Planning for the new budget begins in the spring of the year preceding the biennial legislative session, which begins in January of odd-numbered years.
Instructions for agency strategic plans--The Governor's Office of Budget, Planning, and Policy (GOBPP) and the Legislative Budget Board (LBB) issue instructions for developing strategic plans in the spring preceding a legislative session. These instructions provide both a broad mission statement identifying the core principles of state government, as well as specific goals and benchmarks for individual state services and programs.
Strategic plans for each agency--Shortly after receiving these instructions the departments and agencies begin developing their strategic plans. A strategic plan is a long-term plan that identifies an agency's current status, focus and orientation, as well as its planned future direction. Strategic plans include a mission statement, identification of its goals and the population it serves, and a description of the means by which the agency plans to achieve its goals. After developing a strategic plan, the agency submits its plan to the GOBPP and the LBB for approval.
Legislative Appropriation Request (LAR)--Around the same time that strategic plans are being developed the LBB sends out instructions for Legislative Appropriation Requests (LARs). These instructions are used by agencies to develop their budget requests. Included in each agency's LAR are the performance measures on which budgeting is based. During the summer months, the LBB and GOBPP hold hearings with each agency to review its strategic plan and draft LAR. From these hearings the LBB and GOBPP determine the items to be included in the agency's final appropriation request. The finalized LARs must be submitted by the end of the summer and copies must be provided to the LBB, GOBPP, the state auditor, the state comptroller. These LARs form the basis for the appropriations bill prepared by the LBB.
Draft of the general appropriations bill--During the fall LBB staff prepares the draft of the general appropriations bill. This draft contains performance measures, the maximum number of full-time equivalent employment positions (FTEs) allowed, specific enumerated instructions, the amount of funding recommended by the LBB, and the method of financing each agency's appropriation.