Budget Execution (April – March)
skip breadcrumbsAt this point the budget process enters a new phase: budget execution. As a first step, the Division of the Budget approves “certificates of allocation” informing the State Comptroller that accounts may be established as specified in the certificates and that vouchers drawn against the accounts may be honored.
In addition, the Division of the Budget keeps a close watch throughout the year on the flow of revenue and the pattern of expenditures against its projections. This information is reflected in quarterly updates of the Financial Plan which are provided to the Legislature as required by law in April (or as soon as practicable after budget enactment), July, October and with the Executive Budget for the ensuing year (usually January).
The Debt Reform Act of 2000 requires the Governor to report on the State’s compliance with statutory caps placed on new debt issued after March 31, 2000. The State annually reports these findings in the Financial Plan Update closest to October 31.
These updates serve as the basis of financial management during the fiscal year, and may alert both the Governor and the Legislature to potential problems in maintaining budget balance as the State fiscal year unfolds.
Shortly after the end of the fiscal year, the Division of the Budget issues a comprehensive report that (1) compares unaudited year-end results to the projections set forth in the Enacted Budget and in the final update to the Financial Plan and (2) summarizes the reasons for the annual change in receipts and disbursements.