Preparation, deliberation, and execution of the budget is a continual process throughout the year. The budget process starts when the Department of Management sends out annual budget instructions.
State Budget Process
|June - September||Prepare Department Requests - State agencies develop their budget requests. Agencies required by statute to submit their budget requests for the upcoming fiscal year by October 1.|
|October - December||Review Department Requests - Department of Management works with department staff and the Governor’s Office in reviewing and analyzing department requests.|
|November - December||Hold Public Hearings - The Governor holds public budget hearings for departments to present their budget requests. The Governor also holds at least one public hearing for citizens to voice their opinions on the upcoming budget.|
|January||Present Governor's Recommendations - Finalize Governor's Budget Recommendations and prepare "Budget in Brief" and "Big Budget Book." The Governor is required by law to submit the budget recommendations to the Legislature by February 1, along with appropriation bills.|
|January - April or May||
Enact Appropriations - The Legislature passes appropriation bills during the session (with most passed during the last week of the session usually in April/May):
|April - May or June||Sign, Veto or Item Veto Bills -
The Governor has the options of signing the bill, item vetoing the bill or vetoing the bill entirely. Legislation presented to the Governor in the last three days of session and after session must be signed within 30 days from the last day of session.
|May - June||Enter Spending Plans - State agencies enter their spending plans based upon the enacted appropriations bills. The spending plans are transferred to the accounting system and spending is tracked through the accounting system during the fiscal year. It establishes the required budget controls.|
What is the basis of budgeting?
Iowa’s budget is prepared on a modified cash basis that is used to establish and ensure compliance with enacted budgets according to applicable statutes and administrative procedures. For each fund except for the General Fund, the total amount appropriated or budgeted to be spent may not exceed the fiscal year’s estimated revenues available plus the unappropriated surplus fund balance (or less a deficit) of the preceding year. The fiscal year begins July 1 and ends on June 30.
For budgeting purposes, with the modified cash basis of budgeting, tax receipts are recorded at the time of deposit during the fiscal year, and during the accrual period are determined when earned and adjusted back to the appropriate fiscal year. All other receipts are deposited to the appropriate fiscal year in which the revenues were earned if received within 60 days after the end of the fiscal year; if received after those 60 days, they are recorded in the fiscal year received. For expenditures, statute requires that no payment for goods or services may be charged subsequent to the last day of the fiscal year unless the goods or services are received on or before the last day of the fiscal year, except that repair projects, purchase of specialized equipment and furnishings, and other contracts for services and capital expenditures for the purchase of land or erection of buildings or new construction or remodeling which were committed and in progress prior to the end of the fiscal year are excluded. In other words, except for the previously mentioned exceptions, the State must have received the goods or services on or before June 30, creating an actual liability.