Chapter 2 – Fiscal Management

21010.5 Budget Process

• The Budget Act is the primary source for appropriations and provides for the usual and current expenses of the State.  Departments are responsible to operate within budgeted levels and to comply with any restrictions or limitations enacted by the Legislature.  The Legislature has provided provisions in the Budget Act to allow for budget adjustments.

  • These provisions include authorizations for: intra-item transfers (Section 26.00), deficiencies (Section 27.00), changes to federal funding levels (Section 28.00), and changes to reimbursements (Section 28.50).

• The basic concept of budget development uses incremental budgeting.  This approach uses the current departmental level of funding as a base amount to be adjusted by change proposals.

  • The Budget Change Proposal (BCPBudget Change Proposal) is the traditional decision document to change the level of service or funding sources for activities authorized by the Governor and the Legislature, or to propose new program activities not currently authorized.