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BUDGET REFORM OVERVIEW
The State of Arizona has been working on budget reform and the streamlining
of the state’s budgeting procedures since 1993. Arizona budget reform has
addressed the following components:
The end of this page includes links
to budget reform legislation since 1993 along with JLBC Staff summaries of some
recent legislation.
Budget Cycle
- Statutorily, the budget has a bifurcated cycle. For 16 large state agencies ("annual
budget units"), the Legislature adopts a one-year budget every year. For
the rest of the state agencies ("biennial budget units"), the
Legislature adopts 2-year budgets, with each year separately delineated. These
budgets are adopted in the first year of each 2-year biennium of the
Legislature.
- Although the budgeting cycle is bifurcated -- large state agencies are on an
annual budget cycle while most state agencies are on a biennial (once every
two years) budget cycle -- that cycle has been suspended for the biennium as a
result of budget deficits. All agencies received separate annual budgets
for FY 2012.
- For a historical list of changes in the biennial budgeting cycle, see
this
link.
Strategic Planning
and Master List of Programs
- Agencies are required to submit operating plans for their agency to OSPB and
JLBC Staff by September 1 of each year. A.R.S. § 35-122 states that the
agency operating plans shall contain a mission statement, description, and
strategic issues.
- These plans shall extend for the current fiscal year and the two ensuing
fiscal years for biennial budget units for even-year submissions and for the
current fiscal year and the ensuing fiscal year for annual budget units as
well as biennial budget units in odd-numbered years.
- Agencies also need to develop operating plans for each program in the
agency. The plans contain a mission statement, description, goals, performance
measures, and budgetary data. The performance measures shall emphasize
results. The budgetary data shall include funding amounts, regardless of
source. This information is provided to OSPB.
- Every two years, OSPB compiles the operating plan submissions into the
Master
List of State Government Programs. This document is compiled in
January of every even-numbered year, no later than 5 days after the start of
the Legislature’s regular session.
- Annual budget units are required to develop 5-year strategic plans
containing strategic issues, mission statement, description, goals,
strategies, and resource assumptions. This plan is to be posted on an agency’s
website and submitted to OSPB and JLBC Staff by January 1 yearly. House and
Senate Appropriations Committees are to review the strategic plans annually.
OSPB has links to January 1, 2009 5-year plans
here.
Program Budgeting
- Agencies are required to submit their budget requests using their program
list structure. This allows analysis either by line item of expenditure (e.g.,
Personal Services or Travel) or by program structure, which represents the
most important activities of the agency.
Strategic Program Area
Reviews (SPARs)
- The SPAR process (A.R.S. § 41-1275) focuses on program areas addressed by
multiple agencies.
- The process consists of 4 components:
-
Selection: The Joint Legislative Budget
Committee determines program areas to be subject to SPAR. By January 1 of each
odd-numbered year, JLBC Staff, in consultation with OSPB, recommends a list of
program areas to JLBC.-
Self-Assessment
: Each agency responsible for a
SPAR program is required to submit a self-assessment to the directors of JLBC
and OSPB by June 1 of the odd-numbered year of review.-
Evaluation
: The Directors of the JLBC and OSPB
evaluate the program areas according to agreed upon factors and jointly
produce a report with findings and recommendations due to the President of the
Senate, the Speaker of the House of Representatives, and the Governor by
January 1 of each even-numbered year.-
Legislative Review
: SPAR reports and staff
recommendations are reviewed by legislative committees. Reports are assigned
to the Appropriations Committees in the House and Senate and may additionally
be assigned to a standing committee.
- Due to the review of state government as part of resolving budget shortfalls
in FY 2009 - FY 2011, the JLBC did not recommend any program areas to the
Committee for SPAR review for 2009.
- For additional details on the SPAR process and current and past reviews, see
below:
2011 Strategic Program Area Reviews
2009 Strategic Program Area Reviews
2007 Strategic Program Area Reviews
2005 Strategic Program Area Reviews
2003 Strategic Program Area Reviews
- Because of the likelihood of program area discussions as part of
resolving the FY 2004 budget shortfall, the JLBC Staff did not recommend any program areas
to the Committee for SPAR review for 2003.
2001 Strategic Program Area Reviews
1999 Strategic Program Area Reviews
Performance Measures
- As part of their strategic planning, agencies are required to develop
performance measures for their agencies as well as for their programs and
subprograms, if any.
- Agencies are required to submit a one-page summary of performance measures
as part of their budget request (A.R.S. § 35-113).
History of Budget Reform
Legislation
Below is a list of budget reform legislation from previous years, along with
links to the bill’s reference in ALIS as well as JLBC Staff summaries for
selected bills.
jlbcwebmaster@azleg.gov
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