NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Suite 101 of the Capitol North building.

(Parenthesis ( ) Indicate Expenditure Decreases)

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* GF = General Fund; GFOR = General Fund Operating Reserve; OSF = Other State Funds; ISF/IAT = Internal Service Funds/Interagency Transfers; FF = Federal Funds

Relates to HB1, HB2, HB3, HB4, HB5, HB6, HB7, HB9, SB2 and SB34

SOURCES OF INFORMATION

LFC files

SUMMARY

The bill represents the Executive's budget recommendation.

Synopsis of Bill

1. FY01 Operating Budget Appropriations - Sections 4, 5 and 9

Section 4 (pages 6 - 11) provides funding for the operation of state agencies, higher education and public school support. Fund for the General Appropriation Act of 2000 comes from the general fund, other state funds, internal service funds/interagency transfers and federal funds. See Attachment for appropriations by agency type.

Section 5 (pages 11 - 12) provides funding for compensation increases for state agencies an average 2 percent annual increase, based on performance for executive classified and exempt, legislative, judicial and district attorney employees.

Although the appropriations are not contained in this bill, the Executive is also recommending 1) $1 million to implement recommendations of the Personnel Board to bring information technology position to at least 40 percent of information technology salaries in comparator states as indicated by current market studies; and 2) $800.0 for a correctional officer salary adjustment to address turnover, recruitment and retention issues.

Section 4 of the bill includes a 1.25 percent salary increase for all public school employees and a 2 percent salary increase for all higher education employees.

2. FY00/01 Special, Supplemental and Deficiency, and Data Processing Appropriations - Sections 6, 7 and 8

The bill makes special appropriations (Section 6, page 12), supplemental and deficiency appropriations (Section 7, pages 12 - 13), computer systems enhancement fund appropriations (Section 8, page 13).

3. General Fund Operating Reserve Appropriations - Sections 9 and 10

The bill also includes two appropriations from the general fund operating reserve to 1) fund the board of finance emergency fund for FY01 and 2) to fund the appropriation contingency fund to provide emergency funds related to disaster declarations.

Significant Issues

General operating appropriations for most legislative agencies are contained in House Bill 1, the Feed Bill.

FISCAL IMPLICATIONS

Appropriations are summarized in the attachment.

ADMINISTRATIVE IMPLICATIONS

Section 3 (paragraphs G and H) of the bill contains full budget adjustment authority, therefore, freely and completely allowing budget increases from other state funds and internal service funds/interagency transfers or transfers between divisions and categories.

DUPLICATION/RELATIONSHIP

The bill: 1) relates to House Bill 1, the Feed Bill, since it includes appropriations for the operation of the Legislature; 3) relates to House Bills 3, 4, 5, 6, 7, 9, and SB34 since they each contain appropriations for operations of state government agencies and educational institutions already included in House Bill 2; and 4) relates to House Bill 2 and Senate Bill 2, the LFC's proposal for operation of state government.

DKB/njw

ATTACHMENT