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Legislative Information > State Budget Guide > Rhode Island's Budget Development Process
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Click here for pdf version of Rhode Island's Budget Development Process 
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Agency Budget Preparation •In the spring or early summer, the Governor sends out budget instructions to each state agency. The instructions are prepared by the staff of the Budget Office, who are responsible for helping the Governor prepare and manage the budget. The Budget Office is part of the Department of Administration. •Agencies then develop a budget request for the following fiscal year. Because the state’s fiscal year runs from July 1 through June 30, agencies formulate their requests for the fiscal year that begins eleven months later. For example: In the fall of 2008 work begins on the budget for fiscal year 2010 (FY 2010), which starts on July 1, 2009 and ends on June 30, 2010. •Agency budget requests are detailed spending plans that take into account projected costs associated with changing caseloads, inflation, the number of staff positions (known as Full-time Equivalent positions, or simply FTE’s), state employee pay increases, federal participation, and other factors that affect the cost of providing the current level of services. •Depending on guidelines provided by the Budget Office, agency requests might also reflect major changes to programs. •Agencies must submit their requests to the Budget Office and to the House and Senate fiscal staff by October 1st. See Voices for America’s Children Advocacy Tip #1. |
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Governor’s Budget •Between October and February the Budget Office assists the Governor in constructing a statewide budget proposal. They analyze requests and hold internal budget meetings with state agencies to discuss proposed changes to existing program activities and spending. Recommendations for each agency are consolidated into a statewide spending plan. See Voices for America’s Children Advocacy Tip #2 and #3. •The Governor’s budget is much more than a financial plan as it typically proposes to change tax rates and to create, reorganize, reduce, or even eliminate programs. The final product will reflect the administration’s policy priorities, but also takes into account agency requests, Budget Office recommendations, the overall fiscal climate, and program preference. See Voices for America’s Children Advocacy Tip #4. •On the third Wednesday of February the Governor must submit his budget for legislative review. This is accomplished by introducing an appropriations bill into the General Assembly. Several key documents related to the budget are distributed at this time. They include the Appropriations bill, the Executive Summary, "The Budget" which describes every state agency and program, the Technical Appendix, the Personnel Supplement, and the Capital Budget. See Voices for America’s Children Advocacy Tip #5. |
The Rhode Island State Constitution stipulates that the enacted budget must be balanced. Budget decisions are based on the consensus forecast of the State Budget Officer, House Fiscal Advisor, and Senate Fiscal Advisor. Low projected revenue growth and increasing projected caseloads (as might occur during an economic downturn) create a fiscal environment in which program expansion is difficult. |
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Legislative Budget •Between February and June the General Assembly evaluates the governor’s budget plan. This is a eventful time. During these months the General Assembly will analyze the governor’s budget recommendations, hold public hearings, amend the appropriations bill, and ultimately vote upon it. •State law dictates that the appropriations bill be considered first by the House of Representatives, where it is sent to the House Finance Committee. The work is divided among four subcommittees specializing in different functions of state government. •Public subcommittee hearings usually begin within a few weeks of the introduction of the budget. At these hearings, subcommittee members hear testimony from representatives of state agencies, advocates, experts, and other who wish to express either their concern or support for aspects of the budget. Findings are discussed with the Finance Chair and help to determine the House’s budgetary priorities. See Voices for America’s Children Advocacy Tip #6.
•According to state law, the Senate can amend and vote upon appropriations bill only after it passes in the House. In practice, the Senate is involved much sooner. Like the House, the Senate Finance Committee will hold budget hearings soon after the appropriations bill is introduced. The Senate has three standing subcommittees. •Together the Senate and House Finance Committees must negotiate a balanced budget that can obtain the necessary 2/3rds vote in the House and the Senate. See Voices for America’s Children Advocacy Tip #7. •After the House of Representatives passes the bill, it moves on to the Senate to be passed. Because the Senate is involved early on, it is uncommon for the Senate to amend the bill further. |
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The Budget Passes
•If the Governor approves the budget, it is enacted into law. If the appropriations bill is vetoed, it is returned to the General Assembly for further legislative review. The Legislature can overturn the Governor’s veto with a 2/3 vote in both the House and the Senate. |
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The Budget is Implemented •The Budget is implemented and the Fiscal Year begins. The final enacted budget is described in the House Fiscal Advisory Staff Budget as Enacted and in the Budget as Enacted document produced by the State Budget Office. |
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Budget Adjustment During the Fiscal Year
•During the fiscal year, further adjustments to the budget may be made. In January of each year, the Governor submits a supplemental appropriations bill for legislative review. Supplemental appropriations are adjustments to the current year’s budget that reflect unforeseen events like changes in caseloads and revenues. |
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