The Budget Process
Georgia’s fiscal year begins on July 1 and ends June 30 of the next calendar year. Each year, two appropriations bills are passed through the General Assembly and then signed by the Governor. The first bill is the budget for the Amended Fiscal Year (AFY). This adjusts the current fiscal year’s budget, accounting for changes in school enrollment and other unanticipated needs. The second bill is the budget for the upcoming fiscal year (FY). It provides for permanent funding of state agencies statutory responsibilities and other core functions of government.
A storied history has transformed Georgia’s budget process over the years. Today, the development of the state budget occurs in several distinct and cyclical phases each year.
Phase One
All state agencies are required to submit their budget requests to OPB each September under guidelines issued by the Governor. These requests contain the funding needs of agencies, such as employee salaries, operational costs, technologies, and rent for office space. Agencies are also required to submit strategic plans alongside their budget request. These plans detail how the agencies will use their funds to improve services, increase employee retention, and enhance overall efficiency.
Phase Two
At the beginning of the budget process, the Governor sets the revenue estimate. This estimate projects how much revenue the state will accrue during current and upcoming fiscal year. OPB then carefully analyzes all agency spending requests based on several criteria. These factors include whether the requested funds are aligned with the agencies’ core missions or whether they are cost-effective. Overall, a fiscal year’s total level of spending must not exceed that year’s projected revenue.
Phase Three
After reviewing all agency requests, OPB analysts meet with the Governor and his staff to brief him on agency requests. Analysts also offer preliminary recommendations on each request based on their in-depth analysis. The Governor then uses this information to develop and finalize his own formal recommendations for the General Assembly. OPB publishes these recommendations in the Governor’s Budget Report.
Phase Four
The General Assembly must receive the Governor’s budget report within five days of convening in January. The legislature reviews the Governor’s recommendations and develops an appropriations bill, which must begin in the House of Representatives. The bill specifies how much money will be distributed to each agency budget program. Once the bill passes in the House, it is then transmitted to the Senate.
The Senate reviews the bill and adopts a substitute, which is returned to the House for acceptance or rejection. More often than not, the two chambers will not be able to agree on one version of the bill. As a result, a conference committee is convened, which is made up of members from both chambers. The conference committee eventually compromises on appropriations, and the final version of the bill is voted on both chambers.
Phase Five
Once the final bill has passed both the House and Senate, it is sent to the Governor for signature. The Governor has 40 days to sign it before it automatically becomes law. The Governor also maintains the constitutional right to strike out portions of the bill with his line-item veto.
Once the bill is signed into law, OPB compiles and summarizes all budgetary changes into the Budget in Brief. This document contains financial summaries and budget highlights for all state agencies for the current and upcoming fiscal years.
Phase Six
OPB works all year to ensure that each agency’s spending does not exceed the appropriation for each of its programs. OPB does this by reviewing and authorizing annual operating budgets, approving monthly allotments, and projecting and analyzing agency expenditures.
Phase Seven
Once the fiscal year ends on June 30, the State Auditor is responsible for auditing the expenditures of each state agency. This includes all departments, colleges and universities, authorities, and school districts.