The State Budget Act sets forth the process for the preparation and submission of the proposed biennial budget for the Executive Department of the State Government. (NRS 353.150-353.246) In part, the Act requires the Chief of the Budget Division of the Office of Finance to provide to the Fiscal Analysis Division of the Legislative Counsel Bureau each agency's adjusted base budget by program or budgetary account for the next 2 fiscal years. (NRS 353.211) The Act also requires the Chief to prepare a final version of the proposed budget, which is required to include the adjusted base budget for each department, institution and agency of the Executive Department. (NRS 353.230) Existing law defines the term “adjusted base budget” to mean the amount appropriated or authorized to support ongoing expenditures budgeted to the department, institution or agency by the Legislature for the second year of the current biennium, as adjusted for: (1) the removal of any one-time appropriation or authorization that was appropriated or authorized by the Legislature to the department, institution or agency for the second year of the biennium; (2) statewide fringe benefits, assessments, rent, insurance premiums and cost allocations; (3) contractual obligations that are approved or expired during the current biennium; (4) ongoing expenditures approved by the Interim Finance Committee during the current biennium; (5) any annualization of costs that occurred for part of the second year of the current biennium; (6) actual caseloads incurred during the first year of the biennium; (7) rate changes that are projected to affect the budget of the department, institution or agency during the next biennium; and (8) any other adjustment that is necessary based on the limit upon total proposed expenditures or as otherwise determined by the Chief. (NRS 353.211, 353.230) Sections 1 and 2 of this bill revise the adjustments that are authorized to be made to an agency's base budget for purposes of these provisions. Under existing law, the Account to Stabilize the Operation of the State Government, also known as the Rainy Day Account, is an account created in the State General Fund into which surplus state revenues are required to be transferred annually to be used in case of fiscal emergencies. Such a transfer is required to occur after the close of the previous fiscal year and before the issuance of the State Controller's annual report. The balance in the Account is prohibited from exceeding 26 percent of the total of all appropriations from the State General Fund for the operation of all departments, institutions and agencies of the State Government and for the funding of schools and authorized expenditures from the State General Fund for the regulation of gaming for the fiscal year in which the revenue will be transferred to the Account. (NRS 353.288) Section 3 of this bill changes the measurement for this limitation on the balance of the Account from the total of such appropriations and authorized expenditures for the fiscal year in which the revenue will be transferred to the Account to the total of such appropriations and authorized expenditures for the previous fiscal year. Under existing law, the Administrator of the Administrative Services Division of the Department of Administration is required to prepare annually a statewide cost allocation plan that distributes the indirect costs of service agencies among the agencies of the Executive Department of the State Government. (NRS 353.331) Section 4 of this bill transfers this duty to the Chief of the Budget Division of the Office of Finance.

Statutes affected:
As Introduced: 353.211, 353.230, 353.288, 353.331
BDR: 353.211, 353.230, 353.288, 353.331