Bill Text: OH HB467 | 2013-2014 | 130th General Assembly | Introduced

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Bill Title: To provide for the preparation of a state biennial budget independent of that submitted by the Governor and to authorize the Legislative Service Commission, upon the request of the Speaker of the House of Representatives or the President of the Senate, to arrange for an independent actuarial review of a proposed bill, specified analyses of economic policy initiatives and state benchmarking data, and a study of the state's long-range financial outlook.

Spectrum: Partisan Bill (Republican 13-0)

Status: (Introduced - Dead) 2014-03-06 - To Finance and Appropriations [HB467 Detail]

Download: Ohio-2013-HB467-Introduced.html

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As Introduced

130th General Assembly Regular Session 2013-2014

H. B. No. 467

Representatives Butler, Romanchuk 

Cosponsors: Representatives Terhar, Amstutz, Blair, Boose, Brenner, Grossman, Hood, Perales, Retherford, Roegner, Thompson 

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A BILL

To amend section 126.02 and to enact sections 101.61,

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103.31, 103.32, 103.33, 103.34, 103.35, 103.36,

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103.37, and 103.38 of the Revised Code to provide

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for the preparation of a state biennial budget

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independent of that submitted by the Governor and

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to authorize the Legislative Service Commission,

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upon the request of the Speaker of the House of

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Representatives or the President of the Senate, to

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arrange for an independent actuarial review of a

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proposed bill, specified analyses of economic

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policy initiatives and state benchmarking data,

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and a study of the state's long-range financial

12

outlook.

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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1.  That section 126.02 be amended and sections	14
101.61, 103.31, 103.32, 103.33, 103.34, 103.35, 103.36, 103.37,	15
and 103.38 of the Revised Code be enacted to read as follows:	16

Sec. 101.61.  The chairperson of the house finance committee	17
or the chairperson of the senate finance committee, upon receipt	18
of the information certified by the director of budget and	19
management under section 126.02 of the Revised Code and the budget	20
request of each state agency, may instruct the legislative service	21
commission on the preparation of a main operating appropriations	22
bill independent of the state budget submitted by the governor	23
under section 107.03 of the Revised Code.	24

Sec. 103.31. The speaker of the house of representatives or	25
the president of the senate may, at any time, request the director	26
of the legislative service commission to arrange for the	27
performance of an independent actuarial review of any proposed	28
bill. Subject to section 103.37 of the Revised Code, the director	29
may, in making this arrangement, retain one or more private	30
actuaries on a consulting basis. Any actuary retained shall be a	31
member in good standing of the American academy of actuaries.	32

Sec. 103.32. (A) The speaker of the house of representatives	33
or the president of the senate may, at any time, request the	34
director of the legislative service commission to arrange for	35
either of the following:	36

(1) A dynamic forecast and analysis of any tax proposal or	37
other economic policy initiative;	38

(2) A compilation of benchmarking data that compares this	39
state to other states with respect to key business and fiscal	40
metrics.	41

(B) Subject to section 103.37 of the Revised Code, the	42
director may retain tax analysts, economists, and other finance or	43
business professionals on a consulting basis to assist the	44
commission in the completion of any request received under	45
division (A) of this section.	46

Sec. 103.33. The speaker of the house of representatives or	47
the president of the senate may, at any time, request the director	48
of the legislative service commission to arrange for a study of	49
the long-range financial outlook of the state in accordance with	50
sections 103.34 and 103.35 of the Revised Code for the purpose of	51
providing impartial, accurate information to assist the general	52
assembly in establishing the state's biennial budget. Subject to	53
section 103.37 of the Revised Code, the director may, in making	54
this arrangement, retain certified public accountants, certified	55
financial analysts, economists, and banking professionals on a	56
consulting basis.	57

Sec. 103.34. A study of the long-range financial outlook of	58
the state shall, at a minimum, include all of the following:	59

(A) A review of the current fiscal position of the state,	60
including the state debt and debt service, and the establishment	61
of a method for a long-range financial projection at the state	62
level in order to help maintain the state's financial stability	63
between fiscal years and avoid future budget problems;	64

(B) The integration of baseline projections of the budget	65
requirements of the major programs comprising the state's budget	66
with revenue estimates for the state based on current law;	67

(C) Economic forecasts for the state;

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(D) A review of the demographics of the state;

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(E) The collection of information from state agencies about	70
their financial status and projections for the next four fiscal	71
years.	72

Sec. 103.35. (A) Upon completion of the review and analysis	73
required under section 103.34 of the Revised Code, those	74
conducting the study shall issue a long-range financial outlook	75
report. The report shall include, but shall not be limited to, the	76
following information:	77

(1) Projections of future financial needs of the state for	78
the next four fiscal years;	79

(2) Projections of future resources of the state;

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(3) Actual revenues for the previous three fiscal years and	81
revenue estimates for the next four fiscal years;	82

(4) A review of both revenue estimates and projections for	83
the budget requirements and expenditures of major state-funded	84
programs;	85

(5) Per agency workload estimates for state agencies.

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(B) The legislative service commission shall submit the	87
report to the general assembly.	88

Sec. 103.36. The legislative service commission may request	89
any department, division, institution, board, authority, bureau,	90
or other instrumentality or officer of the state, a county, a	91
municipal corporation, a township, a school district, or other	92
governmental entity of the state to provide any information the	93
commission requires for purposes of an actuarial review conducted	94
under section 103.31 of the Revised Code, a forecast and analysis	95
performed under division (A)(1) of section 103.32 of the Revised	96
Code, the state benchmarking data compiled pursuant to division	97
(A)(2) of section 103.32 of the Revised Code, or a study of the	98
long-range financial outlook of the state conducted under sections	99
103.33 to 103.35 of the Revised Code. The commission shall specify	100
the manner of compliance, and the period of time for compliance,	101
in its request.	102

An instrumentality, officer, or entity shall comply with a	103
request within the period of time specified in the request.	104

Sec. 103.37. The state shall not enter into a contract with	105
any consultant under section 103.31, 103.32, or 103.33 of the	106
Revised Code unless the director of the legislative service	107
commission makes a written determination prior to entering into	108
the contract or within a reasonable time after entering into the	109
contract that utilizing such a consultant is both cost effective	110
and in the public interest. Any written determination shall	111
include findings as to whether there exist sufficient and	112
appropriate technical and financial resources within the	113
legislative service commission to handle the matter involved.	114

A copy of each such contract between the state and a	115
consultant shall be posted on the commission's web site and shall	116
remain posted on the web site for the duration of the contract.	117

Sec. 103.38.  By the first day of September of each year, the	118
director of the legislative service commission shall submit a	119
report to the commission regarding the use in the preceding fiscal	120
year of consultants to assist the commission in the completion of	121
any request received under section 103.31, 103.32, or 103.33 of	122
the Revised Code, if such consultants were used.	123

Sec. 126.02.  The director of budget and management shall	124
prepare and submit to the governor, biennially, not later than the	125
first day of January preceding the convening of the general	126
assembly, state budget estimates of revenues and expenditures for	127
each state fund and budget estimates for each state agency, except	128
such estimates as are required under section 126.022 of the	129
Revised Code. The budget estimates for each state agency for which	130
direct appropriations are proposed shall include the following	131
details:	132

(A) Estimates of the operating budget;

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(B) Estimates of the subsidy appropriations necessary,	134
delineated by a distinct subsidy program;	135

(C) Estimates for special purposes, delineated by a distinct	136
special purpose program;	137

(D) Estimates of appropriations necessary from each fund in	138
reasonable detail to allow for adequate planning and oversight of	139
programs and activities.	140

In the preparation of state revenue and expenditure	141
estimates, the director of budget and management shall, not later	142
than the fifteenth day of September in the year preceding the	143
first regular session of the general assembly, distribute to all	144
affected state agencies the forms necessary for the preparation of	145
budget requests, which shall be in the form prescribed by the	146
director in consultation with the legislative service commission	147
to procure information concerning the revenues and expenditures	148
for the preceding and current bienniums, an estimate of the	149
revenues and expenditures of the current fiscal year, and an	150
estimate of the revenues and proposed expenditures for the	151
respective agencies for the two succeeding fiscal years for which	152
appropriations have to be made. Each such agency shall, not later	153
than the first day of November, file with the director its	154
estimate of revenues and proposed expenditures for the succeeding	155
biennium.	156

Each such agency shall, not later than the first day of	157
Decemberand, at the same time, file with the chairperson of the	158
finance committees of the senate and house of representatives and	159
the legislative service commission a duplicate copy of such budget	160
request.	161

The budget request shall be accompanied by a statement in	162
writing giving facts and explanation of reasons for the items	163
requested. The director and the legislative service commission may	164
make further inquiry and investigation as to any item desired. The	165
director may approve, disapprove, or alter the requests, excepting	166
those for the legislative and judicial branches of the state. The	167
requests as revised by the director constitute the state budget	168
estimates of revenues and expenditures which the director is	169
required to submit to the governor.	170

Not later than the thirty-first day of December of each	171
even-numbered year or, if in the following year a new governor is	172
inaugurated, the thirty-first day of January of that inauguration	173
year, the director shall certify to the chairperson of the finance	174
committees of the senate and house of representatives and the	175
legislative service commission the estimated beginning cash	176
balance of the general revenue fund for the next fiscal year, the	177
estimated expenditure levels for all general revenue fund and	178
non-general revenue fund appropriation items for the current	179
fiscal year, and the estimated baseline nontax revenues to the	180
general revenue fund for the following two fiscal years, that will	181
be used in preparing the state budget presented to the governor.	182

The director shall determine a method to incorporate the	183
principles of zero-based budgeting into the forms prescribed in	184
this section.	185

Section 2.  That existing section 126.02 of the Revised Code	186
is hereby repealed.	187