Expenditures in Excess of Appropriations

Plain English Breakdown

The official source material does not provide specific details on how much extra funding can be spent or what happens if federal funding lapses are not predicted in time.

Allowing Overexpenditures Due to Federal Lapses

This law changes how state departments, institutions, and agencies can spend more money than they were allowed if there's a break in federal funding that wasn't expected.

What This Bill Does

• Changes the rules for when a department or agency can spend more money than it was given by the government.
• Allows overexpenditures if there's a break in federal funding that wasn't expected while the general assembly is not meeting.
• Requires the controller to remove spending limits once extra funding is approved.

Who It Names or Affects

• State departments, institutions, and agencies
• The state controller

Terms To Know

Controller

A person who manages the state's money and spending.

Appropriation

Money given by the government to a department or agency for specific purposes.

Limits and Unknowns

• The bill does not specify how much extra funding can be spent.
• It's unclear what happens if federal funding lapses are not predicted in time.

Official Summary Text

Joint Budget Committee.
Under current law, the controller may allow any department, institution, or agency of the state, including any institution of higher education, to make an expenditure in excess of the amount authorized by an item of appropriation for the fiscal year if certain conditions are satisfied. One of those conditions is that the overexpenditure is necessary due to unforeseen circumstances arising while the general assembly is not meeting in a regular or special session. The bill modifies that condition to also include when an overexpenditure is necessary due to a lapse in a federal appropriation that the joint budget committee determines is reasonably likely to occur while the general assembly is not meeting in regular or special session during which such overexpenditure can be legislatively addressed.
The bill also makes a conforming amendment to the process by which the general assembly can remove the spending restriction that the controller attaches to an overexpenditure. If a supplemental appropriation is enacted for the overexpenditure or a portion of it, the bill requires that:
The controller's spending restriction is released in full; and
The department, institution, or agency of the state's overexpenditure authority ends.
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)