The governor’s office sends guidance to each administrative agency outlining the parameters of the coming fiscal year budget (e.g., priorities for the year, whether to include cuts, additional revenue, etc.).
The agencies develop budget requests and submit the requests to the governor’s office.
The governor’s budget office reviews and revises the individual agency budget requests, and assembles them into a budget proposal.
The governor’s budget proposal is sent to the legislature and released to the public. This proposal is non-binding on the legislature.
The legislature holds hearings on the budget. This includes testimony from the governor’s office and administrative agency officials. It may also include opportunities for public testimony.
The legislature writes their budgets, with the House going first. Hearings are held in the relevant committees (usually Finance or Appropriations) and subcommittees.
The house and senate pass their budget bills.
Conference committee meets to work out differences between the house and senate budget bills. The governor and his/her staff are usually very involved in this process.
The house and senate must approve the changes made by the conference committee. This is an up or down vote. They do not reconsider specific provisions.
The budget is sent to the governor, who can sign it in its entirety, veto it, or veto specific portions of the bill (depending on state).
In many states, a mid- cycle review or “budget corrections” process takes place to ensure that the budget is balanced (i.e., spending equals revenue collected by the state).
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