House Study Bill 221 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED GOVERNOR’S BILL) A BILL FOR An Act establishing a state biennial appropriations process and 1 including effective and applicability date provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2687XL (4) 84 jp/rj

S.F. _____ H.F. _____ Section 1. Section 2.12, unnumbered paragraph 4, Code 2011, 1 is amended to read as follows: 2 There is appropriated out of any funds in the state treasury 3 not otherwise appropriated such sums as may be necessary for 4 the fiscal year biennium budgets of the legislative services 5 agency and the citizens’ aide office for salaries, support, 6 maintenance, and miscellaneous purposes to carry out their 7 statutory responsibilities. The legislative services agency 8 and the citizens’ aide office shall submit their proposed 9 budgets for the two years of the fiscal biennium to the 10 legislative council not later than September October 1 of 11 each the year preceding the first regular session of the 12 general assembly . The legislative council shall review and 13 approve the proposed budgets not later than December 1 of each 14 the year preceding the first regular session of a general 15 assembly . The budget approved by the legislative council 16 for each of its statutory legislative agencies shall be 17 transmitted by the legislative council to the department of 18 management on or before December 1 of each the year preceding 19 the first regular session of a general assembly for the fiscal 20 year biennium beginning July 1 of the following year. The 21 department of management shall submit the approved budgets 22 received from the legislative council to the governor for 23 inclusion in the governor’s proposed budget for the succeeding 24 fiscal year. The approved budgets shall be submitted to the 25 department of management in the form specified for budget 26 submissions pursuant to section 8.23. The approved budgets 27 shall also be submitted to the chairpersons of the committees 28 on appropriations. The committees on appropriations may 29 allocate from the funds appropriated by this section the funds 30 contained in the approved budgets, or such other amounts as 31 specified, pursuant to a concurrent resolution to be approved 32 by both houses of the general assembly. The director of the 33 department of administrative services shall issue warrants for 34 salaries, support, maintenance, and miscellaneous purposes 35 -1- LSB 2687XL (4) 84 jp/rj 1/ 24

S.F. _____ H.F. _____ upon requisition by the administrative head of each statutory 1 legislative agency. If the legislative council elects to 2 change the approved budget for a legislative agency prior to 3 July 1, the legislative council shall transmit the amount of 4 the budget revision to the department of management prior to 5 July 1 of the fiscal year, however, if the general assembly 6 approved the budget it cannot be changed except pursuant to a 7 concurrent resolution approved by the general assembly. 8 Sec. 2. NEW SECTION . 2.12B Fiscal biennium —— 9 appropriations. 10 1. In the first year of each general assembly the general 11 assembly shall enact appropriations for each fiscal year of 12 the ensuing fiscal biennium. An appropriation shall indicate 13 the source from which the appropriation shall be paid. An 14 appropriation need not be in greater detail than to indicate 15 the total appropriation to be made for both of the following: 16 a. Administration, operation, and maintenance of each 17 department and establishment, as defined in section 8.2, for 18 each fiscal year of a fiscal biennium. 19 b. The cost of land, public improvements, and other capital 20 outlays for each department and establishment, itemized by 21 specific projects or classes of projects of the same general 22 character. 23 2. The general assembly may enact appropriation bills for 24 the second year of a fiscal biennium providing for supplemental 25 appropriations to or appropriation reductions from the 26 previously enacted fiscal biennium budget. 27 Sec. 3. Section 8.6, subsection 2, Code 2011, is amended to 28 read as follows: 29 2. Report of standing appropriations. To annually 30 biennially prepare a separate report containing a complete 31 list of all standing appropriations showing the amount of each 32 appropriation and the purpose for which the appropriation is 33 made and furnish a copy of the report to each member of the 34 general assembly on or before the first day of each the first 35 -2- LSB 2687XL (4) 84 jp/rj 2/ 24

S.F. _____ H.F. _____ regular session of a new general assembly . 1 Sec. 4. Section 8.6, subsection 13, Code 2011, is amended 2 to read as follows: 3 13. Capital project budgeting requests. To biennially 4 compile annually all capital project budgeting requests of all 5 state agencies, as defined in section 8.3A , and to consolidate 6 the requests, with individual state agency priorities noted, 7 into a report for submission with the budget documents by the 8 governor pursuant to section 8.22 . Any additional information 9 regarding the capital project budgeting requests or priorities 10 shall be compiled and submitted in the same report. Any 11 changes to biennial capital project appropriations deemed to be 12 appropriate by the director shall be submitted to the governor 13 for inclusion in the budget documents submitted by the governor 14 to the general assembly for consideration in the second year of 15 a legislative biennium. 16 Sec. 5. Section 8.21, Code 2011, is amended to read as 17 follows: 18 8.21 Budget transmitted. 19 1. Not later than February 1 of the first regular session of 20 each legislative session general assembly , the governor shall 21 transmit to the legislature general assembly a document to 22 be known as a budget, setting forth the governor’s financial 23 program for each of the fiscal years of the ensuing fiscal 24 year biennium and having the character and scope set forth in 25 sections 8.22 through 8.29 . 26 2. If the governor is required to use a lesser amount in 27 the budget process because of a later meeting of the state 28 revenue estimating conference under section 8.22A, subsection 29 3 , the governor shall transmit recommendations for a budget in 30 conformance with that requirement within fourteen days of the 31 later meeting of the state revenue estimating conference. 32 3. If the governor is required under section 8.22A, 33 subsection 3, and section 8.54, subsection 2, to use a 34 different amount in the budget process for the second year of 35 -3- LSB 2687XL (4) 84 jp/rj 3/ 24

S.F. _____ H.F. _____ a fiscal biennium because the revenue estimating conference 1 agrees to a different estimate for the second fiscal year than 2 was used in the initial budget process for that fiscal year 3 and the state general fund expenditure limitation for that 4 fiscal year is readjusted, the governor shall transmit to the 5 general assembly recommendations for revisions in revenue 6 provisions and appropriations as necessary so that the budget 7 for the second year of the fiscal biennium does not exceed the 8 readjusted state general fund expenditure limitation. The 9 recommendations for revisions shall be transmitted not later 10 than February 1 of the second regular session of the general 11 assembly. 12 Sec. 6. Section 8.22, Code 2011, is amended to read as 13 follows: 14 8.22 Nature and contents of budget. 15 The budget shall consist of four parts, the nature and 16 contents of which shall be as follows: 17 1. Part I —— Governor’s budget message. 18 a. Part I shall consist of the governor’s budget message, in 19 which the governor shall set forth: 20 (1) (a) The governor’s program for meeting all the 21 expenditure needs of the government for the each of the fiscal 22 years of the ensuing fiscal year biennium , indicating the 23 classes of funds, general or special, from which appropriations 24 are to be made and the means through which the expenditures 25 shall be financed. 26 (b) The governor’s program shall include a single budget 27 request for all capital projects proposed by the governor. The 28 request shall include but is not limited to the following: 29 (i) The purpose and need for each capital project. 30 (ii) A priority listing of capital projects. 31 (iii) The costs of acquisition, lease, construction, 32 renovation, or demolition of each capital project. 33 (iv) The identification of the means and source of funding 34 of each capital project. 35 -4- LSB 2687XL (4) 84 jp/rj 4/ 24

S.F. _____ H.F. _____ (v) The estimated operating costs of each capital project 1 after completion. 2 (vi) The estimated maintenance costs of each capital 3 project after completion. 4 (vii) The consequences of delaying or abandoning each 5 capital project. 6 (viii) Alternative approaches to meeting the purpose or 7 need for each capital project. 8 (ix) Alternative financing mechanisms. 9 (x) A cost-benefit analysis or economic impact of each 10 capital project. 11 b. (1) Financial statements giving in summary form: 12 (a) The condition of the treasury at the end of the last 13 completed fiscal year, the estimated condition of the treasury 14 at the end of the year in progress, and the estimated condition 15 of the treasury at the end of each of the following fiscal year 16 fiscal years of the ensuing fiscal biennium if the governor’s 17 budget proposals are put into effect. 18 (b) Statements showing the bonded indebtedness of the 19 government, debt authorized and unissued, debt redemption and 20 interest requirements, and condition of the sinking funds, if 21 any. 22 (c) A summary of appropriations recommended for each 23 of the following fiscal year fiscal years of the ensuing 24 fiscal biennium for each department and establishment and 25 for the government as a whole, in comparison with the actual 26 expenditures for the last completed fiscal year and the 27 estimated expenditures for the year in progress. 28 (d) A summary of the revenue, estimated to be received 29 by the government during each of the fiscal years of the 30 following ensuing fiscal year biennium , classified according to 31 sources, in comparison with the actual revenue received by the 32 government during the last completed fiscal year and estimated 33 income during the year in progress. 34 (e) A statement of federal funds received in the form 35 -5- LSB 2687XL (4) 84 jp/rj 5/ 24

S.F. _____ H.F. _____ of block or categorical grants which were not included in 1 the governor’s budget for the previous fiscal year biennium 2 in progress and a statement of anticipated block grants and 3 categorical grants for each of the fiscal years of the ensuing 4 fiscal biennium . The budget shall indicate how the federal 5 funds will be used and the programs to which they will be 6 allocated. The amount of state funds required to implement 7 the programs to which the federal funds will apply shall also 8 be indicated. The departments shall provide information to 9 the director on the anticipated federal block grants and 10 categorical grants to be received on or before November 1 of 11 each year. The director shall use this information to develop 12 an annual update of the statement of federal funds received 13 which shall be provided to the general assembly. 14 (f) Other financial statements, data, and comments as in 15 the governor’s opinion are necessary or desirable in order to 16 make known in all practicable detail the financial condition 17 and operation of the government and the effect that each of the 18 fiscal years of the biennial budget as proposed by the governor 19 will have on the financial condition and operation. 20 (2) If the estimated revenues of the government for the 21 ensuing fiscal year biennium as set forth in the budget on the 22 basis of existing laws, plus the estimated amounts balances 23 in the treasury at the close of the year fiscal biennium in 24 progress, available for expenditure in the ensuing fiscal year 25 biennium are less than the aggregate recommended appropriations 26 for the ensuing fiscal year biennium as contained in the 27 budget, the governor shall make recommendations to the 28 legislature general assembly in respect to the manner in 29 which the deficit shall be met, whether by an increase in the 30 state tax or the imposition of new taxes, increased rates on 31 existing taxes, or otherwise, and if the aggregate of the 32 estimated revenues, plus estimated balances in the treasury, 33 is greater than the recommended appropriations for each year 34 of the ensuing fiscal year biennium , the governor shall make 35 -6- LSB 2687XL (4) 84 jp/rj 6/ 24

S.F. _____ H.F. _____ recommendations in reference to the application of the surplus 1 to the reduction of debt or otherwise, to the reduction in 2 taxation, or to such other action as in the governor’s opinion 3 is in the interest of the public welfare. 4 2. Part II —— Recommended appropriations. 5 a. Part II shall present in detail for each year of the 6 ensuing fiscal year biennium the governor’s recommendations 7 for appropriations to meet the expenditure needs of the 8 government from each general class of funds, in comparison with 9 actual expenditures for each of the purposes during the last 10 completed fiscal year and estimated expenditures for the year 11 in progress, classified by departments and establishments and 12 indicating for each the appropriations recommended for: 13 (1) Meeting the cost of administration, operation, and 14 maintenance of the departments and establishments. 15 (2) Appropriations for meeting the cost of land, public 16 improvements, and other capital outlays in connection with the 17 departments and establishments. 18 b. Each item of expenditure, actual or estimated, and 19 appropriations recommended for administration, operation, 20 and maintenance of each department or establishment shall 21 be supported by detailed statements showing the actual and 22 estimated expenditures and appropriations classified by 23 objects according to a standard scheme of classification to be 24 prescribed by the director. 25 3. Part III —— Appropriation bills. Part III shall 26 include a draft or drafts of appropriation bills having for 27 their purpose to give legal sanction to the appropriations 28 recommended to be made in parts I and II. The appropriation 29 bills shall indicate the funds, general or special, from which 30 the appropriations shall be paid, but the appropriations 31 need not be in greater detail than to indicate the total 32 appropriation to be made for both of the following : 33 a. Administration, operation, and maintenance of each 34 department and establishment for each year of the fiscal year 35 -7- LSB 2687XL (4) 84 jp/rj 7/ 24

S.F. _____ H.F. _____ biennium . 1 b. The cost of land, public improvements, and other capital 2 outlays for each department and establishment, itemized by 3 specific projects or classes of projects of the same general 4 character. 5 4. Part IV —— Strategic plan. Part IV shall include an 6 explanation that correlates the budget with the enterprise 7 strategic plan adopted pursuant to section 8E.204 . The budget 8 shall provide an explanation of appropriations recommended for 9 the administration and maintenance of an agency as defined in 10 section 8E.103 with the general evaluation of the agency in 11 meeting enterprise strategic goals, including identifying goals 12 that require legislation. 13 The governor may submit appropriation bills in the 14 second year of a fiscal biennium providing for supplemental 15 appropriations to or appropriation reductions from the 16 previously enacted fiscal biennium budget. 17 Sec. 7. Section 8.22A, subsections 3, 4, and 5, Code 2011, 18 are amended to read as follows: 19 3. By December 15 of each fiscal year the conference shall 20 agree to a revenue estimate for the fiscal year beginning the 21 following July 1. That each of the two following fiscal years. 22 a. In the fiscal year preceding a fiscal biennium, the 23 estimate for each of the fiscal years of the ensuing fiscal 24 biennium shall be used by the governor in the preparation of 25 the budget message under section 8.22 , and by the first regular 26 session of the general assembly in the budget process for each 27 of the fiscal years of that fiscal biennium, and in determining 28 an adjusted revenue estimate under section 8.54 for each of the 29 fiscal years of the fiscal biennium . 30 b. In the fiscal year in which the following fiscal year is 31 the second year of the fiscal biennium, the conference shall 32 agree by December 15 to another estimate for the second fiscal 33 year and if this estimate is different from that which was 34 used in the initial budget process for the second fiscal year, 35 -8- LSB 2687XL (4) 84 jp/rj 8/ 24

S.F. _____ H.F. _____ the adjusted revenue estimate determined pursuant to section 1 8.54 for that second fiscal year shall be revised based upon 2 the different estimate. The different estimate shall be used 3 by the governor in the preparation of the budget message under 4 section 8.22, by the general assembly in the budget process, 5 and in determining an adjusted revenue estimate under section 6 8.54 for the second fiscal year. 7 c. If the conference agrees to a different estimate at 8 a later meeting which projects a greater amount of revenue 9 than the initial estimate amount for a fiscal year agreed to 10 by December 15, the governor and the general assembly shall 11 continue to use the initial estimate amount in the budget 12 process for that fiscal year. However, if the conference 13 agrees to a different estimate for a fiscal year at a later 14 meeting which projects a lesser amount of revenue than the 15 initial estimate amount, the governor and the general assembly 16 shall use the lesser amount in the budget process for that 17 fiscal year. As used in this subsection paragraph , “later 18 meeting” means only those later meetings which are held prior to 19 the conclusion of the a regular session of the general assembly 20 and, if the general assembly holds an extraordinary session 21 prior to the commencement of the fiscal year to which the 22 estimate applies, those later meetings which are held before or 23 during the extraordinary session. 24 4. At the meeting in which the conference agrees to 25 the revenue estimate for the following a fiscal year in 26 accordance with the provisions of subsection 3 , which is used 27 in determining an adjusted revenue estimate under section 8.54, 28 the conference shall agree to an estimate for tax refunds 29 payable from that estimated revenue. The estimates required 30 by this subsection shall be used in determining the adjusted 31 revenue estimate under section 8.54 . 32 5. At the meeting in which the conference agrees to 33 the revenue estimate for the succeeding a fiscal year in 34 accordance with the provisions of subsection 3 , which is used 35 -9- LSB 2687XL (4) 84 jp/rj 9/ 24

S.F. _____ H.F. _____ in determining an adjusted revenue estimate under section 8.54, 1 the conference shall also agree to the following estimates 2 which shall be used by the governor in preparation of the 3 budget message under section 8.22 and the general assembly in 4 the budget process for the succeeding fiscal year: 5 a. The amount of lottery revenues for the following fiscal 6 year to be available for disbursement following the deductions 7 made pursuant to section 99G.39, subsection 1 . 8 b. The amount of revenue for the following fiscal year from 9 gambling revenues and from interest earned on the cash reserve 10 fund and the economic emergency fund to be deposited in the 11 rebuild Iowa infrastructure fund under section 8.57, subsection 12 6 , paragraph “e” . 13 c. The amount of accruals of those revenues collected by or 14 due from entities other than the state on or before June 30 of 15 the fiscal year but not remitted to the state until after June 16 30. 17 d. The amount of accrued lottery revenues collected on or 18 before June 30 of the fiscal year but not transferred to the 19 general fund of the state until after June 30. 20 Sec. 8. Section 8.23, Code 2011, is amended to read as 21 follows: 22 8.23 Annual Biennial departmental estimates. 23 1. On or before October 1, prior to each legislative the 24 first regular session of a general assembly , all departments 25 and establishments of the government shall transmit to the 26 director, on blanks forms to be furnished by the director, 27 estimates of their expenditure requirements, including every 28 proposed expenditure, for each fiscal year of the ensuing 29 fiscal year biennium , classified so as to distinguish between 30 expenditures estimated for administration, operation, and 31 maintenance, and the cost of each project involving the 32 purchase of land or the making of a public improvement or 33 capital outlay of a permanent character, together with 34 supporting data and explanations as called for by the director. 35 -10- LSB 2687XL (4) 84 jp/rj 10/ 24

S.F. _____ H.F. _____ a. The estimates of expenditure requirements shall be 1 based upon seventy-five percent of the funding provided for 2 the current fiscal year accounted for by program reduced by 3 the historical employee vacancy factor in form specified by 4 the director and the remainder of the estimate of expenditure 5 requirements prioritized by program. The estimates shall 6 be accompanied with performance measures for evaluating the 7 effectiveness of the program. 8 b. The budget estimates for an agency as defined in section 9 8E.103 shall be based on achieving goals contained in the 10 enterprise strategic plan and the agency’s strategic plan as 11 provided for in chapter 8E . The estimates shall be accompanied 12 by a description of the measurable and other results to 13 be achieved by the agency. Performance measures shall be 14 based on the goals developed pursuant to sections 8E.205 , 15 8E.206 , and 8E.208 . The estimates shall be accompanied by an 16 explanation of the manner in which appropriations requested for 17 the administration and maintenance of the agency meet goals 18 contained in the enterprise strategic plan and the agency’s 19 strategic plan, including identifying goals that require 20 legislation. 21 2. On or before October 1, prior to the second regular 22 session of a general assembly, all departments and 23 establishments shall transmit to the director, on forms 24 furnished by the director, estimates of their requirements for 25 supplemental appropriations or appropriations reductions for 26 the fiscal biennium budget in progress. 27 3. The estimates of expenditure requirements shall be 28 in a form specified by the director and the expenditure 29 requirements shall include all proposed expenditures and shall 30 be prioritized by program and identify the results to be 31 achieved. The estimates shall be accompanied by performance 32 targets for use in evaluating the effectiveness of the programs 33 or results connected with the proposed expenditures. 34 c. 4. If a department or establishment fails to 35 -11- LSB 2687XL (4) 84 jp/rj 11/ 24

S.F. _____ H.F. _____ submit estimates as required in subsection 1 within the 1 time specified, the legislative services agency shall use 2 the amounts of the appropriations to the department or 3 establishment for the fiscal year in process progress at 4 the time the estimates are required to be submitted as the 5 amounts for the department’s or establishment’s request in the 6 documents submitted to the general assembly for each fiscal 7 year of the ensuing fiscal year biennium and the governor 8 shall cause estimates to be prepared for that department or 9 establishment as in the governor’s opinion are reasonable and 10 proper. 11 d. 5. The director shall furnish standard budget request 12 forms to each department or agency of state government. 13 2. 6. On or before November 15 prior to each regular 14 legislative session all departments and establishments of 15 government and the judicial branch shall transmit to the 16 department of management and the legislative services agency 17 estimates of their receipts and expenditure requirements from 18 federal or other nonstate grants, receipts, and funds for 19 each of the two ensuing fiscal year years . The transmittal 20 shall include the names of the grantor and the grant or the 21 source of the funds, the estimated amount of the funds, and 22 the planned expenditures and use of the funds. The format of 23 the transmittal shall be specified by the legislative services 24 agency. 25 Sec. 9. Section 8.30, Code 2011, is amended to read as 26 follows: 27 8.30 Availability of appropriations. 28 The appropriations made are not available for expenditure 29 until allotted as provided for in section 8.31 . All 30 appropriations are declared to be maximum and proportionate 31 appropriations, the purpose being to make the appropriations 32 payable in full in the amounts named if the estimated budget 33 resources during the each fiscal year of the fiscal biennium 34 for which the appropriations are made, are sufficient to pay 35 -12- LSB 2687XL (4) 84 jp/rj 12/ 24

S.F. _____ H.F. _____ all of the appropriations in full. The governor shall restrict 1 allotments only to prevent an overdraft or deficit in any 2 fiscal year for which appropriations are made. 3 Sec. 10. Section 8.36, Code 2011, is amended to read as 4 follows: 5 8.36 Fiscal biennium —— fiscal year. 6 1. The fiscal biennium of the state ends on the thirtieth 7 day of June in each odd-numbered fiscal year; the succeeding 8 fiscal biennium begins on the day following. 9 2. The fiscal year of the government shall commence on the 10 first day of July and end on the thirtieth day of June. This 11 fiscal year shall be used for purposes of making appropriations 12 and of financial reporting and shall be uniformly adopted by 13 all departments and establishments of the government. 14 3. However Notwithstanding subsection 2 , the department of 15 workforce development may use the federal fiscal year instead 16 of the fiscal year commencing on July 1. 17 Sec. 11. Section 8.41, subsection 2, Code 2011, is amended 18 to read as follows: 19 2. Federal funds deposited in the state treasury as 20 provided in subsection 1 shall either be included as part of 21 the governor’s budget required by section 8.22 or shall be 22 included in a separate recommendation made by the governor 23 to the general assembly. If federal funds received in the 24 form of block grants or categorical grants have not been 25 included in the governor’s budget for the current fiscal year 26 biennium because of time constraints or because a budget is not 27 being submitted for the next fiscal second year of a fiscal 28 biennium , the governor shall submit a supplemental statement 29 to the general assembly listing the federal funds received and 30 including the same information for the federal funds required 31 by section 8.22, subsection 1 , paragraph “b” , subparagraph (1), 32 subparagraph division (e), for the statement of federal funds 33 in the governor’s budget. 34 Sec. 12. Section 8.54, subsection 1, paragraph a, Code 2011, 35 -13- LSB 2687XL (4) 84 jp/rj 13/ 24

S.F. _____ H.F. _____ is amended to read as follows: 1 a. “Adjusted revenue estimate” means the appropriate revenue 2 estimate for the general fund for the following a fiscal year 3 as determined by the revenue estimating conference under 4 section 8.22A, subsection 3 , adjusted by subtracting estimated 5 tax refunds payable from that estimated revenue and as 6 determined by the conference, adding any new revenues which may 7 be considered to be eligible for deposit in the general fund. 8 Sec. 13. Section 8.54, subsections 2, 3, 5, and 7, Code 9 2011, are amended to read as follows: 10 2. There is created a state general fund expenditure 11 limitation for each fiscal year of the fiscal biennium 12 calculated as provided in this section . An expenditure 13 limitation shall be used for the portion of the budget process 14 commencing on the date the revenue estimating conference 15 agrees to a revenue estimate for the following fiscal year 16 in accordance with section 8.22A, subsection 3 , and ending 17 with the governor’s final approval or disapproval of the 18 appropriations bills applicable to that fiscal year that were 19 passed prior to July 1 of that fiscal year in a regular or 20 extraordinary legislative session. The expenditure limitation 21 shall apply to each of the fiscal years of the fiscal biennium 22 as follows: 23 a. In the fiscal year preceding a fiscal biennium, a state 24 general fund expenditure limitation shall be calculated for and 25 shall apply to each of the fiscal years of the ensuing fiscal 26 biennium. 27 b. However, if the adjusted revenue estimate for the 28 second fiscal year of the fiscal biennium is revised due to 29 a different estimate developed for that fiscal year under 30 section 8.22A, subsection 3, paragraph “b” , the state general 31 fund expenditure limitation for that fiscal year shall be 32 readjusted in accordance with the revision. The governor shall 33 submit recommendations for and the general assembly shall pass 34 revisions in revenue provisions and appropriations as necessary 35 -14- LSB 2687XL (4) 84 jp/rj 14/ 24

S.F. _____ H.F. _____ so that the budget for the second fiscal year of the fiscal 1 biennium does not exceed the readjusted state general fund 2 expenditure limitation. 3 3. Except as otherwise provided in this section , the state 4 general fund expenditure limitation for a fiscal year shall 5 be ninety-nine percent of the appropriate adjusted revenue 6 estimate. 7 5. For a fiscal years year in which section 8.55, subsection 8 2 , results in moneys being transferred to the general fund, 9 the original state general fund expenditure limitation amount 10 provided for in subsection 3 for that fiscal year shall be 11 readjusted to include the moneys which are so transferred. 12 7. The governor shall transmit to the general assembly, in 13 accordance with section 8.21 , a budget which does not exceed 14 the state general fund expenditure limitation for a fiscal 15 year . The general assembly shall pass a budget which does 16 not exceed the state general fund expenditure limitation for 17 a fiscal year . The governor shall not transmit a budget with 18 recommended appropriations in excess of the state general 19 fund expenditure limitation for a fiscal year and the general 20 assembly shall not pass a budget with appropriations in 21 excess of the state general fund expenditure limitation for 22 a fiscal year . The governor shall not approve or disapprove 23 appropriation bills or items of appropriation bills passed by 24 the general assembly in a manner that would cause the final 25 budget approved by the governor to exceed the state general 26 fund expenditure limitation for a fiscal year . In complying 27 with the requirements of this subsection , the governor and the 28 general assembly shall not rely on any anticipated reversion 29 of appropriations in order to meet the state general fund 30 expenditure limitation for a fiscal year . 31 Sec. 14. Section 8.57, subsection 6, Code 2011, is amended 32 by adding the following new paragraph: 33 NEW PARAGRAPH . j. Appropriations from the rebuild Iowa 34 infrastructure fund shall be made on a biennial basis. 35 -15- LSB 2687XL (4) 84 jp/rj 15/ 24

S.F. _____ H.F. _____ Sec. 15. Section 8A.104, subsection 3, Code 2011, is amended 1 to read as follows: 2 3. Prepare an annual a biennial budget for the department 3 for submission pursuant to section 8.23 . 4 Sec. 16. Section 99G.40, subsection 4, Code 2011, is amended 5 to read as follows: 6 4. For informational purposes only, the chief executive 7 officer shall submit to the department of management by October 8 1 of each year of each even-numbered year, a proposed operating 9 budget for the authority for the succeeding each fiscal year 10 of the ensuing fiscal biennium . This budget proposal shall 11 also be accompanied by an estimate of the net proceeds to be 12 deposited into the general fund during the succeeding fiscal 13 year. This budget shall be on forms prescribed in the form 14 specified by the department of management pursuant to section 15 8.23 . A copy of the information required to be submitted to 16 the department of management pursuant to this subsection shall 17 be submitted to the general assembly’s standing committees on 18 government oversight and the legislative services agency by 19 October 1 of each year at the same time . 20 Sec. 17. Section 100B.5, Code 2011, is amended to read as 21 follows: 22 100B.5 Budget. 23 The state fire marshal and the state fire service and 24 emergency response council shall prepare an annual biennial 25 budget for the council and the fire service training bureau. 26 The budget shall be transmitted to the commissioner of public 27 safety for inclusion in that department’s budget. 28 Sec. 18. Section 101C.3, subsection 9, Code 2011, is amended 29 to read as follows: 30 9. At the beginning of each even-numbered fiscal year, 31 the council shall prepare a budget plan for the next fiscal 32 year biennium , including the probable cost of all programs, 33 projects, and contracts to be undertaken for each fiscal year 34 of the biennium . The council shall submit the proposed budget 35 -16- LSB 2687XL (4) 84 jp/rj 16/ 24

S.F. _____ H.F. _____ to the fire marshal for review and comment. The fire marshal 1 may recommend appropriate programs, projects, and activities to 2 be undertaken by the council. 3 Sec. 19. Section 237.14, Code 2011, is amended to read as 4 follows: 5 237.14 Enhanced foster care services. 6 The department shall provide for enhanced foster 7 care services by establishing supplemental per diem or 8 performance-based contracts which include payment of costs 9 relating to payments of principal and interest for bonds 10 and notes issued pursuant to section 16.155 with facilities 11 licensed under this chapter which provide special services to 12 children who would otherwise be placed in a state juvenile 13 institution or an out-of-state program. Before completion of 14 the department’s budget estimate as required by section 8.23 , 15 the department shall determine and include in the estimate the 16 amount amounts which should be appropriated for enhanced foster 17 care services for each fiscal year of the forthcoming fiscal 18 year biennium in order to provide sufficient services. 19 Sec. 20. Section 249J.10, subsection 2, Code 2011, is 20 amended to read as follows: 21 2. The department may include in its annual biennial budget 22 submission pursuant to section 8.23 , recommendations relating 23 to a disproportionate share hospital and graduate medical 24 education allocation plan that maximizes the availability 25 of federal funds for payments to hospitals for the care and 26 treatment of indigent patients. 27 Sec. 21. Section 256.84, subsection 9, Code 2011, is amended 28 to read as follows: 29 9. The board shall approve for submission the annual 30 biennial budget request and any supplementary budget request 31 for the public broadcasting division of the department of 32 education. 33 Sec. 22. Section 260C.17, unnumbered paragraph 1, Code 34 2011, is amended to read as follows: 35 -17- LSB 2687XL (4) 84 jp/rj 17/ 24

S.F. _____ H.F. _____ The board of directors of each merged area shall prepare an 1 annual a biennial budget designating the proposed expenditures 2 for operation of the community college for each fiscal year 3 of the upcoming fiscal biennium . The board shall further 4 designate the amounts which are to be raised by local taxation 5 and the amounts which are to be raised by other sources of 6 revenue for the operation. The biennial budget of each merged 7 area shall be submitted to the state board no later than May 8 1 preceding the next fiscal of each even-numbered year for 9 approval. The state board shall review the proposed budget and 10 shall, prior to June 1, either grant its approval or return the 11 budget without approval with the comments of the state board 12 attached to it. Any unapproved budget shall be resubmitted 13 to the state board for final approval. Upon approval of the 14 budget by the state board, the board of directors shall certify 15 the amount to the respective county auditors and the boards of 16 supervisors annually shall levy a tax of twenty and one-fourth 17 cents per thousand dollars of assessed value on taxable 18 property in a merged area for the operation of a community 19 college. Taxes collected pursuant to the levy shall be paid by 20 the respective county treasurers to the treasurer of the merged 21 area as provided in section 331.552, subsection 29 . 22 Sec. 23. Section 262.9, subsection 34, Code 2011, is amended 23 to read as follows: 24 34. Submit its annual biennial budget request broken down 25 by budget unit. 26 Sec. 24. Section 273.3, subsection 12, Code 2011, is amended 27 to read as follows: 28 12. Prepare an annual a biennial budget estimating income 29 and expenditures for programs and services for each fiscal 30 year of the fiscal biennium as provided in sections 273.1 to 31 273.9 and chapter 256B within the limits of funds provided 32 under section 256B.9 and chapter 257 . The board shall 33 give notice of a public hearing on the proposed budget by 34 publication in an official county newspaper in each county 35 -18- LSB 2687XL (4) 84 jp/rj 18/ 24