CHAPTER 1. THE BUDGET AGENCY
IC 4-12
ARTICLE 12. APPROPRIATIONS MANAGEMENT
IC 4-12-1
Chapter 1. The Budget Agency
IC 4-12-1-1
Short title; purposes
Sec. 1. (a) This chapter shall be known and may be cited as the
budget agency law.
(b) Its general purposes and policies may be perceived only from
the entire chapter, but among them are four (4) of particular
significance, namely:
(1) Vesting in the budget agency duties and functions and rights
and powers which make the execution and administration of all
appropriations made by law the exclusive prerogative and
authority of that agency, and otherwise denying such
prerogative and authority to the budget committee.
(2) Designating an officer of the executive department and four
(4) members of the general assembly as members of the budget
committee through which they may work between regular
sessions of the general assembly and cooperatively propose and
recommend to the general assembly the appropriations which
appear to be necessary to carry on state government in the
succeeding budget period.
(3) Giving the members of the budget committee, who are
members of the general assembly, the authority to engage in
activities incidental and germane to their legislative powers,
including investigations of appropriations made and to be made
by law, before and after sessions of the general assembly.
(4) Making the gathering of information, data, and expert
opinion, with reference to the revenues of the state from current
sources, and with reference to procuring additional revenues to
meet appropriations which may be recommended, and making
the evaluation of such data and opinion and of appropriations
requested by agencies of the state, the concurrent prerogative
and authority of the budget committee and the budget agency.
(Formerly: Acts 1961, c.123, s.1.) As amended by Acts 1977, P.L.28,
SEC.1; P.L.3-1986, SEC.4.
IC 4-12-1-2
Definitions
Sec. 2. As used in this chapter unless a different meaning appears
from the context:
(a) The word "committee" means the budget committee.
(b) The word "director" or the term "budget director" means the
person who is director of the budget agency.
(c) The term "appointing authority" means the head of an agency
of the state.
(d) The terms "agency of the state" or "agencies of the state" or
"state agency" or "state agencies" mean and include every office,
officer, board, commission, department, division, bureau, committee,
fund, agency, and, without limitation by reason of any enumeration
herein, every other instrumentality of the state of Indiana, now
existing or which may be created hereafter; every hospital, every
penal institution and every other institutional enterprise and activity
of the state of Indiana, wherever located; the universities and
colleges supported in whole or in part by state funds; the judicial
department of the state of Indiana; and all non-governmental
organizations receiving financial support or assistance from the state
of Indiana; but shall not mean nor include cities, towns, townships,
school cities, school towns, school townships, school districts, nor
other municipal corporations or political subdivisions of the state.
(e) The terms "budget bill," or "budget bills," shall mean a bill for
an act, or two (2) or more such bills, prepared as authorized in this
chapter, by which substantially all of the appropriations are made
that are necessary and required to carry on state government for the
budget period, if and when such bill is, or such bills are, enacted into
law.
(f) The term "budget report" shall mean a written explanation of
the budget bill or bills, and a general statement of the reasons for the
appropriations therein and of the sources and extent of state income
to meet such appropriations, together with such further parts as are
required by law.
(g) The term "budget period" means that period of time for which
appropriations are made in the budget bill or budget bills.
(Formerly: Acts 1961, c.123, s.2.) As amended by Acts 1977, P.L.28,
SEC.2.
IC 4-12-1-3
Creation of budget agency; director; establishment of budget
committee
Sec. 3. (a) A budget agency is created as an agency of the state. A
director, appointed by the governor to serve at his will and pleasure,
shall be the chief executive officer of the agency and shall be known
as the budget director. The director shall receive the salary fixed by
the governor and shall give all of his time to his office and the budget
agency. He shall execute such bond as shall be approved by the
governor, conditioned for the faithful discharge of his official duties,
and an oath of office, and both shall be filed with the secretary of
state.
(b) A budget committee consisting of five (5) regular members
and four (4) alternate members is established: One (1) regular
member is the budget director, while in office. The four (4)
remaining regular members must be legislators selected in the
following manner. Two (2) members must be senators appointed by
the president pro tempore of the senate, one (1) of whom shall be
nominated by the leader of the minority political party of the senate.
Two (2) members must be representatives appointed by the speaker
of the house of representatives, one (1) of whom shall be nominated
by the leader of the minority political party of the house of
representatives. Legislative appointments to the budget committee
shall be made within fifteen (15) days after the official selection of
the president pro tempore of the senate and the speaker of the house
of representatives. Each member appointed by the president pro
tempore of the senate and each member appointed by the speaker of
the house of representatives shall serve at the will and pleasure of his
respective appointing leadership or until his term as a member of the
general assembly expires, whichever is shorter. Vacancies occurring
in the legislative appointments to the budget committee shall be
filled for the unexpired term by the president pro tempore of the
senate or speaker of the house last elected in like manner as if
appointment to such vacant offices were being made originally.
Nominations shall be made by the persons above mentioned in this
section who were elected and selected at the last preceding session
of the general assembly. When there is no such legislative officer
entitled to fill vacancies, the governor shall fill such vacancies from
among members and members-elect of the senate and of the house of
representatives who are members of the same house and political
party as the vacating member. Any such appointee of the governor
shall serve for the unexpired term of the vacating member or until the
first day of the next session of the general assembly.
The four (4) alternate members of the budget committee must be
legislators selected in the manner described in this section for the
appointment of the four (4) regular legislative members of the budget
committee. An alternate member is entitled to participate in the
budget committee meetings in the same manner as the regular
members, except that he is entitled to vote only if the regular member
from his respective house and political party is not present for the
vote. The alternate members shall serve the same term of office as
the regular members of the budget committee.
(Formerly: Acts 1961, c.123, s.3.) As amended by Acts 1977, P.L.28,
SEC.3; P.L.3-1986, SEC.5.
IC 4-12-1-4
Deputy budget directors; staff members, assistants, employees, and
clerks; experts
Sec. 4. (a) Two (2) offices are hereby created in the budget agency
which shall be responsible to, and junior and subordinate to, the
budget director. The persons to fill such offices shall be appointed by
the governor to serve at his will and pleasure, shall not be adherents
of the same political party, shall receive the salary fixed by the
governor, shall give all of their time to the respective offices and to
the budget agency, and each shall be a deputy budget director. The
director shall designate the order in which such deputy directors shall
serve in the place and stead of the budget director in the event of his
disability or absence.
(b) The budget director is authorized to employ such staff
members, assistants, employees and clerks as he shall require to
discharge efficiently and economically the duties and functions and
rights and powers of the budget agency established hereby. Within
this authority the director may employ on a part time or advisory
basis the services of experts in the field of public revenue and public
finance and the administration thereof as such services are desirable
or necessary in the effective management and operation of the budget
agency and in the discharge of its duties and functions.
(c) Promptly upon the receipt of a request therefor from the
budget committee, the budget director shall provide such assistants,
employees, clerks and experts as are reasonably required to permit
prompt and efficient discharge of the duties and functions and work
of the budget committee. To the extent that assistants, employees,
clerks and experts ordinarily employed by the budget agency are
available and are not required by the budget agency to execute and
administer appropriations made by law, the budget director shall
utilize these persons to serve the budget committee.
(Formerly: Acts 1961, c.123, s.4.) As amended by Acts 1977, P.L.28,
SEC.4.
IC 4-12-1-5
Budget director, budget committee, deputy budget directors,
officers, and employees; qualifications; financial interest in
contracts and appropriations
Sec. 5. The budget director, and the members of the budget
committee, and the deputy budget directors, and other officers and
the employees of the budget agency shall be persons of known
probity and shall possess adequate capacity and training for the work
they are to do. No person shall be appointed budget director, or
deputy budget director, or a member of the budget committee, or
become an officer or employee of the budget agency who has any
contract pending with the state, either directly or indirectly, or who
shall be financially interested, directly or indirectly, in any
appropriation made by law or in any requested appropriation which
may come before the budget agency or the budget committee.
Persons may be appointed or employed as above notwithstanding the
foregoing limitations whose only financial interest in appropriations
is in those for personal service from which they are or will be paid
for service rendered under this chapter, or for service at any state
agency, or for both services.
(Formerly: Acts 1961, c.123, s.5.) As amended by Acts 1977, P.L.28,
SEC.5.
IC 4-12-1-6
State agencies; forms; reporting statistical data and information
for budget bill or report
Sec. 6. When requested so to do by the governor, or by the budget
director, other agencies of the state shall assist the budget agency in
the effective discharge of its duties and functions. Any such agency
shall employ its equipment and facilities to assist the budget agency
to prepare the data and information for a recommended or final
budget report and budget bill. The budget agency shall create and
prepare forms required for the administration of this chapter, and
forms necessary for machine accounting to permit accumulation of
statistical data and information required by the budget agency and
the budget committee. Every state agency, except the universities and
colleges, shall adopt such forms and reporting procedures as are
created and prepared by the budget agency for administration and
execution of appropriations made by law, when such forms and
procedures have been otherwise approved in the manner required by
law.
(Formerly: Acts 1961, c.123, s.6.) As amended by Acts 1977, P.L.28,
SEC.6.
IC 4-12-1-7
Statements of state agencies; filing; examination; recommendations
for budget report
Sec. 7. (a) On or before the first day of September, in any year
that the budget director makes a request under this chapter, each and
every state agency shall prepare and file with the budget agency on
forms designated by it a written statement, showing in detail the
following:
(1) The several amounts actually expended for the
administration, operation, maintenance and support of such
state agency for at least the two (2) fiscal years which ended
immediately preceding such first day of September, and the
several amounts estimated by such state agency to be actually
expended for the fiscal year to end on June 30 following the
next regular session of the general assembly; and the actual and
estimated income of such state agency for like periods.
(2) An estimate of the necessary expenditures of such state
agency for the proposed budget period as specified in the
budget director's request beginning on the first day of July of
the calendar year next succeeding the filing of such statement;
such estimates or requests for appropriations to defray the
estimated expenditures of such department shall be set forth
separately for each fiscal year; and the estimated income of
such state agency for like period.
(3) A written statement showing concisely the reasons for all
estimated expenditures and requests for appropriations
contemplated in the preceding subdivision (2), showing
particularly the reason for any requested increase or decrease
over former appropriations.
(4) Proposals for expenditures for new projects, special
purposes or objects, construction, additions, building,
improvements, undertakings or expansion of the work of any
state agency requiring additional expenditures and capital
outlays.
(5) Any other information related to the subject matter of the
preceding subdivisions of this subsection (a), or otherwise
required to effect the purposes of this chapter, to the extent the
budget agency or budget committee deems such information
necessary or required, including when requested, citations to
any statutes regulating, governing or providing for continuing
annual appropriations, fees or other sources of income.
(b) The budget agency shall examine such written statements and
review and analyze all of the information, data, estimates, requests
for appropriations and for other authorizations to spend state funds
as the several state agencies have prepared and filed them. As
promptly as possible the budget agency shall complete its
examination, review and analysis and shall prepare recommendations
for a budget report, and from time to time shall submit these to the
budget committee for its consideration at one of its meetings.
(Formerly: Acts 1961, c.123, s.7.) As amended by Acts 1977, P.L.28,
SEC.7.
IC 4-12-1-8
Estimates for budget report; investigation and examination of state
agencies; hearings by budget committee
Sec. 8. (a) In preparing the various estimates for the budget report,
the budget agency may require any state agency to prepare and file
with it additional or more detailed information and the director, or
any duly authorized employee of the budget agency, may enter and
investigate the operation of any state agency, and may examine its
records as authorized by the director. A written report of the
investigation and examination shall be prepared and filed in the
budget agency. The foregoing report shall be made available to the
budget committee for review and to aid in its determination of the
several amounts or estimates for appropriations the budget committee
may recommend for inclusion in the budget report and in the budget
bills prepared pursuant to the authority of this chapter.
(b) Upon its own initiative or at the request of any state agency,
the budget committee may arrange a hearing or hearings devoted to
any matter pertinent to the preparation of a budget report and budget
bill at which representatives of the interested state agency, or any
citizen, may appear and be heard. As allowed by the committee's
policies and procedures, general information and relevant and
material evidence, and explanation and argument may then be
presented to the budget committee members that will assist them in
the performance of their respective duties under this chapter.
(Formerly: Acts 1961, c.123, s.8.) As amended by Acts 1977, P.L.28,
SEC.8.
IC 4-12-1-9
Budget report; budget bill; governor's duties; distribution of copies
of bill; general assembly committee hearings
Sec. 9. (a) The budget agency shall assist the budget committee in
the preparation of the budget report and the budget bill, using the
recommendations and estimates prepared by the budget agency and
the information obtained through investigation and presented at
hearings. The budget committee shall consider the data, information,
recommendations and estimates before it and, to the extent that there
is agreement on items, matters and amounts between the budget
agency and a majority of the members of the budget committee, the
committee shall organize and assemble a budget report and a budget
bill or budget bills. In the event the budget agency and a majority of
the members of the budget committee shall differ upon any item,
matter, or amount to be included in such report and bills, the
recommendation of the budget agency shall be included in the budget
bill or bills, and the particular item, matter or amount, and the extent
of and reasons for the differences between the budget agency and the
budget committee shall be stated fully in the budget report. Before
the second Monday of January, in the year immediately after
preparation, the budget report and the budget bill or bills shall be
submitted to the governor by the budget committee. The governor
shall deliver to the house members of the budget committee such bill
or bills for introduction into the house of representatives.
(b) Whenever during the period beginning thirty (30) days prior
to a regular session of the general assembly the budget report and
budget bill or bills have been completed and printed and are available
for distribution, upon the request of a member of the general
assembly an informal distribution of one (1) copy of each such
document shall be made by the budget committee to such members.
During business hours, and as may be otherwise required during
sessions of the general assembly, the budget agency shall make
available to the members of the general assembly so much as they
shall require of its accumulated staff information, analyses and
reports concerning the fiscal affairs of the state and the current
budget report and budget bill or bills.
(c) The budget report shall include at least the following five (5)
parts;
(1) A statement of budget policy, including but not limited to
recommendations with reference to the fiscal policy of the state
for the coming budget period, and describing the important
features of the budget.
(2) A general budget summary setting forth the aggregate
figures of the budget to show the total proposed expenditures
and the total anticipated income, and the surplus or deficit.
(3) The detailed data on actual receipts and expenditures for the
previous fiscal year or two (2) fiscal years depending upon the
length of the budget period for which the budget bill or bills is
proposed, the estimated receipts and expenditures for the
current year, and for the ensuing budget period, and the
anticipated balances at the end of the current fiscal year and the
ensuing budget period. Such data shall be supplemented with
necessary explanatory schedules and statements, including a
statement of any differences between the recommendations of
the budget agency and of the budget committee.
(4) A description of the capital improvement program for the
state and an explanation of its relation to the budget.
(5) The budget bills.
(d) The budget report shall cover and include all special and
dedicated revenue funds as well as the general revenue fund and shall
include the estimated amounts of federal aids, for whatever purpose
provided, together with estimated expenditures therefrom.
(e) The budget agency shall furnish the governor with any further
information required concerning the budget, and upon request shall
attend hearings of committees of the general assembly on the budget
bills.
(Formerly: Acts 1961, c.123, s.9; Acts 1967, c.96, s.1.) As amended
by Acts 1977, P.L.28, SEC.9.
IC 4-12-1-10
Budget committee; meetings; time
Sec. 10. The budget committee shall meet at least once during the
two (2) months period after adjournment of each regular session of
the general assembly sine die, except that beginning with July the
committee shall meet at least once each month, and upon call of the
chairman. The committee shall fix the time and place for such
meetings.
(Formerly: Acts 1961, c.123, s.10.) As amended by Acts 1977,
P.L.28, SEC.10.
IC 4-12-1-11
Budget committee; functions; compensation
Sec. 11. (a) In addition to cooperating in the preparation of a
recommended budget report and budget bill as herein provided, the
chief functions of the budget committee shall be to serve as liaison
between the legislative and executive, including the administrative
branches of government, and to provide information to the general
assembly with respect to the management of state fiscal affairs so
that it may have a better insight into the budgetary and appropriation
needs of the various state agencies. To perform such functions the
budget committee may:
(1) Select a chairman and such other officers as the members
desire, and hold meetings at stated intervals, and on call of the
chairman.
(2) Make such policies and procedures concerning its
organization and operation as are deemed advisable but
IC 4-22-2 shall not apply thereto.
(3) Have access to all files, information gathered and reports of
the budget agency.
(4) Inspect any state agency in order to obtain accurate
information concerning its budgetary needs and fiscal
management, and examine all of its records and books of
account.
(5) Subpoena witnesses and records, examine witnesses under
oath, hold hearings, and exercise all the inherent powers of an
interim legislative committee for study of budgetary affairs and
fiscal management.
(6) Attend meetings of appropriate committees of the general
assembly and furnish it with information and advice.
(7) Make such general or special reports to the budget agency
and to the general assembly as are deemed advisable. A report
to the general assembly under this subdivision must be in an
electronic format under IC 5-14-6.
(b) The salary per diem of the legislative members of the budget
committee is seventy dollars ($70) per day each for the time
necessarily employed in the performance of their duties, and as
provided by law all necessary traveling and hotel expenses, in
addition to their legislative salary and legislative expense allowance,
fixed by law as members of the general assembly. However, the
salary per diem provided in this section is in lieu of any other per
diem allowances available for the same day to legislative members
of the budget committee in their capacity as members of other
legislative committees or commissions.
(Formerly: Acts 1961, c.123, s.11.) As amended by Acts 1977,
P.L.28, SEC.11; P.L.28-2004, SEC.35.
IC 4-12-1-11.5
Agency action requiring budget committee review; placement on
committee agenda
Sec. 11.5. For purposes of any statute that requires budget
committee review before an action may be taken by a state agency or
other entity, budget committee review is considered to have taken
place when the action requiring review has been included on an
approved agenda of the budget committee in the part of the agenda
concerning review items.
As added by P.L.224-2003, SEC.278.
IC 4-12-1-12
Appropriation lists; allotment system; transfer; emergency or
contingency appropriations
Sec. 12. (a) Within forty-five (45) days following the adjournment
of the regular session of the general assembly, the budget agency
shall examine the acts of such general assembly and, with the aid of
its own records and those of the budget committee, shall prepare a
complete list of all appropriations made by law for the budget period
beginning on July 1 following such regular session, or so made for
such other period as is provided in the appropriation. While such list
is being made by it the budget agency shall review and analyze the
fiscal status and affairs of the state as affected by such
appropriations. A written report thereof shall be made and signed by
the budget director and shall be transmitted to the governor and the
auditor of state. The report shall be transmitted in an electronic
format under IC 5-14-6 to the general assembly.
(b) Not later than the first day of June of each calendar year, the
budget agency shall prepare a list of all appropriations made by law
for expenditure or encumbrance during the fiscal year beginning on
the first day of July of that calendar year.
(c) Within sixty (60) days following the adjournment of any
special session of the general assembly, or within such shorter period
as the circumstances may require, the budget agency shall prepare for
and transmit to the governor and members of the general assembly
and the auditor of state, like information and a list of sums
appropriated, all as is done upon the adjournment of a regular
session, pursuant to subsections (a) and (b) of this section to the
extent the same are applicable. The budget agency shall transmit any
information under this subsection to the general assembly in an
electronic format under IC 5-14-6.
(d) The budget agency shall administer the allotment system
provided in IC 4-13-2-18.
(e) The budget agency may transfer, assign, and reassign any
appropriation or appropriations, or parts of them, excepting those
appropriations made to the Indiana state teacher's retirement fund
established by IC 5-10.4-2, made for one specific use or purpose to
another use or purpose of the agency of state to which the
appropriation is made, but only when the uses and purposes to which
the funds transferred, assigned and reassigned are uses and purposes
the agency of state is by law required or authorized to perform. No
transfer may be made as in this subsection authorized unless upon the
request of and with the consent of the agency of state whose
appropriations are involved. Except to the extent otherwise
specifically provided, every appropriation made and hereafter made
and provided, for any specific use or purpose of an agency of the
state is and shall be construed to be an appropriation to the agency,
for all other necessary and lawful uses and purposes of the agency,
subject to the aforesaid request and consent of the agency and
concurrence of the budget agency.
(f) One (1) or more emergency or contingency appropriations for
each fiscal year or for the budget period may be made to the budget
agency. Such appropriations shall be in amounts definitely fixed by
law, or ascertainable or determinable according to a formula, or
according to appropriate provisions of law taking into account the
revenues and income of the agency of state. No transfer shall be
made from any such appropriation to the regular appropriation of an
agency of the state except upon an order of the budget agency made
pursuant to the authority vested in it hereby or otherwise vested in it
by law.
(Formerly: Acts 1961, c.123, s.12; Acts 1972, P.L.31, SEC.1.) As
amended by Acts 1977, P.L.28, SEC.12; P.L.28-2004, SEC.36;
P.L.2-2006, SEC.6; P.L.146-2008, SEC.13.
IC 4-12-1-12.5
"Block grant" defined; transfers of funds
Sec. 12.5. (a) As used in this section, "block grant" means a block
grant established by the federal Omnibus Budget Reconciliation Act
of 1981 (P.L. 97-35).
(b) The governor may transfer funds between block grants only in
an amount authorized by state law.
As added by Acts 1982, P.L.21, SEC.2.
IC 4-12-1-13
Inspections of state institutions; compensation of state employees;
review by budget agency; collective bargaining
Sec. 13. (a) During the interval between sessions of the general
assembly, the budget agency shall make regular or, at the request of
the governor, special inspections of the respective institutions of the
state supported by public funds. The budget agency shall report
regularly to the governor relative to the physical condition of such
institutions, and any contemplated action of the institution on a new
or important matter, and on any other subject which such agency may
deem pertinent or on which the governor may require information.
The budget agency shall likewise familiarize itself with the best and
approved practices in each of such institutions and supply such
information to other institutions to make their operation more
efficient and economical.
(b) Except as to officers and employees of state educational
institutions, the executive secretary of the governor, the
administrative assistants to the governor, the elected officials, and
persons whose salaries or compensation are fixed by the governor
pursuant to law, the annual compensation of all persons employed by
agencies of the state shall be subject to the approval of the budget
agency. Except as otherwise provided by IC 4-15-1.8 and IC 4-15-2,
the budget agency shall establish classifications and schedules for
fixing compensation, salaries and wages of all classes and types of
employees of any state agency or state agencies, and any and all
other such classifications affecting compensation as the budget
agency shall deem necessary or desirable. The classifications and
schedules thus established shall be filed in the office of the budget
agency. Requests by an appointing authority for salary and wage
adjustments or personal service payments coming within such
classifications and schedules shall become effective when approved
by, and upon the terms of approval fixed by, the budget agency. All
personnel requests pertaining to the staffing of programs or agencies
supported in whole or in part by federal funds are subject to review
and approval by the state personnel department under IC 4-15-1.8
and IC 4-15-2.
(c) The budget agency shall review and approve, for the
sufficiency of funds, all payments for personal services which are
submitted to the auditor of state for payment.
(d) The budget agency shall review all contracts for personal
services or other services and no contract for personal services or
other services may be entered into by any agency of the state before
the written approval of the budget agency is given. Each demand for
payment submitted by an agency to the auditor of state under these
contracts must be accompanied by a copy of the budget agency
approval. No payment may be made by the auditor of state without
such approval. However, this subsection does not apply to a contract
entered into by:
(1) a state educational institution; or
(2) an agency of the state if the contract is not required to be
approved by the budget agency under IC 4-13-2-14.1.
(e) The budget agency shall review and approve the policy and
procedures governing travel prepared by the department of
administration under IC 4-13-1, before the travel policies and
procedures are distributed.
(f) The budget agency is responsible for reviewing and advising
the governor, as chief executive of the state, or the governor's
designee, as to whether any agreement reached pursuant to public
employee collective bargaining as provided by statute, other than
IC 20-29, is within the money legally available to the state as an
employer.
(g) The budget director, or the director's designee, may serve as
a member of the negotiating team selected to represent the state as an
employer in the public employee collective bargaining procedure
pursuant to statute, other than IC 20-29.
(h) The budget agency may adopt such policies and procedures
not inconsistent with law as it may deem advisable to facilitate and
carry out the powers and duties of the agency, including the
execution and administration of all appropriations made by law.
IC 4-22-2 does not apply to these policies and procedures.
(Formerly: Acts 1961, c.123, s.13; Acts 1971, P.L.25, SEC.1.) As
amended by Acts 1977, P.L.28, SEC.13; P.L.3-1989, SEC.17;
P.L.26-1989, SEC.1; P.L.1-2005, SEC.58; P.L.2-2007, SEC.28.
IC 4-12-1-13.5
Determination and certification of state agency costs;
appropriation from dedicated funds
Sec. 13.5. (a) The budget director may determine on or after July
1 of each fiscal year the costs of operating, during the preceding
fiscal year, the office of the auditor of state, the office of attorney
general, the office of the treasurer of state, the department of
administration, the state budget agency and any other state agency
that the budget director determines is attributable to the operations
of other state agencies. The budget director shall establish a formula
to determine those costs.
(b) When the budget director has determined the total attributable
amount of those costs for each of the state agencies, he shall certify
those amounts to the auditor of state and shall transmit a duplicate of
the certification to the treasurer of state.
(c) The amount certified by the budget director for an agency
supported by any dedicated fund is appropriated to pay that cost from
the dedicated fund used to support that agency. On receipt of the
certification of the budget director, the auditor of state shall transfer
from the dedicated funds to the state general fund the amounts
certified by the budget director. The auditor of state shall make the
appropriate entries in the records of those dedicated funds. The
treasurer of state shall make the appropriate entries in his records.
As added by Acts 1977, P.L.27, SEC.2. Amended by P.L.18-1991,
SEC.2.
IC 4-12-1-14
Federal aid programs; federal aid management division; creation
Sec. 14. (a) It is the legislative intent of this section that the state
of Indiana participate in federal aid programs to the extent that it is
in the state's interest to so participate. In order that the governor and
the general assembly be enabled to make informed decisions about
federal aid programs and that efficient and effective administration
of these programs may take place, a federal aid management division
is established within the state budget agency.
(b) There is created within the budget agency the federal aid
management division. The division shall have the following powers
and duties:
(1) To periodically inform the governor and the general
assembly of pending and enacted federal aid legislation
affecting the state.
(2) To evaluate new federal aid programs as they become
operative, to periodically inform the governor and the general
assembly of the existence of such programs, and of conditions
which must be met by the state of Indiana for acceptance of
such programs, to include any necessary enabling legislation.
(3) To review and approve all information as requested by the
budget director, including but not limited to applications for
federal funds and state plans, which shall be submitted to it by
all state agencies, except in the case of universities or colleges
supported in whole or in part by state funds which are otherwise
provided for in this clause, before submission of the
information to the proper federal authority. Each regular session
of the general assembly shall be furnished the names of any
state agencies that fail to comply with the instructions of the
budget agency and budget committee. For universities and
colleges supported in whole or in part by state funds, the state
budget agency shall review and either approve or disapprove
any program application which exceeds one hundred thousand
dollars ($100,000) and all construction grant requests. Program
applications which do not exceed one hundred thousand dollars
($100,000) do not require review or approval by the state
budget agency, but a copy of those applications shall be
forwarded to the state budget agency for informational purposes
only.
A program application which exceeds one hundred thousand
dollars ($100,000) may be submitted to the proper federal funding
authority, before the application has been approved by the state
budget agency, but the funds may not be spent until after the state
budget agency has given its approval.
All construction grant requests must be reviewed and approved by
the state budget agency before submission to the federal funding
authority.
(4) To compile and analyze data received from state and local
governments and agencies accepting federal aid, and
periodically report on the same to the governor and the general
assembly.
(5) To periodically report to the governor and the general
assembly as to administrative or other problems caused by
acceptance and operation of federal aid programs on both state
and local levels, and to make recommendations for the
alleviation of the same. A report under this subdivision to the
general assembly must be in an electronic format under
IC 5-14-6.
(6) To maintain an information system on federal aid programs.
(7) To assist, at the discretion of the governor, in the
coordination of broad federal programs administered by more
than one (1) state agency.
(8) To serve at the governor's designation as the state clearing
house under the United States office of management and budget
circular A-95, revised.
(9) To prepare and administer an indirect cost allocation plan
for the state of Indiana.
(10) To perform such tasks related to the above powers and
duties as may be required by the governor.
(c) Staff members and other employees of the federal aid
management division shall be appointed in the same manner
prescribed by law for selection of other personnel of the budget
agency. The governor may, at the governor's discretion, appoint a
chief of the federal aid management division.
(Formerly: Acts 1961, c.123, s.13a; Acts 1969, c.383, s.1.) As
amended by Acts 1977, P.L.28, SEC.14; P.L.28-2004, SEC.37.
IC 4-12-1-14.1
Federal aid programs; transfer of appropriations between involved
state agencies
Sec. 14.1. For federal aid programs that involve more than one (1)
state agency, the budget agency may transfer, assign, and reassign
any part of any appropriation made for the federal aid program from
a state agency involved in the federal aid program to another state
agency involved. However, this transfer may only be made if the uses
and purposes to which any part of the appropriation may be
transferred, assigned, or reassigned are uses and purposes of the
federal aid program involved.
As added by Acts 1977, P.L.27, SEC.3. Amended by P.L.3-1990,
SEC.16.
IC 4-12-1-14.2
Oil overcharge funds; appropriation to division of family
resources; amount
Sec. 14.2. Notwithstanding any other law, all oil overcharge funds
received from the federal government are annually appropriated to
the lieutenant governor for the lieutenant governor's use in carrying
out the home energy assistance program. The amount of this annual
appropriation for a state fiscal year is equal to:
(1) the total amount necessary to carry out the program during
that fiscal year; minus
(2) the amount of federal low income energy assistance funds
available for the program during that state fiscal year.
As added by P.L.17-1990, SEC.1. Amended by P.L.2-1992, SEC.30;
P.L.145-2006, SEC.4; P.L.181-2006, SEC.15; P.L.1-2010, SEC.6.
IC 4-12-1-14.3
Tobacco master settlement agreement fund
Sec. 14.3. (a) As used in this section, "master settlement
agreement" has the meaning set forth in IC 24-3-3-6.
(b) There is hereby created the Indiana tobacco master settlement
agreement fund for the purpose of depositing and distributing money
received under the master settlement agreement. The fund consists
of:
(1) all money received by the state under the master settlement
agreement;
(2) appropriations made to the fund by the general assembly;
and
(3) grants, gifts, and donations intended for deposit in the fund.
(c) The fund shall be administered by the budget agency.
Notwithstanding IC 5-13, the treasurer of state shall invest the money
in the fund not currently needed to meet the obligations of the fund
in the same manner as money is invested by the public employees
retirement fund under IC 5-10.3-5. The treasurer of state may
contract with investment management professionals, investment
advisors, and legal counsel to assist in the investment of the fund and
may pay the state expenses incurred under those contracts from the
fund. Interest that accrues from these investments shall be deposited
in the fund. Money in the fund at the end of the state fiscal year does
not revert to the state general fund.
(d) The state general fund is not liable for payment of a shortfall
in expenditures, transfers, or distributions from the Indiana tobacco
master settlement agreement fund or any other fund due to a delay,
reduction, or cancellation of payments scheduled to be received by
the state under the master settlement agreement. If such a shortfall
occurs in any state fiscal year, the budget agency shall make the full
transfer to the regional health facilities construction account and then
reduce all remaining expenditures, transfers, and distributions
affected by the shortfall.
As added by P.L.273-1999, SEC.232. Amended by P.L.21-2000,
SEC.1; P.L.291-2001, SEC.52; P.L.224-2003, SEC.117.
IC 4-12-1-15
Emergency or contingency appropriations; standards for
allocation
Sec. 15. (a) In the absence of other directions, purposes or
standards specifically imposed therein, or otherwise fixed by law, an
emergency or contingency appropriation to the budget agency which
is general and unrelated to any specific agency of the state shall be
for the general use, respectively, of any agency of the state, shall be
for its emergency or contingency purposes or needs, as the budget
agency, in each situation, shall determine and shall fix the amount to
transfer, and shall order transfer thereof from such appropriation to
the agency of state relieved thereby. From such emergency or
contingency appropriations, the budget agency is hereby empowered
to make and order allocations and transfers to, and to authorize
expenditures by, the various agencies of the state to achieve the
purposes, or meet the needs, circumstances and standards following,
namely:
(1) Necessary expenditures for the preservation of public
health, and for the protection of persons and property which
were not foreseen when the appropriations were made by the
previous general assembly.
(2) Repair of damage to, or replacement of, any building or
equipment owned by the state or by any agency of the state
which has been so damaged as to materially affect the public
safety or utility thereof, or which has been destroyed, if such is
necessary to discharge the functions of the state or of any
agency of the state, and if such damage or loss was caused by
sabotage, fire, flood, wind, war, catastrophe or disaster.
(3) Repair of damage to, or replacement of, any building or
equipment owned by the state or by an agency of the state
which has so depreciated or deteriorated or suffered
obsolescence as to become unusable, but is required in the
discharge of necessary functions of the state or of an agency of
the state, and if such depreciation, deterioration or obsolescence
was not foreseen at the time appropriations were made by the
previous general assembly.
(4) Emergencies resulting from increase of costs or any other
factor or event unforeseen at the time appropriations were made
which render insufficient the appropriated funds for food,
clothing, maintenance or medical care necessary for the
operation of any state institution.
(5) Emergencies resulting from increase in costs or any other
factor or event unforeseen at the time appropriations were made
which render insufficient the appropriated funds for the cost of
instruction or other costs of operation of any of the state
educational institutions.
(6) In addition to and without limitation by the foregoing,
supplementation of an exhausted fund or account of any state
agency, whatever the cause of such exhaustion, if such is found
necessary to accomplish the orderly administration of such state
agency, or the accomplishment of an existing specific state
project. However, it shall be an express condition of any such
supplementation, that the funds shall not serve to authorize a
purpose or purposes which were included in the budget bill, or
budget bills, to the previous general assembly but were wholly
omitted or excluded from appropriations made by the general
assembly.
The provisions of this section shall not change, impair or destroy any
fund previously created, nor be deemed to affect the administration
of any contingency or emergency appropriations made for specific
purposes.
(b) If in the administration of any contingency or emergency
appropriation made to the budget agency, it should appear that the
allocation by the budget agency of funds to any designated other
agency of the state for expenditure is illegal then such appropriation
or fund may, consistent with the provisions of such contingency or
emergency appropriations and with the approval of the governor, be
expended for and on behalf of any other agency of the state by the
budget agency pursuant to the standards set forth in this section. No
provisions in this section are intended to conflict or interfere with the
powers and duties of the state board of finance.
(Formerly: Acts 1961, c.123, s.14.) As amended by Acts 1977,
P.L.28, SEC.15; P.L.2-2007, SEC.29.
IC 4-12-1-15.5
Medicaid contingency and reserve account
Sec. 15.5. (a) The Medicaid contingency and reserve account is
established within the state general fund for the purpose of providing
money for timely payment of Medicaid claims, obligations, and
liabilities. Money in the account must be used to pay Medicaid
claims, obligations, and liabilities. The account shall be administered
by the budget agency.
(b) Expenses of administering the account shall be paid from
money in the account. The account consists of the following:
(1) Appropriations to the account.
(2) Other Medicaid appropriations transferred to the account
with the approval of the governor and the budget agency.
(c) The treasurer of state shall invest the money in the account not
currently needed to meet the obligations of the account in the same
manner as other public money may be invested.
(d) Money in the account at the end of a state fiscal year does not
revert.
As added by P.L.340-1995, SEC.38.
IC 4-12-1-15.7
State tuition reserve fund
Sec. 15.7. (a) As used in this section, "fund" refers to the state
tuition reserve fund.
(b) The state tuition reserve fund is established for the following
purposes:
(1) To fund a tuition support distribution under IC 20-43
whenever the budget director determines that state general fund
cash balances are insufficient to cover the distribution.
(2) To meet revenue shortfalls whenever the budget director,
after review by the budget committee, determines that state tax
revenues available for deposit in the state general fund will be
insufficient to fully fund tuition support distributions under
IC 20-43 in any particular state fiscal year.
(c) The fund consists of the following:
(1) Money appropriated to the fund by the general assembly.
(2) Money transferred to the fund under any law.
(3) Interest earned on the balance of the fund.
(d) The treasurer of state shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public money may be invested. Interest that accrues
from these investments shall be deposited in the fund.
(e) Money in the fund at the end of a state fiscal year does not
revert for any other purpose of the state general fund.
(f) The budget agency shall administer the fund. Whenever the
budget director makes a determination under subsection (b)(1) or
(b)(2), the budget agency shall notify the auditor of state of the
amount from the fund to be used for state tuition support
distributions. The auditor of state shall transfer the amount from the
fund to the state general fund. The amount transferred may be used
only for the purposes of making state tuition support distributions
under IC 20-43. If the amount is transferred under subsection (b)(1),
the amount shall be repaid to the fund from the state general fund
before the end of the state fiscal year in which the transfer is made.
As added by P.L.146-2008, SEC.14.
IC 4-12-1-16
Transfer of powers and duties
Sec. 16. Wherever in any existing law not expressly repealed by
Acts 1961, c. 123 and not inconsistent herewith references are made
to the budget committee, the state budget committee, the budget
director, the director of the budget, secretary of the budget
committee, or the division of the budget, all of such references shall
be deemed to mean and refer to the budget agency created by this
chapter. All powers, duties and appropriations of any of the above
named agencies contained in any existing law or laws which are not
expressly repealed in Acts 1961, c. 123 and are not inconsistent with
this chapter, including but not limited to the allotment duties referred
to herein and hereby imposed on the budget agency, are hereby
transferred to the budget agency the same as if those powers and
duties had been expressly enumerated in this chapter.
(Formerly: Acts 1961, c.123, s.15.) As amended by Acts 1977,
P.L.28, SEC.16.
IC 4-12-1-17
Repealed
(Repealed by P.L.1-1989, SEC.75.)
IC 4-12-1-18
Appropriation and allotment of federal funds to instrumentalities
Sec. 18. Federal funds received by an instrumentality are
appropriated for purposes specified by the federal government,
subject to allotment by the budget agency. The provisions of this
chapter and other laws concerning the acceptance, disbursement,
review, and approval of grants, loans, and gifts made by the federal
government or any other source to the state or its agencies apply to
instrumentalities.
As added by P.L.246-2005, SEC.40.