Executive Authority to Cut the Enacted Budget

Legislative Budget Procedures: Post-Enactment Budget Revisions and Supplemental Appropriations

Legislative Budget Procedures Executive Summary

Executive Authority to Cut the Enacted Budget

State or other Jurisdiction	No Restrictions †	Can Cut only Across the Board	Maximum Percent Reduction	Must Consult with the Legislature	Other	Authority
Alabama	---	x	---	---	---	Constitutional: Amendment No. 26
Alaska	x	---	---	---	---	Statutory: AS 37.07.080 (g) (1) and (2)*
Arizona	x*	---	---	---	---	None*
Arkansas	---	---	---	---	x*	Biennial legislation
California	---	---	---	x	---	Statutory: Government Code Sec. 13-3-22
Colorado	---	---	---	---	x*	Constitutional: Article X, Sec. 16 Statutory: C.r.s. 24-75-201.5
Connecticut	---	---	5%*	---	x*	Statutory: Sec. 4-85; SA 97-21 (Sec. 24,25,26)
Delaware	x*	---	---	---	---	None*
Florida	---	---	---	x*	x*	Constitutional: Article IV, Sec. 13 Statutory: S. 216.221, F.S.S.215.16, F.S.
Georgia	---	---	---	---	x*	None
Hawaii	x	---	---	---	---	Constitutional: Article III, Sec. 16
Idaho	x*	---	---	---	x*	Constitutional and Statutory
Illinois	x*	---	---	---	---	N/A
Indiana	x	---	---	---	---	Statutory: 4-12-1-12
Iowa	---	x	---	---	---	Statutory: Chap. 8.31
Kansas	---	x*	---	---	x*	Statutory: KSA 75-6704 and KSA 75-3722 et seq.
Kentucky	---	---	5%*	---	---	Statutory: 48.130
Louisiana	---	---	10%*	---	x*	Constitutional: Article VII, Sec. 10 (F) Statutory: L.A.R.S. 39:75
Maine	---		---	x	x*	Statutory: 5 MRSA
Maryland	---	---	25%*	---	x*	Statutory: State Finance and Procurement Article, Sec. 7-213
Massachusetts	---	---	---	---	x*	Statutory: Chap. 29, Section 9c
Michigan	---	---	---	x	x*	Constitutional: Article V, Sec. 20 Statutory: 18.1371-18.1372, 18.1382, 18.1384, 18.1391-18.1392, 18.1395, and 18.1453; Michigan Compiled Laws
Minnesota	---	---	---	x*	x*	Statutory: 16A.152 Subd.4
Mississippi	---		---	---	x*	Statutory: 27-104-13 and 31-17-123
Missouri	x*	---	---	---	---	Constitutional: Article IV, Sec. 27 Statutory: Sec. 33.290 RSMO
Montana	---	---	10%*	---	x*	Statutory: Sec. 17-7-140
Nebraska	---	---	---	---	x*	None*
Nevada	---	---	15%*	x*	---	Statutory: NRS 353.225
New Hampshire	---	---	---	x*	---	Statutory: RSA 9:16-a Fiscal Committee: RSA 14:30A
New Jersey	---	---	---	---	x*	Statutory: N.J.S.A. 52: 27 B-26 and 52: 27B-31
New Mexico	---	---	---	---	x*	Constitutional: Article IV, Sec. 30
New York	---	---	---	---	x*	Constitutional: Article VII, Sec. 2
North Carolina	---	x	---	---	x*	Statutory: Executive Budget Act, General Statutes 143-25
North Dakota	---	x*	---	---	---	Statutory: 54-44.1-12 and 54-44.1-13
Ohio	x	---	---	---	---	Constitutional: Article VIII, Sec. 1; Statutory: Title I, Vol. 2, Chap. 126.08
Oklahoma	---	x	---	---	---	Constitutional: Article 10, Sec. 23
Oregon	x*	---	---	---	x*	Statutory: 291-254
Pennsylvania	---	---	---	---	x*	Constitutional: Article IV, Sec. 16
Rhode Island	---	---	---	x	x*	Statutory: Sec. 35-3-16
South Carolina	---	x	---	x	---	Statutory: Appropriations bill
South Dakota	x	---	---	---	---	SDCL 4-8-23
Tennessee	---	---	---	x	x*	None
Texas	---	---	---	x	x*	Constitutional: Article 16, Sec. 69; Statutory: Chap 317, Government Code
Utah	---	---	---	x*	x*	Statutory: Sec. 63-38-10; Sec. 63-38-11
Vermont	---	---	---	x*	x*	Statutory: Appropriations bill
Virginia	---	---	15%*	---	x*	Statutory: Appropriation Act
Washington	---	x*	---	---	---	Statutory: RCW 43.88.110(7)
West Virginia	---	x*	---	---	---	Statutory: WVS 5A-2-20 to 5A-2-22
Wisconsin	---	---	---	---	x*	Statutory: Sec. 16.50 (5)
Wyoming	---	x	---	---	---	Statutory: Appropriations bill, Sec. 300*
American Samoa	---	---	---	---	---	-
District of Columbia	---	---	---	---	---	-
Guam	---	---	---	---	---	None*
Northern Mariana Islands	x	---	---	---	x*	Constitutional: Article 111, Sec. 10 and 1 CMC 7601, 7602 and 7604
Puerto Rico	---	x	---	---	---	N/R
U.S. Virgin Islands	---	---	---	---	---	-
Total: States	11	10	7	13	29
Total: States and Territories	12	11	7	13	30

Source: National Conference of State Legislatures, December 1997.

Key:
† = No restrictions-Executive can cut selectively or across the board in all areas, without consulting the legislature.
--- = Not applicable
N/R = No response

*Notes:

Alaska: A court decision puts this authority under question.

Arizona: Although the governor has unilaterally reduced state spending, there is some question about his legal authority to do so (Arizona Legislative Council memo, June 22, 1982). In practice, the Legislature usually has approved reductions exceeding 1 percent of expenditures, through amendments to the original general appropriations bill.

Arkansas: The governor must make cuts according to the guidelines established by the legislature in a bill passed every two years concerning the distribution of funds.

Colorado: Sec. 24-75-201.5 requires the governor to take the following steps when a revenue shortfall occurs. 1) formulate a plan for reducing general fund expenditures so that the general fund reserve does not fall below one-half of the 4 percent reserve; 2) promptly notify the General Assembly of the plan; 3) promptly implement the plan using procedures available under Sec. 24-2-103, 24-30-206, 24-50-109.5, and other lawful means; and 4) transfer general fund money from the capital construction fund to the general fund (and restrict capital construction projects) if the governor's plan reduced general fund expenditures by at least 1 percent of the total amount of general fund appropriations for the fiscal year. (Details of these procedures are contained in a memorandum dated September 12, 1991, from the Colorado Office of Legislative Legal Services to Senator Ted Strickland.)

Connecticut: The maximum percent reduction is 5 percent of an appropriation or 3 percent of an appropriated fund (e.g., general fund, transportation fund, etc). In the Appropriations Act for the 1997-99 biennium, Sec. 24 and 25 require the secretary of the Office of Policy and Management to reduce personal services and other expenses accounts by $11 million and $12 million, respectively, in each year of the biennium. Sec. 26 allows the governor to reduce agency allotments to achieve certain savings without regard to statutory limits on his authority to do so. Current law requires the governor to submit a plan to reduce allotments within 30 days of a comptroller's report that projects a general fund deficit of more than 1 percent of general fund appropriations. (For 1997-98, 1 percent equals $93.4 million.)

Delaware: No specific statutes detail how deficits are to be handled. It has been the practice in the state, however, for the governor to require agencies to reduce their spending when revenues are short.

Florida: The budget can be cut to avoid a deficit. General revenue reductions in education can be in no greater proportion than the reduction in total general revenue appropriations. General revenue deficits greater than $300 million must be resolved by the Legislature.

Georgia: The executive branch may withhold appropriations, but may not cut the budget without legislative approval.

Idaho: The governor can, by executive order, reduce agency allotments as necessary. Legislative concurrence is not required. Reduction of legislative and judicial budgets requires permission of those branches of government.

Illinois: There are no restrictions on the governor's authority to cut the budget with respect to executive agency operations and capital.

Kansas: The governor has authority to cut across the board, with certain limitations, to restore the state general fund estimated year-end balance to not more than $100 million. As interpreted by the attorney general's opinion, law allows the governor to reduce appropriations as he or she sees fit (no legislative or judiciary reductions), but only to the extent that cuts would result in year-end zero balances. In the two instances where such reductions have occurred, budget reductions were sanctioned by appropriations acts that permitted the lapse of funds.

Kentucky: If revenues are up to 5 percent below official estimates, an enacted reduction plan is implemented, which includes application of budget reserve funds, general fund surplus account resources, and other budget reduction actions. The law makes no provision for shortfalls greater than 5 percent.

Louisiana: The maximum reduction is 10 percent of a budgetary unit. Appropriations for certain retirement programs and minimum foundation program for education may not be reduced except by written approval of two-thirds of the members of each house of the Legislature.

Maine: Reductions are triggered only when estimated revenue under-performs; any reduction proposed must be "equitable" and a "temporary curtailment" (i.e., until the Legislature acts).

Maryland: The maximum reduction is 25 percent of any item of appropriation. These items may not be reduced: appropriations for payment of interest and retirement of state debt; appropriations to the legislature, public schools' local health formula and the judiciary; and salaries of public officers during term. Salaries of merit system employees may be reduced through the secretary of personnel.

Massachusetts: The governor cannot reduce appropriations without legislative approval. The governor may reduce agency allotments, however, within fifteen days of being notified of a revenue shortfall.

Michigan: The following may not be reduced: expenditures of the legislative and judicial branches and funds for constitutionally-dedicated purposes.

Minnesota: The governor can make reductions only in the case of a state budget shortfall and only when the budget reserve has been exhausted.

Mississippi: The governor can cut selectively up to 5 percent. After all agencies are cut up to 5 percent, then additional cuts must be equal and uniform. Authority for cuts exists in two statutes. Under one statute, cuts are initiated at the governor's discretion. By another statute, the governor is required to cut if revenues fall below 98 percent of the estimate after October.

Missouri: There are no restrictions on the governor's authority to cut the budget if revenues do not meet projections used when the budget was passed.

Montana: The governor cannot "un-appropriate," but the governor can order a reduction in expenditures by all state agencies when certain statutorily defined conditions are met. A maximum of 10 percent of the budget for any program within an agency may be reduced. However, the governor may not order reductions in expenditures for 1) interest and retirement of state debt; 2) legislative branch; 3) judicial branch; 4) school foundation program, including special education; and 5) salaries of elected officials during their terms of office.

Nebraska: The governor has no legal authority to reduce appropriations, other than administrative controls that may be applied to agencies under the governor's direct control, to manage spending. However, the governor can request agencies to reduce their expenditures, and can enforce that request for those agencies where the governor has appointed the department head. Only the Legislature can reduce the appropriation to an agency by amending the appropriation during a regular session or special session.

Nevada: The governor may set aside a reserve of up to 15 percent in agencies of the executive branch from general funds appropriated or any other funds available to the agencies if approved by the Legislature or Interim Finance Committee.

New Hampshire: The governor may cut the budget (for executive branch appropriations only) with prior approval of the Joint Legislative Fiscal Committee.

New Jersey: The governor may control the rate of expenditures by state agencies through his or her allotment and reserve powers, or through enjoinment in the case of "extravagance, waste or mismanagement."

New Mexico: The executive may order the limitation on expenditures for agencies only under his or her direct control. The judicial branch, universities and public schools operate separately. The Legislature is the only entity that can actually reduce appropriations levels.

New York: The governor can choose not to spend money appropriated by the Legislature for state agency operations, capital projects, and debt service. The governor cannot reduce expenditures for local assistance pursuant to a court decision interpreting the Constitution. The governor cannot reduce appropriations without legislative action. The governor cannot reduce payments for the Legislature and judiciary.

North Carolina: The governor also may transfer money from reserve funds and revert capital improvement appropriations. The governor may not reduce the principal and interest payments on bonds and notes of the state (Constitutional-Article III, Sec. 5 (3)).

North Dakota: The executive branch can cut across the board without consulting the legislature except when the budget reduction is the direct result of an initiative or referendum action.

Oregon: The governor may reduce the budget in the case of an under-realization of revenues and if potential savings are determined. There are no restrictions on the reduction amount. To meet a future contingency, however, the governor must have approval from the legislature.

Pennsylvania: Budget Reform Code requires a balanced budget. The only way a deficit could occur is if revenues do not reach earlier estimates. Because of the balanced budget requirement, there is no requirement for what the governor and/or legislature must do should a deficit situation occur (governor has line item veto).

Rhode Island: Appropriations for the General Assembly and legislative agencies may not be reduced.

Tennessee: The governor may call a special session to deal with a deficit.

Texas: The governor may plead for agencies to reduce spending and/or call the Legislature into special session to cut appropriations or propose cuts using constitutional and statutory budget execution authority. The governor's proposed cuts, using budget executive authority, requires Legislative Budget Board approval.

Utah: If the governor wants to reduce appropriations, he or she must call a special session of the Legislature. If total revenues accruing to a fund are not sufficient to cover the appropriations, however, the governor may reduce allotments to agencies by the amount of the deficiency or alter agency workplans to slow spending.

Vermont: The governor may control the rate of expenditure by state agencies through allotment powers. In so doing, the governor may reduce an allotment if a lesser amount than was appropriated is required. However, the governor has no authority to reduce appropriations unilaterally to balance the budget.

Virginia: The governor may reduce appropriations only when an official re-estimate of the revenues shows spending at a rate above projected revenues. Reductions are limited to 15 percent of an agency's appropriation.

Washington: The governor can cut across the board only if there is a revenue shortfall.

West Virginia: The governor can cut only across the board. In addition, after notifying the legislative leadership, the governor can cause an amount to be borrowed from the revenue shortfall reserve fund by October 31 to be repaid within 90 days. This provision was enacted for use primarily at the beginning of the fiscal year when the general revenue funds available to cover appropriations quite often start with a zero balance. The governor also can call a special session of the Legislature no earlier than November 1 for the purpose of making supplemental appropriations to meet anticipated shortfalls; he also can request such supplemental appropriations during the next regular session. (This fund has been used primarily to provide matching funds for federal disasters such as floods.)

Wisconsin: Following budget enactment, if previously authorized expenditures are determined by the secretary of administration to exceed available revenue, but by less than 0.5 percent of the total general fund appropriations for the year, the secretary may unilaterally take action to adjust agency expenditures (except for aid programs) to meet the revenue shortfall. If estimated expenditures are expected to exceed available revenues by more than 0.5 percent of total appropriations, then the governor is required to submit a bill to the Legislature to correct the imbalance.

Wyoming: Reviewed every two years.

Guam: The governor may control the rate of expenditures through allotment authority and may exercise administrative controls on agencies under his or her direct control to manage spending.

Northern Mariana Islands: Under the constitution, the governor may mobilize available resources to respond to emergencies like a civil disturbance, national disaster or other calamity. Under P.L. 3-68, the governor may control expenditures of the government (general fund) except the Legislature. Under certain conditions, the governor may even rescind or defer the budget authority or exercise emergency impoundments.

Posted March 1999, reviewed December 2003.
The publication to which this table belongs, Legislative Budget Procedures: A Guide to Appropriations and Budget Processes in the States, Commonwealths and Territories, is available wholly and solely online.
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