63J-1-105. Revenue types — Disposition of dedicated credits and expendable receipts.
(1)
Terms Used In Utah Code 63J-1-105
Agency: means a unit of accounting, typically associated with a department, division, board, council, committee, institution, office, bureau, or other similar administrative unit of state government, that includes line items and programs. See Utah Code 63J-1-102
Budget execution plan: means a proposal submitted by an administrative unit of state government to the Division of Finance enumerating expected revenues and authorized expenditures within line items and among programs. See Utah Code 63J-1-102
state matches for federal revenues paid by a nonstate entity; and
(iii)
rebates, including pharmacy rebates, that have similar restrictions on expenditures as the original program. See Utah Code 63J-1-102
Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
Line item: means a unit of accounting, typically representing an administrative unit of state government within an agency, that contains one or more programs. See Utah Code 63J-1-102
Program: means a unit of accounting included on a schedule of programs within a line item used to track budget authorizations, collections, and expenditures on specific purposes or functions. See Utah Code 63J-1-102
Restricted revenue: means collections that are:
(a)
deposited, by law, into a separate fund, subfund, or account; and
Dedicated credits are subject to appropriations and the restrictions in this chapter.
(b)
An agency may expend dedicated credits for any purpose within the program or line item.
(2)
Except as provided in Subsections (3) and (4), an agency may not expend dedicated credits in excess of the amount appropriated to a line item as dedicated credits by the Legislature.
(3)
Each agency that receives dedicated credits revenue greater than the amount appropriated to a line item by the Legislature in the annual appropriations acts may expend the excess up to 25% of the amount appropriated if the expenditure is included in a revised budget execution plan submitted as provided in Section 63J-1-209.
(4)
Notwithstanding the requirements of Subsection (3), when an agency’s dedicated credits revenue represents over 90% of the budget of the line item for which the dedicated credits are collected, the agency may expend 100% of the excess of the amount appropriated if the agency submits a revised budget execution plan as provided in Subsection (3) and Section 63J-1-209.
(5)
An expenditure of dedicated credits in excess of amounts appropriated to a line item as dedicated credits by the Legislature may not be used to permanently increase personnel within the agency unless:
(a)
the increase is approved by the Legislature; or
(b)
the money is deposited as a dedicated credit in a line item covering tuition or federal vocational funds at an institution of higher education.
(6)
(a)
All excess dedicated credits not received or expended in compliance with Subsection (3), (4), or (7) lapse to the General Fund or other appropriate fund as free or restricted revenue at the end of the fiscal year.
(b)
The Division of Finance shall determine the appropriate fund into which the dedicated credits lapse.
(7)
(a)
When an agency has a line item that is funded by more than one major revenue type, one of which is dedicated credits, the agency shall completely expend authorized dedicated credits within the current fiscal year and allocate unused spending authorization among other funding sources based upon a proration of the amounts appropriated from each of those major revenue types not attributable to dedicated credits, unless the Legislature has designated a portion of the dedicated credits as nonlapsing, in which case the agency shall completely expend within the current fiscal year authorized dedicated credits minus the portion of dedicated credits designated as nonlapsing, and allocate unused spending authorization among the other funding sources based upon a proration of the amounts appropriated from each of those major revenue types not attributable to dedicated credits.
(b)
Nothing in Subsection (7)(a) shall be construed to allow an agency to receive and expend dedicated credits in excess of legislative appropriations to a line item without complying with Subsection (3) or (4).
(c)
Each agency that receives dedicated credits shall report, to the Division of Finance, any balances remaining in those funds at the conclusion of each fiscal year.
(8)
Each agency shall include in its annual budget request estimates of dedicated credits revenue that is identified by, collected for, or set by the agency.
(9)
Each agency may expend expendable receipts in accordance with the terms set by a nonstate entity that provides the funds.
(10)
(a)
Expendable receipts are not limited by appropriations.
(b)
Each agency that receives expendable receipts revenue greater than the amount included for a line item by the Legislature in the annual appropriations acts may expend the excess if the expenditure is included in a revised budget execution plan submitted as provided in Section 63J-1-209.
(c)
If an agency receives excess expendable receipts revenue that is more than 25% greater than the amount included for a line item by the Legislature in the annual appropriations acts, the agency shall report the excess amount, the source of the expendable receipts, and the purpose for which the expendable receipts will be expended to the Governor’s Office of Planning and Budget, the legislative fiscal analyst, and the Executive Appropriations Committee within 60 days of submitting a revised budget execution plan as provided in Section 63J-1-209.
