AN ACT TO AMEND SECTION 27-103-131, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT IF A STATE AGENCY REFUSES OR FAILS TO FILE AN ORIGINAL BUDGET REQUEST WITHIN THIRTY CALENDAR DAYS AFTER THE DEADLINE DATE FOR FILING BUDGET REQUESTS, THE DIRECTOR OF THE AGENCY SHALL CONTRACT WITH A THIRD PARTY TO PREPARE A BUDGET REQUEST FOR THE AGENCY, WHICH MUST BE THREE PERCENT LOWER THAN THE AGENCY'S CURRENT BUDGET FROM STATE GENERAL FUNDS; TO REQUIRE THE CONTRACTOR TO PREPARE AND SUBMIT A BUDGET REQUEST FOR THE AGENCY TO THE LEGISLATIVE BUDGET OFFICE WITHIN THIRTY CALENDAR DAYS AFTER THE CONTRACT IS EXECUTED; IF THE CONTRACTOR DOES NOT SUBMIT THE AGENCY'S BUDGET REQUEST WITHIN THAT TIME, THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF FINANCE AND ADMINISTRATION SHALL NOT ALLOW THE AGENCY TO EXPEND ITS CURRENT FISCAL YEAR APPROPRIATION UNTIL THE BUDGET REQUEST HAS BEEN SUBMITTED; TO PROVIDE THAT THE AGENCY SHALL BE RESPONSIBLE FOR PAYING THE CONTRACTOR FOR PREPARING THE AGENCY'S BUDGET REQUEST; TO PROVIDE THAT IF THE AGENCY DOES NOT PAY THE CONTRACTOR WITHIN FORTY-FIVE CALENDAR DAYS, THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF FINANCE AND ADMINISTRATION SHALL NOT ALLOW THE AGENCY TO EXPEND ITS CURRENT FISCAL YEAR APPROPRIATION UNTIL THE CONTRACTOR HAS BEEN PAID; AND FOR RELATED PURPOSES.
Impact
This bill significantly impacts state budgeting procedures by introducing a structured fallback for agencies that fail to comply with budget submission timelines. If a contractor is engaged due to an agency's failure to file on time, the contractor is required to submit the budget request within thirty days of the contract execution. Furthermore, if an agency does not pay the contractor within forty-five days, it will also lose access to its current fiscal year appropriation until the dues are settled. This creates a financial incentive for agencies to comply with budget timelines.
Summary
House Bill 1602 seeks to amend Section 27-103-131 of the Mississippi Code of 1972 concerning the filing of budget requests by state agencies. The bill introduces penalties for agencies that fail to submit their budget requests on time, specifically within thirty calendar days after the official deadline. In cases where an agency does not meet this requirement, the bill mandates that the agency's director engage a third party to prepare a budget request that must be three percent lower than the agency's current budget from state general funds. This provision aims to enforce timely budget planning and ensure fiscal responsibility across state agencies.
Contention
The legislation may generate discussion regarding accountability and administrative efficiency in state budgeting processes. Critics may argue that the requirement to contract out budget preparation to third parties could lead to increased costs and inefficiencies if agencies are penalized for delays. The bill's provision that negligence in preparing budgets can be interpreted as a refusal to comply with the requirements could also raise concerns about the potential for punitive actions against agency employees, thereby affecting their operational discretion and autonomy.