Friday, June 22, 2007

State Budgeting and Finance – Question 5

Question for Sarah L and DeQuawn S. Describe the four major stages of the budget process. Let me add a quick note here before I see your answers. Although the executive budget can be an important part of the process and has compelling arguments behind it (see top of page 313), its impact is dependent on the political skills of the governor. Republican Governor Mark Sanford’s proposals as well as his vetoes have had little effect on the budget that the Republican dominated legislature has adopted in past years. However, because he has championed tax cuts, which is always popular in this state, he has maintained reasonable levels of popularity statewide.

2 comments:

Unknown said...

The four stages of the budget process are preparation, adoption, implementation and review. The fiscal year in SC begins on July 1. The first two stages occur before the fiscal year begins. In August, the Office of State Budgeting gives agencies guidelines for their budget requests. During the preparation stage, budget requests and recommendations are put together by the governor and other state agencies. Requests are submitted to the Office of State Budgeting in September and the Office processes the requests and passes them on to the governor’s office. The governor uses the information to set up the executive budget recommendation to be submitted to the General Assembly in January. The executive budget recommendation sets up for the adoption stage. The adoption stage officially starts when the recommendation is received. The governor outlines his ideas for spending for the upcoming year and the General Assembly responds or makes up their own budget. Legislators begin debating and try to pass the appropriations bill. The bill is worked on throughout February by the Ways and Means Committee. After the bill gets out of the committee, it goes to the House floor in March to be voted on. In April, the Senate Finance Committee begins working on the bill. When the committee is finished, the bill goes to the Senate floor for votes. The bills from the House and the Senate often differ so a conference committee made up of three members of each house typically meets in May. After the differences are ironed out, the final bill goes to the governor to be signed. The governor can line-item veto (meaning that the bill doesn’t have to be accepted in its entirety but can veto certain items) for five days and the legislature can override the vetoes if they choose. The bill must be approved by June 30 so money can be authorized. The implementation stage begins when the budget goes into effect. During this stage, agencies spend the money allotted to them by the bill. The review stage begins at the close of the fiscal year. In this stage, officials review the money spent by agencies ensuring that it was necessary and lawful. The State Auditor and the Legislative Audit Council will perform end-of-the-year reviews.

-Sarah Luckey

Robert Botsch, USCA Political Science said...

Great job Sarah! The only suggestion I could make is to ask that you divide your stages by paragraph breaks. But this is definitely a really good answer deserving a really good grade! Eveyone should read it!

Bob B