Budget Process
- The state constitution requires a balanced budget.
- The Governor must present a balanced budget to the legislature and the legislature must enact a balanced budget.
- Maryland is the only state where the legislature, in most cases, cannot add to the budget proposed by the Governor.
- The legislature may reduce the amounts proposed by the Governor, and may restrict the use of funds.
- The House of Delegates and Senate take turns each year in initiating action on the budget bill.
- This year, it is the Senate’s turn to take action first.
- The budget is referred to the Senate Budget and Taxation Committee and the House Committee on Appropriations.
- The Governor may propose any number of “supplemental” budgets after introducing the initial budget and before the legislature takes final action.
- The balanced budget requirement applies to proposed supplemental budgets.
- The budget bill becomes law upon passage by both houses of the legislature. It does not require the Governor’s signature.
- There is no veto power or item veto of the budget bill.
- If the budget is not passed by the 90th day of the session (April 7 this year), the Governor proclaims an “extended session” and no other business may be conducted except to complete action on the budget.
- The capital budget (bond authorizations) is a completely different process from the operating budget.
- The legislature has much more flexibility with the capital budget.
Timetable
Maryland’s budget process is a year-round activity. The budget process for fiscal year 2009 began in the summer of 2007. The following chart summarizes the budget timetable.
|
|
Executive Branch |
Legislative Branch |
|---|---|---|
PreviousSummer
|
Department of Budget and Management (DBM) sends budget instructions and request targets to agencies. Agencies prepare budget requests. |
Special studies and oversight activities |
August - September |
Agencies submit budget requests to DBM. |
|
Fall |
DBM, the Governor, and Governor’s staff meets with agencies to review budget requests.
|
Spending Affordability Committee meets to review state economy and finances. Department of Legislative Services (DLS) prepares “baseline budget” for forecasting and comparison purposes. |
December |
Board of Revenue Estimates issues official revenue estimates. Governor makes final budget decisions. DBM prepares budget for printing. |
Spending Affordability Committee issues recommendation. As budgets are finalized, DLS begins review and analysis. |
January (8th day of legislative session) |
Governor submits balanced budget to legislature |
|
January - March |
State agencies and DBM respond to issues and recommendations DLS analysis and answer legislators’ questions about budget and programs. Governor may introduce supplemental budgets. |
DLS completes detailed analysis of each agency budget. Senate and House Subcommittees hold hearings. Subcommittees and committees make decisions on budget actions. Committees report recommendations to the Senate and House. Each House passes its version of the budget. A conference committee of Senators and Delegates resolve differences. |
83rd day of session (usually early April) |
|
Constitutional target for final legislative action on operating budget. |
April-June |
DBM revises detailed data to reflect legislative action. Comptroller sets up state’s accounts for new fiscal year. |
Budget Committees issue “Joint Chairmen’s Report” (“JCR”), which explains legislative action and requests various reports and other information from state agencies. |
July 1 |
Fiscal year begins |
|
June 30, following year |
Fiscal year ends |
|
Much material in this section is drawn from Maryland’s Budget Process: Legislative Handbook Series Volume IV 2006, Annapolis: Department of Legislative Services.