Appendix 5
Five Phases of the Budget Process
| Agency Budget Preparation Phase | Agencies analyze their programs and needs. Once the analysis has been completed, they submit requests for funding to the Department of Planning and Budget (DPB) in early fall. |
| Budget Development Phase | DPB analyzes budget requests of agencies during the fall. Late fall the Governor and Cabinet Secretaries work together to prepare a proposed budget. In odd-numbered years, they prepare adjustments to the budget. The Governor submits budget proposals to the General Assembly on or before December 20 in the form of a bill. The Budget Bill is a legislative document and can be found in the Legislative Information System. |
| Legislative Action Phase | The General Assembly convenes each year on the second Wednesday of January. The Governor’s proposed budget is submitted. In each house of the General Assembly the budget bill is referred to committee, which holds hearings and discussions. The bill is submitted to the floor of each house where amendments can be added and each house votes on the amended budget bill. Both houses always reject each other’s versions of the budget and send the bills to a committee of conferees that is composed of senior budget negotiators from each chamber. After extensive discussion, the conferees agree on a compromise, and then both houses vote on the “conference report.” The General Assembly then sends bill to Governor for signature. |
| Governor’s Review Phase | The Governor reviews the bill passed by the General Assembly. He/she may sign, veto the entire bill or lines of the bill, or recommend amendments. If the bill or any part is vetoed, it returns to the General Assembly in a reconvened session in the spring. |
| Budget Execution Phase | The Budget passed by the General Assembly and enacted into law goes into effect on July 1 in even-numbered years and on the date of passage in odd-numbered years. |