SAM—BUDGETING

6000 INDEX

BUDGETING...... CHAPTER 6000

INTRODUCTION...... 6000

Availability of Budget Instructions and Forms 6005

OVERVIEW OF CALIFORNIA’S BUDGET PROCESS

Preface 6110

Budget Development 6120

Budget Enactment 6130

Administration 6140

Budget Process 6150

The Traditional Concept 6210

The Program Concept 6220

DEVELOPMENT AND ENACTMENT OF THE ANNUAL FINANCIAL PLAN,

THE PROCESS IN BRIEF...... 6300

Budget Policy 6305

Agency Briefings and Governor’s Review 6310

Preparation and Submittal of Budgets 6315

The Governor's Budget—Publication, Distribution, Ordering, and Public Sale 6320

The Budget Bill 6325

Legislative Analyst’s “Analysis of the Budget Bill” 6330

Budget Act 6333

Legislative Fiscal Committee and Floor Actions 6335

Budget Committee on Conference 6340

The Governor's Veto 6345

The Budget Act/Final Budget Summary 6350

The List of Changes to the Governor's Budget, Final Change Book 6355

THE DEPARTMENTAL BUDGET PRESENTATION...... 6400

Personal Services 6403

Position/Personnel Years/Salary Cost Estimates

Presentation 6406

Estimated Salary Savings 6409

Staff Benefits 6412

Salariesand Wages (State Controller’s Office Role) 6415

Schedule 7A—Budget Supplement of Authorized Salaries and Wages (Processing) 6418

Submittal of Schedule 7A Spreadsheet to Finance 6419

State Controller's Office Tabulations (Other than Schedule 7A) 6421

Schedule 8 Tabulation 6424

Description of Schedule 8 Tabulation 6427

Verification and Completion of Schedule 8 Tabulation 6429

Conversion Code Listing 6430

Expiring Filled Positions 6436

Blanket Positions 6439

Vacant Positions Report 6445

Preparation of Schedule 8 Summary 6448

Operating Expenses and Equipment 6451

Space Action Requests (STD. Form 9) 6453

(Continued)

Rev. 415SEPTEMBER 2011

SAM—BUDGETING

6000 INDEX (Cont. 1)

Preparation of Supplementary Schedule of Operating

Expenses and Equipment 6454

Budget for Equipment 6457

Supplementary Schedule of Federal Funds 6460

Reimbursements 6463

Supplementary Schedule of Reimbursements 6466

Special Items of Expense 6469

Claims and Tort Liability Budget Procedure 6472

Expenditures by Category 6475

Detail of Appropriations and Adjustments 6478

Fund Condition Statements 6481

Supplementary Schedule of Appropriations—Schedule 10 6484

ADMINISTRATION OF THE OPERATING BUDGET...... 6500

Legal Basis for Budgetary Control 6503

Personal Services 6506

Permanent Positions 6509

New Positions 6512

Limited Term Positions 6515

Temporary Help or Overtime Blankets 6518

Certification for Continued Payment of Established Positions 6521

Budgetary Approval of Position-Related Transactions 6527

Revision of Programs and Allotments 6533

Request of Necessity for Appropriation Augmentation 6536

Transfer of Budget Allotment, STD. Form 25 6539

Budget Revision, STD. Form 26 6542

Preparation of Budget Revision, STD. Form 26 6545

Intraschedule Transfers, Section 26.00 of the Budget Act 6548

Sections 28.00 and Section 28.50 Reporting 6551

Completion of Section 28.00 and Section 28.50 Applications 6554

Section 28.00 and 28.50 Application Approval 6557

Emergency Services by State Agencies 6560

PREPARATION OF LOCAL MANDATE DETERMINATIONS AND COST

ESTIMATES FOR EXECUTIVE REGULATIONS AND ORDERS

General 6601

Definition 6602

Economic Impact Statement 6603

Contents of Fiscal Impact Statement (FIS) 6604

Fiscal Impact on Local Government 6605

Funding for Reimbursable Local Costs 6606

Cost Estimating Methodology 6607

Nonreimburseable Local Costs 6608

Savings to Local Governments 6609

Increases or Reductions in Local Revenues 6610

Costs to State Agencies 6611

Savings to State Agencies 6612

(Continued)

Rev. 415SEPTEMBER 2011

SAM—BUDGETING

6000 INDEX (Cont. 2)

Fiscal Impact on Federal Funding of State Programs 6613

Signature Requirement for Fiscal Impact Statement (FIS) 6614

Estimates which require Department of Finance Action 6615

Input from Other Governmental Agencies in the

Development of Fiscal Estimates 6616

INFORMATION TECHNOLOGY BUDGETING

INFORMATION TECHNOLOGY EXPENDITURES 6700

Definitions 6710

Exclusions 6720

Requirements 6730

Expenditure Support 6750

Information Technology Audits 6760

Cost Allocation 6770

Data Center Financial Management 6780

Overview of Capitalized Assets...... 6801

Capitalized Assets: Who Does What...... 6805

Capital Outlay Versus State Operations and Local Assistance...... 6806

Minor Capital Outlay...... 6807

The Capital Outlay Process in Brief...... 6808

Legal Citations for Capitalized Assets and Financing...... 6809

Capitalized Assets Planning and Budgeting...... 6810

Capitalized Assets Budget Development Highlights...... 6812

Budget Preparation and Enactment Timetable...... 6814

Documents Required to Request Capital Outlay Funding...... 6816

Capital Outlay Budget Change Proposals (COBCP)...... 6818

Five-Year Capitalized Assets Plan...... 6820

Prototype Development/Changes...... 6821

Historical Resources...... 6822

Use of Consultants...... 6823

DGS’ Feasibility Review...... 6824

Scope Meetings...... 6826

Budget Package Preparation, Budget Estimates...... 6828

Budget Hearings, Final Budget Document Preparation...... 6830

Governor's Budget and Legislative Approval...... 6832

Capital Outlay Reappropriations...... 6834

Ten-Year Survey of Capital Outlay and Infrastructure Needs...... 6837

Capital Outlay Coding Structures...... 6839

Administration of Capital Outlay PROGRAM...... 6840

Methods of Project Delivery...... 6841

State Public Works Board (PWB) Overview...... 6842

Monthly Public Works Board Process...... 6844

Standard Information Required When Requesting PWB or DOF Action...... 6845

Typical Project Phases, Related Forms and Board Items ...... 6846

Starting Projects...... 6847

Studies...... 6848

Site Selection and Acquisition...... 6849

Environmental Impact Review Process...... 6850

Preliminary Plans Review...... 6851

Approve Working Drawings and Proceed to Bid...... 6852

6000 INDEX (Cont. 3)

Award Construction Contract...... 6853

Construction...... 6854

Equipment...... 6855

Project Completion...... 6856

Board Items for Interim Financing and Bond Sale...... 6860

Augmentations, Additional Costs (Within Appropriation) and Recognition of Deficits...... 6861

Bid Savings, Project Savings, and Reversions...... 6862

Scope Changes...... 6863

Quarterly Report...... 6864

Inmate Day Labor...... 6865

Condemnations (Exercise of Eminent Domain)...... 6866

Energy Service Contracts...... 6867

Transfer of Funds to the Architecture Revolving Fund (ARF)...... 6868

Capitalized Assets Financing...... 6870

General Obligation (GO) Bonds...... 6871

Lease-Revenue Bonds...... 6872

State Public Works Board (PWB) Lease-Revenue Bond Programs...... 6873

Joint Powers Authority (JPA) Lease-Revenue Bond Programs...... 6874

Financing Leases Versus Operating Leases/Contracts...... 6876

Interim Financing...... 6878

The Bond Sale...... 6880

Post-Sale Activities...... 6882

Continuing Disclosure...... 6884

Client Department’s Responsibilities...... 6886

Budget Treatment of Lease-Revenue Debt Service Payments...... 6888

Glossary and Index for CAPITAL OUTLAY

Terminology and Forms...... 6899

THE LEGISLATURE 6900

Legislative Calendar 6905

Legislation 6910

Bills (AB/SB) 6915

Constitutional Amendments (ACA/SCA) 6920

Joint Resolutions (AJR/SJR) 6925

Concurrent Resolutions (ACR/SCR) 6930

House and Senate Resolutions (HR/SR) 6935

Rules Committee Resolutions 6940

The Legislative Process 6945

Departmental Proposed Legislation 6950

Hearings 6955

Bill Analysis 6960

Enrolled Bill Report 6965

Rev. 415SEPTEMBER 2011