Executive Amendments to the 2016-2018 Biennial Budget
Total Page：16
File Type：pdf, Size：1020Kb
Commonwealth of Virginia exeCutiVe amendments to the 2016-2018 Biennial Budget deCemBer 16, 2016 terenCe r. McAuliffe goVernor THIS PAGE INTENTIONALLY LEFT BLANK Table of conTenTs Part A – Overview Reader’s Guide to Virginia’s Budget Document A-3 How Virginia’s Budget is Developed and Adopted A-5 Economic Forecast A-7 Revenue Forecast A-11 Part B – Operating Budget Legislative Department B-1 Judicial Department B-17 Executive Offices B-25 Office of Administration B-31 Office of Agriculture and Forestry B-40 Office of Commerce and trade B-46 Office of Education B-58 Office of Finance B-96 Office of Health and Human Resources B-104 Office of Natural Resources B-126 Office of Public Safety and Homeland Security B-135 Office of Technology B-146 Office of Transportation B-151 Office of Veterans and Defense Affairs B-158 Central Appropriations B-162 Independent Agencies B-167 Operating Summary B-172 Capital Outlays B-257 Part C – Other Reports Aid to Localities C-3 Miscellaneous Transfers C-11 Supplemental Information C-13 Photo credits THIS PAGE INTENTIONALLY LEFT BLANK Commonwealth of Virginia exeCutiVe amendments to the 2016 - 2018 Biennial Budget Part a - OverView terenCe r. McAuliffe goVernor THIS PAGE INTENTIONALLY LEFT BLANK A-3 ReadeR’s Guide to Virginia’s BudGet document This publication describes Governor McAuliffe’s proposed amendments the Commonwealth of Virginia’s 2016- 2018 biennial budget. Additional information regarding studies and evaluations, agency strategic plans and performance management, including detailed service area budget tables may be access via the following Web sites: www.vaperforms.virginia.gov and www.dpb.virginia.gov/ PART A: INTRODUCTION This section contains a summary of how Virginia’s budget process works, an economic forecast outlining the status of Virginia’s economy, and a revenue forecast reviewing the Commonwealth’s fiscal outlook, including projected revenues on which the preceding budget amendments are based. PART B: OPERATING BUDGET Part B presents the Governor’s proposed amendments for the operating budget. This section is organized by the three branches of government: Legislative, Judicial, and Executive. The Executive Department section is also organized by secretarial area. For each branch of government or secretarial area you will find: Overview The branch’s major functions of government or secretarial area. Agency Listing A listing of each agency within the branch of government or secretarial area. Summary Graphs Depict the financing of secretarial areas by funding source and the general fund and nongeneral fund operating budget history for the secretarial areas. For each individual agency you will find: Agency Name Agency’s official name. Mission The organization-wide strategic direction and the organization’s purpose as Statement/Description stated by the agency. Agency Operating Budget The Governor’s operating budget amendments for the 2016-2018 biennium, Summary including agency historical funding data and capital outlay amendments. The categories relating to funding are general fund and nongeneral fund. Also, there is a category indicating an agency’s personnel costs. Table notes: All figures represent dollars rounded to millions; due to rounding, figures may not add exactly; figures in parenthesis are negative amounts; agencies appear in the same order as in the budget bill; and the values in the personnel costs category may exceed the sum of the general fund and nongeneral fund categories for addenda items. Personnel cost totals do not reflect any adjustments to any other budget category. ______________________________________________________________________________________________________________________________________________ Commonwealth of Virginia Part A: Introduction Executive Amendments to the 2016 – 2018 Biennial Budget Reader’s Guide to Virginia’s Budget Document A-4 Authorized Position A summary of an agency’s authorized position level broken out by fund source Summary (general and nongeneral). The table also reflects total proposed position amendments for the 2016-2018 biennium. Capital Budget Summary The Governor’s capital budget amendments for the 2016-2018 biennium detailed by funding source: general fund, nongeneral fund, and bond proceeds. Operating Budget Changes Bullet items briefly describe specific budget recommendations for specific agencies. If the Governor has no specific recommendations for an agency, nothing appears after the Authorized Position Summary. This section is broken down into three categories: (1) introduced budget technical changes, (2) introduced budget non-technical changes, and (3) introduced budget savings. Following each bullet item, amounts and positions recommended are designated GF (general fund) or NGF (nongeneral fund). References to positions are to full-time equivalent (FTE) positions. Positions are only mentioned in the initial year affected by the budget amendment. Recommended Capital Bullet items briefly describe any amendments to previously approved capital Budget Changes construction projects or funding for new projects. Following each bullet item, amounts recommended are designated general fund, nongeneral fund, or bond proceeds. PART C: OTHER REPORTS Part C provides the reader with detailed information on studies and evaluations, Aid to Localities, and Workforce Development. This section also provides the reader with tax-supported debt information and information on actions impacting state transfers. Please note: the Studies and Evaluations report is available for view online at www.dpb.virginia.gov. This section has four main components: Studies and Evaluations Various studies, evaluations, and assessments of agencies or agency programs that were conducted in the two most recent fiscal years. Please note: studies and evaluations can be found on the DPB Web site: www.dpb.virginia.gov. Aid to Localities (ATL) The Governor’s recommendations for funds that go directly to localities for locally-operated programs or are spent by the Commonwealth on behalf of localities for specific programs. Supplemental Information Information of tax-supported debt capacity and per capita appropriations. Miscellaneous Transfers Review of actions affecting state debt, revenue transactions, interfund transfers, working capital advances and loans, and required deposits into the general fund. ______________________________________________________________________________________________________________________________________________ Commonwealth of Virginia Part A: Introduction Executive Amendments to the 2016 – 2018 Biennial Budget Reader’s Guide to Virginia’s Budget Document A- 5 How Virginia’s Budget is deVeloped and adopted Virginia has a biennial (two-year) budget system. The biennial budget is enacted into law in even-numbered years, and amendments to it are enacted in odd-numbered years. For example, the current budget for the 2016-2018 biennium was adopted by the 2016 General Assembly and amendments to 2016-2018 biennial budget will be considered by the General Assembly during its 2017 session. Governor McAuliffe will present his amendments to the 2016-2018 biennial budget in the following pages. Developing the Commonwealth’s budget is a process that takes many months, involving participation from state agencies, the legislature, and the public. The process includes five distinct phases: agency budget preparation, budget development, Governor’s and secretarial review, legislative action, and budget implementation. Key Budget Dates Instructions issued to agencies on preparing September 27, 2016 and submitting their proposed budget amendments Agencies submitted their proposed budget October 7, 2016 amendments to the Department of Planning and Budget Governor submits recommended budget to the December 16, 2016 General Assembly January 11, 2017 General Assembly convenes February 5, 2017* Budget bill crossover occurs February 25, 2017* General Assembly adjourns April 5, 2017* Reconvened General Assembly session occurs *indicates tentative dates ______________________________________________________________________________________________________________________________________________ Commonwealth of Virginia Part A: Introduction Executive Amendments to the 2016 – 2018 Biennial Budget How Virginia’s Budget is Developed and Adopted THIS PAGE INTENTIONALLY LEFT BLANK A- 7 Economic ForEcast Review of FY 2016 The economy performed slightly better than expected in FY 2016. The economy continued to improve and underlying fundamentals seemed to support a more robust expansion. Conditions in the housing market and labor market had improved. Total nonagricultural employment grew 2.4 percent. Only the construction, manufacturing, and information sectors grew at lower than expected rates. In the official forecast for FY 2016, employment and personal income in Virginia were expected to grow at a faster pace than in FY 2015. Personal income was forecast to grow at a rate similar to FY 2015. National economy – Growth continues at a modest pace Current national indicators suggest the economy continues to expand at a modest pace with improvements expected over the second half of calendar year 2016. Conditions in the housing sector and job market have improved. Real GDP rose 1.7 percent for the fiscal year, lagging the forecast of 2.4 percent growth. Total personal income rose 3.7 percent in FY 2016, lagging the forecast of 4.2 percent growth. Wages and salaries grew 4.5 percent, 0.5 percentage point ahead of the forecast of 4.0 percent. The federal