Bills Sec. 324 — Financial plan and budget for the Co…

For each fiscal year for which the Commonwealth government is in a control period under section 322(b), the Governor shall develop and submit to the Authority a financial plan and budget for the Commonwealth in accordance with this section. A financial plan and budget for the Commonwealth for a fiscal year shall specify the budgets for the Commonwealth government for the applicable fiscal year and the subsequent 3 fiscal years (including the projected revenues and expenditures of each fund of the Commonwealth government for those fiscal years), in accordance with the requirements described in subparagraph (B). The financial plan and budget shall— meet the standards described in paragraph

(3)to promote the financial stability of the Commonwealth government; provide for estimates of revenues and expenditures on a modified accrual basis; describe lump-sum expenditures by department, by object class; describe capital expenditures (together with a schedule of projected capital commitments of the Commonwealth government and proposed sources of funding); contain estimates of short-term and long-term debt, whether outstanding or anticipated to be issued; and contain cash flow forecasts for each fund of the Commonwealth government, at such intervals as the Authority may require; include a statement describing methods of estimations and significant assumptions; and include such other provisions, and meet such other criteria, as the Authority considers to be appropriate to meet the purposes of this title, including provisions relating to— changes in personnel policies and levels for each department or agency of the Commonwealth government; changes in the structure and organization of the Commonwealth government; and management initiatives to promote— productivity; improvement in the delivery of services; or cost savings. The standards to promote the financial stability of the Commonwealth government applicable to the financial plan and budget for a fiscal year are as follows: In the case of the financial plan and budget for the first fiscal year of a control period, the expenditures of the Commonwealth government for the fiscal year may not exceed the revenues of the Commonwealth government for that fiscal year. During each of 5 subsequent fiscal years, the Commonwealth government shall make continuous, substantial progress toward equalizing the expenditures and revenues of the Commonwealth government for those fiscal years in equal annual installments, to the maximum extent practicable. The Commonwealth government shall provide for the orderly liquidation of the cumulative fund balance deficit of the government, as evidenced by financial statements prepared in accordance with generally accepted accounting principles. If funds in any account of the Commonwealth government that are dedicated for specific purposes have been withdrawn from that account for any other purpose, the Commonwealth government shall fully restore the funds to the account. The financial plan and budget shall ensure the continuing long-term financial stability of the Commonwealth government, as indicated by factors including— access to short-term and long-term capital markets; the efficient management of the Commonwealth government workforce; and the effective provision of services by the Commonwealth government. In meeting the standards described in subparagraph

(A)with respect to a financial plan and budget for a fiscal year, the Commonwealth government shall— apply sound budgetary practices, including— reducing costs and other expenditures; improving productivity; increasing revenues; or any combination of those practices; and base estimates of revenues and expenditures on Federal law, as in effect at the time of preparation of the financial plan and budget. Not later than February 1 of each fiscal year preceding a fiscal year during which the Commonwealth government is in a control period under section 322(b), the Governor shall submit to the Authority and the Legislative Assembly a financial plan and budget for that following fiscal year, as developed in accordance with this section. On receipt of a financial plan and budget for a fiscal year from the Governor under paragraph (1), the Authority— shall promptly review the financial plan and budget; and in conducting the review, may request any additional information the Authority considers to be necessary and appropriate to carry out this part. If the Authority determines that the financial plan and budget for a fiscal year submitted by the Governor under paragraph

(1)meets the applicable requirements of this section— the Authority shall— approve the financial plan and budget; and submit a notice certifying that approval to— the Governor; the Legislative Assembly; the President; and Congress; and the Governor shall promptly submit the financial plan and budget to the Legislative Assembly. If the Authority has not provided to the Governor, the Legislative Assembly, and Congress a notice certifying approval under clause (i)(I)(bb) or a statement of disapproval under paragraph (4)(A)(ii) by the date that is 30 days after the date on which the Authority receives the financial plan and budget from the Governor under paragraph (1), the Authority shall be deemed to have— approved the financial plan and budget; and submitted a notice certifying approval described in clause (i)(I)(bb) to— the Governor; the Legislative Assembly; the President; and Congress. If subclause

(I)applies with respect to a financial plan and budget, the Authority shall submit to the Governor, the Legislative Assembly, the President, and Congress an explanation for the failure of the Authority to submit a notice certifying approval or a statement of disapproval during the 30-day period described in that subclause. Not later than 30 days after the date of receipt of the financial plan and budget for a fiscal year from the Governor under subparagraph (A)(i)(II), the Legislative Assembly shall— by Act, adopt the financial plan and budget, which shall serve as the adoption of the budget of the Commonwealth government for the fiscal year; and submit the financial plan and budget to— the Governor; and the Authority. On receipt of the financial plan and budget for a fiscal year from the Legislative Assembly under subparagraph (B), and taking into account any items or provisions disapproved by the Governor or disapproved by the Governor and reenacted by the Legislative Assembly, the Authority— shall promptly review the financial plan and budget; and in conducting the review, may request any additional information the Authority considers to be necessary and appropriate to carry out this part. If the Authority determines that the financial plan and budget for the fiscal year submitted by the Legislative Assembly under subparagraph (B)(ii) meets the applicable requirements under this section— the Authority shall— approve the financial plan and budget; and submit a notice certifying the approval to— the Governor; the Legislative Assembly; the President; and Congress; and the Legislative Assembly shall promptly submit the financial plan and budget to the Governor for transmission to the President and Congress. If the Authority determines that the financial plan and budget for a fiscal year submitted by the Legislative Assembly under subparagraph (B)(ii) does not meet the applicable requirements under this section, the Authority shall— disapprove the financial plan and budget; and submit to the Governor, the Legislative Assembly, the President, and Congress a statement containing— the reasons for the disapproval; a description of the amount of any shortfall in the budget or financial plan; and any recommendations for revisions to the budget the Authority considers to be appropriate to ensure that the budget is consistent with the financial plan and budget. If the Authority has not submitted to the Governor, the Legislative Assembly, the President, and Congress a notice certifying approval under clause (i)(I)(bb) or a statement of disapproval under clause (ii)(II) by the date that is 15 days after the date on which the Authority receives the financial plan and budget from the Legislative Assembly under subparagraph (B)(ii), the Authority shall be deemed to have— approved the financial plan and budget; and submitted a notice certifying approval described in clause (i)(I)(bb) to— the Governor; the Legislative Assembly; the President; and Congress. If subclause

(I)applies with respect to a financial plan and budget, the Authority shall submit to the Governor, the Legislative Assembly, the President, and Congress an explanation for the failure of the Authority to submit a notice certifying approval or a statement of disapproval during the 15-day period described in that subclause. Not later than 15 days after the date of receipt of a statement from the Authority under subparagraph (D)(ii)(II), the Legislative Assembly shall— promptly, by Act, adopt a revised financial plan and budget for the applicable fiscal year that addresses the reasons for disapproval cited in the statement; and submit the revised financial plan and budget to— the Governor; and the Authority. If, after reviewing the revised financial plan and budget for a fiscal year submitted by the Legislative Assembly under clause

(i)in accordance with the procedures described in this subsection, the Authority determines that the revised financial plan and budget meets the applicable requirements under this section— the Authority shall— approve the financial plan and budget; and submit a notice certifying that approval to— the Governor; the Legislative Assembly; the President; and Congress; and the Legislative Assembly shall promptly submit the financial plan and budget to the Governor for transmission to the President and Congress. If, after reviewing the revised financial plan and budget for a fiscal year submitted by the Legislative Assembly under clause

(i)in accordance with the procedures described in this paragraph, the Authority determines that the revised financial plan and budget does not meet the applicable requirements under this section, the Authority shall— disapprove the financial plan and budget; submit to the Governor, the Legislative Assembly, the President, and Congress a statement containing— the reasons for the disapproval; and a description of the amount of any shortfall in the budget or financial plan; and recommend a financial plan and budget for the Commonwealth government that meets the applicable requirements under this section; and submit that financial plan and budget to the Governor, the Legislative Assembly, the President, and Congress. The Legislative Assembly shall promptly submit to the Governor for transmission to the President and Congress a revised financial plan and budget disapproved by the Authority under this clause. If the Authority has not provided to the Governor, the Legislative Assembly, and Congress a notice certifying approval under clause (ii)(I)(bb) or a statement of disapproval under clause (iii)(I)(bb) by the date that is 15 days after the date on which the Authority receives the revised financial plan and budget submitted by the Legislative Assembly under clause (i), the Authority shall be deemed to have— approved the financial plan and budget; and submitted a notice certifying approval described in clause (ii)(I)(bb) to— the Governor; the Legislative Assembly; the President; and Congress. If subclause

(I)applies with respect to a financial plan and budget, the Authority shall submit to the Governor, the Legislative Assembly, the President, and Congress an explanation for the failure of the Authority to submit a notice certifying approval or a statement of disapproval during the 15-day period described in that subclause. Notwithstanding any other provision of this subsection, not later than June 15 of each fiscal year preceding a fiscal year that is a control year, the Authority shall submit to Congress— as applicable, a notice certifying the approval by the Authority of— the initial financial plan and budget of the Legislative Assembly for that following fiscal year under subparagraph (D)(i); or the revised financial plan and budget of the Legislative Assembly for that following fiscal year under subparagraph (E)(ii); or an approved and recommended financial plan and budget of the Authority for the Commonwealth government for that following fiscal year under subparagraph (E)(iii). If the Authority determines that the financial plan and budget for a fiscal year submitted by the Governor under paragraph

(1)does not meet the applicable requirements under this section, the Authority shall— disapprove the financial plan and budget; and submit to the Governor and the Legislative Assembly a statement containing— the reasons for the disapproval; a description of the amount of any shortfall in the budget or financial plan; and any recommendations for revisions to the budget the Authority considers to be appropriate to ensure that the financial plan and budget meets the applicable requirements under this section. Not later than 15 days after the date of receipt of a statement from the Authority under subparagraph (A)(ii), the Governor shall promptly submit to the Authority and the Legislative Assembly a revised financial plan and budget for the applicable fiscal year that addresses the reasons of the Authority for disapproval. If the Authority determines that the revised financial plan and budget for a fiscal year submitted by the Governor under clause

(i)meets the applicable requirements under this section— the Authority shall— approve the financial plan and budget; and submit a notice certifying that approval to— the Governor; the Legislative Assembly; the President; and Congress; and the Governor shall promptly submit the financial plan and budget to the Legislative Assembly. If the Authority determines that the revised financial plan and budget for a fiscal year submitted by the Governor under clause

(i)does not meet the applicable requirements under this section, the Authority shall— disapprove the financial plan and budget; submit to the Governor, the Legislative Assembly, the President, and Congress a statement containing the reasons for the disapproval; and recommend a financial plan and budget for the Commonwealth government that meets the applicable requirements under this section; and submit the financial plan and budget to the Governor and the Legislative Assembly. The Governor shall promptly submit to the Legislative Assembly a revised financial plan and budget disapproved by the Authority under this clause. If the Authority has not provided to the Governor, the Legislative Assembly, and Congress a notice certifying approval under clause (ii)(I)(bb) or a statement of disapproval under clause (iii)(I)(bb) by the date that is 15 days after the date on which the Authority receives the revised financial plan and budget submitted by the Governor under clause (i), the Authority shall be deemed to have— approved the revised financial plan and budget; and submitted a notice certifying approval described in clause (ii)(I)(bb) to— the Governor; the Legislative Assembly; the President; and Congress. If subclause

(I)applies with respect to a financial plan and budget, the Authority shall submit to the Governor, the Legislative Assembly, the President, and Congress an explanation for the failure of the Authority to submit a notice certifying approval or a statement of disapproval during the 15-day period described in that subclause. Not later than 30 days after the date of receipt of an approved revised financial plan and budget of the Governor for a fiscal year under subparagraph (B)(ii) or, in the case of a financial plan and budget disapproved by the Authority, the financial plan and budget recommended by the Authority under subparagraph (B)(iii)(I)(cc), the Legislative Assembly shall— by Act, adopt the financial plan and budget, which shall serve as the adoption of the budget of the Commonwealth government for the fiscal year; and submit the financial plan and budget to— the Governor; and the Authority. A financial plan and budget submitted by the Legislative Assembly under clause

(i)shall be subject to review by the Authority and revision by the Legislative Assembly in the same manner as the financial plan and budget submitted by the Legislative Assembly after an approved preliminary financial plan and budget of the Governor under subparagraphs

(C)through

(F)of paragraph (3). The Governor may submit to the Authority proposed revisions to the financial plan and budget for a control year at any time during the control year. Except as provided in subparagraph (C), the procedures described in paragraphs (2), (3), and

(4)shall apply with respect to a proposed revision to a financial plan and budget in the same manner as those procedures apply with respect to the original financial plan and budget, except that the reference contained in paragraph (3)(A)(ii) to a 30-day period shall be considered to be a 20-day period. To the extent that a proposed revision to a financial plan and budget adopted by the Legislative Assembly pursuant to this section does not increase the amount of spending with respect to any account of the Commonwealth government, the revision shall take effect on the date of approval by the Authority of the revision, subject to review by Congress.

Sec. 324. Financial plan and budget for the Commonwealth during a control period