Sec. 202. PROCESS FOR SUBMISSION AND APPROVAL OF FINANCIAL PLAN AND ANNUAL DISTRICT BUDGET

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## SEC. 202 PROCESS FOR SUBMISSION AND APPROVAL OF FINANCIAL PLAN AND ANNUAL DISTRICT BUDGET ###

(a)Submission of Preliminary Financial Plan and Budget by Mayor Not later than the February 1 preceding a fiscal year for which the District government is in a control period, the Mayor shall submit to the Authority and the Council a financial plan and budget for the fiscal year which meets the requirements of section 201. ###

(b)Review by Authority Upon receipt of the financial plan and budget for a fiscal year from the Mayor under subsection (a), the Authority shall promptly review the financial plan and budget. In conducting the review, the Authority may request any additional information it considers necessary and appropriate to carry out its duties under this subtitle. ###

(c)Action Upon Approval of Mayor's Preliminary Financial Plan and Budget ####

(1)Certification to mayor #####

(A)In general If the Authority determines that the financial plan and budget for the fiscal year submitted by the Mayor under subsection

(a)meets the requirements applicable under section 201— ######

(i)the Authority shall approve the financial plan and budget and shall provide the Mayor, the Council, the President, and Congress with a notice certifying its approval; and ######

(ii)the Mayor shall promptly submit the financial plan and budget to the Council pursuant to section 442 of the District of Columbia Self-Government and Governmental Reorganization Act. #####

(B)Deemed approval after 30 days ######

(i)In general If the Authority has not provided the Mayor, the Council, and Congress with a notice certifying approval under subparagraph (A)(i) or a statement of disapproval under subsection (d)(1) upon the expiration of the 30-day period which begins on the date the Authority receives the financial plan and budget from the Mayor under subsection (a), the Authority shall be deemed to have approved the financial plan and budget and to have provided the Mayor, the Council, the President, and Congress with the notice certifying approval described in subparagraph (A)(i). ######

(ii)Explanation of failure to respond If clause

(i)applies with respect to a financial plan and budget, the Authority shall provide the Mayor, the Council, the President and Congress with an explanation for its failure to provide the notice certifying approval or the statement of disapproval during the 30-day period described in such clause. ####

(2)Adoption of financial plan and budget by council after receipt of approved financial plan and budget Notwithstanding the first sentence of section 446 of the District of Columbia Self-Government and Governmental Reorganization Act, not later than 30 days after receiving the financial plan and budget for the fiscal year from the Mayor under paragraph (1)(A)(ii), the Council shall by Act adopt a financial plan and budget for the fiscal year which shall serve as the adoption of the budgets of the District government for the fiscal year under such section, and shall submit such financial plan and budget to the Mayor and the Authority. ####

(3)Review of council financial plan and budget by authority Upon receipt of the financial plan and budget for a fiscal year from the Council under paragraph

(2)(taking into account any items or provisions disapproved by the Mayor or disapproved by the Mayor and reenacted by the Council under section 404(f) of the District of Columbia Self-Government and Governmental Reorganization Act, as amended by subsection (f)(2)), the Authority shall promptly review the financial plan and budget. In conducting the review, the Authority may request any additional information it considers necessary and appropriate to carry out its duties under this subtitle. ####

(4)Results of authority review of council's initial financial plan and budget #####

(A)Approval of council's initial financial plan and budget If the Authority determines that the financial plan and budget for the fiscal year submitted by the Council under paragraph

(2)meets the requirements applicable under section 201— ######

(i)the Authority shall approve the financial plan and budget and shall provide the Mayor, the Council, the President, and Congress with a notice certifying its approval; and ######

(ii)the Council shall promptly submit the financial plan and budget to the Mayor for transmission to the President and Congress under section 446 of the District of Columbia Self-Government and Governmental Reorganization Act. #####

(B)Disapproval of council's initial budget If the Authority determines that the financial plan and budget for the fiscal year submitted by the Council under paragraph

(2)does not meet the requirements applicable under section 201, the Authority shall disapprove the financial plan and budget, and shall provide the Mayor, the Council, the President, and Congress with a statement containing— ######

(i)the reasons for such disapproval; ######

(ii)the amount of any shortfall in the budget or financial plan; and ######

(iii)any recommendations for revisions to the budget the Authority considers appropriate to ensure that the budget is consistent with the financial plan and budget. #####

(C)Deemed approval after 15 days ######

(i)In general If the Authority has not provided the Mayor, the Council, the President, and Congress with a notice certifying approval under subparagraph (A)(i) or a statement of disapproval under subparagraph

(B)upon the expiration of the 15-day period which begins on the date the Authority receives the financial plan and budget from the Council under paragraph (2), the Authority shall be deemed to have approved the financial plan and budget and to have provided the Mayor, the Council, the President, and Congress with the notice certifying approval described in subparagraph (A)(i). ######

(ii)Explanation of failure to respond If clause

(5)Authority review of council's revised financial plan and budget #####

(A)Submission of council's revised financial plan and budget Not later than 15 days after receiving the statement from the Authority under paragraph (4)(B), the Council shall promptly by Act adopt a revised financial plan and budget for the fiscal year which addresses the reasons for the Authority's disapproval cited in the statement, and shall submit such financial plan and budget to the Mayor and the Authority. #####

(B)Approval of council's revised financial plan and budget If, after reviewing the revised financial plan and budget for a fiscal year submitted by the Council under subparagraph

(A)in accordance with the procedures described in this subsection, the Authority determines that the revised financial plan and budget meets the requirements applicable under section 201— ######

(i)the Authority shall approve the financial plan and budget and shall provide the Mayor, the Council, the President, and Congress with a notice certifying its approval; and ######

(C)Disapproval of council's revised financial plan and budget ######

(i)In general If, after reviewing the revised financial plan and budget for a fiscal year submitted by the Council under subparagraph

(A)in accordance with the procedures described in this subsection, the Authority determines that the revised financial plan and budget does not meet the applicable requirements under section 201, the Authority shall— ######

(I)disapprove the financial plan and budget; ######

(II)provide the Mayor, the Council, the President, and Congress with a statement containing the reasons for such disapproval and describing the amount of any shortfall in the financial plan and budget; and ######

(III)approve and recommend a financial plan and budget for the District government which meets the applicable requirements under section 201, and submit such financial plan and budget to the Mayor, the Council, the President, and Congress. ######

(ii)Transmission of rejected financial plan and budget The Council shall promptly submit the revised financial plan and budget disapproved by the Authority under this subparagraph to the Mayor for transmission to the President and Congress under section 446 of the District of Columbia Self-Government and Governmental Reorganization Act. #####

(D)Deemed approval after 15 days ######

(i)In general If the Authority has not provided the Mayor, the Council, the President, and Congress with a notice certifying approval under subparagraph (B)(i) or a statement of disapproval under subparagraph

(C)upon the expiration of the 15-day period which begins on the date the Authority receives the revised financial plan and budget submitted by the Council under subparagraph (A), the Authority shall be deemed to have approved the revised financial plan and budget and to have provided the Mayor, the Council, the President, and Congress with the notice certifying approval described in subparagraph (B)(i). ######

(ii)Explanation of failure to respond If clause

(6)Deadline for transmission of financial plan and budget by authority Notwithstanding any other provision of this section, not later than the June 15 preceding each fiscal year which is a control year, the Authority shall— #####

(A)provide Congress with a notice certifying its approval of the Council's initial financial plan and budget for the fiscal year under paragraph (4)(A); #####

(B)provide Congress with a notice certifying its approval of the Council's revised financial plan and budget for the fiscal year under paragraph (5)(B); or #####

(C)submit to Congress an approved and recommended financial plan and budget of the Authority for the District government for the fiscal year under paragraph (5)(C). ###

(d)Action Upon Disapproval of Mayor's Preliminary Financial Plan and Budget ####

(1)Statement of disapproval If the Authority determines that the financial plan and budget for the fiscal year submitted by the Mayor under subsection

(a)does not meet the requirements applicable under section 201, the Authority shall disapprove the financial plan and budget, and shall provide the Mayor and the Council with a statement containing— #####

(A)the reasons for such disapproval; #####

(B)the amount of any shortfall in the financial plan and budget; and #####

(C)any recommendations for revisions to the financial plan and budget the Authority considers appropriate to ensure that the financial plan and budget meets the requirements applicable under section 201. ####

(2)Authority review of mayor's revised financial plan and budget #####

(A)Submission of mayor's revised financial plan and budget Not later than 15 days after receiving the statement from the Authority under paragraph (1), the Mayor shall promptly submit to the Authority and the Council a revised financial plan and budget for the fiscal year which addresses the reasons for the Authority's disapproval cited in the statement. #####

(B)Approval of mayor's revised financial plan and budget If the Authority determines that the revised financial plan and budget for the fiscal year submitted by the Mayor under subparagraph

(A)meets the requirements applicable under section 201— ######

(i)the Authority shall approve the financial plan and budget and shall provide the Mayor, the Council, the President, and Congress with a notice certifying its approval; and ######

(ii)the Mayor shall promptly submit the financial plan and budget to the Council pursuant to section 442 of the District of Columbia Self-Government and Governmental Reorganization Act. #####

(C)Disapproval of mayor's revised financial plan and budget ######

(i)In general If the Authority determines that the revised financial plan and budget for the fiscal year submitted by the Mayor under subparagraph

(A)does not meet the requirements applicable under section 201, the Authority shall— ######

(I)disapprove the financial plan and budget; ######

(II)shall provide the Mayor, the Council, the President, and Congress with a statement containing the reasons for such disapproval; and ######

(III)recommend a financial plan and budget for the District government which meets the requirements applicable under section 201 and submit such financial plan and budget to the Mayor and the Council. ######

(ii)Submission of rejected financial plan and budget The Mayor shall promptly submit the revised financial plan and budget disapproved by the Authority under this subparagraph to the Council pursuant to section 442 of the District of Columbia Self-Government and Governmental Reorganization Act. #####

(D)Deemed approval after 15 days ######

(C)upon the expiration of the 15-day period which begins on the date the Authority receives the revised financial plan and budget submitted by the Mayor under subparagraph (A), the Authority shall be deemed to have approved the revised financial plan and budget and to have provided the Mayor, the Council, the President, and Congress with the notice certifying approval described in subparagraph (B)(i). ######

(ii)Explanation of failure to respond If clause

(3)Action by council #####

(A)Adoption of financial plan and budget Notwithstanding the first sentence of section 446 of the District of Columbia Self-Government and Governmental Reorganization Act, not later than 30 days after receiving the Mayor's approved revised financial plan and budget for the fiscal year under paragraph (2)(B) or (in the case of a financial plan and budget disapproved by the Authority) the financial plan and budget recommended by the Authority under paragraph (2)(C)(i)(III), the Council shall by Act adopt a financial plan and budget for the fiscal year which shall serve as the adoption of the budgets of the District government for the fiscal year under such section, and shall submit the financial plan and budget to the Mayor and the Authority. #####

(B)Review by authority The financial plan and budget submitted by the Council under subparagraph

(A)shall be subject to review by the Authority and revision by the Council in the same manner as the financial plan and budget submitted by the Council after an approved preliminary financial plan and budget of the Mayor under paragraphs (3), (4), (5), and

(6)of subsection (c). ###

(e)Revisions to Financial Plan and Budget ####

(1)Permitting mayor to submit revisions The Mayor may submit proposed revisions to the financial plan and budget for a control year to the Authority at any time during the year. ####

(2)Process for review, approval, disapproval, and council action Except as provided in paragraph (3), the procedures described in subsections (b), (c), and

(d)shall apply with respect to a proposed revision to a financial plan and budget in the same manner as such procedures apply with respect to the original financial plan and budget, except that subparagraph

(B)of subsection (c)(1) (relating to deemed approval by the Authority of a preliminary financial plan and budget of the Mayor) shall be applied as if the reference to the term “**30-day period**” were a reference to “20-day period”. ####

(3)Exception for revisions not affecting appropriations To the extent that a proposed revision to a financial plan and budget adopted by the Council pursuant to this subsection does not increase the amount of spending with respect to any account of the District government, the revision shall become effective upon the Authority's approval of such revision (subject to review by Congress under section 602(c) of the District of Columbia Self-Government and Governmental Reorganization Act). ###

(f)Conforming Amendment to Budget Process Requirements Under Home Rule Act ####

(1)Submission of unbalanced budgets Section 603 of the District of Columbia Self-Government and Governmental Reorganization Act (sec. 47–313, D.C. Code) is amended— #####

(A)in subsection (c), by striking “The Council” the first place it appears and inserting “Except as provided in subsection (f), the Council”; #####

(B)in subsection (d), by striking “The Mayor” and inserting “Except as provided in subsection (f), the Mayor”; and #####

(C)by adding at the end the following new subsection: > > ### “(f) > > In the case of a fiscal year which is a control year (as defined in section 305(4) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995)— > > > #### “(1) > > subsection

(c)(other than the fourth sentence) and subsection

(d)shall not apply; and > > > #### “(2) > > the Council may not approve, and the Mayor may not forward to the President, any budget which is not consistent with the financial plan and budget established for the fiscal year under subtitle A of title II of such Act.” > . ####

(2)Expedited procedures for disapproval of items and provisions of council budget by mayor Section 404(f) of the District of Columbia Self-Government and Governmental Reorganization Act (sec. 1–227(f), D.C. Code) is amended by adding at the end the following new sentence: “In the case of any budget act for a fiscal year which is a control year (as defined in section 305(4) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995), this subsection shall apply as if the reference in the second sentence to ‘ten-day period’ were a reference to ‘five-day period’ and the reference in the third sentence to ‘thirty calendar days’ were a reference to ‘5 calendar days’.”. ###

(g)Permitting Mayor and Council To Specify Expenditures Under School Board Budget During Control Year ####

(1)Mayor's estimate included in annual financial plan and budget Section 2(h) of the Act entitled “An Act to fix and regulate the salaries of teachers, school officers, and other employees of the board of education of the District of Columbia”, approved June 20, 1906 (sec. 31–103, D.C. Code) is amended by striking the period at the end and inserting the following: “, except that in the case of a year which is a control year (as defined in section 305(4) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995), the Mayor shall transmit the same together with the Mayor's own request for the amount of money required for the public schools for the year.”. ####

(2)Specification of expenditures Section 452 of the District of Columbia Self-Government and Governmental Reorganization Act (sec. 31–104, D.C. Code) is amended by adding at the end the following new sentence: “This section shall not apply with respect to the annual budget for any fiscal year which is a control year (as defined in section 305(4) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995).”. ###

(h)Permitting Separation of Employees in Accordance With Financial Plan and Budget The fourth sentence of section 422(3) of the District of Columbia Self-Government and Governmental Reorganization Act (sec. 1–242(3), D.C. Code) is amended by striking “pursuant to procedures” and all that follows through “Act of 1991” and inserting the following: “in the implementation of a financial plan and budget for the District government approved under subtitle A of title II of the District of Columbia Financial Responsibility and Management Assistance Act of 1995”. ###

(i)Expedited Submission and Approval of Consensus Budget and Financial Plan Notwithstanding any other provision of this section, if the Mayor, the Council, and the Authority jointly develop a financial plan and budget for the fiscal year which meets the requirements applicable under section 201 and which the Mayor, Council, and Authority certify reflects a consensus among them— ####

(1)such financial plan and budget shall serve as the budget of the District government for the fiscal year adopted by the Council under section 446 of the District of Columbia Self-Government and Governmental Reorganization Act; and ####

(2)the Mayor shall transmit the financial plan and budget to the President and Congress under such section. ###

(j)Reserve Funds ####

(1)Budget reserve #####

(A)In general For each of the fiscal years 2002 and 2003, the budget of the District government for the fiscal year shall contain a budget reserve in the following amounts: ######

(i)$120,000,000, in the case of fiscal year 2002. ######

(ii)$70,000,000, in the case of fiscal year 2003. #####

(B)Availability of funds Any amount made available from the budget reserve described in subparagraph

(A)shall remain available until expended. #####

(C)Availability of fiscal year 2001 budget reserve funds For fiscal year 2001, any amount in the budget reserve shall remain available until expended. ####

(2)Cumulative cash reserve In addition to any other cash reserves required under section 450A of the District of Columbia Home Rule Act, for each of the fiscal years 2004 and 2005, the budget of the District government for the fiscal year shall contain a cumulative cash reserve of $50,000,000. ####

(3)Conditions on use The District of Columbia may obligate or expend amounts in the budget reserve under paragraph

(1)or the cumulative cash reserve under paragraph

(2)only in accordance with the following conditions: #####

(A)The Chief Financial Officer of the District of Columbia shall certify that the amounts are available. #####

(B)The amounts shall be obligated or expended in accordance with laws enacted by the Council in support of each such obligation or expenditure. #####

(C)The amounts may not be used to fund the agencies of the District of Columbia government under court ordered receivership. #####

(D)The amounts may be obligated or expended only if the Mayor notifies the Committees on Appropriations of the House of Representatives and Senate in writing 30 days in advance of any obligation or expenditure. ####

(4)Replenishment Any amount of the budget reserve under paragraph

(1)or the cumulative cash reserve under paragraph

(2)which is expended in 1 fiscal year shall be replenished in the following fiscal year appropriations to maintain the required balance.