance Tax Bonds or General Fund
36
37
38
The State Budget Act (sect6-3A-7 NMSA 1978) and the
Accountability in Government Act (sect6-3A-1 to 6-3A-8 NMSA
1978) set forth the framework and requirements for state
government budgeting in New Mexico
39
State Budget Act
6-3-19 Agencies to complete budget forms
Each state agency shall fill out the budget forms provided for in Section 6-3-18 NMSA 1978 in the
manner prescribed by the state budget division Each state agency in completing the budget forms
shall include information for all divisions subdivisions and offices of the agency Related agencies
upon approval of the state budget division may join in submitting one set of budget forms
Completed budget forms shall be returned to the state budget division not later than September 1 in
each year
History 1953 Comp sect 11-4-75 enacted by Laws 1955 ch 114 sect 10 1963 ch 147 sect 3 1977
ch 247 sect 130 1999 ch 5 sect 11 1999 ch 15 sect 11
40
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
8
9
10
11
12
Irrigation Works Construction Fund (IWCF) Projections
ACTUAL PRE-AUDIT
FY16 FY17 FY18 FY19
BEGINNING BALANCE $15207005 $13509420 $14379216 $7027116
REVENUE
Permanent Fund $6633195 $5818195 $6000000 $6000000
InterestLoans $23408 $21427 $25000 $25000
Lease Income $747611 $2961863 $1000000 $1000000
Investment Income (Loss) $342433 $1768626 $400000 $400000
Miscellaneous $35800 $6000 $35000 $35000
TOTAL REVENUE $7782447 $10576111 $7460000 $7460000
EXPENDITURES
Specials amp BAR Authority $2500000 $2175000
Operating Budget $9480032 $9706315 $12312100 $12312100
TOTAL EXPENDITURES $9480032 $9706315 $14812100 $14487100
ADJUSTED BALANCE $13509420 $14379216 $7027116 $16
IRRIGATION WORKS CONSTRUCTION FUND (326)
PROJECTED
13
IWCF Distribution by Program for the FY18 appropriated budget amount of $123121M
Water Rights
Allocation
Program 184460$ 15
Interstate
Stream
Commission 704640$ 57
Litigation amp
Adjudication
Program 249200$ 20
Program
Support 92910$ 8
14
IRGIF
72-14-4 Budget and plan submitted to governor annually
The interstate stream commission shall annually prepare and submit a budget together
with a complete and detailed plan looking toward the improvement of the Rio Grande in
this state and increasing the surface flow of water in the river during the ensuing
fiscal year The plan and budget shall be submitted annually in accordance with the
provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
History Laws 1935 ch 24 sect 1 1941 Comp sect 77-3304 Laws 1947 ch 131 sect 1 1953
Comp sect 75-34-4 Laws 1973 ch 201 sect 1 1997 ch 241 sect 1 1997 ch 246 sect 1
15
Improvement to the Rio Grande Income Fund (IRGIF)
ACTUAL PRE-AUDIT
FY16 FY17 FY18 FY19
BEGINNING BALANCE $6502230 $6574788 $8830893 $6648293
REVENUE
Permanent Fund $1495407 $1329890 $1400000 $1400000
Lease Income $90505 $1443926 $100000 $100000
Investment Income (Loss) $35837 $245214 $50000 $50000
TOTAL REVENUE $1621749 $3019030 $1550000 $1550000
EXPENDITURES
Specials amp BAR Authority $1200000 $272000
Operating Budget $1549191 $762925 $2532600 $2532600
TOTAL EXPENDITURES $1549191 $762925 $3732600 $2804600
ADJUSTED BALANCE $6574788 $8830893 $6648293 $5393693
IMPROVEMENT OF THE RIO GRANDE INCOME FUND (328)
PROJECTED
16
IRGIF Distribution for the FY18 appropriated budget amount of $25326
Water Rights
Allocation
Program 14760$ 6
Interstate
Stream
Commission 238500$ 94
17
Emergency Drought Water Agreement Revenue
bull Revenue Source Relinquishment credit stored amp released pursuant to the EDWA agreement
bull Fund Balance $2691342
bull Revenue Budget Process
ndash For FY19 budgeted $668k in the FY19 appropriation request for personnel costs
ndash Also budget funds on an as needed basis through the Budget Adjustment Process but need authority in the GAA
18
19
20
21
22
23
24
25
26
27
28
29
30
Ute Revenues
bull Fund originally set up to pay bond debt issued years ago for Ute Dam
bull Revenues from bulk water sale encroachment license fees amp easements deposited into the fund
bull Revenues historically have been used for operation amp maintenance costs for Ute dam
bull Fund Balance $626593
bull Revenue Budget Process
ndash Budget revenue on an as needed basis through the budget adjustment request process (BAR) bull Need to request specific BAR language in the appropriation request process in order to
budget the funds since the Ute Construction Fund does not give the Commission authority to budget the revenue
31
Active Capital Outlay Appropriations
bull $1M to purchase land and water rights within the interstate stream commissions existing pricing guidelines
and for the development of augmentation well fields and pipelines and related professional services for the Pecos River Compact settlement for the Pecos Settlement to purchase water rights (funded from the Attorney General Settlement Fund) ndashAvailable Balance = $4266k
bull $2M - notwithstanding the provisions of the Water Project Finance Act to the contrary is appropriated from
the water project fund to the office of the state engineer for expenditure in fiscal years 2016 through 2020 unless otherwise provided in Section 2 of this act to plan design and construct an engineered levee in the San Acacia reach in Socorro county- Available Balance = $14M
bull $2M to plan design renovate construct and equip improvements to acequias statewide (Attorney
General Settlement Fund) Available Balance Available Balance = $1005k bull $900k to rehab the LLSMR to plan design remodel rebuild construct and equip conservation rearing
ponds and hatcheries for a silvery minnow refugium production facility in Los Lunas in Valencia county (STB revenue bonds) Available Balance $0
bull $450k to plan design and construct habitat restoration projects in the middle Rio Grande conservancy
district or habitat restoration in the MRG (STB revenue Bonds) Available Balance = $1455k bull IWR appropriations ndash $58M Fund Balance for Taos Settlement bull Flow through appropriations to the ISC to act as fiscal agent for specific acequia projects ndash 28 current
appropriations that total approximately $13M
32
State Budget Process
bull Statutory Deadlines amp Submittals of Required Documents
bull Analysis amp Recommendation Process
bull What Happens During the Session (executive perspective)
33
Important to remember throughout this process
bull The Governor is our boss and controls what we will officially request in the appropriation request process
bull The Governor through the Department of Finance and Administration and the Legislature control the budget budget increases what is allowable to budget the dollar amount and time period and the request to move budget between appropriated budget categories
bull There are always exceptions to the appropriation request process
ndash Every administration interprets policies processes and laws differently and applies it based on their interpretation
bull Take inventory of our budget needs in July to be prepared to discuss and try and persuade the Governors office and DFA to allow us to make the official request on paper
ndash If not allowed to make the official budget request then cannot lobby for the budget need (need to be careful on how to respond when asked about the need)
bull Another chance to make a difference to the recommendation is the first few weeks of January to persuade the DFA andor LFC that their recommendation will not work for the agency before their recommendation is adopted in HAFC for the GAA (HB2)
34
Budget Requests Time Line
bullInfrastructure Capital Improvement Plan Due (ICIP) Statutory Deadline
July 1st
bullAppropriation Request Statutory Deadline September 1st
bullDFA State Budget Division amp Legislative Finance Committee staff analyze agency budget requests amp hold meetings and hearings to pursue issues pertinent to requests
Sept - Dec
bullInstructions amp deadlines for the Special Appropriations Deficiencies Supplemental and Budget Adjustment Request Authority submittals
October - November
bullState law requires the Governor to prepare a budget to the LFC January 5th (even yrs) January10th (odd years)
bullLFC amp SBD prepare different sheets that shows major differences in revenues expenditures amp total budget between the executive and LFC recommendations
January
bullHAFC holds budget hearings in which the different sheets are presented and the committee will either adopt the executive recommendation
Session
bullOperating Budget Submittal Statutory Deadline May 1st
35
Capital Improvement Plan (ICIP) (July 1)
bull Governor amp DFA do not usually restrict agencies from submitted their capital outlay needs in the 5 year plan
bull Purchase of assets ie water rights equipment etc
bull Construction ie pipelines buildings etc
bull Long term in nature
bull Personnel costs not allowed
bull Appropriated for longer time frame 4 years amp 3 years to purchase an asset
bull If bonds are certified for project than 5 of appropriation must be expended within 6 months and 85 expended within 3 years
bull Funding Sources for projects from either GO Bonds Severance Tax Bonds or General Fund
36
37
38
The State Budget Act (sect6-3A-7 NMSA 1978) and the
Accountability in Government Act (sect6-3A-1 to 6-3A-8 NMSA
1978) set forth the framework and requirements for state
government budgeting in New Mexico
39
State Budget Act
6-3-19 Agencies to complete budget forms
Each state agency shall fill out the budget forms provided for in Section 6-3-18 NMSA 1978 in the
manner prescribed by the state budget division Each state agency in completing the budget forms
shall include information for all divisions subdivisions and offices of the agency Related agencies
upon approval of the state budget division may join in submitting one set of budget forms
Completed budget forms shall be returned to the state budget division not later than September 1 in
each year
History 1953 Comp sect 11-4-75 enacted by Laws 1955 ch 114 sect 10 1963 ch 147 sect 3 1977
ch 247 sect 130 1999 ch 5 sect 11 1999 ch 15 sect 11
40
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
9
10
11
12
Irrigation Works Construction Fund (IWCF) Projections
ACTUAL PRE-AUDIT
FY16 FY17 FY18 FY19
BEGINNING BALANCE $15207005 $13509420 $14379216 $7027116
REVENUE
Permanent Fund $6633195 $5818195 $6000000 $6000000
InterestLoans $23408 $21427 $25000 $25000
Lease Income $747611 $2961863 $1000000 $1000000
Investment Income (Loss) $342433 $1768626 $400000 $400000
Miscellaneous $35800 $6000 $35000 $35000
TOTAL REVENUE $7782447 $10576111 $7460000 $7460000
EXPENDITURES
Specials amp BAR Authority $2500000 $2175000
Operating Budget $9480032 $9706315 $12312100 $12312100
TOTAL EXPENDITURES $9480032 $9706315 $14812100 $14487100
ADJUSTED BALANCE $13509420 $14379216 $7027116 $16
IRRIGATION WORKS CONSTRUCTION FUND (326)
PROJECTED
13
IWCF Distribution by Program for the FY18 appropriated budget amount of $123121M
Water Rights
Allocation
Program 184460$ 15
Interstate
Stream
Commission 704640$ 57
Litigation amp
Adjudication
Program 249200$ 20
Program
Support 92910$ 8
14
IRGIF
72-14-4 Budget and plan submitted to governor annually
The interstate stream commission shall annually prepare and submit a budget together
with a complete and detailed plan looking toward the improvement of the Rio Grande in
this state and increasing the surface flow of water in the river during the ensuing
fiscal year The plan and budget shall be submitted annually in accordance with the
provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
History Laws 1935 ch 24 sect 1 1941 Comp sect 77-3304 Laws 1947 ch 131 sect 1 1953
Comp sect 75-34-4 Laws 1973 ch 201 sect 1 1997 ch 241 sect 1 1997 ch 246 sect 1
15
Improvement to the Rio Grande Income Fund (IRGIF)
ACTUAL PRE-AUDIT
FY16 FY17 FY18 FY19
BEGINNING BALANCE $6502230 $6574788 $8830893 $6648293
REVENUE
Permanent Fund $1495407 $1329890 $1400000 $1400000
Lease Income $90505 $1443926 $100000 $100000
Investment Income (Loss) $35837 $245214 $50000 $50000
TOTAL REVENUE $1621749 $3019030 $1550000 $1550000
EXPENDITURES
Specials amp BAR Authority $1200000 $272000
Operating Budget $1549191 $762925 $2532600 $2532600
TOTAL EXPENDITURES $1549191 $762925 $3732600 $2804600
ADJUSTED BALANCE $6574788 $8830893 $6648293 $5393693
IMPROVEMENT OF THE RIO GRANDE INCOME FUND (328)
PROJECTED
16
IRGIF Distribution for the FY18 appropriated budget amount of $25326
Water Rights
Allocation
Program 14760$ 6
Interstate
Stream
Commission 238500$ 94
17
Emergency Drought Water Agreement Revenue
bull Revenue Source Relinquishment credit stored amp released pursuant to the EDWA agreement
bull Fund Balance $2691342
bull Revenue Budget Process
ndash For FY19 budgeted $668k in the FY19 appropriation request for personnel costs
ndash Also budget funds on an as needed basis through the Budget Adjustment Process but need authority in the GAA
18
19
20
21
22
23
24
25
26
27
28
29
30
Ute Revenues
bull Fund originally set up to pay bond debt issued years ago for Ute Dam
bull Revenues from bulk water sale encroachment license fees amp easements deposited into the fund
bull Revenues historically have been used for operation amp maintenance costs for Ute dam
bull Fund Balance $626593
bull Revenue Budget Process
ndash Budget revenue on an as needed basis through the budget adjustment request process (BAR) bull Need to request specific BAR language in the appropriation request process in order to
budget the funds since the Ute Construction Fund does not give the Commission authority to budget the revenue
31
Active Capital Outlay Appropriations
bull $1M to purchase land and water rights within the interstate stream commissions existing pricing guidelines
and for the development of augmentation well fields and pipelines and related professional services for the Pecos River Compact settlement for the Pecos Settlement to purchase water rights (funded from the Attorney General Settlement Fund) ndashAvailable Balance = $4266k
bull $2M - notwithstanding the provisions of the Water Project Finance Act to the contrary is appropriated from
the water project fund to the office of the state engineer for expenditure in fiscal years 2016 through 2020 unless otherwise provided in Section 2 of this act to plan design and construct an engineered levee in the San Acacia reach in Socorro county- Available Balance = $14M
bull $2M to plan design renovate construct and equip improvements to acequias statewide (Attorney
General Settlement Fund) Available Balance Available Balance = $1005k bull $900k to rehab the LLSMR to plan design remodel rebuild construct and equip conservation rearing
ponds and hatcheries for a silvery minnow refugium production facility in Los Lunas in Valencia county (STB revenue bonds) Available Balance $0
bull $450k to plan design and construct habitat restoration projects in the middle Rio Grande conservancy
district or habitat restoration in the MRG (STB revenue Bonds) Available Balance = $1455k bull IWR appropriations ndash $58M Fund Balance for Taos Settlement bull Flow through appropriations to the ISC to act as fiscal agent for specific acequia projects ndash 28 current
appropriations that total approximately $13M
32
State Budget Process
bull Statutory Deadlines amp Submittals of Required Documents
bull Analysis amp Recommendation Process
bull What Happens During the Session (executive perspective)
33
Important to remember throughout this process
bull The Governor is our boss and controls what we will officially request in the appropriation request process
bull The Governor through the Department of Finance and Administration and the Legislature control the budget budget increases what is allowable to budget the dollar amount and time period and the request to move budget between appropriated budget categories
bull There are always exceptions to the appropriation request process
ndash Every administration interprets policies processes and laws differently and applies it based on their interpretation
bull Take inventory of our budget needs in July to be prepared to discuss and try and persuade the Governors office and DFA to allow us to make the official request on paper
ndash If not allowed to make the official budget request then cannot lobby for the budget need (need to be careful on how to respond when asked about the need)
bull Another chance to make a difference to the recommendation is the first few weeks of January to persuade the DFA andor LFC that their recommendation will not work for the agency before their recommendation is adopted in HAFC for the GAA (HB2)
34
Budget Requests Time Line
bullInfrastructure Capital Improvement Plan Due (ICIP) Statutory Deadline
July 1st
bullAppropriation Request Statutory Deadline September 1st
bullDFA State Budget Division amp Legislative Finance Committee staff analyze agency budget requests amp hold meetings and hearings to pursue issues pertinent to requests
Sept - Dec
bullInstructions amp deadlines for the Special Appropriations Deficiencies Supplemental and Budget Adjustment Request Authority submittals
October - November
bullState law requires the Governor to prepare a budget to the LFC January 5th (even yrs) January10th (odd years)
bullLFC amp SBD prepare different sheets that shows major differences in revenues expenditures amp total budget between the executive and LFC recommendations
January
bullHAFC holds budget hearings in which the different sheets are presented and the committee will either adopt the executive recommendation
Session
bullOperating Budget Submittal Statutory Deadline May 1st
35
Capital Improvement Plan (ICIP) (July 1)
bull Governor amp DFA do not usually restrict agencies from submitted their capital outlay needs in the 5 year plan
bull Purchase of assets ie water rights equipment etc
bull Construction ie pipelines buildings etc
bull Long term in nature
bull Personnel costs not allowed
bull Appropriated for longer time frame 4 years amp 3 years to purchase an asset
bull If bonds are certified for project than 5 of appropriation must be expended within 6 months and 85 expended within 3 years
bull Funding Sources for projects from either GO Bonds Severance Tax Bonds or General Fund
36
37
38
The State Budget Act (sect6-3A-7 NMSA 1978) and the
Accountability in Government Act (sect6-3A-1 to 6-3A-8 NMSA
1978) set forth the framework and requirements for state
government budgeting in New Mexico
39
State Budget Act
6-3-19 Agencies to complete budget forms
Each state agency shall fill out the budget forms provided for in Section 6-3-18 NMSA 1978 in the
manner prescribed by the state budget division Each state agency in completing the budget forms
shall include information for all divisions subdivisions and offices of the agency Related agencies
upon approval of the state budget division may join in submitting one set of budget forms
Completed budget forms shall be returned to the state budget division not later than September 1 in
each year
History 1953 Comp sect 11-4-75 enacted by Laws 1955 ch 114 sect 10 1963 ch 147 sect 3 1977
ch 247 sect 130 1999 ch 5 sect 11 1999 ch 15 sect 11
40
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
10
11
12
Irrigation Works Construction Fund (IWCF) Projections
ACTUAL PRE-AUDIT
FY16 FY17 FY18 FY19
BEGINNING BALANCE $15207005 $13509420 $14379216 $7027116
REVENUE
Permanent Fund $6633195 $5818195 $6000000 $6000000
InterestLoans $23408 $21427 $25000 $25000
Lease Income $747611 $2961863 $1000000 $1000000
Investment Income (Loss) $342433 $1768626 $400000 $400000
Miscellaneous $35800 $6000 $35000 $35000
TOTAL REVENUE $7782447 $10576111 $7460000 $7460000
EXPENDITURES
Specials amp BAR Authority $2500000 $2175000
Operating Budget $9480032 $9706315 $12312100 $12312100
TOTAL EXPENDITURES $9480032 $9706315 $14812100 $14487100
ADJUSTED BALANCE $13509420 $14379216 $7027116 $16
IRRIGATION WORKS CONSTRUCTION FUND (326)
PROJECTED
13
IWCF Distribution by Program for the FY18 appropriated budget amount of $123121M
Water Rights
Allocation
Program 184460$ 15
Interstate
Stream
Commission 704640$ 57
Litigation amp
Adjudication
Program 249200$ 20
Program
Support 92910$ 8
14
IRGIF
72-14-4 Budget and plan submitted to governor annually
The interstate stream commission shall annually prepare and submit a budget together
with a complete and detailed plan looking toward the improvement of the Rio Grande in
this state and increasing the surface flow of water in the river during the ensuing
fiscal year The plan and budget shall be submitted annually in accordance with the
provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
History Laws 1935 ch 24 sect 1 1941 Comp sect 77-3304 Laws 1947 ch 131 sect 1 1953
Comp sect 75-34-4 Laws 1973 ch 201 sect 1 1997 ch 241 sect 1 1997 ch 246 sect 1
15
Improvement to the Rio Grande Income Fund (IRGIF)
ACTUAL PRE-AUDIT
FY16 FY17 FY18 FY19
BEGINNING BALANCE $6502230 $6574788 $8830893 $6648293
REVENUE
Permanent Fund $1495407 $1329890 $1400000 $1400000
Lease Income $90505 $1443926 $100000 $100000
Investment Income (Loss) $35837 $245214 $50000 $50000
TOTAL REVENUE $1621749 $3019030 $1550000 $1550000
EXPENDITURES
Specials amp BAR Authority $1200000 $272000
Operating Budget $1549191 $762925 $2532600 $2532600
TOTAL EXPENDITURES $1549191 $762925 $3732600 $2804600
ADJUSTED BALANCE $6574788 $8830893 $6648293 $5393693
IMPROVEMENT OF THE RIO GRANDE INCOME FUND (328)
PROJECTED
16
IRGIF Distribution for the FY18 appropriated budget amount of $25326
Water Rights
Allocation
Program 14760$ 6
Interstate
Stream
Commission 238500$ 94
17
Emergency Drought Water Agreement Revenue
bull Revenue Source Relinquishment credit stored amp released pursuant to the EDWA agreement
bull Fund Balance $2691342
bull Revenue Budget Process
ndash For FY19 budgeted $668k in the FY19 appropriation request for personnel costs
ndash Also budget funds on an as needed basis through the Budget Adjustment Process but need authority in the GAA
18
19
20
21
22
23
24
25
26
27
28
29
30
Ute Revenues
bull Fund originally set up to pay bond debt issued years ago for Ute Dam
bull Revenues from bulk water sale encroachment license fees amp easements deposited into the fund
bull Revenues historically have been used for operation amp maintenance costs for Ute dam
bull Fund Balance $626593
bull Revenue Budget Process
ndash Budget revenue on an as needed basis through the budget adjustment request process (BAR) bull Need to request specific BAR language in the appropriation request process in order to
budget the funds since the Ute Construction Fund does not give the Commission authority to budget the revenue
31
Active Capital Outlay Appropriations
bull $1M to purchase land and water rights within the interstate stream commissions existing pricing guidelines
and for the development of augmentation well fields and pipelines and related professional services for the Pecos River Compact settlement for the Pecos Settlement to purchase water rights (funded from the Attorney General Settlement Fund) ndashAvailable Balance = $4266k
bull $2M - notwithstanding the provisions of the Water Project Finance Act to the contrary is appropriated from
the water project fund to the office of the state engineer for expenditure in fiscal years 2016 through 2020 unless otherwise provided in Section 2 of this act to plan design and construct an engineered levee in the San Acacia reach in Socorro county- Available Balance = $14M
bull $2M to plan design renovate construct and equip improvements to acequias statewide (Attorney
General Settlement Fund) Available Balance Available Balance = $1005k bull $900k to rehab the LLSMR to plan design remodel rebuild construct and equip conservation rearing
ponds and hatcheries for a silvery minnow refugium production facility in Los Lunas in Valencia county (STB revenue bonds) Available Balance $0
bull $450k to plan design and construct habitat restoration projects in the middle Rio Grande conservancy
district or habitat restoration in the MRG (STB revenue Bonds) Available Balance = $1455k bull IWR appropriations ndash $58M Fund Balance for Taos Settlement bull Flow through appropriations to the ISC to act as fiscal agent for specific acequia projects ndash 28 current
appropriations that total approximately $13M
32
State Budget Process
bull Statutory Deadlines amp Submittals of Required Documents
bull Analysis amp Recommendation Process
bull What Happens During the Session (executive perspective)
33
Important to remember throughout this process
bull The Governor is our boss and controls what we will officially request in the appropriation request process
bull The Governor through the Department of Finance and Administration and the Legislature control the budget budget increases what is allowable to budget the dollar amount and time period and the request to move budget between appropriated budget categories
bull There are always exceptions to the appropriation request process
ndash Every administration interprets policies processes and laws differently and applies it based on their interpretation
bull Take inventory of our budget needs in July to be prepared to discuss and try and persuade the Governors office and DFA to allow us to make the official request on paper
ndash If not allowed to make the official budget request then cannot lobby for the budget need (need to be careful on how to respond when asked about the need)
bull Another chance to make a difference to the recommendation is the first few weeks of January to persuade the DFA andor LFC that their recommendation will not work for the agency before their recommendation is adopted in HAFC for the GAA (HB2)
34
Budget Requests Time Line
bullInfrastructure Capital Improvement Plan Due (ICIP) Statutory Deadline
July 1st
bullAppropriation Request Statutory Deadline September 1st
bullDFA State Budget Division amp Legislative Finance Committee staff analyze agency budget requests amp hold meetings and hearings to pursue issues pertinent to requests
Sept - Dec
bullInstructions amp deadlines for the Special Appropriations Deficiencies Supplemental and Budget Adjustment Request Authority submittals
October - November
bullState law requires the Governor to prepare a budget to the LFC January 5th (even yrs) January10th (odd years)
bullLFC amp SBD prepare different sheets that shows major differences in revenues expenditures amp total budget between the executive and LFC recommendations
January
bullHAFC holds budget hearings in which the different sheets are presented and the committee will either adopt the executive recommendation
Session
bullOperating Budget Submittal Statutory Deadline May 1st
35
Capital Improvement Plan (ICIP) (July 1)
bull Governor amp DFA do not usually restrict agencies from submitted their capital outlay needs in the 5 year plan
bull Purchase of assets ie water rights equipment etc
bull Construction ie pipelines buildings etc
bull Long term in nature
bull Personnel costs not allowed
bull Appropriated for longer time frame 4 years amp 3 years to purchase an asset
bull If bonds are certified for project than 5 of appropriation must be expended within 6 months and 85 expended within 3 years
bull Funding Sources for projects from either GO Bonds Severance Tax Bonds or General Fund
36
37
38
The State Budget Act (sect6-3A-7 NMSA 1978) and the
Accountability in Government Act (sect6-3A-1 to 6-3A-8 NMSA
1978) set forth the framework and requirements for state
government budgeting in New Mexico
39
State Budget Act
6-3-19 Agencies to complete budget forms
Each state agency shall fill out the budget forms provided for in Section 6-3-18 NMSA 1978 in the
manner prescribed by the state budget division Each state agency in completing the budget forms
shall include information for all divisions subdivisions and offices of the agency Related agencies
upon approval of the state budget division may join in submitting one set of budget forms
Completed budget forms shall be returned to the state budget division not later than September 1 in
each year
History 1953 Comp sect 11-4-75 enacted by Laws 1955 ch 114 sect 10 1963 ch 147 sect 3 1977
ch 247 sect 130 1999 ch 5 sect 11 1999 ch 15 sect 11
40
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
11
12
Irrigation Works Construction Fund (IWCF) Projections
ACTUAL PRE-AUDIT
FY16 FY17 FY18 FY19
BEGINNING BALANCE $15207005 $13509420 $14379216 $7027116
REVENUE
Permanent Fund $6633195 $5818195 $6000000 $6000000
InterestLoans $23408 $21427 $25000 $25000
Lease Income $747611 $2961863 $1000000 $1000000
Investment Income (Loss) $342433 $1768626 $400000 $400000
Miscellaneous $35800 $6000 $35000 $35000
TOTAL REVENUE $7782447 $10576111 $7460000 $7460000
EXPENDITURES
Specials amp BAR Authority $2500000 $2175000
Operating Budget $9480032 $9706315 $12312100 $12312100
TOTAL EXPENDITURES $9480032 $9706315 $14812100 $14487100
ADJUSTED BALANCE $13509420 $14379216 $7027116 $16
IRRIGATION WORKS CONSTRUCTION FUND (326)
PROJECTED
13
IWCF Distribution by Program for the FY18 appropriated budget amount of $123121M
Water Rights
Allocation
Program 184460$ 15
Interstate
Stream
Commission 704640$ 57
Litigation amp
Adjudication
Program 249200$ 20
Program
Support 92910$ 8
14
IRGIF
72-14-4 Budget and plan submitted to governor annually
The interstate stream commission shall annually prepare and submit a budget together
with a complete and detailed plan looking toward the improvement of the Rio Grande in
this state and increasing the surface flow of water in the river during the ensuing
fiscal year The plan and budget shall be submitted annually in accordance with the
provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
History Laws 1935 ch 24 sect 1 1941 Comp sect 77-3304 Laws 1947 ch 131 sect 1 1953
Comp sect 75-34-4 Laws 1973 ch 201 sect 1 1997 ch 241 sect 1 1997 ch 246 sect 1
15
Improvement to the Rio Grande Income Fund (IRGIF)
ACTUAL PRE-AUDIT
FY16 FY17 FY18 FY19
BEGINNING BALANCE $6502230 $6574788 $8830893 $6648293
REVENUE
Permanent Fund $1495407 $1329890 $1400000 $1400000
Lease Income $90505 $1443926 $100000 $100000
Investment Income (Loss) $35837 $245214 $50000 $50000
TOTAL REVENUE $1621749 $3019030 $1550000 $1550000
EXPENDITURES
Specials amp BAR Authority $1200000 $272000
Operating Budget $1549191 $762925 $2532600 $2532600
TOTAL EXPENDITURES $1549191 $762925 $3732600 $2804600
ADJUSTED BALANCE $6574788 $8830893 $6648293 $5393693
IMPROVEMENT OF THE RIO GRANDE INCOME FUND (328)
PROJECTED
16
IRGIF Distribution for the FY18 appropriated budget amount of $25326
Water Rights
Allocation
Program 14760$ 6
Interstate
Stream
Commission 238500$ 94
17
Emergency Drought Water Agreement Revenue
bull Revenue Source Relinquishment credit stored amp released pursuant to the EDWA agreement
bull Fund Balance $2691342
bull Revenue Budget Process
ndash For FY19 budgeted $668k in the FY19 appropriation request for personnel costs
ndash Also budget funds on an as needed basis through the Budget Adjustment Process but need authority in the GAA
18
19
20
21
22
23
24
25
26
27
28
29
30
Ute Revenues
bull Fund originally set up to pay bond debt issued years ago for Ute Dam
bull Revenues from bulk water sale encroachment license fees amp easements deposited into the fund
bull Revenues historically have been used for operation amp maintenance costs for Ute dam
bull Fund Balance $626593
bull Revenue Budget Process
ndash Budget revenue on an as needed basis through the budget adjustment request process (BAR) bull Need to request specific BAR language in the appropriation request process in order to
budget the funds since the Ute Construction Fund does not give the Commission authority to budget the revenue
31
Active Capital Outlay Appropriations
bull $1M to purchase land and water rights within the interstate stream commissions existing pricing guidelines
and for the development of augmentation well fields and pipelines and related professional services for the Pecos River Compact settlement for the Pecos Settlement to purchase water rights (funded from the Attorney General Settlement Fund) ndashAvailable Balance = $4266k
bull $2M - notwithstanding the provisions of the Water Project Finance Act to the contrary is appropriated from
the water project fund to the office of the state engineer for expenditure in fiscal years 2016 through 2020 unless otherwise provided in Section 2 of this act to plan design and construct an engineered levee in the San Acacia reach in Socorro county- Available Balance = $14M
bull $2M to plan design renovate construct and equip improvements to acequias statewide (Attorney
General Settlement Fund) Available Balance Available Balance = $1005k bull $900k to rehab the LLSMR to plan design remodel rebuild construct and equip conservation rearing
ponds and hatcheries for a silvery minnow refugium production facility in Los Lunas in Valencia county (STB revenue bonds) Available Balance $0
bull $450k to plan design and construct habitat restoration projects in the middle Rio Grande conservancy
district or habitat restoration in the MRG (STB revenue Bonds) Available Balance = $1455k bull IWR appropriations ndash $58M Fund Balance for Taos Settlement bull Flow through appropriations to the ISC to act as fiscal agent for specific acequia projects ndash 28 current
appropriations that total approximately $13M
32
State Budget Process
bull Statutory Deadlines amp Submittals of Required Documents
bull Analysis amp Recommendation Process
bull What Happens During the Session (executive perspective)
33
Important to remember throughout this process
bull The Governor is our boss and controls what we will officially request in the appropriation request process
bull The Governor through the Department of Finance and Administration and the Legislature control the budget budget increases what is allowable to budget the dollar amount and time period and the request to move budget between appropriated budget categories
bull There are always exceptions to the appropriation request process
ndash Every administration interprets policies processes and laws differently and applies it based on their interpretation
bull Take inventory of our budget needs in July to be prepared to discuss and try and persuade the Governors office and DFA to allow us to make the official request on paper
ndash If not allowed to make the official budget request then cannot lobby for the budget need (need to be careful on how to respond when asked about the need)
bull Another chance to make a difference to the recommendation is the first few weeks of January to persuade the DFA andor LFC that their recommendation will not work for the agency before their recommendation is adopted in HAFC for the GAA (HB2)
34
Budget Requests Time Line
bullInfrastructure Capital Improvement Plan Due (ICIP) Statutory Deadline
July 1st
bullAppropriation Request Statutory Deadline September 1st
bullDFA State Budget Division amp Legislative Finance Committee staff analyze agency budget requests amp hold meetings and hearings to pursue issues pertinent to requests
Sept - Dec
bullInstructions amp deadlines for the Special Appropriations Deficiencies Supplemental and Budget Adjustment Request Authority submittals
October - November
bullState law requires the Governor to prepare a budget to the LFC January 5th (even yrs) January10th (odd years)
bullLFC amp SBD prepare different sheets that shows major differences in revenues expenditures amp total budget between the executive and LFC recommendations
January
bullHAFC holds budget hearings in which the different sheets are presented and the committee will either adopt the executive recommendation
Session
bullOperating Budget Submittal Statutory Deadline May 1st
35
Capital Improvement Plan (ICIP) (July 1)
bull Governor amp DFA do not usually restrict agencies from submitted their capital outlay needs in the 5 year plan
bull Purchase of assets ie water rights equipment etc
bull Construction ie pipelines buildings etc
bull Long term in nature
bull Personnel costs not allowed
bull Appropriated for longer time frame 4 years amp 3 years to purchase an asset
bull If bonds are certified for project than 5 of appropriation must be expended within 6 months and 85 expended within 3 years
bull Funding Sources for projects from either GO Bonds Severance Tax Bonds or General Fund
36
37
38
The State Budget Act (sect6-3A-7 NMSA 1978) and the
Accountability in Government Act (sect6-3A-1 to 6-3A-8 NMSA
1978) set forth the framework and requirements for state
government budgeting in New Mexico
39
State Budget Act
6-3-19 Agencies to complete budget forms
Each state agency shall fill out the budget forms provided for in Section 6-3-18 NMSA 1978 in the
manner prescribed by the state budget division Each state agency in completing the budget forms
shall include information for all divisions subdivisions and offices of the agency Related agencies
upon approval of the state budget division may join in submitting one set of budget forms
Completed budget forms shall be returned to the state budget division not later than September 1 in
each year
History 1953 Comp sect 11-4-75 enacted by Laws 1955 ch 114 sect 10 1963 ch 147 sect 3 1977
ch 247 sect 130 1999 ch 5 sect 11 1999 ch 15 sect 11
40
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
12
Irrigation Works Construction Fund (IWCF) Projections
ACTUAL PRE-AUDIT
FY16 FY17 FY18 FY19
BEGINNING BALANCE $15207005 $13509420 $14379216 $7027116
REVENUE
Permanent Fund $6633195 $5818195 $6000000 $6000000
InterestLoans $23408 $21427 $25000 $25000
Lease Income $747611 $2961863 $1000000 $1000000
Investment Income (Loss) $342433 $1768626 $400000 $400000
Miscellaneous $35800 $6000 $35000 $35000
TOTAL REVENUE $7782447 $10576111 $7460000 $7460000
EXPENDITURES
Specials amp BAR Authority $2500000 $2175000
Operating Budget $9480032 $9706315 $12312100 $12312100
TOTAL EXPENDITURES $9480032 $9706315 $14812100 $14487100
ADJUSTED BALANCE $13509420 $14379216 $7027116 $16
IRRIGATION WORKS CONSTRUCTION FUND (326)
PROJECTED
13
IWCF Distribution by Program for the FY18 appropriated budget amount of $123121M
Water Rights
Allocation
Program 184460$ 15
Interstate
Stream
Commission 704640$ 57
Litigation amp
Adjudication
Program 249200$ 20
Program
Support 92910$ 8
14
IRGIF
72-14-4 Budget and plan submitted to governor annually
The interstate stream commission shall annually prepare and submit a budget together
with a complete and detailed plan looking toward the improvement of the Rio Grande in
this state and increasing the surface flow of water in the river during the ensuing
fiscal year The plan and budget shall be submitted annually in accordance with the
provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
History Laws 1935 ch 24 sect 1 1941 Comp sect 77-3304 Laws 1947 ch 131 sect 1 1953
Comp sect 75-34-4 Laws 1973 ch 201 sect 1 1997 ch 241 sect 1 1997 ch 246 sect 1
15
Improvement to the Rio Grande Income Fund (IRGIF)
ACTUAL PRE-AUDIT
FY16 FY17 FY18 FY19
BEGINNING BALANCE $6502230 $6574788 $8830893 $6648293
REVENUE
Permanent Fund $1495407 $1329890 $1400000 $1400000
Lease Income $90505 $1443926 $100000 $100000
Investment Income (Loss) $35837 $245214 $50000 $50000
TOTAL REVENUE $1621749 $3019030 $1550000 $1550000
EXPENDITURES
Specials amp BAR Authority $1200000 $272000
Operating Budget $1549191 $762925 $2532600 $2532600
TOTAL EXPENDITURES $1549191 $762925 $3732600 $2804600
ADJUSTED BALANCE $6574788 $8830893 $6648293 $5393693
IMPROVEMENT OF THE RIO GRANDE INCOME FUND (328)
PROJECTED
16
IRGIF Distribution for the FY18 appropriated budget amount of $25326
Water Rights
Allocation
Program 14760$ 6
Interstate
Stream
Commission 238500$ 94
17
Emergency Drought Water Agreement Revenue
bull Revenue Source Relinquishment credit stored amp released pursuant to the EDWA agreement
bull Fund Balance $2691342
bull Revenue Budget Process
ndash For FY19 budgeted $668k in the FY19 appropriation request for personnel costs
ndash Also budget funds on an as needed basis through the Budget Adjustment Process but need authority in the GAA
18
19
20
21
22
23
24
25
26
27
28
29
30
Ute Revenues
bull Fund originally set up to pay bond debt issued years ago for Ute Dam
bull Revenues from bulk water sale encroachment license fees amp easements deposited into the fund
bull Revenues historically have been used for operation amp maintenance costs for Ute dam
bull Fund Balance $626593
bull Revenue Budget Process
ndash Budget revenue on an as needed basis through the budget adjustment request process (BAR) bull Need to request specific BAR language in the appropriation request process in order to
budget the funds since the Ute Construction Fund does not give the Commission authority to budget the revenue
31
Active Capital Outlay Appropriations
bull $1M to purchase land and water rights within the interstate stream commissions existing pricing guidelines
and for the development of augmentation well fields and pipelines and related professional services for the Pecos River Compact settlement for the Pecos Settlement to purchase water rights (funded from the Attorney General Settlement Fund) ndashAvailable Balance = $4266k
bull $2M - notwithstanding the provisions of the Water Project Finance Act to the contrary is appropriated from
the water project fund to the office of the state engineer for expenditure in fiscal years 2016 through 2020 unless otherwise provided in Section 2 of this act to plan design and construct an engineered levee in the San Acacia reach in Socorro county- Available Balance = $14M
bull $2M to plan design renovate construct and equip improvements to acequias statewide (Attorney
General Settlement Fund) Available Balance Available Balance = $1005k bull $900k to rehab the LLSMR to plan design remodel rebuild construct and equip conservation rearing
ponds and hatcheries for a silvery minnow refugium production facility in Los Lunas in Valencia county (STB revenue bonds) Available Balance $0
bull $450k to plan design and construct habitat restoration projects in the middle Rio Grande conservancy
district or habitat restoration in the MRG (STB revenue Bonds) Available Balance = $1455k bull IWR appropriations ndash $58M Fund Balance for Taos Settlement bull Flow through appropriations to the ISC to act as fiscal agent for specific acequia projects ndash 28 current
appropriations that total approximately $13M
32
State Budget Process
bull Statutory Deadlines amp Submittals of Required Documents
bull Analysis amp Recommendation Process
bull What Happens During the Session (executive perspective)
33
Important to remember throughout this process
bull The Governor is our boss and controls what we will officially request in the appropriation request process
bull The Governor through the Department of Finance and Administration and the Legislature control the budget budget increases what is allowable to budget the dollar amount and time period and the request to move budget between appropriated budget categories
bull There are always exceptions to the appropriation request process
ndash Every administration interprets policies processes and laws differently and applies it based on their interpretation
bull Take inventory of our budget needs in July to be prepared to discuss and try and persuade the Governors office and DFA to allow us to make the official request on paper
ndash If not allowed to make the official budget request then cannot lobby for the budget need (need to be careful on how to respond when asked about the need)
bull Another chance to make a difference to the recommendation is the first few weeks of January to persuade the DFA andor LFC that their recommendation will not work for the agency before their recommendation is adopted in HAFC for the GAA (HB2)
34
Budget Requests Time Line
bullInfrastructure Capital Improvement Plan Due (ICIP) Statutory Deadline
July 1st
bullAppropriation Request Statutory Deadline September 1st
bullDFA State Budget Division amp Legislative Finance Committee staff analyze agency budget requests amp hold meetings and hearings to pursue issues pertinent to requests
Sept - Dec
bullInstructions amp deadlines for the Special Appropriations Deficiencies Supplemental and Budget Adjustment Request Authority submittals
October - November
bullState law requires the Governor to prepare a budget to the LFC January 5th (even yrs) January10th (odd years)
bullLFC amp SBD prepare different sheets that shows major differences in revenues expenditures amp total budget between the executive and LFC recommendations
January
bullHAFC holds budget hearings in which the different sheets are presented and the committee will either adopt the executive recommendation
Session
bullOperating Budget Submittal Statutory Deadline May 1st
35
Capital Improvement Plan (ICIP) (July 1)
bull Governor amp DFA do not usually restrict agencies from submitted their capital outlay needs in the 5 year plan
bull Purchase of assets ie water rights equipment etc
bull Construction ie pipelines buildings etc
bull Long term in nature
bull Personnel costs not allowed
bull Appropriated for longer time frame 4 years amp 3 years to purchase an asset
bull If bonds are certified for project than 5 of appropriation must be expended within 6 months and 85 expended within 3 years
bull Funding Sources for projects from either GO Bonds Severance Tax Bonds or General Fund
36
37
38
The State Budget Act (sect6-3A-7 NMSA 1978) and the
Accountability in Government Act (sect6-3A-1 to 6-3A-8 NMSA
1978) set forth the framework and requirements for state
government budgeting in New Mexico
39
State Budget Act
6-3-19 Agencies to complete budget forms
Each state agency shall fill out the budget forms provided for in Section 6-3-18 NMSA 1978 in the
manner prescribed by the state budget division Each state agency in completing the budget forms
shall include information for all divisions subdivisions and offices of the agency Related agencies
upon approval of the state budget division may join in submitting one set of budget forms
Completed budget forms shall be returned to the state budget division not later than September 1 in
each year
History 1953 Comp sect 11-4-75 enacted by Laws 1955 ch 114 sect 10 1963 ch 147 sect 3 1977
ch 247 sect 130 1999 ch 5 sect 11 1999 ch 15 sect 11
40
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
Irrigation Works Construction Fund (IWCF) Projections
ACTUAL PRE-AUDIT
FY16 FY17 FY18 FY19
BEGINNING BALANCE $15207005 $13509420 $14379216 $7027116
REVENUE
Permanent Fund $6633195 $5818195 $6000000 $6000000
InterestLoans $23408 $21427 $25000 $25000
Lease Income $747611 $2961863 $1000000 $1000000
Investment Income (Loss) $342433 $1768626 $400000 $400000
Miscellaneous $35800 $6000 $35000 $35000
TOTAL REVENUE $7782447 $10576111 $7460000 $7460000
EXPENDITURES
Specials amp BAR Authority $2500000 $2175000
Operating Budget $9480032 $9706315 $12312100 $12312100
TOTAL EXPENDITURES $9480032 $9706315 $14812100 $14487100
ADJUSTED BALANCE $13509420 $14379216 $7027116 $16
IRRIGATION WORKS CONSTRUCTION FUND (326)
PROJECTED
13
IWCF Distribution by Program for the FY18 appropriated budget amount of $123121M
Water Rights
Allocation
Program 184460$ 15
Interstate
Stream
Commission 704640$ 57
Litigation amp
Adjudication
Program 249200$ 20
Program
Support 92910$ 8
14
IRGIF
72-14-4 Budget and plan submitted to governor annually
The interstate stream commission shall annually prepare and submit a budget together
with a complete and detailed plan looking toward the improvement of the Rio Grande in
this state and increasing the surface flow of water in the river during the ensuing
fiscal year The plan and budget shall be submitted annually in accordance with the
provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
History Laws 1935 ch 24 sect 1 1941 Comp sect 77-3304 Laws 1947 ch 131 sect 1 1953
Comp sect 75-34-4 Laws 1973 ch 201 sect 1 1997 ch 241 sect 1 1997 ch 246 sect 1
15
Improvement to the Rio Grande Income Fund (IRGIF)
ACTUAL PRE-AUDIT
FY16 FY17 FY18 FY19
BEGINNING BALANCE $6502230 $6574788 $8830893 $6648293
REVENUE
Permanent Fund $1495407 $1329890 $1400000 $1400000
Lease Income $90505 $1443926 $100000 $100000
Investment Income (Loss) $35837 $245214 $50000 $50000
TOTAL REVENUE $1621749 $3019030 $1550000 $1550000
EXPENDITURES
Specials amp BAR Authority $1200000 $272000
Operating Budget $1549191 $762925 $2532600 $2532600
TOTAL EXPENDITURES $1549191 $762925 $3732600 $2804600
ADJUSTED BALANCE $6574788 $8830893 $6648293 $5393693
IMPROVEMENT OF THE RIO GRANDE INCOME FUND (328)
PROJECTED
16
IRGIF Distribution for the FY18 appropriated budget amount of $25326
Water Rights
Allocation
Program 14760$ 6
Interstate
Stream
Commission 238500$ 94
17
Emergency Drought Water Agreement Revenue
bull Revenue Source Relinquishment credit stored amp released pursuant to the EDWA agreement
bull Fund Balance $2691342
bull Revenue Budget Process
ndash For FY19 budgeted $668k in the FY19 appropriation request for personnel costs
ndash Also budget funds on an as needed basis through the Budget Adjustment Process but need authority in the GAA
18
19
20
21
22
23
24
25
26
27
28
29
30
Ute Revenues
bull Fund originally set up to pay bond debt issued years ago for Ute Dam
bull Revenues from bulk water sale encroachment license fees amp easements deposited into the fund
bull Revenues historically have been used for operation amp maintenance costs for Ute dam
bull Fund Balance $626593
bull Revenue Budget Process
ndash Budget revenue on an as needed basis through the budget adjustment request process (BAR) bull Need to request specific BAR language in the appropriation request process in order to
budget the funds since the Ute Construction Fund does not give the Commission authority to budget the revenue
31
Active Capital Outlay Appropriations
bull $1M to purchase land and water rights within the interstate stream commissions existing pricing guidelines
and for the development of augmentation well fields and pipelines and related professional services for the Pecos River Compact settlement for the Pecos Settlement to purchase water rights (funded from the Attorney General Settlement Fund) ndashAvailable Balance = $4266k
bull $2M - notwithstanding the provisions of the Water Project Finance Act to the contrary is appropriated from
the water project fund to the office of the state engineer for expenditure in fiscal years 2016 through 2020 unless otherwise provided in Section 2 of this act to plan design and construct an engineered levee in the San Acacia reach in Socorro county- Available Balance = $14M
bull $2M to plan design renovate construct and equip improvements to acequias statewide (Attorney
General Settlement Fund) Available Balance Available Balance = $1005k bull $900k to rehab the LLSMR to plan design remodel rebuild construct and equip conservation rearing
ponds and hatcheries for a silvery minnow refugium production facility in Los Lunas in Valencia county (STB revenue bonds) Available Balance $0
bull $450k to plan design and construct habitat restoration projects in the middle Rio Grande conservancy
district or habitat restoration in the MRG (STB revenue Bonds) Available Balance = $1455k bull IWR appropriations ndash $58M Fund Balance for Taos Settlement bull Flow through appropriations to the ISC to act as fiscal agent for specific acequia projects ndash 28 current
appropriations that total approximately $13M
32
State Budget Process
bull Statutory Deadlines amp Submittals of Required Documents
bull Analysis amp Recommendation Process
bull What Happens During the Session (executive perspective)
33
Important to remember throughout this process
bull The Governor is our boss and controls what we will officially request in the appropriation request process
bull The Governor through the Department of Finance and Administration and the Legislature control the budget budget increases what is allowable to budget the dollar amount and time period and the request to move budget between appropriated budget categories
bull There are always exceptions to the appropriation request process
ndash Every administration interprets policies processes and laws differently and applies it based on their interpretation
bull Take inventory of our budget needs in July to be prepared to discuss and try and persuade the Governors office and DFA to allow us to make the official request on paper
ndash If not allowed to make the official budget request then cannot lobby for the budget need (need to be careful on how to respond when asked about the need)
bull Another chance to make a difference to the recommendation is the first few weeks of January to persuade the DFA andor LFC that their recommendation will not work for the agency before their recommendation is adopted in HAFC for the GAA (HB2)
34
Budget Requests Time Line
bullInfrastructure Capital Improvement Plan Due (ICIP) Statutory Deadline
July 1st
bullAppropriation Request Statutory Deadline September 1st
bullDFA State Budget Division amp Legislative Finance Committee staff analyze agency budget requests amp hold meetings and hearings to pursue issues pertinent to requests
Sept - Dec
bullInstructions amp deadlines for the Special Appropriations Deficiencies Supplemental and Budget Adjustment Request Authority submittals
October - November
bullState law requires the Governor to prepare a budget to the LFC January 5th (even yrs) January10th (odd years)
bullLFC amp SBD prepare different sheets that shows major differences in revenues expenditures amp total budget between the executive and LFC recommendations
January
bullHAFC holds budget hearings in which the different sheets are presented and the committee will either adopt the executive recommendation
Session
bullOperating Budget Submittal Statutory Deadline May 1st
35
Capital Improvement Plan (ICIP) (July 1)
bull Governor amp DFA do not usually restrict agencies from submitted their capital outlay needs in the 5 year plan
bull Purchase of assets ie water rights equipment etc
bull Construction ie pipelines buildings etc
bull Long term in nature
bull Personnel costs not allowed
bull Appropriated for longer time frame 4 years amp 3 years to purchase an asset
bull If bonds are certified for project than 5 of appropriation must be expended within 6 months and 85 expended within 3 years
bull Funding Sources for projects from either GO Bonds Severance Tax Bonds or General Fund
36
37
38
The State Budget Act (sect6-3A-7 NMSA 1978) and the
Accountability in Government Act (sect6-3A-1 to 6-3A-8 NMSA
1978) set forth the framework and requirements for state
government budgeting in New Mexico
39
State Budget Act
6-3-19 Agencies to complete budget forms
Each state agency shall fill out the budget forms provided for in Section 6-3-18 NMSA 1978 in the
manner prescribed by the state budget division Each state agency in completing the budget forms
shall include information for all divisions subdivisions and offices of the agency Related agencies
upon approval of the state budget division may join in submitting one set of budget forms
Completed budget forms shall be returned to the state budget division not later than September 1 in
each year
History 1953 Comp sect 11-4-75 enacted by Laws 1955 ch 114 sect 10 1963 ch 147 sect 3 1977
ch 247 sect 130 1999 ch 5 sect 11 1999 ch 15 sect 11
40
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
IWCF Distribution by Program for the FY18 appropriated budget amount of $123121M
Water Rights
Allocation
Program 184460$ 15
Interstate
Stream
Commission 704640$ 57
Litigation amp
Adjudication
Program 249200$ 20
Program
Support 92910$ 8
14
IRGIF
72-14-4 Budget and plan submitted to governor annually
The interstate stream commission shall annually prepare and submit a budget together
with a complete and detailed plan looking toward the improvement of the Rio Grande in
this state and increasing the surface flow of water in the river during the ensuing
fiscal year The plan and budget shall be submitted annually in accordance with the
provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
History Laws 1935 ch 24 sect 1 1941 Comp sect 77-3304 Laws 1947 ch 131 sect 1 1953
Comp sect 75-34-4 Laws 1973 ch 201 sect 1 1997 ch 241 sect 1 1997 ch 246 sect 1
15
Improvement to the Rio Grande Income Fund (IRGIF)
ACTUAL PRE-AUDIT
FY16 FY17 FY18 FY19
BEGINNING BALANCE $6502230 $6574788 $8830893 $6648293
REVENUE
Permanent Fund $1495407 $1329890 $1400000 $1400000
Lease Income $90505 $1443926 $100000 $100000
Investment Income (Loss) $35837 $245214 $50000 $50000
TOTAL REVENUE $1621749 $3019030 $1550000 $1550000
EXPENDITURES
Specials amp BAR Authority $1200000 $272000
Operating Budget $1549191 $762925 $2532600 $2532600
TOTAL EXPENDITURES $1549191 $762925 $3732600 $2804600
ADJUSTED BALANCE $6574788 $8830893 $6648293 $5393693
IMPROVEMENT OF THE RIO GRANDE INCOME FUND (328)
PROJECTED
16
IRGIF Distribution for the FY18 appropriated budget amount of $25326
Water Rights
Allocation
Program 14760$ 6
Interstate
Stream
Commission 238500$ 94
17
Emergency Drought Water Agreement Revenue
bull Revenue Source Relinquishment credit stored amp released pursuant to the EDWA agreement
bull Fund Balance $2691342
bull Revenue Budget Process
ndash For FY19 budgeted $668k in the FY19 appropriation request for personnel costs
ndash Also budget funds on an as needed basis through the Budget Adjustment Process but need authority in the GAA
18
19
20
21
22
23
24
25
26
27
28
29
30
Ute Revenues
bull Fund originally set up to pay bond debt issued years ago for Ute Dam
bull Revenues from bulk water sale encroachment license fees amp easements deposited into the fund
bull Revenues historically have been used for operation amp maintenance costs for Ute dam
bull Fund Balance $626593
bull Revenue Budget Process
ndash Budget revenue on an as needed basis through the budget adjustment request process (BAR) bull Need to request specific BAR language in the appropriation request process in order to
budget the funds since the Ute Construction Fund does not give the Commission authority to budget the revenue
31
Active Capital Outlay Appropriations
bull $1M to purchase land and water rights within the interstate stream commissions existing pricing guidelines
and for the development of augmentation well fields and pipelines and related professional services for the Pecos River Compact settlement for the Pecos Settlement to purchase water rights (funded from the Attorney General Settlement Fund) ndashAvailable Balance = $4266k
bull $2M - notwithstanding the provisions of the Water Project Finance Act to the contrary is appropriated from
the water project fund to the office of the state engineer for expenditure in fiscal years 2016 through 2020 unless otherwise provided in Section 2 of this act to plan design and construct an engineered levee in the San Acacia reach in Socorro county- Available Balance = $14M
bull $2M to plan design renovate construct and equip improvements to acequias statewide (Attorney
General Settlement Fund) Available Balance Available Balance = $1005k bull $900k to rehab the LLSMR to plan design remodel rebuild construct and equip conservation rearing
ponds and hatcheries for a silvery minnow refugium production facility in Los Lunas in Valencia county (STB revenue bonds) Available Balance $0
bull $450k to plan design and construct habitat restoration projects in the middle Rio Grande conservancy
district or habitat restoration in the MRG (STB revenue Bonds) Available Balance = $1455k bull IWR appropriations ndash $58M Fund Balance for Taos Settlement bull Flow through appropriations to the ISC to act as fiscal agent for specific acequia projects ndash 28 current
appropriations that total approximately $13M
32
State Budget Process
bull Statutory Deadlines amp Submittals of Required Documents
bull Analysis amp Recommendation Process
bull What Happens During the Session (executive perspective)
33
Important to remember throughout this process
bull The Governor is our boss and controls what we will officially request in the appropriation request process
bull The Governor through the Department of Finance and Administration and the Legislature control the budget budget increases what is allowable to budget the dollar amount and time period and the request to move budget between appropriated budget categories
bull There are always exceptions to the appropriation request process
ndash Every administration interprets policies processes and laws differently and applies it based on their interpretation
bull Take inventory of our budget needs in July to be prepared to discuss and try and persuade the Governors office and DFA to allow us to make the official request on paper
ndash If not allowed to make the official budget request then cannot lobby for the budget need (need to be careful on how to respond when asked about the need)
bull Another chance to make a difference to the recommendation is the first few weeks of January to persuade the DFA andor LFC that their recommendation will not work for the agency before their recommendation is adopted in HAFC for the GAA (HB2)
34
Budget Requests Time Line
bullInfrastructure Capital Improvement Plan Due (ICIP) Statutory Deadline
July 1st
bullAppropriation Request Statutory Deadline September 1st
bullDFA State Budget Division amp Legislative Finance Committee staff analyze agency budget requests amp hold meetings and hearings to pursue issues pertinent to requests
Sept - Dec
bullInstructions amp deadlines for the Special Appropriations Deficiencies Supplemental and Budget Adjustment Request Authority submittals
October - November
bullState law requires the Governor to prepare a budget to the LFC January 5th (even yrs) January10th (odd years)
bullLFC amp SBD prepare different sheets that shows major differences in revenues expenditures amp total budget between the executive and LFC recommendations
January
bullHAFC holds budget hearings in which the different sheets are presented and the committee will either adopt the executive recommendation
Session
bullOperating Budget Submittal Statutory Deadline May 1st
35
Capital Improvement Plan (ICIP) (July 1)
bull Governor amp DFA do not usually restrict agencies from submitted their capital outlay needs in the 5 year plan
bull Purchase of assets ie water rights equipment etc
bull Construction ie pipelines buildings etc
bull Long term in nature
bull Personnel costs not allowed
bull Appropriated for longer time frame 4 years amp 3 years to purchase an asset
bull If bonds are certified for project than 5 of appropriation must be expended within 6 months and 85 expended within 3 years
bull Funding Sources for projects from either GO Bonds Severance Tax Bonds or General Fund
36
37
38
The State Budget Act (sect6-3A-7 NMSA 1978) and the
Accountability in Government Act (sect6-3A-1 to 6-3A-8 NMSA
1978) set forth the framework and requirements for state
government budgeting in New Mexico
39
State Budget Act
6-3-19 Agencies to complete budget forms
Each state agency shall fill out the budget forms provided for in Section 6-3-18 NMSA 1978 in the
manner prescribed by the state budget division Each state agency in completing the budget forms
shall include information for all divisions subdivisions and offices of the agency Related agencies
upon approval of the state budget division may join in submitting one set of budget forms
Completed budget forms shall be returned to the state budget division not later than September 1 in
each year
History 1953 Comp sect 11-4-75 enacted by Laws 1955 ch 114 sect 10 1963 ch 147 sect 3 1977
ch 247 sect 130 1999 ch 5 sect 11 1999 ch 15 sect 11
40
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
IRGIF
72-14-4 Budget and plan submitted to governor annually
The interstate stream commission shall annually prepare and submit a budget together
with a complete and detailed plan looking toward the improvement of the Rio Grande in
this state and increasing the surface flow of water in the river during the ensuing
fiscal year The plan and budget shall be submitted annually in accordance with the
provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
History Laws 1935 ch 24 sect 1 1941 Comp sect 77-3304 Laws 1947 ch 131 sect 1 1953
Comp sect 75-34-4 Laws 1973 ch 201 sect 1 1997 ch 241 sect 1 1997 ch 246 sect 1
15
Improvement to the Rio Grande Income Fund (IRGIF)
ACTUAL PRE-AUDIT
FY16 FY17 FY18 FY19
BEGINNING BALANCE $6502230 $6574788 $8830893 $6648293
REVENUE
Permanent Fund $1495407 $1329890 $1400000 $1400000
Lease Income $90505 $1443926 $100000 $100000
Investment Income (Loss) $35837 $245214 $50000 $50000
TOTAL REVENUE $1621749 $3019030 $1550000 $1550000
EXPENDITURES
Specials amp BAR Authority $1200000 $272000
Operating Budget $1549191 $762925 $2532600 $2532600
TOTAL EXPENDITURES $1549191 $762925 $3732600 $2804600
ADJUSTED BALANCE $6574788 $8830893 $6648293 $5393693
IMPROVEMENT OF THE RIO GRANDE INCOME FUND (328)
PROJECTED
16
IRGIF Distribution for the FY18 appropriated budget amount of $25326
Water Rights
Allocation
Program 14760$ 6
Interstate
Stream
Commission 238500$ 94
17
Emergency Drought Water Agreement Revenue
bull Revenue Source Relinquishment credit stored amp released pursuant to the EDWA agreement
bull Fund Balance $2691342
bull Revenue Budget Process
ndash For FY19 budgeted $668k in the FY19 appropriation request for personnel costs
ndash Also budget funds on an as needed basis through the Budget Adjustment Process but need authority in the GAA
18
19
20
21
22
23
24
25
26
27
28
29
30
Ute Revenues
bull Fund originally set up to pay bond debt issued years ago for Ute Dam
bull Revenues from bulk water sale encroachment license fees amp easements deposited into the fund
bull Revenues historically have been used for operation amp maintenance costs for Ute dam
bull Fund Balance $626593
bull Revenue Budget Process
ndash Budget revenue on an as needed basis through the budget adjustment request process (BAR) bull Need to request specific BAR language in the appropriation request process in order to
budget the funds since the Ute Construction Fund does not give the Commission authority to budget the revenue
31
Active Capital Outlay Appropriations
bull $1M to purchase land and water rights within the interstate stream commissions existing pricing guidelines
and for the development of augmentation well fields and pipelines and related professional services for the Pecos River Compact settlement for the Pecos Settlement to purchase water rights (funded from the Attorney General Settlement Fund) ndashAvailable Balance = $4266k
bull $2M - notwithstanding the provisions of the Water Project Finance Act to the contrary is appropriated from
the water project fund to the office of the state engineer for expenditure in fiscal years 2016 through 2020 unless otherwise provided in Section 2 of this act to plan design and construct an engineered levee in the San Acacia reach in Socorro county- Available Balance = $14M
bull $2M to plan design renovate construct and equip improvements to acequias statewide (Attorney
General Settlement Fund) Available Balance Available Balance = $1005k bull $900k to rehab the LLSMR to plan design remodel rebuild construct and equip conservation rearing
ponds and hatcheries for a silvery minnow refugium production facility in Los Lunas in Valencia county (STB revenue bonds) Available Balance $0
bull $450k to plan design and construct habitat restoration projects in the middle Rio Grande conservancy
district or habitat restoration in the MRG (STB revenue Bonds) Available Balance = $1455k bull IWR appropriations ndash $58M Fund Balance for Taos Settlement bull Flow through appropriations to the ISC to act as fiscal agent for specific acequia projects ndash 28 current
appropriations that total approximately $13M
32
State Budget Process
bull Statutory Deadlines amp Submittals of Required Documents
bull Analysis amp Recommendation Process
bull What Happens During the Session (executive perspective)
33
Important to remember throughout this process
bull The Governor is our boss and controls what we will officially request in the appropriation request process
bull The Governor through the Department of Finance and Administration and the Legislature control the budget budget increases what is allowable to budget the dollar amount and time period and the request to move budget between appropriated budget categories
bull There are always exceptions to the appropriation request process
ndash Every administration interprets policies processes and laws differently and applies it based on their interpretation
bull Take inventory of our budget needs in July to be prepared to discuss and try and persuade the Governors office and DFA to allow us to make the official request on paper
ndash If not allowed to make the official budget request then cannot lobby for the budget need (need to be careful on how to respond when asked about the need)
bull Another chance to make a difference to the recommendation is the first few weeks of January to persuade the DFA andor LFC that their recommendation will not work for the agency before their recommendation is adopted in HAFC for the GAA (HB2)
34
Budget Requests Time Line
bullInfrastructure Capital Improvement Plan Due (ICIP) Statutory Deadline
July 1st
bullAppropriation Request Statutory Deadline September 1st
bullDFA State Budget Division amp Legislative Finance Committee staff analyze agency budget requests amp hold meetings and hearings to pursue issues pertinent to requests
Sept - Dec
bullInstructions amp deadlines for the Special Appropriations Deficiencies Supplemental and Budget Adjustment Request Authority submittals
October - November
bullState law requires the Governor to prepare a budget to the LFC January 5th (even yrs) January10th (odd years)
bullLFC amp SBD prepare different sheets that shows major differences in revenues expenditures amp total budget between the executive and LFC recommendations
January
bullHAFC holds budget hearings in which the different sheets are presented and the committee will either adopt the executive recommendation
Session
bullOperating Budget Submittal Statutory Deadline May 1st
35
Capital Improvement Plan (ICIP) (July 1)
bull Governor amp DFA do not usually restrict agencies from submitted their capital outlay needs in the 5 year plan
bull Purchase of assets ie water rights equipment etc
bull Construction ie pipelines buildings etc
bull Long term in nature
bull Personnel costs not allowed
bull Appropriated for longer time frame 4 years amp 3 years to purchase an asset
bull If bonds are certified for project than 5 of appropriation must be expended within 6 months and 85 expended within 3 years
bull Funding Sources for projects from either GO Bonds Severance Tax Bonds or General Fund
36
37
38
The State Budget Act (sect6-3A-7 NMSA 1978) and the
Accountability in Government Act (sect6-3A-1 to 6-3A-8 NMSA
1978) set forth the framework and requirements for state
government budgeting in New Mexico
39
State Budget Act
6-3-19 Agencies to complete budget forms
Each state agency shall fill out the budget forms provided for in Section 6-3-18 NMSA 1978 in the
manner prescribed by the state budget division Each state agency in completing the budget forms
shall include information for all divisions subdivisions and offices of the agency Related agencies
upon approval of the state budget division may join in submitting one set of budget forms
Completed budget forms shall be returned to the state budget division not later than September 1 in
each year
History 1953 Comp sect 11-4-75 enacted by Laws 1955 ch 114 sect 10 1963 ch 147 sect 3 1977
ch 247 sect 130 1999 ch 5 sect 11 1999 ch 15 sect 11
40
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
Improvement to the Rio Grande Income Fund (IRGIF)
ACTUAL PRE-AUDIT
FY16 FY17 FY18 FY19
BEGINNING BALANCE $6502230 $6574788 $8830893 $6648293
REVENUE
Permanent Fund $1495407 $1329890 $1400000 $1400000
Lease Income $90505 $1443926 $100000 $100000
Investment Income (Loss) $35837 $245214 $50000 $50000
TOTAL REVENUE $1621749 $3019030 $1550000 $1550000
EXPENDITURES
Specials amp BAR Authority $1200000 $272000
Operating Budget $1549191 $762925 $2532600 $2532600
TOTAL EXPENDITURES $1549191 $762925 $3732600 $2804600
ADJUSTED BALANCE $6574788 $8830893 $6648293 $5393693
IMPROVEMENT OF THE RIO GRANDE INCOME FUND (328)
PROJECTED
16
IRGIF Distribution for the FY18 appropriated budget amount of $25326
Water Rights
Allocation
Program 14760$ 6
Interstate
Stream
Commission 238500$ 94
17
Emergency Drought Water Agreement Revenue
bull Revenue Source Relinquishment credit stored amp released pursuant to the EDWA agreement
bull Fund Balance $2691342
bull Revenue Budget Process
ndash For FY19 budgeted $668k in the FY19 appropriation request for personnel costs
ndash Also budget funds on an as needed basis through the Budget Adjustment Process but need authority in the GAA
18
19
20
21
22
23
24
25
26
27
28
29
30
Ute Revenues
bull Fund originally set up to pay bond debt issued years ago for Ute Dam
bull Revenues from bulk water sale encroachment license fees amp easements deposited into the fund
bull Revenues historically have been used for operation amp maintenance costs for Ute dam
bull Fund Balance $626593
bull Revenue Budget Process
ndash Budget revenue on an as needed basis through the budget adjustment request process (BAR) bull Need to request specific BAR language in the appropriation request process in order to
budget the funds since the Ute Construction Fund does not give the Commission authority to budget the revenue
31
Active Capital Outlay Appropriations
bull $1M to purchase land and water rights within the interstate stream commissions existing pricing guidelines
and for the development of augmentation well fields and pipelines and related professional services for the Pecos River Compact settlement for the Pecos Settlement to purchase water rights (funded from the Attorney General Settlement Fund) ndashAvailable Balance = $4266k
bull $2M - notwithstanding the provisions of the Water Project Finance Act to the contrary is appropriated from
the water project fund to the office of the state engineer for expenditure in fiscal years 2016 through 2020 unless otherwise provided in Section 2 of this act to plan design and construct an engineered levee in the San Acacia reach in Socorro county- Available Balance = $14M
bull $2M to plan design renovate construct and equip improvements to acequias statewide (Attorney
General Settlement Fund) Available Balance Available Balance = $1005k bull $900k to rehab the LLSMR to plan design remodel rebuild construct and equip conservation rearing
ponds and hatcheries for a silvery minnow refugium production facility in Los Lunas in Valencia county (STB revenue bonds) Available Balance $0
bull $450k to plan design and construct habitat restoration projects in the middle Rio Grande conservancy
district or habitat restoration in the MRG (STB revenue Bonds) Available Balance = $1455k bull IWR appropriations ndash $58M Fund Balance for Taos Settlement bull Flow through appropriations to the ISC to act as fiscal agent for specific acequia projects ndash 28 current
appropriations that total approximately $13M
32
State Budget Process
bull Statutory Deadlines amp Submittals of Required Documents
bull Analysis amp Recommendation Process
bull What Happens During the Session (executive perspective)
33
Important to remember throughout this process
bull The Governor is our boss and controls what we will officially request in the appropriation request process
bull The Governor through the Department of Finance and Administration and the Legislature control the budget budget increases what is allowable to budget the dollar amount and time period and the request to move budget between appropriated budget categories
bull There are always exceptions to the appropriation request process
ndash Every administration interprets policies processes and laws differently and applies it based on their interpretation
bull Take inventory of our budget needs in July to be prepared to discuss and try and persuade the Governors office and DFA to allow us to make the official request on paper
ndash If not allowed to make the official budget request then cannot lobby for the budget need (need to be careful on how to respond when asked about the need)
bull Another chance to make a difference to the recommendation is the first few weeks of January to persuade the DFA andor LFC that their recommendation will not work for the agency before their recommendation is adopted in HAFC for the GAA (HB2)
34
Budget Requests Time Line
bullInfrastructure Capital Improvement Plan Due (ICIP) Statutory Deadline
July 1st
bullAppropriation Request Statutory Deadline September 1st
bullDFA State Budget Division amp Legislative Finance Committee staff analyze agency budget requests amp hold meetings and hearings to pursue issues pertinent to requests
Sept - Dec
bullInstructions amp deadlines for the Special Appropriations Deficiencies Supplemental and Budget Adjustment Request Authority submittals
October - November
bullState law requires the Governor to prepare a budget to the LFC January 5th (even yrs) January10th (odd years)
bullLFC amp SBD prepare different sheets that shows major differences in revenues expenditures amp total budget between the executive and LFC recommendations
January
bullHAFC holds budget hearings in which the different sheets are presented and the committee will either adopt the executive recommendation
Session
bullOperating Budget Submittal Statutory Deadline May 1st
35
Capital Improvement Plan (ICIP) (July 1)
bull Governor amp DFA do not usually restrict agencies from submitted their capital outlay needs in the 5 year plan
bull Purchase of assets ie water rights equipment etc
bull Construction ie pipelines buildings etc
bull Long term in nature
bull Personnel costs not allowed
bull Appropriated for longer time frame 4 years amp 3 years to purchase an asset
bull If bonds are certified for project than 5 of appropriation must be expended within 6 months and 85 expended within 3 years
bull Funding Sources for projects from either GO Bonds Severance Tax Bonds or General Fund
36
37
38
The State Budget Act (sect6-3A-7 NMSA 1978) and the
Accountability in Government Act (sect6-3A-1 to 6-3A-8 NMSA
1978) set forth the framework and requirements for state
government budgeting in New Mexico
39
State Budget Act
6-3-19 Agencies to complete budget forms
Each state agency shall fill out the budget forms provided for in Section 6-3-18 NMSA 1978 in the
manner prescribed by the state budget division Each state agency in completing the budget forms
shall include information for all divisions subdivisions and offices of the agency Related agencies
upon approval of the state budget division may join in submitting one set of budget forms
Completed budget forms shall be returned to the state budget division not later than September 1 in
each year
History 1953 Comp sect 11-4-75 enacted by Laws 1955 ch 114 sect 10 1963 ch 147 sect 3 1977
ch 247 sect 130 1999 ch 5 sect 11 1999 ch 15 sect 11
40
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
IRGIF Distribution for the FY18 appropriated budget amount of $25326
Water Rights
Allocation
Program 14760$ 6
Interstate
Stream
Commission 238500$ 94
17
Emergency Drought Water Agreement Revenue
bull Revenue Source Relinquishment credit stored amp released pursuant to the EDWA agreement
bull Fund Balance $2691342
bull Revenue Budget Process
ndash For FY19 budgeted $668k in the FY19 appropriation request for personnel costs
ndash Also budget funds on an as needed basis through the Budget Adjustment Process but need authority in the GAA
18
19
20
21
22
23
24
25
26
27
28
29
30
Ute Revenues
bull Fund originally set up to pay bond debt issued years ago for Ute Dam
bull Revenues from bulk water sale encroachment license fees amp easements deposited into the fund
bull Revenues historically have been used for operation amp maintenance costs for Ute dam
bull Fund Balance $626593
bull Revenue Budget Process
ndash Budget revenue on an as needed basis through the budget adjustment request process (BAR) bull Need to request specific BAR language in the appropriation request process in order to
budget the funds since the Ute Construction Fund does not give the Commission authority to budget the revenue
31
Active Capital Outlay Appropriations
bull $1M to purchase land and water rights within the interstate stream commissions existing pricing guidelines
and for the development of augmentation well fields and pipelines and related professional services for the Pecos River Compact settlement for the Pecos Settlement to purchase water rights (funded from the Attorney General Settlement Fund) ndashAvailable Balance = $4266k
bull $2M - notwithstanding the provisions of the Water Project Finance Act to the contrary is appropriated from
the water project fund to the office of the state engineer for expenditure in fiscal years 2016 through 2020 unless otherwise provided in Section 2 of this act to plan design and construct an engineered levee in the San Acacia reach in Socorro county- Available Balance = $14M
bull $2M to plan design renovate construct and equip improvements to acequias statewide (Attorney
General Settlement Fund) Available Balance Available Balance = $1005k bull $900k to rehab the LLSMR to plan design remodel rebuild construct and equip conservation rearing
ponds and hatcheries for a silvery minnow refugium production facility in Los Lunas in Valencia county (STB revenue bonds) Available Balance $0
bull $450k to plan design and construct habitat restoration projects in the middle Rio Grande conservancy
district or habitat restoration in the MRG (STB revenue Bonds) Available Balance = $1455k bull IWR appropriations ndash $58M Fund Balance for Taos Settlement bull Flow through appropriations to the ISC to act as fiscal agent for specific acequia projects ndash 28 current
appropriations that total approximately $13M
32
State Budget Process
bull Statutory Deadlines amp Submittals of Required Documents
bull Analysis amp Recommendation Process
bull What Happens During the Session (executive perspective)
33
Important to remember throughout this process
bull The Governor is our boss and controls what we will officially request in the appropriation request process
bull The Governor through the Department of Finance and Administration and the Legislature control the budget budget increases what is allowable to budget the dollar amount and time period and the request to move budget between appropriated budget categories
bull There are always exceptions to the appropriation request process
ndash Every administration interprets policies processes and laws differently and applies it based on their interpretation
bull Take inventory of our budget needs in July to be prepared to discuss and try and persuade the Governors office and DFA to allow us to make the official request on paper
ndash If not allowed to make the official budget request then cannot lobby for the budget need (need to be careful on how to respond when asked about the need)
bull Another chance to make a difference to the recommendation is the first few weeks of January to persuade the DFA andor LFC that their recommendation will not work for the agency before their recommendation is adopted in HAFC for the GAA (HB2)
34
Budget Requests Time Line
bullInfrastructure Capital Improvement Plan Due (ICIP) Statutory Deadline
July 1st
bullAppropriation Request Statutory Deadline September 1st
bullDFA State Budget Division amp Legislative Finance Committee staff analyze agency budget requests amp hold meetings and hearings to pursue issues pertinent to requests
Sept - Dec
bullInstructions amp deadlines for the Special Appropriations Deficiencies Supplemental and Budget Adjustment Request Authority submittals
October - November
bullState law requires the Governor to prepare a budget to the LFC January 5th (even yrs) January10th (odd years)
bullLFC amp SBD prepare different sheets that shows major differences in revenues expenditures amp total budget between the executive and LFC recommendations
January
bullHAFC holds budget hearings in which the different sheets are presented and the committee will either adopt the executive recommendation
Session
bullOperating Budget Submittal Statutory Deadline May 1st
35
Capital Improvement Plan (ICIP) (July 1)
bull Governor amp DFA do not usually restrict agencies from submitted their capital outlay needs in the 5 year plan
bull Purchase of assets ie water rights equipment etc
bull Construction ie pipelines buildings etc
bull Long term in nature
bull Personnel costs not allowed
bull Appropriated for longer time frame 4 years amp 3 years to purchase an asset
bull If bonds are certified for project than 5 of appropriation must be expended within 6 months and 85 expended within 3 years
bull Funding Sources for projects from either GO Bonds Severance Tax Bonds or General Fund
36
37
38
The State Budget Act (sect6-3A-7 NMSA 1978) and the
Accountability in Government Act (sect6-3A-1 to 6-3A-8 NMSA
1978) set forth the framework and requirements for state
government budgeting in New Mexico
39
State Budget Act
6-3-19 Agencies to complete budget forms
Each state agency shall fill out the budget forms provided for in Section 6-3-18 NMSA 1978 in the
manner prescribed by the state budget division Each state agency in completing the budget forms
shall include information for all divisions subdivisions and offices of the agency Related agencies
upon approval of the state budget division may join in submitting one set of budget forms
Completed budget forms shall be returned to the state budget division not later than September 1 in
each year
History 1953 Comp sect 11-4-75 enacted by Laws 1955 ch 114 sect 10 1963 ch 147 sect 3 1977
ch 247 sect 130 1999 ch 5 sect 11 1999 ch 15 sect 11
40
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
Emergency Drought Water Agreement Revenue
bull Revenue Source Relinquishment credit stored amp released pursuant to the EDWA agreement
bull Fund Balance $2691342
bull Revenue Budget Process
ndash For FY19 budgeted $668k in the FY19 appropriation request for personnel costs
ndash Also budget funds on an as needed basis through the Budget Adjustment Process but need authority in the GAA
18
19
20
21
22
23
24
25
26
27
28
29
30
Ute Revenues
bull Fund originally set up to pay bond debt issued years ago for Ute Dam
bull Revenues from bulk water sale encroachment license fees amp easements deposited into the fund
bull Revenues historically have been used for operation amp maintenance costs for Ute dam
bull Fund Balance $626593
bull Revenue Budget Process
ndash Budget revenue on an as needed basis through the budget adjustment request process (BAR) bull Need to request specific BAR language in the appropriation request process in order to
budget the funds since the Ute Construction Fund does not give the Commission authority to budget the revenue
31
Active Capital Outlay Appropriations
bull $1M to purchase land and water rights within the interstate stream commissions existing pricing guidelines
and for the development of augmentation well fields and pipelines and related professional services for the Pecos River Compact settlement for the Pecos Settlement to purchase water rights (funded from the Attorney General Settlement Fund) ndashAvailable Balance = $4266k
bull $2M - notwithstanding the provisions of the Water Project Finance Act to the contrary is appropriated from
the water project fund to the office of the state engineer for expenditure in fiscal years 2016 through 2020 unless otherwise provided in Section 2 of this act to plan design and construct an engineered levee in the San Acacia reach in Socorro county- Available Balance = $14M
bull $2M to plan design renovate construct and equip improvements to acequias statewide (Attorney
General Settlement Fund) Available Balance Available Balance = $1005k bull $900k to rehab the LLSMR to plan design remodel rebuild construct and equip conservation rearing
ponds and hatcheries for a silvery minnow refugium production facility in Los Lunas in Valencia county (STB revenue bonds) Available Balance $0
bull $450k to plan design and construct habitat restoration projects in the middle Rio Grande conservancy
district or habitat restoration in the MRG (STB revenue Bonds) Available Balance = $1455k bull IWR appropriations ndash $58M Fund Balance for Taos Settlement bull Flow through appropriations to the ISC to act as fiscal agent for specific acequia projects ndash 28 current
appropriations that total approximately $13M
32
State Budget Process
bull Statutory Deadlines amp Submittals of Required Documents
bull Analysis amp Recommendation Process
bull What Happens During the Session (executive perspective)
33
Important to remember throughout this process
bull The Governor is our boss and controls what we will officially request in the appropriation request process
bull The Governor through the Department of Finance and Administration and the Legislature control the budget budget increases what is allowable to budget the dollar amount and time period and the request to move budget between appropriated budget categories
bull There are always exceptions to the appropriation request process
ndash Every administration interprets policies processes and laws differently and applies it based on their interpretation
bull Take inventory of our budget needs in July to be prepared to discuss and try and persuade the Governors office and DFA to allow us to make the official request on paper
ndash If not allowed to make the official budget request then cannot lobby for the budget need (need to be careful on how to respond when asked about the need)
bull Another chance to make a difference to the recommendation is the first few weeks of January to persuade the DFA andor LFC that their recommendation will not work for the agency before their recommendation is adopted in HAFC for the GAA (HB2)
34
Budget Requests Time Line
bullInfrastructure Capital Improvement Plan Due (ICIP) Statutory Deadline
July 1st
bullAppropriation Request Statutory Deadline September 1st
bullDFA State Budget Division amp Legislative Finance Committee staff analyze agency budget requests amp hold meetings and hearings to pursue issues pertinent to requests
Sept - Dec
bullInstructions amp deadlines for the Special Appropriations Deficiencies Supplemental and Budget Adjustment Request Authority submittals
October - November
bullState law requires the Governor to prepare a budget to the LFC January 5th (even yrs) January10th (odd years)
bullLFC amp SBD prepare different sheets that shows major differences in revenues expenditures amp total budget between the executive and LFC recommendations
January
bullHAFC holds budget hearings in which the different sheets are presented and the committee will either adopt the executive recommendation
Session
bullOperating Budget Submittal Statutory Deadline May 1st
35
Capital Improvement Plan (ICIP) (July 1)
bull Governor amp DFA do not usually restrict agencies from submitted their capital outlay needs in the 5 year plan
bull Purchase of assets ie water rights equipment etc
bull Construction ie pipelines buildings etc
bull Long term in nature
bull Personnel costs not allowed
bull Appropriated for longer time frame 4 years amp 3 years to purchase an asset
bull If bonds are certified for project than 5 of appropriation must be expended within 6 months and 85 expended within 3 years
bull Funding Sources for projects from either GO Bonds Severance Tax Bonds or General Fund
36
37
38
The State Budget Act (sect6-3A-7 NMSA 1978) and the
Accountability in Government Act (sect6-3A-1 to 6-3A-8 NMSA
1978) set forth the framework and requirements for state
government budgeting in New Mexico
39
State Budget Act
6-3-19 Agencies to complete budget forms
Each state agency shall fill out the budget forms provided for in Section 6-3-18 NMSA 1978 in the
manner prescribed by the state budget division Each state agency in completing the budget forms
shall include information for all divisions subdivisions and offices of the agency Related agencies
upon approval of the state budget division may join in submitting one set of budget forms
Completed budget forms shall be returned to the state budget division not later than September 1 in
each year
History 1953 Comp sect 11-4-75 enacted by Laws 1955 ch 114 sect 10 1963 ch 147 sect 3 1977
ch 247 sect 130 1999 ch 5 sect 11 1999 ch 15 sect 11
40
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
19
20
21
22
23
24
25
26
27
28
29
30
Ute Revenues
bull Fund originally set up to pay bond debt issued years ago for Ute Dam
bull Revenues from bulk water sale encroachment license fees amp easements deposited into the fund
bull Revenues historically have been used for operation amp maintenance costs for Ute dam
bull Fund Balance $626593
bull Revenue Budget Process
ndash Budget revenue on an as needed basis through the budget adjustment request process (BAR) bull Need to request specific BAR language in the appropriation request process in order to
budget the funds since the Ute Construction Fund does not give the Commission authority to budget the revenue
31
Active Capital Outlay Appropriations
bull $1M to purchase land and water rights within the interstate stream commissions existing pricing guidelines
and for the development of augmentation well fields and pipelines and related professional services for the Pecos River Compact settlement for the Pecos Settlement to purchase water rights (funded from the Attorney General Settlement Fund) ndashAvailable Balance = $4266k
bull $2M - notwithstanding the provisions of the Water Project Finance Act to the contrary is appropriated from
the water project fund to the office of the state engineer for expenditure in fiscal years 2016 through 2020 unless otherwise provided in Section 2 of this act to plan design and construct an engineered levee in the San Acacia reach in Socorro county- Available Balance = $14M
bull $2M to plan design renovate construct and equip improvements to acequias statewide (Attorney
General Settlement Fund) Available Balance Available Balance = $1005k bull $900k to rehab the LLSMR to plan design remodel rebuild construct and equip conservation rearing
ponds and hatcheries for a silvery minnow refugium production facility in Los Lunas in Valencia county (STB revenue bonds) Available Balance $0
bull $450k to plan design and construct habitat restoration projects in the middle Rio Grande conservancy
district or habitat restoration in the MRG (STB revenue Bonds) Available Balance = $1455k bull IWR appropriations ndash $58M Fund Balance for Taos Settlement bull Flow through appropriations to the ISC to act as fiscal agent for specific acequia projects ndash 28 current
appropriations that total approximately $13M
32
State Budget Process
bull Statutory Deadlines amp Submittals of Required Documents
bull Analysis amp Recommendation Process
bull What Happens During the Session (executive perspective)
33
Important to remember throughout this process
bull The Governor is our boss and controls what we will officially request in the appropriation request process
bull The Governor through the Department of Finance and Administration and the Legislature control the budget budget increases what is allowable to budget the dollar amount and time period and the request to move budget between appropriated budget categories
bull There are always exceptions to the appropriation request process
ndash Every administration interprets policies processes and laws differently and applies it based on their interpretation
bull Take inventory of our budget needs in July to be prepared to discuss and try and persuade the Governors office and DFA to allow us to make the official request on paper
ndash If not allowed to make the official budget request then cannot lobby for the budget need (need to be careful on how to respond when asked about the need)
bull Another chance to make a difference to the recommendation is the first few weeks of January to persuade the DFA andor LFC that their recommendation will not work for the agency before their recommendation is adopted in HAFC for the GAA (HB2)
34
Budget Requests Time Line
bullInfrastructure Capital Improvement Plan Due (ICIP) Statutory Deadline
July 1st
bullAppropriation Request Statutory Deadline September 1st
bullDFA State Budget Division amp Legislative Finance Committee staff analyze agency budget requests amp hold meetings and hearings to pursue issues pertinent to requests
Sept - Dec
bullInstructions amp deadlines for the Special Appropriations Deficiencies Supplemental and Budget Adjustment Request Authority submittals
October - November
bullState law requires the Governor to prepare a budget to the LFC January 5th (even yrs) January10th (odd years)
bullLFC amp SBD prepare different sheets that shows major differences in revenues expenditures amp total budget between the executive and LFC recommendations
January
bullHAFC holds budget hearings in which the different sheets are presented and the committee will either adopt the executive recommendation
Session
bullOperating Budget Submittal Statutory Deadline May 1st
35
Capital Improvement Plan (ICIP) (July 1)
bull Governor amp DFA do not usually restrict agencies from submitted their capital outlay needs in the 5 year plan
bull Purchase of assets ie water rights equipment etc
bull Construction ie pipelines buildings etc
bull Long term in nature
bull Personnel costs not allowed
bull Appropriated for longer time frame 4 years amp 3 years to purchase an asset
bull If bonds are certified for project than 5 of appropriation must be expended within 6 months and 85 expended within 3 years
bull Funding Sources for projects from either GO Bonds Severance Tax Bonds or General Fund
36
37
38
The State Budget Act (sect6-3A-7 NMSA 1978) and the
Accountability in Government Act (sect6-3A-1 to 6-3A-8 NMSA
1978) set forth the framework and requirements for state
government budgeting in New Mexico
39
State Budget Act
6-3-19 Agencies to complete budget forms
Each state agency shall fill out the budget forms provided for in Section 6-3-18 NMSA 1978 in the
manner prescribed by the state budget division Each state agency in completing the budget forms
shall include information for all divisions subdivisions and offices of the agency Related agencies
upon approval of the state budget division may join in submitting one set of budget forms
Completed budget forms shall be returned to the state budget division not later than September 1 in
each year
History 1953 Comp sect 11-4-75 enacted by Laws 1955 ch 114 sect 10 1963 ch 147 sect 3 1977
ch 247 sect 130 1999 ch 5 sect 11 1999 ch 15 sect 11
40
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
20
21
22
23
24
25
26
27
28
29
30
Ute Revenues
bull Fund originally set up to pay bond debt issued years ago for Ute Dam
bull Revenues from bulk water sale encroachment license fees amp easements deposited into the fund
bull Revenues historically have been used for operation amp maintenance costs for Ute dam
bull Fund Balance $626593
bull Revenue Budget Process
ndash Budget revenue on an as needed basis through the budget adjustment request process (BAR) bull Need to request specific BAR language in the appropriation request process in order to
budget the funds since the Ute Construction Fund does not give the Commission authority to budget the revenue
31
Active Capital Outlay Appropriations
bull $1M to purchase land and water rights within the interstate stream commissions existing pricing guidelines
and for the development of augmentation well fields and pipelines and related professional services for the Pecos River Compact settlement for the Pecos Settlement to purchase water rights (funded from the Attorney General Settlement Fund) ndashAvailable Balance = $4266k
bull $2M - notwithstanding the provisions of the Water Project Finance Act to the contrary is appropriated from
the water project fund to the office of the state engineer for expenditure in fiscal years 2016 through 2020 unless otherwise provided in Section 2 of this act to plan design and construct an engineered levee in the San Acacia reach in Socorro county- Available Balance = $14M
bull $2M to plan design renovate construct and equip improvements to acequias statewide (Attorney
General Settlement Fund) Available Balance Available Balance = $1005k bull $900k to rehab the LLSMR to plan design remodel rebuild construct and equip conservation rearing
ponds and hatcheries for a silvery minnow refugium production facility in Los Lunas in Valencia county (STB revenue bonds) Available Balance $0
bull $450k to plan design and construct habitat restoration projects in the middle Rio Grande conservancy
district or habitat restoration in the MRG (STB revenue Bonds) Available Balance = $1455k bull IWR appropriations ndash $58M Fund Balance for Taos Settlement bull Flow through appropriations to the ISC to act as fiscal agent for specific acequia projects ndash 28 current
appropriations that total approximately $13M
32
State Budget Process
bull Statutory Deadlines amp Submittals of Required Documents
bull Analysis amp Recommendation Process
bull What Happens During the Session (executive perspective)
33
Important to remember throughout this process
bull The Governor is our boss and controls what we will officially request in the appropriation request process
bull The Governor through the Department of Finance and Administration and the Legislature control the budget budget increases what is allowable to budget the dollar amount and time period and the request to move budget between appropriated budget categories
bull There are always exceptions to the appropriation request process
ndash Every administration interprets policies processes and laws differently and applies it based on their interpretation
bull Take inventory of our budget needs in July to be prepared to discuss and try and persuade the Governors office and DFA to allow us to make the official request on paper
ndash If not allowed to make the official budget request then cannot lobby for the budget need (need to be careful on how to respond when asked about the need)
bull Another chance to make a difference to the recommendation is the first few weeks of January to persuade the DFA andor LFC that their recommendation will not work for the agency before their recommendation is adopted in HAFC for the GAA (HB2)
34
Budget Requests Time Line
bullInfrastructure Capital Improvement Plan Due (ICIP) Statutory Deadline
July 1st
bullAppropriation Request Statutory Deadline September 1st
bullDFA State Budget Division amp Legislative Finance Committee staff analyze agency budget requests amp hold meetings and hearings to pursue issues pertinent to requests
Sept - Dec
bullInstructions amp deadlines for the Special Appropriations Deficiencies Supplemental and Budget Adjustment Request Authority submittals
October - November
bullState law requires the Governor to prepare a budget to the LFC January 5th (even yrs) January10th (odd years)
bullLFC amp SBD prepare different sheets that shows major differences in revenues expenditures amp total budget between the executive and LFC recommendations
January
bullHAFC holds budget hearings in which the different sheets are presented and the committee will either adopt the executive recommendation
Session
bullOperating Budget Submittal Statutory Deadline May 1st
35
Capital Improvement Plan (ICIP) (July 1)
bull Governor amp DFA do not usually restrict agencies from submitted their capital outlay needs in the 5 year plan
bull Purchase of assets ie water rights equipment etc
bull Construction ie pipelines buildings etc
bull Long term in nature
bull Personnel costs not allowed
bull Appropriated for longer time frame 4 years amp 3 years to purchase an asset
bull If bonds are certified for project than 5 of appropriation must be expended within 6 months and 85 expended within 3 years
bull Funding Sources for projects from either GO Bonds Severance Tax Bonds or General Fund
36
37
38
The State Budget Act (sect6-3A-7 NMSA 1978) and the
Accountability in Government Act (sect6-3A-1 to 6-3A-8 NMSA
1978) set forth the framework and requirements for state
government budgeting in New Mexico
39
State Budget Act
6-3-19 Agencies to complete budget forms
Each state agency shall fill out the budget forms provided for in Section 6-3-18 NMSA 1978 in the
manner prescribed by the state budget division Each state agency in completing the budget forms
shall include information for all divisions subdivisions and offices of the agency Related agencies
upon approval of the state budget division may join in submitting one set of budget forms
Completed budget forms shall be returned to the state budget division not later than September 1 in
each year
History 1953 Comp sect 11-4-75 enacted by Laws 1955 ch 114 sect 10 1963 ch 147 sect 3 1977
ch 247 sect 130 1999 ch 5 sect 11 1999 ch 15 sect 11
40
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
21
22
23
24
25
26
27
28
29
30
Ute Revenues
bull Fund originally set up to pay bond debt issued years ago for Ute Dam
bull Revenues from bulk water sale encroachment license fees amp easements deposited into the fund
bull Revenues historically have been used for operation amp maintenance costs for Ute dam
bull Fund Balance $626593
bull Revenue Budget Process
ndash Budget revenue on an as needed basis through the budget adjustment request process (BAR) bull Need to request specific BAR language in the appropriation request process in order to
budget the funds since the Ute Construction Fund does not give the Commission authority to budget the revenue
31
Active Capital Outlay Appropriations
bull $1M to purchase land and water rights within the interstate stream commissions existing pricing guidelines
and for the development of augmentation well fields and pipelines and related professional services for the Pecos River Compact settlement for the Pecos Settlement to purchase water rights (funded from the Attorney General Settlement Fund) ndashAvailable Balance = $4266k
bull $2M - notwithstanding the provisions of the Water Project Finance Act to the contrary is appropriated from
the water project fund to the office of the state engineer for expenditure in fiscal years 2016 through 2020 unless otherwise provided in Section 2 of this act to plan design and construct an engineered levee in the San Acacia reach in Socorro county- Available Balance = $14M
bull $2M to plan design renovate construct and equip improvements to acequias statewide (Attorney
General Settlement Fund) Available Balance Available Balance = $1005k bull $900k to rehab the LLSMR to plan design remodel rebuild construct and equip conservation rearing
ponds and hatcheries for a silvery minnow refugium production facility in Los Lunas in Valencia county (STB revenue bonds) Available Balance $0
bull $450k to plan design and construct habitat restoration projects in the middle Rio Grande conservancy
district or habitat restoration in the MRG (STB revenue Bonds) Available Balance = $1455k bull IWR appropriations ndash $58M Fund Balance for Taos Settlement bull Flow through appropriations to the ISC to act as fiscal agent for specific acequia projects ndash 28 current
appropriations that total approximately $13M
32
State Budget Process
bull Statutory Deadlines amp Submittals of Required Documents
bull Analysis amp Recommendation Process
bull What Happens During the Session (executive perspective)
33
Important to remember throughout this process
bull The Governor is our boss and controls what we will officially request in the appropriation request process
bull The Governor through the Department of Finance and Administration and the Legislature control the budget budget increases what is allowable to budget the dollar amount and time period and the request to move budget between appropriated budget categories
bull There are always exceptions to the appropriation request process
ndash Every administration interprets policies processes and laws differently and applies it based on their interpretation
bull Take inventory of our budget needs in July to be prepared to discuss and try and persuade the Governors office and DFA to allow us to make the official request on paper
ndash If not allowed to make the official budget request then cannot lobby for the budget need (need to be careful on how to respond when asked about the need)
bull Another chance to make a difference to the recommendation is the first few weeks of January to persuade the DFA andor LFC that their recommendation will not work for the agency before their recommendation is adopted in HAFC for the GAA (HB2)
34
Budget Requests Time Line
bullInfrastructure Capital Improvement Plan Due (ICIP) Statutory Deadline
July 1st
bullAppropriation Request Statutory Deadline September 1st
bullDFA State Budget Division amp Legislative Finance Committee staff analyze agency budget requests amp hold meetings and hearings to pursue issues pertinent to requests
Sept - Dec
bullInstructions amp deadlines for the Special Appropriations Deficiencies Supplemental and Budget Adjustment Request Authority submittals
October - November
bullState law requires the Governor to prepare a budget to the LFC January 5th (even yrs) January10th (odd years)
bullLFC amp SBD prepare different sheets that shows major differences in revenues expenditures amp total budget between the executive and LFC recommendations
January
bullHAFC holds budget hearings in which the different sheets are presented and the committee will either adopt the executive recommendation
Session
bullOperating Budget Submittal Statutory Deadline May 1st
35
Capital Improvement Plan (ICIP) (July 1)
bull Governor amp DFA do not usually restrict agencies from submitted their capital outlay needs in the 5 year plan
bull Purchase of assets ie water rights equipment etc
bull Construction ie pipelines buildings etc
bull Long term in nature
bull Personnel costs not allowed
bull Appropriated for longer time frame 4 years amp 3 years to purchase an asset
bull If bonds are certified for project than 5 of appropriation must be expended within 6 months and 85 expended within 3 years
bull Funding Sources for projects from either GO Bonds Severance Tax Bonds or General Fund
36
37
38
The State Budget Act (sect6-3A-7 NMSA 1978) and the
Accountability in Government Act (sect6-3A-1 to 6-3A-8 NMSA
1978) set forth the framework and requirements for state
government budgeting in New Mexico
39
State Budget Act
6-3-19 Agencies to complete budget forms
Each state agency shall fill out the budget forms provided for in Section 6-3-18 NMSA 1978 in the
manner prescribed by the state budget division Each state agency in completing the budget forms
shall include information for all divisions subdivisions and offices of the agency Related agencies
upon approval of the state budget division may join in submitting one set of budget forms
Completed budget forms shall be returned to the state budget division not later than September 1 in
each year
History 1953 Comp sect 11-4-75 enacted by Laws 1955 ch 114 sect 10 1963 ch 147 sect 3 1977
ch 247 sect 130 1999 ch 5 sect 11 1999 ch 15 sect 11
40
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
22
23
24
25
26
27
28
29
30
Ute Revenues
bull Fund originally set up to pay bond debt issued years ago for Ute Dam
bull Revenues from bulk water sale encroachment license fees amp easements deposited into the fund
bull Revenues historically have been used for operation amp maintenance costs for Ute dam
bull Fund Balance $626593
bull Revenue Budget Process
ndash Budget revenue on an as needed basis through the budget adjustment request process (BAR) bull Need to request specific BAR language in the appropriation request process in order to
budget the funds since the Ute Construction Fund does not give the Commission authority to budget the revenue
31
Active Capital Outlay Appropriations
bull $1M to purchase land and water rights within the interstate stream commissions existing pricing guidelines
and for the development of augmentation well fields and pipelines and related professional services for the Pecos River Compact settlement for the Pecos Settlement to purchase water rights (funded from the Attorney General Settlement Fund) ndashAvailable Balance = $4266k
bull $2M - notwithstanding the provisions of the Water Project Finance Act to the contrary is appropriated from
the water project fund to the office of the state engineer for expenditure in fiscal years 2016 through 2020 unless otherwise provided in Section 2 of this act to plan design and construct an engineered levee in the San Acacia reach in Socorro county- Available Balance = $14M
bull $2M to plan design renovate construct and equip improvements to acequias statewide (Attorney
General Settlement Fund) Available Balance Available Balance = $1005k bull $900k to rehab the LLSMR to plan design remodel rebuild construct and equip conservation rearing
ponds and hatcheries for a silvery minnow refugium production facility in Los Lunas in Valencia county (STB revenue bonds) Available Balance $0
bull $450k to plan design and construct habitat restoration projects in the middle Rio Grande conservancy
district or habitat restoration in the MRG (STB revenue Bonds) Available Balance = $1455k bull IWR appropriations ndash $58M Fund Balance for Taos Settlement bull Flow through appropriations to the ISC to act as fiscal agent for specific acequia projects ndash 28 current
appropriations that total approximately $13M
32
State Budget Process
bull Statutory Deadlines amp Submittals of Required Documents
bull Analysis amp Recommendation Process
bull What Happens During the Session (executive perspective)
33
Important to remember throughout this process
bull The Governor is our boss and controls what we will officially request in the appropriation request process
bull The Governor through the Department of Finance and Administration and the Legislature control the budget budget increases what is allowable to budget the dollar amount and time period and the request to move budget between appropriated budget categories
bull There are always exceptions to the appropriation request process
ndash Every administration interprets policies processes and laws differently and applies it based on their interpretation
bull Take inventory of our budget needs in July to be prepared to discuss and try and persuade the Governors office and DFA to allow us to make the official request on paper
ndash If not allowed to make the official budget request then cannot lobby for the budget need (need to be careful on how to respond when asked about the need)
bull Another chance to make a difference to the recommendation is the first few weeks of January to persuade the DFA andor LFC that their recommendation will not work for the agency before their recommendation is adopted in HAFC for the GAA (HB2)
34
Budget Requests Time Line
bullInfrastructure Capital Improvement Plan Due (ICIP) Statutory Deadline
July 1st
bullAppropriation Request Statutory Deadline September 1st
bullDFA State Budget Division amp Legislative Finance Committee staff analyze agency budget requests amp hold meetings and hearings to pursue issues pertinent to requests
Sept - Dec
bullInstructions amp deadlines for the Special Appropriations Deficiencies Supplemental and Budget Adjustment Request Authority submittals
October - November
bullState law requires the Governor to prepare a budget to the LFC January 5th (even yrs) January10th (odd years)
bullLFC amp SBD prepare different sheets that shows major differences in revenues expenditures amp total budget between the executive and LFC recommendations
January
bullHAFC holds budget hearings in which the different sheets are presented and the committee will either adopt the executive recommendation
Session
bullOperating Budget Submittal Statutory Deadline May 1st
35
Capital Improvement Plan (ICIP) (July 1)
bull Governor amp DFA do not usually restrict agencies from submitted their capital outlay needs in the 5 year plan
bull Purchase of assets ie water rights equipment etc
bull Construction ie pipelines buildings etc
bull Long term in nature
bull Personnel costs not allowed
bull Appropriated for longer time frame 4 years amp 3 years to purchase an asset
bull If bonds are certified for project than 5 of appropriation must be expended within 6 months and 85 expended within 3 years
bull Funding Sources for projects from either GO Bonds Severance Tax Bonds or General Fund
36
37
38
The State Budget Act (sect6-3A-7 NMSA 1978) and the
Accountability in Government Act (sect6-3A-1 to 6-3A-8 NMSA
1978) set forth the framework and requirements for state
government budgeting in New Mexico
39
State Budget Act
6-3-19 Agencies to complete budget forms
Each state agency shall fill out the budget forms provided for in Section 6-3-18 NMSA 1978 in the
manner prescribed by the state budget division Each state agency in completing the budget forms
shall include information for all divisions subdivisions and offices of the agency Related agencies
upon approval of the state budget division may join in submitting one set of budget forms
Completed budget forms shall be returned to the state budget division not later than September 1 in
each year
History 1953 Comp sect 11-4-75 enacted by Laws 1955 ch 114 sect 10 1963 ch 147 sect 3 1977
ch 247 sect 130 1999 ch 5 sect 11 1999 ch 15 sect 11
40
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
23
24
25
26
27
28
29
30
Ute Revenues
bull Fund originally set up to pay bond debt issued years ago for Ute Dam
bull Revenues from bulk water sale encroachment license fees amp easements deposited into the fund
bull Revenues historically have been used for operation amp maintenance costs for Ute dam
bull Fund Balance $626593
bull Revenue Budget Process
ndash Budget revenue on an as needed basis through the budget adjustment request process (BAR) bull Need to request specific BAR language in the appropriation request process in order to
budget the funds since the Ute Construction Fund does not give the Commission authority to budget the revenue
31
Active Capital Outlay Appropriations
bull $1M to purchase land and water rights within the interstate stream commissions existing pricing guidelines
and for the development of augmentation well fields and pipelines and related professional services for the Pecos River Compact settlement for the Pecos Settlement to purchase water rights (funded from the Attorney General Settlement Fund) ndashAvailable Balance = $4266k
bull $2M - notwithstanding the provisions of the Water Project Finance Act to the contrary is appropriated from
the water project fund to the office of the state engineer for expenditure in fiscal years 2016 through 2020 unless otherwise provided in Section 2 of this act to plan design and construct an engineered levee in the San Acacia reach in Socorro county- Available Balance = $14M
bull $2M to plan design renovate construct and equip improvements to acequias statewide (Attorney
General Settlement Fund) Available Balance Available Balance = $1005k bull $900k to rehab the LLSMR to plan design remodel rebuild construct and equip conservation rearing
ponds and hatcheries for a silvery minnow refugium production facility in Los Lunas in Valencia county (STB revenue bonds) Available Balance $0
bull $450k to plan design and construct habitat restoration projects in the middle Rio Grande conservancy
district or habitat restoration in the MRG (STB revenue Bonds) Available Balance = $1455k bull IWR appropriations ndash $58M Fund Balance for Taos Settlement bull Flow through appropriations to the ISC to act as fiscal agent for specific acequia projects ndash 28 current
appropriations that total approximately $13M
32
State Budget Process
bull Statutory Deadlines amp Submittals of Required Documents
bull Analysis amp Recommendation Process
bull What Happens During the Session (executive perspective)
33
Important to remember throughout this process
bull The Governor is our boss and controls what we will officially request in the appropriation request process
bull The Governor through the Department of Finance and Administration and the Legislature control the budget budget increases what is allowable to budget the dollar amount and time period and the request to move budget between appropriated budget categories
bull There are always exceptions to the appropriation request process
ndash Every administration interprets policies processes and laws differently and applies it based on their interpretation
bull Take inventory of our budget needs in July to be prepared to discuss and try and persuade the Governors office and DFA to allow us to make the official request on paper
ndash If not allowed to make the official budget request then cannot lobby for the budget need (need to be careful on how to respond when asked about the need)
bull Another chance to make a difference to the recommendation is the first few weeks of January to persuade the DFA andor LFC that their recommendation will not work for the agency before their recommendation is adopted in HAFC for the GAA (HB2)
34
Budget Requests Time Line
bullInfrastructure Capital Improvement Plan Due (ICIP) Statutory Deadline
July 1st
bullAppropriation Request Statutory Deadline September 1st
bullDFA State Budget Division amp Legislative Finance Committee staff analyze agency budget requests amp hold meetings and hearings to pursue issues pertinent to requests
Sept - Dec
bullInstructions amp deadlines for the Special Appropriations Deficiencies Supplemental and Budget Adjustment Request Authority submittals
October - November
bullState law requires the Governor to prepare a budget to the LFC January 5th (even yrs) January10th (odd years)
bullLFC amp SBD prepare different sheets that shows major differences in revenues expenditures amp total budget between the executive and LFC recommendations
January
bullHAFC holds budget hearings in which the different sheets are presented and the committee will either adopt the executive recommendation
Session
bullOperating Budget Submittal Statutory Deadline May 1st
35
Capital Improvement Plan (ICIP) (July 1)
bull Governor amp DFA do not usually restrict agencies from submitted their capital outlay needs in the 5 year plan
bull Purchase of assets ie water rights equipment etc
bull Construction ie pipelines buildings etc
bull Long term in nature
bull Personnel costs not allowed
bull Appropriated for longer time frame 4 years amp 3 years to purchase an asset
bull If bonds are certified for project than 5 of appropriation must be expended within 6 months and 85 expended within 3 years
bull Funding Sources for projects from either GO Bonds Severance Tax Bonds or General Fund
36
37
38
The State Budget Act (sect6-3A-7 NMSA 1978) and the
Accountability in Government Act (sect6-3A-1 to 6-3A-8 NMSA
1978) set forth the framework and requirements for state
government budgeting in New Mexico
39
State Budget Act
6-3-19 Agencies to complete budget forms
Each state agency shall fill out the budget forms provided for in Section 6-3-18 NMSA 1978 in the
manner prescribed by the state budget division Each state agency in completing the budget forms
shall include information for all divisions subdivisions and offices of the agency Related agencies
upon approval of the state budget division may join in submitting one set of budget forms
Completed budget forms shall be returned to the state budget division not later than September 1 in
each year
History 1953 Comp sect 11-4-75 enacted by Laws 1955 ch 114 sect 10 1963 ch 147 sect 3 1977
ch 247 sect 130 1999 ch 5 sect 11 1999 ch 15 sect 11
40
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
24
25
26
27
28
29
30
Ute Revenues
bull Fund originally set up to pay bond debt issued years ago for Ute Dam
bull Revenues from bulk water sale encroachment license fees amp easements deposited into the fund
bull Revenues historically have been used for operation amp maintenance costs for Ute dam
bull Fund Balance $626593
bull Revenue Budget Process
ndash Budget revenue on an as needed basis through the budget adjustment request process (BAR) bull Need to request specific BAR language in the appropriation request process in order to
budget the funds since the Ute Construction Fund does not give the Commission authority to budget the revenue
31
Active Capital Outlay Appropriations
bull $1M to purchase land and water rights within the interstate stream commissions existing pricing guidelines
and for the development of augmentation well fields and pipelines and related professional services for the Pecos River Compact settlement for the Pecos Settlement to purchase water rights (funded from the Attorney General Settlement Fund) ndashAvailable Balance = $4266k
bull $2M - notwithstanding the provisions of the Water Project Finance Act to the contrary is appropriated from
the water project fund to the office of the state engineer for expenditure in fiscal years 2016 through 2020 unless otherwise provided in Section 2 of this act to plan design and construct an engineered levee in the San Acacia reach in Socorro county- Available Balance = $14M
bull $2M to plan design renovate construct and equip improvements to acequias statewide (Attorney
General Settlement Fund) Available Balance Available Balance = $1005k bull $900k to rehab the LLSMR to plan design remodel rebuild construct and equip conservation rearing
ponds and hatcheries for a silvery minnow refugium production facility in Los Lunas in Valencia county (STB revenue bonds) Available Balance $0
bull $450k to plan design and construct habitat restoration projects in the middle Rio Grande conservancy
district or habitat restoration in the MRG (STB revenue Bonds) Available Balance = $1455k bull IWR appropriations ndash $58M Fund Balance for Taos Settlement bull Flow through appropriations to the ISC to act as fiscal agent for specific acequia projects ndash 28 current
appropriations that total approximately $13M
32
State Budget Process
bull Statutory Deadlines amp Submittals of Required Documents
bull Analysis amp Recommendation Process
bull What Happens During the Session (executive perspective)
33
Important to remember throughout this process
bull The Governor is our boss and controls what we will officially request in the appropriation request process
bull The Governor through the Department of Finance and Administration and the Legislature control the budget budget increases what is allowable to budget the dollar amount and time period and the request to move budget between appropriated budget categories
bull There are always exceptions to the appropriation request process
ndash Every administration interprets policies processes and laws differently and applies it based on their interpretation
bull Take inventory of our budget needs in July to be prepared to discuss and try and persuade the Governors office and DFA to allow us to make the official request on paper
ndash If not allowed to make the official budget request then cannot lobby for the budget need (need to be careful on how to respond when asked about the need)
bull Another chance to make a difference to the recommendation is the first few weeks of January to persuade the DFA andor LFC that their recommendation will not work for the agency before their recommendation is adopted in HAFC for the GAA (HB2)
34
Budget Requests Time Line
bullInfrastructure Capital Improvement Plan Due (ICIP) Statutory Deadline
July 1st
bullAppropriation Request Statutory Deadline September 1st
bullDFA State Budget Division amp Legislative Finance Committee staff analyze agency budget requests amp hold meetings and hearings to pursue issues pertinent to requests
Sept - Dec
bullInstructions amp deadlines for the Special Appropriations Deficiencies Supplemental and Budget Adjustment Request Authority submittals
October - November
bullState law requires the Governor to prepare a budget to the LFC January 5th (even yrs) January10th (odd years)
bullLFC amp SBD prepare different sheets that shows major differences in revenues expenditures amp total budget between the executive and LFC recommendations
January
bullHAFC holds budget hearings in which the different sheets are presented and the committee will either adopt the executive recommendation
Session
bullOperating Budget Submittal Statutory Deadline May 1st
35
Capital Improvement Plan (ICIP) (July 1)
bull Governor amp DFA do not usually restrict agencies from submitted their capital outlay needs in the 5 year plan
bull Purchase of assets ie water rights equipment etc
bull Construction ie pipelines buildings etc
bull Long term in nature
bull Personnel costs not allowed
bull Appropriated for longer time frame 4 years amp 3 years to purchase an asset
bull If bonds are certified for project than 5 of appropriation must be expended within 6 months and 85 expended within 3 years
bull Funding Sources for projects from either GO Bonds Severance Tax Bonds or General Fund
36
37
38
The State Budget Act (sect6-3A-7 NMSA 1978) and the
Accountability in Government Act (sect6-3A-1 to 6-3A-8 NMSA
1978) set forth the framework and requirements for state
government budgeting in New Mexico
39
State Budget Act
6-3-19 Agencies to complete budget forms
Each state agency shall fill out the budget forms provided for in Section 6-3-18 NMSA 1978 in the
manner prescribed by the state budget division Each state agency in completing the budget forms
shall include information for all divisions subdivisions and offices of the agency Related agencies
upon approval of the state budget division may join in submitting one set of budget forms
Completed budget forms shall be returned to the state budget division not later than September 1 in
each year
History 1953 Comp sect 11-4-75 enacted by Laws 1955 ch 114 sect 10 1963 ch 147 sect 3 1977
ch 247 sect 130 1999 ch 5 sect 11 1999 ch 15 sect 11
40
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
25
26
27
28
29
30
Ute Revenues
bull Fund originally set up to pay bond debt issued years ago for Ute Dam
bull Revenues from bulk water sale encroachment license fees amp easements deposited into the fund
bull Revenues historically have been used for operation amp maintenance costs for Ute dam
bull Fund Balance $626593
bull Revenue Budget Process
ndash Budget revenue on an as needed basis through the budget adjustment request process (BAR) bull Need to request specific BAR language in the appropriation request process in order to
budget the funds since the Ute Construction Fund does not give the Commission authority to budget the revenue
31
Active Capital Outlay Appropriations
bull $1M to purchase land and water rights within the interstate stream commissions existing pricing guidelines
and for the development of augmentation well fields and pipelines and related professional services for the Pecos River Compact settlement for the Pecos Settlement to purchase water rights (funded from the Attorney General Settlement Fund) ndashAvailable Balance = $4266k
bull $2M - notwithstanding the provisions of the Water Project Finance Act to the contrary is appropriated from
the water project fund to the office of the state engineer for expenditure in fiscal years 2016 through 2020 unless otherwise provided in Section 2 of this act to plan design and construct an engineered levee in the San Acacia reach in Socorro county- Available Balance = $14M
bull $2M to plan design renovate construct and equip improvements to acequias statewide (Attorney
General Settlement Fund) Available Balance Available Balance = $1005k bull $900k to rehab the LLSMR to plan design remodel rebuild construct and equip conservation rearing
ponds and hatcheries for a silvery minnow refugium production facility in Los Lunas in Valencia county (STB revenue bonds) Available Balance $0
bull $450k to plan design and construct habitat restoration projects in the middle Rio Grande conservancy
district or habitat restoration in the MRG (STB revenue Bonds) Available Balance = $1455k bull IWR appropriations ndash $58M Fund Balance for Taos Settlement bull Flow through appropriations to the ISC to act as fiscal agent for specific acequia projects ndash 28 current
appropriations that total approximately $13M
32
State Budget Process
bull Statutory Deadlines amp Submittals of Required Documents
bull Analysis amp Recommendation Process
bull What Happens During the Session (executive perspective)
33
Important to remember throughout this process
bull The Governor is our boss and controls what we will officially request in the appropriation request process
bull The Governor through the Department of Finance and Administration and the Legislature control the budget budget increases what is allowable to budget the dollar amount and time period and the request to move budget between appropriated budget categories
bull There are always exceptions to the appropriation request process
ndash Every administration interprets policies processes and laws differently and applies it based on their interpretation
bull Take inventory of our budget needs in July to be prepared to discuss and try and persuade the Governors office and DFA to allow us to make the official request on paper
ndash If not allowed to make the official budget request then cannot lobby for the budget need (need to be careful on how to respond when asked about the need)
bull Another chance to make a difference to the recommendation is the first few weeks of January to persuade the DFA andor LFC that their recommendation will not work for the agency before their recommendation is adopted in HAFC for the GAA (HB2)
34
Budget Requests Time Line
bullInfrastructure Capital Improvement Plan Due (ICIP) Statutory Deadline
July 1st
bullAppropriation Request Statutory Deadline September 1st
bullDFA State Budget Division amp Legislative Finance Committee staff analyze agency budget requests amp hold meetings and hearings to pursue issues pertinent to requests
Sept - Dec
bullInstructions amp deadlines for the Special Appropriations Deficiencies Supplemental and Budget Adjustment Request Authority submittals
October - November
bullState law requires the Governor to prepare a budget to the LFC January 5th (even yrs) January10th (odd years)
bullLFC amp SBD prepare different sheets that shows major differences in revenues expenditures amp total budget between the executive and LFC recommendations
January
bullHAFC holds budget hearings in which the different sheets are presented and the committee will either adopt the executive recommendation
Session
bullOperating Budget Submittal Statutory Deadline May 1st
35
Capital Improvement Plan (ICIP) (July 1)
bull Governor amp DFA do not usually restrict agencies from submitted their capital outlay needs in the 5 year plan
bull Purchase of assets ie water rights equipment etc
bull Construction ie pipelines buildings etc
bull Long term in nature
bull Personnel costs not allowed
bull Appropriated for longer time frame 4 years amp 3 years to purchase an asset
bull If bonds are certified for project than 5 of appropriation must be expended within 6 months and 85 expended within 3 years
bull Funding Sources for projects from either GO Bonds Severance Tax Bonds or General Fund
36
37
38
The State Budget Act (sect6-3A-7 NMSA 1978) and the
Accountability in Government Act (sect6-3A-1 to 6-3A-8 NMSA
1978) set forth the framework and requirements for state
government budgeting in New Mexico
39
State Budget Act
6-3-19 Agencies to complete budget forms
Each state agency shall fill out the budget forms provided for in Section 6-3-18 NMSA 1978 in the
manner prescribed by the state budget division Each state agency in completing the budget forms
shall include information for all divisions subdivisions and offices of the agency Related agencies
upon approval of the state budget division may join in submitting one set of budget forms
Completed budget forms shall be returned to the state budget division not later than September 1 in
each year
History 1953 Comp sect 11-4-75 enacted by Laws 1955 ch 114 sect 10 1963 ch 147 sect 3 1977
ch 247 sect 130 1999 ch 5 sect 11 1999 ch 15 sect 11
40
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
26
27
28
29
30
Ute Revenues
bull Fund originally set up to pay bond debt issued years ago for Ute Dam
bull Revenues from bulk water sale encroachment license fees amp easements deposited into the fund
bull Revenues historically have been used for operation amp maintenance costs for Ute dam
bull Fund Balance $626593
bull Revenue Budget Process
ndash Budget revenue on an as needed basis through the budget adjustment request process (BAR) bull Need to request specific BAR language in the appropriation request process in order to
budget the funds since the Ute Construction Fund does not give the Commission authority to budget the revenue
31
Active Capital Outlay Appropriations
bull $1M to purchase land and water rights within the interstate stream commissions existing pricing guidelines
and for the development of augmentation well fields and pipelines and related professional services for the Pecos River Compact settlement for the Pecos Settlement to purchase water rights (funded from the Attorney General Settlement Fund) ndashAvailable Balance = $4266k
bull $2M - notwithstanding the provisions of the Water Project Finance Act to the contrary is appropriated from
the water project fund to the office of the state engineer for expenditure in fiscal years 2016 through 2020 unless otherwise provided in Section 2 of this act to plan design and construct an engineered levee in the San Acacia reach in Socorro county- Available Balance = $14M
bull $2M to plan design renovate construct and equip improvements to acequias statewide (Attorney
General Settlement Fund) Available Balance Available Balance = $1005k bull $900k to rehab the LLSMR to plan design remodel rebuild construct and equip conservation rearing
ponds and hatcheries for a silvery minnow refugium production facility in Los Lunas in Valencia county (STB revenue bonds) Available Balance $0
bull $450k to plan design and construct habitat restoration projects in the middle Rio Grande conservancy
district or habitat restoration in the MRG (STB revenue Bonds) Available Balance = $1455k bull IWR appropriations ndash $58M Fund Balance for Taos Settlement bull Flow through appropriations to the ISC to act as fiscal agent for specific acequia projects ndash 28 current
appropriations that total approximately $13M
32
State Budget Process
bull Statutory Deadlines amp Submittals of Required Documents
bull Analysis amp Recommendation Process
bull What Happens During the Session (executive perspective)
33
Important to remember throughout this process
bull The Governor is our boss and controls what we will officially request in the appropriation request process
bull The Governor through the Department of Finance and Administration and the Legislature control the budget budget increases what is allowable to budget the dollar amount and time period and the request to move budget between appropriated budget categories
bull There are always exceptions to the appropriation request process
ndash Every administration interprets policies processes and laws differently and applies it based on their interpretation
bull Take inventory of our budget needs in July to be prepared to discuss and try and persuade the Governors office and DFA to allow us to make the official request on paper
ndash If not allowed to make the official budget request then cannot lobby for the budget need (need to be careful on how to respond when asked about the need)
bull Another chance to make a difference to the recommendation is the first few weeks of January to persuade the DFA andor LFC that their recommendation will not work for the agency before their recommendation is adopted in HAFC for the GAA (HB2)
34
Budget Requests Time Line
bullInfrastructure Capital Improvement Plan Due (ICIP) Statutory Deadline
July 1st
bullAppropriation Request Statutory Deadline September 1st
bullDFA State Budget Division amp Legislative Finance Committee staff analyze agency budget requests amp hold meetings and hearings to pursue issues pertinent to requests
Sept - Dec
bullInstructions amp deadlines for the Special Appropriations Deficiencies Supplemental and Budget Adjustment Request Authority submittals
October - November
bullState law requires the Governor to prepare a budget to the LFC January 5th (even yrs) January10th (odd years)
bullLFC amp SBD prepare different sheets that shows major differences in revenues expenditures amp total budget between the executive and LFC recommendations
January
bullHAFC holds budget hearings in which the different sheets are presented and the committee will either adopt the executive recommendation
Session
bullOperating Budget Submittal Statutory Deadline May 1st
35
Capital Improvement Plan (ICIP) (July 1)
bull Governor amp DFA do not usually restrict agencies from submitted their capital outlay needs in the 5 year plan
bull Purchase of assets ie water rights equipment etc
bull Construction ie pipelines buildings etc
bull Long term in nature
bull Personnel costs not allowed
bull Appropriated for longer time frame 4 years amp 3 years to purchase an asset
bull If bonds are certified for project than 5 of appropriation must be expended within 6 months and 85 expended within 3 years
bull Funding Sources for projects from either GO Bonds Severance Tax Bonds or General Fund
36
37
38
The State Budget Act (sect6-3A-7 NMSA 1978) and the
Accountability in Government Act (sect6-3A-1 to 6-3A-8 NMSA
1978) set forth the framework and requirements for state
government budgeting in New Mexico
39
State Budget Act
6-3-19 Agencies to complete budget forms
Each state agency shall fill out the budget forms provided for in Section 6-3-18 NMSA 1978 in the
manner prescribed by the state budget division Each state agency in completing the budget forms
shall include information for all divisions subdivisions and offices of the agency Related agencies
upon approval of the state budget division may join in submitting one set of budget forms
Completed budget forms shall be returned to the state budget division not later than September 1 in
each year
History 1953 Comp sect 11-4-75 enacted by Laws 1955 ch 114 sect 10 1963 ch 147 sect 3 1977
ch 247 sect 130 1999 ch 5 sect 11 1999 ch 15 sect 11
40
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
27
28
29
30
Ute Revenues
bull Fund originally set up to pay bond debt issued years ago for Ute Dam
bull Revenues from bulk water sale encroachment license fees amp easements deposited into the fund
bull Revenues historically have been used for operation amp maintenance costs for Ute dam
bull Fund Balance $626593
bull Revenue Budget Process
ndash Budget revenue on an as needed basis through the budget adjustment request process (BAR) bull Need to request specific BAR language in the appropriation request process in order to
budget the funds since the Ute Construction Fund does not give the Commission authority to budget the revenue
31
Active Capital Outlay Appropriations
bull $1M to purchase land and water rights within the interstate stream commissions existing pricing guidelines
and for the development of augmentation well fields and pipelines and related professional services for the Pecos River Compact settlement for the Pecos Settlement to purchase water rights (funded from the Attorney General Settlement Fund) ndashAvailable Balance = $4266k
bull $2M - notwithstanding the provisions of the Water Project Finance Act to the contrary is appropriated from
the water project fund to the office of the state engineer for expenditure in fiscal years 2016 through 2020 unless otherwise provided in Section 2 of this act to plan design and construct an engineered levee in the San Acacia reach in Socorro county- Available Balance = $14M
bull $2M to plan design renovate construct and equip improvements to acequias statewide (Attorney
General Settlement Fund) Available Balance Available Balance = $1005k bull $900k to rehab the LLSMR to plan design remodel rebuild construct and equip conservation rearing
ponds and hatcheries for a silvery minnow refugium production facility in Los Lunas in Valencia county (STB revenue bonds) Available Balance $0
bull $450k to plan design and construct habitat restoration projects in the middle Rio Grande conservancy
district or habitat restoration in the MRG (STB revenue Bonds) Available Balance = $1455k bull IWR appropriations ndash $58M Fund Balance for Taos Settlement bull Flow through appropriations to the ISC to act as fiscal agent for specific acequia projects ndash 28 current
appropriations that total approximately $13M
32
State Budget Process
bull Statutory Deadlines amp Submittals of Required Documents
bull Analysis amp Recommendation Process
bull What Happens During the Session (executive perspective)
33
Important to remember throughout this process
bull The Governor is our boss and controls what we will officially request in the appropriation request process
bull The Governor through the Department of Finance and Administration and the Legislature control the budget budget increases what is allowable to budget the dollar amount and time period and the request to move budget between appropriated budget categories
bull There are always exceptions to the appropriation request process
ndash Every administration interprets policies processes and laws differently and applies it based on their interpretation
bull Take inventory of our budget needs in July to be prepared to discuss and try and persuade the Governors office and DFA to allow us to make the official request on paper
ndash If not allowed to make the official budget request then cannot lobby for the budget need (need to be careful on how to respond when asked about the need)
bull Another chance to make a difference to the recommendation is the first few weeks of January to persuade the DFA andor LFC that their recommendation will not work for the agency before their recommendation is adopted in HAFC for the GAA (HB2)
34
Budget Requests Time Line
bullInfrastructure Capital Improvement Plan Due (ICIP) Statutory Deadline
July 1st
bullAppropriation Request Statutory Deadline September 1st
bullDFA State Budget Division amp Legislative Finance Committee staff analyze agency budget requests amp hold meetings and hearings to pursue issues pertinent to requests
Sept - Dec
bullInstructions amp deadlines for the Special Appropriations Deficiencies Supplemental and Budget Adjustment Request Authority submittals
October - November
bullState law requires the Governor to prepare a budget to the LFC January 5th (even yrs) January10th (odd years)
bullLFC amp SBD prepare different sheets that shows major differences in revenues expenditures amp total budget between the executive and LFC recommendations
January
bullHAFC holds budget hearings in which the different sheets are presented and the committee will either adopt the executive recommendation
Session
bullOperating Budget Submittal Statutory Deadline May 1st
35
Capital Improvement Plan (ICIP) (July 1)
bull Governor amp DFA do not usually restrict agencies from submitted their capital outlay needs in the 5 year plan
bull Purchase of assets ie water rights equipment etc
bull Construction ie pipelines buildings etc
bull Long term in nature
bull Personnel costs not allowed
bull Appropriated for longer time frame 4 years amp 3 years to purchase an asset
bull If bonds are certified for project than 5 of appropriation must be expended within 6 months and 85 expended within 3 years
bull Funding Sources for projects from either GO Bonds Severance Tax Bonds or General Fund
36
37
38
The State Budget Act (sect6-3A-7 NMSA 1978) and the
Accountability in Government Act (sect6-3A-1 to 6-3A-8 NMSA
1978) set forth the framework and requirements for state
government budgeting in New Mexico
39
State Budget Act
6-3-19 Agencies to complete budget forms
Each state agency shall fill out the budget forms provided for in Section 6-3-18 NMSA 1978 in the
manner prescribed by the state budget division Each state agency in completing the budget forms
shall include information for all divisions subdivisions and offices of the agency Related agencies
upon approval of the state budget division may join in submitting one set of budget forms
Completed budget forms shall be returned to the state budget division not later than September 1 in
each year
History 1953 Comp sect 11-4-75 enacted by Laws 1955 ch 114 sect 10 1963 ch 147 sect 3 1977
ch 247 sect 130 1999 ch 5 sect 11 1999 ch 15 sect 11
40
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
28
29
30
Ute Revenues
bull Fund originally set up to pay bond debt issued years ago for Ute Dam
bull Revenues from bulk water sale encroachment license fees amp easements deposited into the fund
bull Revenues historically have been used for operation amp maintenance costs for Ute dam
bull Fund Balance $626593
bull Revenue Budget Process
ndash Budget revenue on an as needed basis through the budget adjustment request process (BAR) bull Need to request specific BAR language in the appropriation request process in order to
budget the funds since the Ute Construction Fund does not give the Commission authority to budget the revenue
31
Active Capital Outlay Appropriations
bull $1M to purchase land and water rights within the interstate stream commissions existing pricing guidelines
and for the development of augmentation well fields and pipelines and related professional services for the Pecos River Compact settlement for the Pecos Settlement to purchase water rights (funded from the Attorney General Settlement Fund) ndashAvailable Balance = $4266k
bull $2M - notwithstanding the provisions of the Water Project Finance Act to the contrary is appropriated from
the water project fund to the office of the state engineer for expenditure in fiscal years 2016 through 2020 unless otherwise provided in Section 2 of this act to plan design and construct an engineered levee in the San Acacia reach in Socorro county- Available Balance = $14M
bull $2M to plan design renovate construct and equip improvements to acequias statewide (Attorney
General Settlement Fund) Available Balance Available Balance = $1005k bull $900k to rehab the LLSMR to plan design remodel rebuild construct and equip conservation rearing
ponds and hatcheries for a silvery minnow refugium production facility in Los Lunas in Valencia county (STB revenue bonds) Available Balance $0
bull $450k to plan design and construct habitat restoration projects in the middle Rio Grande conservancy
district or habitat restoration in the MRG (STB revenue Bonds) Available Balance = $1455k bull IWR appropriations ndash $58M Fund Balance for Taos Settlement bull Flow through appropriations to the ISC to act as fiscal agent for specific acequia projects ndash 28 current
appropriations that total approximately $13M
32
State Budget Process
bull Statutory Deadlines amp Submittals of Required Documents
bull Analysis amp Recommendation Process
bull What Happens During the Session (executive perspective)
33
Important to remember throughout this process
bull The Governor is our boss and controls what we will officially request in the appropriation request process
bull The Governor through the Department of Finance and Administration and the Legislature control the budget budget increases what is allowable to budget the dollar amount and time period and the request to move budget between appropriated budget categories
bull There are always exceptions to the appropriation request process
ndash Every administration interprets policies processes and laws differently and applies it based on their interpretation
bull Take inventory of our budget needs in July to be prepared to discuss and try and persuade the Governors office and DFA to allow us to make the official request on paper
ndash If not allowed to make the official budget request then cannot lobby for the budget need (need to be careful on how to respond when asked about the need)
bull Another chance to make a difference to the recommendation is the first few weeks of January to persuade the DFA andor LFC that their recommendation will not work for the agency before their recommendation is adopted in HAFC for the GAA (HB2)
34
Budget Requests Time Line
bullInfrastructure Capital Improvement Plan Due (ICIP) Statutory Deadline
July 1st
bullAppropriation Request Statutory Deadline September 1st
bullDFA State Budget Division amp Legislative Finance Committee staff analyze agency budget requests amp hold meetings and hearings to pursue issues pertinent to requests
Sept - Dec
bullInstructions amp deadlines for the Special Appropriations Deficiencies Supplemental and Budget Adjustment Request Authority submittals
October - November
bullState law requires the Governor to prepare a budget to the LFC January 5th (even yrs) January10th (odd years)
bullLFC amp SBD prepare different sheets that shows major differences in revenues expenditures amp total budget between the executive and LFC recommendations
January
bullHAFC holds budget hearings in which the different sheets are presented and the committee will either adopt the executive recommendation
Session
bullOperating Budget Submittal Statutory Deadline May 1st
35
Capital Improvement Plan (ICIP) (July 1)
bull Governor amp DFA do not usually restrict agencies from submitted their capital outlay needs in the 5 year plan
bull Purchase of assets ie water rights equipment etc
bull Construction ie pipelines buildings etc
bull Long term in nature
bull Personnel costs not allowed
bull Appropriated for longer time frame 4 years amp 3 years to purchase an asset
bull If bonds are certified for project than 5 of appropriation must be expended within 6 months and 85 expended within 3 years
bull Funding Sources for projects from either GO Bonds Severance Tax Bonds or General Fund
36
37
38
The State Budget Act (sect6-3A-7 NMSA 1978) and the
Accountability in Government Act (sect6-3A-1 to 6-3A-8 NMSA
1978) set forth the framework and requirements for state
government budgeting in New Mexico
39
State Budget Act
6-3-19 Agencies to complete budget forms
Each state agency shall fill out the budget forms provided for in Section 6-3-18 NMSA 1978 in the
manner prescribed by the state budget division Each state agency in completing the budget forms
shall include information for all divisions subdivisions and offices of the agency Related agencies
upon approval of the state budget division may join in submitting one set of budget forms
Completed budget forms shall be returned to the state budget division not later than September 1 in
each year
History 1953 Comp sect 11-4-75 enacted by Laws 1955 ch 114 sect 10 1963 ch 147 sect 3 1977
ch 247 sect 130 1999 ch 5 sect 11 1999 ch 15 sect 11
40
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
29
30
Ute Revenues
bull Fund originally set up to pay bond debt issued years ago for Ute Dam
bull Revenues from bulk water sale encroachment license fees amp easements deposited into the fund
bull Revenues historically have been used for operation amp maintenance costs for Ute dam
bull Fund Balance $626593
bull Revenue Budget Process
ndash Budget revenue on an as needed basis through the budget adjustment request process (BAR) bull Need to request specific BAR language in the appropriation request process in order to
budget the funds since the Ute Construction Fund does not give the Commission authority to budget the revenue
31
Active Capital Outlay Appropriations
bull $1M to purchase land and water rights within the interstate stream commissions existing pricing guidelines
and for the development of augmentation well fields and pipelines and related professional services for the Pecos River Compact settlement for the Pecos Settlement to purchase water rights (funded from the Attorney General Settlement Fund) ndashAvailable Balance = $4266k
bull $2M - notwithstanding the provisions of the Water Project Finance Act to the contrary is appropriated from
the water project fund to the office of the state engineer for expenditure in fiscal years 2016 through 2020 unless otherwise provided in Section 2 of this act to plan design and construct an engineered levee in the San Acacia reach in Socorro county- Available Balance = $14M
bull $2M to plan design renovate construct and equip improvements to acequias statewide (Attorney
General Settlement Fund) Available Balance Available Balance = $1005k bull $900k to rehab the LLSMR to plan design remodel rebuild construct and equip conservation rearing
ponds and hatcheries for a silvery minnow refugium production facility in Los Lunas in Valencia county (STB revenue bonds) Available Balance $0
bull $450k to plan design and construct habitat restoration projects in the middle Rio Grande conservancy
district or habitat restoration in the MRG (STB revenue Bonds) Available Balance = $1455k bull IWR appropriations ndash $58M Fund Balance for Taos Settlement bull Flow through appropriations to the ISC to act as fiscal agent for specific acequia projects ndash 28 current
appropriations that total approximately $13M
32
State Budget Process
bull Statutory Deadlines amp Submittals of Required Documents
bull Analysis amp Recommendation Process
bull What Happens During the Session (executive perspective)
33
Important to remember throughout this process
bull The Governor is our boss and controls what we will officially request in the appropriation request process
bull The Governor through the Department of Finance and Administration and the Legislature control the budget budget increases what is allowable to budget the dollar amount and time period and the request to move budget between appropriated budget categories
bull There are always exceptions to the appropriation request process
ndash Every administration interprets policies processes and laws differently and applies it based on their interpretation
bull Take inventory of our budget needs in July to be prepared to discuss and try and persuade the Governors office and DFA to allow us to make the official request on paper
ndash If not allowed to make the official budget request then cannot lobby for the budget need (need to be careful on how to respond when asked about the need)
bull Another chance to make a difference to the recommendation is the first few weeks of January to persuade the DFA andor LFC that their recommendation will not work for the agency before their recommendation is adopted in HAFC for the GAA (HB2)
34
Budget Requests Time Line
bullInfrastructure Capital Improvement Plan Due (ICIP) Statutory Deadline
July 1st
bullAppropriation Request Statutory Deadline September 1st
bullDFA State Budget Division amp Legislative Finance Committee staff analyze agency budget requests amp hold meetings and hearings to pursue issues pertinent to requests
Sept - Dec
bullInstructions amp deadlines for the Special Appropriations Deficiencies Supplemental and Budget Adjustment Request Authority submittals
October - November
bullState law requires the Governor to prepare a budget to the LFC January 5th (even yrs) January10th (odd years)
bullLFC amp SBD prepare different sheets that shows major differences in revenues expenditures amp total budget between the executive and LFC recommendations
January
bullHAFC holds budget hearings in which the different sheets are presented and the committee will either adopt the executive recommendation
Session
bullOperating Budget Submittal Statutory Deadline May 1st
35
Capital Improvement Plan (ICIP) (July 1)
bull Governor amp DFA do not usually restrict agencies from submitted their capital outlay needs in the 5 year plan
bull Purchase of assets ie water rights equipment etc
bull Construction ie pipelines buildings etc
bull Long term in nature
bull Personnel costs not allowed
bull Appropriated for longer time frame 4 years amp 3 years to purchase an asset
bull If bonds are certified for project than 5 of appropriation must be expended within 6 months and 85 expended within 3 years
bull Funding Sources for projects from either GO Bonds Severance Tax Bonds or General Fund
36
37
38
The State Budget Act (sect6-3A-7 NMSA 1978) and the
Accountability in Government Act (sect6-3A-1 to 6-3A-8 NMSA
1978) set forth the framework and requirements for state
government budgeting in New Mexico
39
State Budget Act
6-3-19 Agencies to complete budget forms
Each state agency shall fill out the budget forms provided for in Section 6-3-18 NMSA 1978 in the
manner prescribed by the state budget division Each state agency in completing the budget forms
shall include information for all divisions subdivisions and offices of the agency Related agencies
upon approval of the state budget division may join in submitting one set of budget forms
Completed budget forms shall be returned to the state budget division not later than September 1 in
each year
History 1953 Comp sect 11-4-75 enacted by Laws 1955 ch 114 sect 10 1963 ch 147 sect 3 1977
ch 247 sect 130 1999 ch 5 sect 11 1999 ch 15 sect 11
40
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
30
Ute Revenues
bull Fund originally set up to pay bond debt issued years ago for Ute Dam
bull Revenues from bulk water sale encroachment license fees amp easements deposited into the fund
bull Revenues historically have been used for operation amp maintenance costs for Ute dam
bull Fund Balance $626593
bull Revenue Budget Process
ndash Budget revenue on an as needed basis through the budget adjustment request process (BAR) bull Need to request specific BAR language in the appropriation request process in order to
budget the funds since the Ute Construction Fund does not give the Commission authority to budget the revenue
31
Active Capital Outlay Appropriations
bull $1M to purchase land and water rights within the interstate stream commissions existing pricing guidelines
and for the development of augmentation well fields and pipelines and related professional services for the Pecos River Compact settlement for the Pecos Settlement to purchase water rights (funded from the Attorney General Settlement Fund) ndashAvailable Balance = $4266k
bull $2M - notwithstanding the provisions of the Water Project Finance Act to the contrary is appropriated from
the water project fund to the office of the state engineer for expenditure in fiscal years 2016 through 2020 unless otherwise provided in Section 2 of this act to plan design and construct an engineered levee in the San Acacia reach in Socorro county- Available Balance = $14M
bull $2M to plan design renovate construct and equip improvements to acequias statewide (Attorney
General Settlement Fund) Available Balance Available Balance = $1005k bull $900k to rehab the LLSMR to plan design remodel rebuild construct and equip conservation rearing
ponds and hatcheries for a silvery minnow refugium production facility in Los Lunas in Valencia county (STB revenue bonds) Available Balance $0
bull $450k to plan design and construct habitat restoration projects in the middle Rio Grande conservancy
district or habitat restoration in the MRG (STB revenue Bonds) Available Balance = $1455k bull IWR appropriations ndash $58M Fund Balance for Taos Settlement bull Flow through appropriations to the ISC to act as fiscal agent for specific acequia projects ndash 28 current
appropriations that total approximately $13M
32
State Budget Process
bull Statutory Deadlines amp Submittals of Required Documents
bull Analysis amp Recommendation Process
bull What Happens During the Session (executive perspective)
33
Important to remember throughout this process
bull The Governor is our boss and controls what we will officially request in the appropriation request process
bull The Governor through the Department of Finance and Administration and the Legislature control the budget budget increases what is allowable to budget the dollar amount and time period and the request to move budget between appropriated budget categories
bull There are always exceptions to the appropriation request process
ndash Every administration interprets policies processes and laws differently and applies it based on their interpretation
bull Take inventory of our budget needs in July to be prepared to discuss and try and persuade the Governors office and DFA to allow us to make the official request on paper
ndash If not allowed to make the official budget request then cannot lobby for the budget need (need to be careful on how to respond when asked about the need)
bull Another chance to make a difference to the recommendation is the first few weeks of January to persuade the DFA andor LFC that their recommendation will not work for the agency before their recommendation is adopted in HAFC for the GAA (HB2)
34
Budget Requests Time Line
bullInfrastructure Capital Improvement Plan Due (ICIP) Statutory Deadline
July 1st
bullAppropriation Request Statutory Deadline September 1st
bullDFA State Budget Division amp Legislative Finance Committee staff analyze agency budget requests amp hold meetings and hearings to pursue issues pertinent to requests
Sept - Dec
bullInstructions amp deadlines for the Special Appropriations Deficiencies Supplemental and Budget Adjustment Request Authority submittals
October - November
bullState law requires the Governor to prepare a budget to the LFC January 5th (even yrs) January10th (odd years)
bullLFC amp SBD prepare different sheets that shows major differences in revenues expenditures amp total budget between the executive and LFC recommendations
January
bullHAFC holds budget hearings in which the different sheets are presented and the committee will either adopt the executive recommendation
Session
bullOperating Budget Submittal Statutory Deadline May 1st
35
Capital Improvement Plan (ICIP) (July 1)
bull Governor amp DFA do not usually restrict agencies from submitted their capital outlay needs in the 5 year plan
bull Purchase of assets ie water rights equipment etc
bull Construction ie pipelines buildings etc
bull Long term in nature
bull Personnel costs not allowed
bull Appropriated for longer time frame 4 years amp 3 years to purchase an asset
bull If bonds are certified for project than 5 of appropriation must be expended within 6 months and 85 expended within 3 years
bull Funding Sources for projects from either GO Bonds Severance Tax Bonds or General Fund
36
37
38
The State Budget Act (sect6-3A-7 NMSA 1978) and the
Accountability in Government Act (sect6-3A-1 to 6-3A-8 NMSA
1978) set forth the framework and requirements for state
government budgeting in New Mexico
39
State Budget Act
6-3-19 Agencies to complete budget forms
Each state agency shall fill out the budget forms provided for in Section 6-3-18 NMSA 1978 in the
manner prescribed by the state budget division Each state agency in completing the budget forms
shall include information for all divisions subdivisions and offices of the agency Related agencies
upon approval of the state budget division may join in submitting one set of budget forms
Completed budget forms shall be returned to the state budget division not later than September 1 in
each year
History 1953 Comp sect 11-4-75 enacted by Laws 1955 ch 114 sect 10 1963 ch 147 sect 3 1977
ch 247 sect 130 1999 ch 5 sect 11 1999 ch 15 sect 11
40
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
Ute Revenues
bull Fund originally set up to pay bond debt issued years ago for Ute Dam
bull Revenues from bulk water sale encroachment license fees amp easements deposited into the fund
bull Revenues historically have been used for operation amp maintenance costs for Ute dam
bull Fund Balance $626593
bull Revenue Budget Process
ndash Budget revenue on an as needed basis through the budget adjustment request process (BAR) bull Need to request specific BAR language in the appropriation request process in order to
budget the funds since the Ute Construction Fund does not give the Commission authority to budget the revenue
31
Active Capital Outlay Appropriations
bull $1M to purchase land and water rights within the interstate stream commissions existing pricing guidelines
and for the development of augmentation well fields and pipelines and related professional services for the Pecos River Compact settlement for the Pecos Settlement to purchase water rights (funded from the Attorney General Settlement Fund) ndashAvailable Balance = $4266k
bull $2M - notwithstanding the provisions of the Water Project Finance Act to the contrary is appropriated from
the water project fund to the office of the state engineer for expenditure in fiscal years 2016 through 2020 unless otherwise provided in Section 2 of this act to plan design and construct an engineered levee in the San Acacia reach in Socorro county- Available Balance = $14M
bull $2M to plan design renovate construct and equip improvements to acequias statewide (Attorney
General Settlement Fund) Available Balance Available Balance = $1005k bull $900k to rehab the LLSMR to plan design remodel rebuild construct and equip conservation rearing
ponds and hatcheries for a silvery minnow refugium production facility in Los Lunas in Valencia county (STB revenue bonds) Available Balance $0
bull $450k to plan design and construct habitat restoration projects in the middle Rio Grande conservancy
district or habitat restoration in the MRG (STB revenue Bonds) Available Balance = $1455k bull IWR appropriations ndash $58M Fund Balance for Taos Settlement bull Flow through appropriations to the ISC to act as fiscal agent for specific acequia projects ndash 28 current
appropriations that total approximately $13M
32
State Budget Process
bull Statutory Deadlines amp Submittals of Required Documents
bull Analysis amp Recommendation Process
bull What Happens During the Session (executive perspective)
33
Important to remember throughout this process
bull The Governor is our boss and controls what we will officially request in the appropriation request process
bull The Governor through the Department of Finance and Administration and the Legislature control the budget budget increases what is allowable to budget the dollar amount and time period and the request to move budget between appropriated budget categories
bull There are always exceptions to the appropriation request process
ndash Every administration interprets policies processes and laws differently and applies it based on their interpretation
bull Take inventory of our budget needs in July to be prepared to discuss and try and persuade the Governors office and DFA to allow us to make the official request on paper
ndash If not allowed to make the official budget request then cannot lobby for the budget need (need to be careful on how to respond when asked about the need)
bull Another chance to make a difference to the recommendation is the first few weeks of January to persuade the DFA andor LFC that their recommendation will not work for the agency before their recommendation is adopted in HAFC for the GAA (HB2)
34
Budget Requests Time Line
bullInfrastructure Capital Improvement Plan Due (ICIP) Statutory Deadline
July 1st
bullAppropriation Request Statutory Deadline September 1st
bullDFA State Budget Division amp Legislative Finance Committee staff analyze agency budget requests amp hold meetings and hearings to pursue issues pertinent to requests
Sept - Dec
bullInstructions amp deadlines for the Special Appropriations Deficiencies Supplemental and Budget Adjustment Request Authority submittals
October - November
bullState law requires the Governor to prepare a budget to the LFC January 5th (even yrs) January10th (odd years)
bullLFC amp SBD prepare different sheets that shows major differences in revenues expenditures amp total budget between the executive and LFC recommendations
January
bullHAFC holds budget hearings in which the different sheets are presented and the committee will either adopt the executive recommendation
Session
bullOperating Budget Submittal Statutory Deadline May 1st
35
Capital Improvement Plan (ICIP) (July 1)
bull Governor amp DFA do not usually restrict agencies from submitted their capital outlay needs in the 5 year plan
bull Purchase of assets ie water rights equipment etc
bull Construction ie pipelines buildings etc
bull Long term in nature
bull Personnel costs not allowed
bull Appropriated for longer time frame 4 years amp 3 years to purchase an asset
bull If bonds are certified for project than 5 of appropriation must be expended within 6 months and 85 expended within 3 years
bull Funding Sources for projects from either GO Bonds Severance Tax Bonds or General Fund
36
37
38
The State Budget Act (sect6-3A-7 NMSA 1978) and the
Accountability in Government Act (sect6-3A-1 to 6-3A-8 NMSA
1978) set forth the framework and requirements for state
government budgeting in New Mexico
39
State Budget Act
6-3-19 Agencies to complete budget forms
Each state agency shall fill out the budget forms provided for in Section 6-3-18 NMSA 1978 in the
manner prescribed by the state budget division Each state agency in completing the budget forms
shall include information for all divisions subdivisions and offices of the agency Related agencies
upon approval of the state budget division may join in submitting one set of budget forms
Completed budget forms shall be returned to the state budget division not later than September 1 in
each year
History 1953 Comp sect 11-4-75 enacted by Laws 1955 ch 114 sect 10 1963 ch 147 sect 3 1977
ch 247 sect 130 1999 ch 5 sect 11 1999 ch 15 sect 11
40
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
Active Capital Outlay Appropriations
bull $1M to purchase land and water rights within the interstate stream commissions existing pricing guidelines
and for the development of augmentation well fields and pipelines and related professional services for the Pecos River Compact settlement for the Pecos Settlement to purchase water rights (funded from the Attorney General Settlement Fund) ndashAvailable Balance = $4266k
bull $2M - notwithstanding the provisions of the Water Project Finance Act to the contrary is appropriated from
the water project fund to the office of the state engineer for expenditure in fiscal years 2016 through 2020 unless otherwise provided in Section 2 of this act to plan design and construct an engineered levee in the San Acacia reach in Socorro county- Available Balance = $14M
bull $2M to plan design renovate construct and equip improvements to acequias statewide (Attorney
General Settlement Fund) Available Balance Available Balance = $1005k bull $900k to rehab the LLSMR to plan design remodel rebuild construct and equip conservation rearing
ponds and hatcheries for a silvery minnow refugium production facility in Los Lunas in Valencia county (STB revenue bonds) Available Balance $0
bull $450k to plan design and construct habitat restoration projects in the middle Rio Grande conservancy
district or habitat restoration in the MRG (STB revenue Bonds) Available Balance = $1455k bull IWR appropriations ndash $58M Fund Balance for Taos Settlement bull Flow through appropriations to the ISC to act as fiscal agent for specific acequia projects ndash 28 current
appropriations that total approximately $13M
32
State Budget Process
bull Statutory Deadlines amp Submittals of Required Documents
bull Analysis amp Recommendation Process
bull What Happens During the Session (executive perspective)
33
Important to remember throughout this process
bull The Governor is our boss and controls what we will officially request in the appropriation request process
bull The Governor through the Department of Finance and Administration and the Legislature control the budget budget increases what is allowable to budget the dollar amount and time period and the request to move budget between appropriated budget categories
bull There are always exceptions to the appropriation request process
ndash Every administration interprets policies processes and laws differently and applies it based on their interpretation
bull Take inventory of our budget needs in July to be prepared to discuss and try and persuade the Governors office and DFA to allow us to make the official request on paper
ndash If not allowed to make the official budget request then cannot lobby for the budget need (need to be careful on how to respond when asked about the need)
bull Another chance to make a difference to the recommendation is the first few weeks of January to persuade the DFA andor LFC that their recommendation will not work for the agency before their recommendation is adopted in HAFC for the GAA (HB2)
34
Budget Requests Time Line
bullInfrastructure Capital Improvement Plan Due (ICIP) Statutory Deadline
July 1st
bullAppropriation Request Statutory Deadline September 1st
bullDFA State Budget Division amp Legislative Finance Committee staff analyze agency budget requests amp hold meetings and hearings to pursue issues pertinent to requests
Sept - Dec
bullInstructions amp deadlines for the Special Appropriations Deficiencies Supplemental and Budget Adjustment Request Authority submittals
October - November
bullState law requires the Governor to prepare a budget to the LFC January 5th (even yrs) January10th (odd years)
bullLFC amp SBD prepare different sheets that shows major differences in revenues expenditures amp total budget between the executive and LFC recommendations
January
bullHAFC holds budget hearings in which the different sheets are presented and the committee will either adopt the executive recommendation
Session
bullOperating Budget Submittal Statutory Deadline May 1st
35
Capital Improvement Plan (ICIP) (July 1)
bull Governor amp DFA do not usually restrict agencies from submitted their capital outlay needs in the 5 year plan
bull Purchase of assets ie water rights equipment etc
bull Construction ie pipelines buildings etc
bull Long term in nature
bull Personnel costs not allowed
bull Appropriated for longer time frame 4 years amp 3 years to purchase an asset
bull If bonds are certified for project than 5 of appropriation must be expended within 6 months and 85 expended within 3 years
bull Funding Sources for projects from either GO Bonds Severance Tax Bonds or General Fund
36
37
38
The State Budget Act (sect6-3A-7 NMSA 1978) and the
Accountability in Government Act (sect6-3A-1 to 6-3A-8 NMSA
1978) set forth the framework and requirements for state
government budgeting in New Mexico
39
State Budget Act
6-3-19 Agencies to complete budget forms
Each state agency shall fill out the budget forms provided for in Section 6-3-18 NMSA 1978 in the
manner prescribed by the state budget division Each state agency in completing the budget forms
shall include information for all divisions subdivisions and offices of the agency Related agencies
upon approval of the state budget division may join in submitting one set of budget forms
Completed budget forms shall be returned to the state budget division not later than September 1 in
each year
History 1953 Comp sect 11-4-75 enacted by Laws 1955 ch 114 sect 10 1963 ch 147 sect 3 1977
ch 247 sect 130 1999 ch 5 sect 11 1999 ch 15 sect 11
40
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
State Budget Process
bull Statutory Deadlines amp Submittals of Required Documents
bull Analysis amp Recommendation Process
bull What Happens During the Session (executive perspective)
33
Important to remember throughout this process
bull The Governor is our boss and controls what we will officially request in the appropriation request process
bull The Governor through the Department of Finance and Administration and the Legislature control the budget budget increases what is allowable to budget the dollar amount and time period and the request to move budget between appropriated budget categories
bull There are always exceptions to the appropriation request process
ndash Every administration interprets policies processes and laws differently and applies it based on their interpretation
bull Take inventory of our budget needs in July to be prepared to discuss and try and persuade the Governors office and DFA to allow us to make the official request on paper
ndash If not allowed to make the official budget request then cannot lobby for the budget need (need to be careful on how to respond when asked about the need)
bull Another chance to make a difference to the recommendation is the first few weeks of January to persuade the DFA andor LFC that their recommendation will not work for the agency before their recommendation is adopted in HAFC for the GAA (HB2)
34
Budget Requests Time Line
bullInfrastructure Capital Improvement Plan Due (ICIP) Statutory Deadline
July 1st
bullAppropriation Request Statutory Deadline September 1st
bullDFA State Budget Division amp Legislative Finance Committee staff analyze agency budget requests amp hold meetings and hearings to pursue issues pertinent to requests
Sept - Dec
bullInstructions amp deadlines for the Special Appropriations Deficiencies Supplemental and Budget Adjustment Request Authority submittals
October - November
bullState law requires the Governor to prepare a budget to the LFC January 5th (even yrs) January10th (odd years)
bullLFC amp SBD prepare different sheets that shows major differences in revenues expenditures amp total budget between the executive and LFC recommendations
January
bullHAFC holds budget hearings in which the different sheets are presented and the committee will either adopt the executive recommendation
Session
bullOperating Budget Submittal Statutory Deadline May 1st
35
Capital Improvement Plan (ICIP) (July 1)
bull Governor amp DFA do not usually restrict agencies from submitted their capital outlay needs in the 5 year plan
bull Purchase of assets ie water rights equipment etc
bull Construction ie pipelines buildings etc
bull Long term in nature
bull Personnel costs not allowed
bull Appropriated for longer time frame 4 years amp 3 years to purchase an asset
bull If bonds are certified for project than 5 of appropriation must be expended within 6 months and 85 expended within 3 years
bull Funding Sources for projects from either GO Bonds Severance Tax Bonds or General Fund
36
37
38
The State Budget Act (sect6-3A-7 NMSA 1978) and the
Accountability in Government Act (sect6-3A-1 to 6-3A-8 NMSA
1978) set forth the framework and requirements for state
government budgeting in New Mexico
39
State Budget Act
6-3-19 Agencies to complete budget forms
Each state agency shall fill out the budget forms provided for in Section 6-3-18 NMSA 1978 in the
manner prescribed by the state budget division Each state agency in completing the budget forms
shall include information for all divisions subdivisions and offices of the agency Related agencies
upon approval of the state budget division may join in submitting one set of budget forms
Completed budget forms shall be returned to the state budget division not later than September 1 in
each year
History 1953 Comp sect 11-4-75 enacted by Laws 1955 ch 114 sect 10 1963 ch 147 sect 3 1977
ch 247 sect 130 1999 ch 5 sect 11 1999 ch 15 sect 11
40
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
Important to remember throughout this process
bull The Governor is our boss and controls what we will officially request in the appropriation request process
bull The Governor through the Department of Finance and Administration and the Legislature control the budget budget increases what is allowable to budget the dollar amount and time period and the request to move budget between appropriated budget categories
bull There are always exceptions to the appropriation request process
ndash Every administration interprets policies processes and laws differently and applies it based on their interpretation
bull Take inventory of our budget needs in July to be prepared to discuss and try and persuade the Governors office and DFA to allow us to make the official request on paper
ndash If not allowed to make the official budget request then cannot lobby for the budget need (need to be careful on how to respond when asked about the need)
bull Another chance to make a difference to the recommendation is the first few weeks of January to persuade the DFA andor LFC that their recommendation will not work for the agency before their recommendation is adopted in HAFC for the GAA (HB2)
34
Budget Requests Time Line
bullInfrastructure Capital Improvement Plan Due (ICIP) Statutory Deadline
July 1st
bullAppropriation Request Statutory Deadline September 1st
bullDFA State Budget Division amp Legislative Finance Committee staff analyze agency budget requests amp hold meetings and hearings to pursue issues pertinent to requests
Sept - Dec
bullInstructions amp deadlines for the Special Appropriations Deficiencies Supplemental and Budget Adjustment Request Authority submittals
October - November
bullState law requires the Governor to prepare a budget to the LFC January 5th (even yrs) January10th (odd years)
bullLFC amp SBD prepare different sheets that shows major differences in revenues expenditures amp total budget between the executive and LFC recommendations
January
bullHAFC holds budget hearings in which the different sheets are presented and the committee will either adopt the executive recommendation
Session
bullOperating Budget Submittal Statutory Deadline May 1st
35
Capital Improvement Plan (ICIP) (July 1)
bull Governor amp DFA do not usually restrict agencies from submitted their capital outlay needs in the 5 year plan
bull Purchase of assets ie water rights equipment etc
bull Construction ie pipelines buildings etc
bull Long term in nature
bull Personnel costs not allowed
bull Appropriated for longer time frame 4 years amp 3 years to purchase an asset
bull If bonds are certified for project than 5 of appropriation must be expended within 6 months and 85 expended within 3 years
bull Funding Sources for projects from either GO Bonds Severance Tax Bonds or General Fund
36
37
38
The State Budget Act (sect6-3A-7 NMSA 1978) and the
Accountability in Government Act (sect6-3A-1 to 6-3A-8 NMSA
1978) set forth the framework and requirements for state
government budgeting in New Mexico
39
State Budget Act
6-3-19 Agencies to complete budget forms
Each state agency shall fill out the budget forms provided for in Section 6-3-18 NMSA 1978 in the
manner prescribed by the state budget division Each state agency in completing the budget forms
shall include information for all divisions subdivisions and offices of the agency Related agencies
upon approval of the state budget division may join in submitting one set of budget forms
Completed budget forms shall be returned to the state budget division not later than September 1 in
each year
History 1953 Comp sect 11-4-75 enacted by Laws 1955 ch 114 sect 10 1963 ch 147 sect 3 1977
ch 247 sect 130 1999 ch 5 sect 11 1999 ch 15 sect 11
40
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
Budget Requests Time Line
bullInfrastructure Capital Improvement Plan Due (ICIP) Statutory Deadline
July 1st
bullAppropriation Request Statutory Deadline September 1st
bullDFA State Budget Division amp Legislative Finance Committee staff analyze agency budget requests amp hold meetings and hearings to pursue issues pertinent to requests
Sept - Dec
bullInstructions amp deadlines for the Special Appropriations Deficiencies Supplemental and Budget Adjustment Request Authority submittals
October - November
bullState law requires the Governor to prepare a budget to the LFC January 5th (even yrs) January10th (odd years)
bullLFC amp SBD prepare different sheets that shows major differences in revenues expenditures amp total budget between the executive and LFC recommendations
January
bullHAFC holds budget hearings in which the different sheets are presented and the committee will either adopt the executive recommendation
Session
bullOperating Budget Submittal Statutory Deadline May 1st
35
Capital Improvement Plan (ICIP) (July 1)
bull Governor amp DFA do not usually restrict agencies from submitted their capital outlay needs in the 5 year plan
bull Purchase of assets ie water rights equipment etc
bull Construction ie pipelines buildings etc
bull Long term in nature
bull Personnel costs not allowed
bull Appropriated for longer time frame 4 years amp 3 years to purchase an asset
bull If bonds are certified for project than 5 of appropriation must be expended within 6 months and 85 expended within 3 years
bull Funding Sources for projects from either GO Bonds Severance Tax Bonds or General Fund
36
37
38
The State Budget Act (sect6-3A-7 NMSA 1978) and the
Accountability in Government Act (sect6-3A-1 to 6-3A-8 NMSA
1978) set forth the framework and requirements for state
government budgeting in New Mexico
39
State Budget Act
6-3-19 Agencies to complete budget forms
Each state agency shall fill out the budget forms provided for in Section 6-3-18 NMSA 1978 in the
manner prescribed by the state budget division Each state agency in completing the budget forms
shall include information for all divisions subdivisions and offices of the agency Related agencies
upon approval of the state budget division may join in submitting one set of budget forms
Completed budget forms shall be returned to the state budget division not later than September 1 in
each year
History 1953 Comp sect 11-4-75 enacted by Laws 1955 ch 114 sect 10 1963 ch 147 sect 3 1977
ch 247 sect 130 1999 ch 5 sect 11 1999 ch 15 sect 11
40
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
Capital Improvement Plan (ICIP) (July 1)
bull Governor amp DFA do not usually restrict agencies from submitted their capital outlay needs in the 5 year plan
bull Purchase of assets ie water rights equipment etc
bull Construction ie pipelines buildings etc
bull Long term in nature
bull Personnel costs not allowed
bull Appropriated for longer time frame 4 years amp 3 years to purchase an asset
bull If bonds are certified for project than 5 of appropriation must be expended within 6 months and 85 expended within 3 years
bull Funding Sources for projects from either GO Bonds Severance Tax Bonds or General Fund
36
37
38
The State Budget Act (sect6-3A-7 NMSA 1978) and the
Accountability in Government Act (sect6-3A-1 to 6-3A-8 NMSA
1978) set forth the framework and requirements for state
government budgeting in New Mexico
39
State Budget Act
6-3-19 Agencies to complete budget forms
Each state agency shall fill out the budget forms provided for in Section 6-3-18 NMSA 1978 in the
manner prescribed by the state budget division Each state agency in completing the budget forms
shall include information for all divisions subdivisions and offices of the agency Related agencies
upon approval of the state budget division may join in submitting one set of budget forms
Completed budget forms shall be returned to the state budget division not later than September 1 in
each year
History 1953 Comp sect 11-4-75 enacted by Laws 1955 ch 114 sect 10 1963 ch 147 sect 3 1977
ch 247 sect 130 1999 ch 5 sect 11 1999 ch 15 sect 11
40
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
37
38
The State Budget Act (sect6-3A-7 NMSA 1978) and the
Accountability in Government Act (sect6-3A-1 to 6-3A-8 NMSA
1978) set forth the framework and requirements for state
government budgeting in New Mexico
39
State Budget Act
6-3-19 Agencies to complete budget forms
Each state agency shall fill out the budget forms provided for in Section 6-3-18 NMSA 1978 in the
manner prescribed by the state budget division Each state agency in completing the budget forms
shall include information for all divisions subdivisions and offices of the agency Related agencies
upon approval of the state budget division may join in submitting one set of budget forms
Completed budget forms shall be returned to the state budget division not later than September 1 in
each year
History 1953 Comp sect 11-4-75 enacted by Laws 1955 ch 114 sect 10 1963 ch 147 sect 3 1977
ch 247 sect 130 1999 ch 5 sect 11 1999 ch 15 sect 11
40
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
38
The State Budget Act (sect6-3A-7 NMSA 1978) and the
Accountability in Government Act (sect6-3A-1 to 6-3A-8 NMSA
1978) set forth the framework and requirements for state
government budgeting in New Mexico
39
State Budget Act
6-3-19 Agencies to complete budget forms
Each state agency shall fill out the budget forms provided for in Section 6-3-18 NMSA 1978 in the
manner prescribed by the state budget division Each state agency in completing the budget forms
shall include information for all divisions subdivisions and offices of the agency Related agencies
upon approval of the state budget division may join in submitting one set of budget forms
Completed budget forms shall be returned to the state budget division not later than September 1 in
each year
History 1953 Comp sect 11-4-75 enacted by Laws 1955 ch 114 sect 10 1963 ch 147 sect 3 1977
ch 247 sect 130 1999 ch 5 sect 11 1999 ch 15 sect 11
40
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
The State Budget Act (sect6-3A-7 NMSA 1978) and the
Accountability in Government Act (sect6-3A-1 to 6-3A-8 NMSA
1978) set forth the framework and requirements for state
government budgeting in New Mexico
39
State Budget Act
6-3-19 Agencies to complete budget forms
Each state agency shall fill out the budget forms provided for in Section 6-3-18 NMSA 1978 in the
manner prescribed by the state budget division Each state agency in completing the budget forms
shall include information for all divisions subdivisions and offices of the agency Related agencies
upon approval of the state budget division may join in submitting one set of budget forms
Completed budget forms shall be returned to the state budget division not later than September 1 in
each year
History 1953 Comp sect 11-4-75 enacted by Laws 1955 ch 114 sect 10 1963 ch 147 sect 3 1977
ch 247 sect 130 1999 ch 5 sect 11 1999 ch 15 sect 11
40
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
State Budget Act
6-3-19 Agencies to complete budget forms
Each state agency shall fill out the budget forms provided for in Section 6-3-18 NMSA 1978 in the
manner prescribed by the state budget division Each state agency in completing the budget forms
shall include information for all divisions subdivisions and offices of the agency Related agencies
upon approval of the state budget division may join in submitting one set of budget forms
Completed budget forms shall be returned to the state budget division not later than September 1 in
each year
History 1953 Comp sect 11-4-75 enacted by Laws 1955 ch 114 sect 10 1963 ch 147 sect 3 1977
ch 247 sect 130 1999 ch 5 sect 11 1999 ch 15 sect 11
40
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
72-14-34 Budgets required (1973)
The interstate stream commission shall annually prepare and submit a budget in
accordance with the provisions of Sections 6-3-1 through 6-3-22 NMSA 1978
covering all funds created or held under the provisions of Sections 72-14-9 through
72-14-33 NMSA 1978
History 1953 Comp sect 75-34-321 enacted by Laws 1973 ch 201 sect 4
41
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
42
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
43
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
44
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
45
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
46
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
47
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
48
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
Appropriation Request Process Submittal Due September 1st
bull Agency Strategic Plan
bull Performance Measures
bull Current amp Proposed Budgets
bull Expansion requests (optional amp if allowed by GovernorDFA)
bull New program requests (optional amp if allowed by GovernorDFA)
bull Information Technology Plan (IT plan)
49
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
Appropriation Process Submittal Includes (Sept ndash Nov)
bull Deficiencies
ndash Funding request to pay for budget deficiency
bull Supplemental
ndash Funding needed in current year for unanticipated costs ie move the Deming office
bull Specials
ndash Nonrecurring needsprojects ie Litigation Funding
bull Extension of existing special appropriations (cannot ask for extension of operating budget)
bull Budget Adjustment Authority (BAR) Language
50
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
51
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
Budget Authority
52
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
January
bull DFA amp LFC prepare different sheets and summary of big differences of recommendations
bull Agency performs analysis on impact of DFA amp LFC recommendations
ndash Agency prepares for budget hearing
53
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
Request Exec LFC LFC - Exec Exec-Req LFC-Req
ISC P552 Opbud Base Base Base Base Base Base
General Fund Transfers 17649 17649 15835 18535 2700 (1814) 886
Other Transfers 103239 120302 119507 120302 795 (795) -
Federal Prgm Revenues 1749 1834 1834 1834 - - -
Other Prgm Revenues 1198 1198 1198 1198 - -
Fund Balance 2660 2660 2660 2660 - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Personal ServEmp Ben 37818 40165 38351 40165 1814 (1814) -
Contractual Services 49299 64422 64422 65308 886 - 886
Other Costs 39378 39056 38261 39056 795 (795) -
Other Uses - - - - - - -
Total 126495 143643 141034 144529 3495 (2609) 886
Perm 470 470 470 470 - - -
Term 20 20 20 20 - - -
54
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
Legislative Session
bull The House Appropriations amp Finance Committee adopts either the DFA or LFC recommendation or combination of recommendations presented in the different sheets
bull Initial HAFC adoption becomes part of HB2
bull The Senate Finance Committee hearing does not adopt either recommendation but may amend the HAFC budget after the hearing
bull Agency tracks adoption of recommendations and amendments to determine affects throughout session
bull Provide impact analysis to DFA of adopted recommendation (if applicable)
55
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
Substantive Sections of General Appropriation Act
bull Section 4 Recurring appropriations and performance targets for the daily
bull operation of state agencies public schools and higher education
bull institutions
bull Section 5 Special nonrecurring appropriations
bull Section 6 Supplemental appropriations for the current fiscal year and for
bull deficiencies from the previous fiscal year
bull Section 7 Appropriations for significant information systems and language
bull extending or reauthorizing certain projects
bull Section 8 Compensation appropriations for public employees
bull Section 9 Additional budget adjustment authority for the current year
bull Section 10 Specific budget adjustment authority for the upcoming year
bull Section 11 Authority to move money from the general fund to other funds
bull Section 12 Authority for the Department of Finance and Administration to
bull move funds from reserves in case of a shortfall
bull Section 13 Severability - authority for the bill to remain in effect even if
bull part of the bill is found invalid
56
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
Legislative Session
bull HB 2 amp Capital Bill ndash When both houses agree on final version it is enrolled and engrossed and
sent to governor
bull Governorrsquos Approval or Veto ndash Bills received during or after the last 3 days of session are automatically
vetoed (pocket veto) if governor does not sign within 20 days of adjournment
ndash Bills received prior to the last 3 days of session automatically become law unless acted upon
bull Effective Date of Bill ndash Emergency Clause (effective when signed)
ndash 90 days after session adjourns
ndash Start of fiscal or calendar year
57
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
58
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
Sample of Special Appropriation Language in HB 2 Section 5 of the Bill
(16) STATE ENGINEER 4000 6000 10000 To continue water
litigation under interstate compacts The other state funds
appropriation is from the improvement of Rio Grande income fund
59
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60
Budget Implementation
bull Start spending ndash Timing and Planning
ndash Work Plan Preparation for Commission Approval bull RFPrsquoS
bull Contract prep
bull Budget adequacy amp accuracy
bull Encumbrance
bull Work Orders
bull Deliverables
bull Monitor Budget ndash Year Round ndash Budget Status Reports
ndash Adjustments
ndash Mid-year Budget Review
60