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Governor's FY2013 Budget Articles

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Governor's FY2013 Budget Articles SENATE FISCAL OFFICE REPORT GOVERNOR’S FY2013 AND FY2012 SUPPLEMENTAL BUDGET 2012-H-7323 ARTICLE SUMMARIES FEBRUARY 7, 2012 State House Room 117 Providence, Rhode Island 02903 (401) 222-2480 www.rilin.state.ri.us/senatefinance Senate Committee on Finance Daniel Da Ponte Chairperson Walter S. Felag, Jr. 1st Vice Chairperson Juan M. Pichardo 2nd Vice Chairperson Louis P. DiPalma Secretary David E. Bates Frank A. Ciccone III James E. Doyle II Maryellen Goodwin Edward J. O’Neill V. Susan Sosnowski Andrew Caruolo Committee Clerk Rui P. Alves Legal Counsel Table of Contents 2012-H-7323 Article 1: Relating to Making Appropriations in Support of FY2013 5 Article 2: Relating to Tax Anticipation Notes 8 Article 3: Relating to the Rhode Island Public Telecommunications Authority 9 Article 4: Relating to Government Organization 10 Article 5: Relating to Capital Development Program 12 Article 6: Relating to Bond Premiums 16 Article 7: Relating to Debt Management Act Joint Resolutions 17 Article 8: Relating to Information Technology Investment Fund 20 Article 9: Relating to Department of Health Fees 21 Article 10: Relating to Making Revised Appropriations in Support of FY2012 22 Article 11: Relating to Retirement Contributions 24 Article 12: Relating to Education Aid 25 Article 13: Relating to Public Officers and Employees 28 Article 14: Relating to Restricted Receipt Accounts 29 Article 15: Relating to Hospital Uncompensated Care 31 Article 16: Relating to Police and Fire Relief Benefits 32 Article 17: Relating to Medical Assistance – Dental Benefits 33 Article 18: Relating to Office of Health and Human Services 34 Article 19: Relating to the Rhode Island Veterans’ Home 35 Article 20: Relating to East Bay Bridge System 37 Article 21: Relating to Abused and Neglected Children 40 Article 22: Relating to Department of Corrections 41 Article 23: Relating to Compensation of Board Members 42 Article 24: Relating to Taxation and Revenues 43 Article 25: Relating to Division of Motor Vehicles 52 Article 26: Relating to Municipalities 54 Article 27: Relating to Historic Preservation Tax Credit Trust Fund 56 Article 28: Relating to Central Falls 57 Article 29: Relating to Municipal Police Training Academy 59 Article 30: Relating to Environmental Management 60 Article 31: Relating to the Medicaid Reform Act of 2008 61 Article 32: Relating to Medical Assistance Recoveries 63 Article 33: Relating to Holidays 64 Article 34: Relating to Effective Date 65 GOVERNOR’S FY2013 AND FY2012 SUPPLEMENTAL BUDGETS | 5 Article 1: Relating to Making Appropriations in Support of FY2013 Article 1 outlines the proposed appropriation amounts from all fund sources for FY2013. In most cases, the appropriations are by fund source at the program level in each department or agency. The article also includes the FTE position authorizations for each department or agency. Other sections of the article outline the use of the Governor’s contingency funds; makes out-year appropriation changes for projects funded with Rhode Island Capital Plan Funds; sets expenditure limits for internal service funds; provides for necessary disbursements of Lottery, Temporary Disability Insurance, Employment Security, University and College Funds; transfers $3.1 million from the Narragansett Bay Commission, a $6.0 million bond premium transfer, and continues the requirement that the RI Housing and Mortgage Finance Corporation provide resources to the Neighborhood Opportunities Program. APPROPRIATIONS Article 1 makes appropriations from general revenues and authorizes expenditures of federal funds, restricted receipts and other funds for the fiscal year ending June 30, 2013. The amounts identified for federal funds, restricted receipts and other funds shall be made available pursuant to section 35-4-22 and Chapter 41 of Title 42 of the Rhode Island General Laws. Change from % FY2012 Enacted FY2013 Governor Enacted Change General Revenue $3,142.5 $3,269.2 $126.7 4.0% Federal Funds 2,606.5 2,594.2 (12.3) -0.5% Restricted Receipts 189.6 224.1 34.5 18.2% Other Funds 1,763.6 1,855.9 92.3 5.2% Total $7,702.2 $7,943.4 $241.2 3.1% FTE Authorization 14,942.2 14,837.7 (104.50) -0.7% $ millions In addition, Article 1 provides for the annual appropriation of the Contingency Fund, Temporary Disability Insurance Funds (TDI), employment security (UI Trust Fund), university and college funds, and allows the appropriation of Lottery Division funds for award winnings during FY2013. Article 1 authorizes the State Controller to establish 11 specific internal service accounts to permit reimbursement of costs for work or other services performed by certain departments or agencies for any other department or agency. Reimbursements may only be made up to an expenditure cap, as set in this article. Account FY2012 Enacted* FY2013 Governor State Assessed Fringe Benefit $31,054,962 $32,106,713 Administration Central Utilities 20,244,491 20,227,492 State Central Mail 5,585,439 5,613,232 State Telecommunications 2,882,141 2,881,461 State Automotive Fleet 13,926,504 13,952,999 Capital Police 739,072 828,732 Surplus Property 2,500 2,500 Health Insurance 306,399,745 306,268,634 Corrections General Service and Warehouse 6,804,849 7,434,366 Correctional Industries 7,285,903 7,353,091 Secretary of State Records Center 866,270 897,072 Total $395,791,876 $397,566,292 * FY2012 figures included for comparison purposes. They are not included in the FY2013 Article 1, Section 5. 6 | ARTICLES NARRAGANSETT BAY COMMISSION AND NEIGHBORHOOD OPPORTUNITIES PROGRAM Article 1 includes language transferring $3.1 million from the Narragansett Bay Commission (NBC) to the State Controller by June 30, 2013. The transfer from NBC will be used for debt service costs on general obligation bonds issued on behalf of the NBC. The article also requires the Rhode Island Housing & Mortgage Finance Corporation (RIHMFC) to provide an unspecified appropriation in FY2013 to support the Neighborhood Opportunities Program (NOP). The article requires RIHMFC to issue a report detailing the funding provided to NOP as well as information on the number of housing units provided to the Director of the Department of Administration, the Chair of the Housing Resources Commission, the Chairs of the House and Senate Finance Committees, and to the State Budget Officer. BOND PREMIUM TRANSFER Article 1 includes language transferring $12.6 million of bond premiums received from the sale of the 2011 Series A general obligation bonds from deposit into the Rhode Island Capital Plan in FY2012. The Governor proposes to deposit $6.0 million of the premium receipts into the State’s general fund and to use the remaining $12.6 million in receipts for the Technology Investment Fund. Analyst’s Note: Since the Governor intends the transfer of the bond premium receipts to occur within the FY2012 Budget, section 15 authorizing the bond premium transfer likely belongs in Article 10 authorizing the supplemental budget and not Article 1 authorizing the FY2013 budget. FTE POSITION CAP AND APPROVAL Article 1 establishes the authorized number of full-time equivalent (FTE) positions for each State department and agency. Departments and agencies may not exceed the number of authorized FTE positions shown, in any pay period. Statewide, the Governor recommends a net decrease of 104.5 FTE positions from the FY2012 Budget as Enacted. Following are the changes included in the Governor’s proposal: FTE Position Authorizations Change Change from FY2012 FY2012 from FY2013 FY2012 Function Enacted Governor FY2012 Governor Enacted General Government 2,270.3 2,283.3 13.0 2,157.0 (113.3) Human Services 3,616.7 3,591.7 (25.0) 3,599.2 (17.5) Education 3,877.2 3,884.6 7.4 3,907.6 30.4 Public Safety 3,189.2 3,185.6 (3.6) 3,188.6 (0.6) Natural Resources 440.0 440.0 0.0 436.5 (3.5) Transportation 772.6 772.6 0.0 772.6 0.0 Subtotal 14,166.0 14,157.8 (8.2) 14,061.5 (104.5) Higher Ed Sponsored Research 776.2 776.2 0.0 776.2 0.0 Total FTE Positions 14,942.2 14,934.0 (8.2) 14,837.7 (104.5) Major FTE changes include: . A decrease of 105.8 FTE positions in FY2013 in the Department of Labor and Training. The Governor includes a reduction of 105.8 FTE positions for the Department reflecting the loss of federal funds within the Unemployment Insurance and Workforce Development programs. GOVERNOR’S FY2013 AND FY2012 SUPPLEMENTAL BUDGETS | 7 . A decrease of 29.0 FTE positions in FY2013 in the Department of Administration. This reflects a reduction of 8.0 FTE positions from the transfer of the Low Income Heating and Energy Assistance Program (LIHEAP) and Weatherization Assistance Program (WAP) to the Department of Human Services, a reduction of 10.0 FTE positions in Human Resources and 12.0 FTE positions in the Bureau of Audits reflecting the reorganization creation of the Office of Management and Budget, offset by other minor adjustments within the Department. A decrease of 41.6 FTE positions in FY2013 for Higher Education Assistance Authority. The Governor proposes to merge the Rhode Island Higher Education Assistance Authority (RIHEAA) and its 41.6 FTE positions into the Office of Higher Education. An increase of 66.0 FTE positions in FY2013 in Higher Education. The Governor recommends an increase of 66.0 FTE positions for Higher Education, including an increase of 41.6 FTE positions as a result of merging the Rhode Island Higher Education Assistance Authority into the Office of Higher Education, 14.0 FTE positions for new faculty at the University of Rhode Island, 8.0 FTE positions for new faculty at Rhode Island College, 2.0 FTE staff positions at Rhode Island College, and a 0.4 FTE position for an education specialist in the Office of Higher Education.
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