Staff in nine states, however, reported that was not the case. Thus the budget cycle in itself does not appear to create nor prevent a need for strong executive budget review authority.[5]. A budget deficit, a substantial revenue surplus or policy issues with significant fiscal implications can cause a legislature to devote a large amount of time to budget issues. See more. 1. Most held their biennial session in the odd-numbered year; only Kentucky, Mississippi and Virginia met during the even-numbered year. Expenditure overruns have frequently occurred in Medicaid and other social service programs, as well as other programs. Respondents noted, however, that the proportion of time spent on the budget in the non-budget sessions varied greatly from year to year. Oregon is the latest state to switch to annual legislative sessions. All changes are listed in Appendix 1. You consent to the use of cookies if you use this website. The budget chairs wrote: The Oregon leaders’ concern for the accuracy of their state’s revenue forecasts is not unusual. Biennial budget resolutions could require the annual passage of all 12 appropriations bills. Washington, D.C. 20001 The Second was in 1847, starting the run of odd years. Figure 1: Annual vs. Biennial Budgets by State 5 Causes for the dysfunction are many. During the past 20 years, many state budgets have been hit by revenue shortfalls and expenditure overruns. States may respond more rapidly to new federal laws which require state participation. There is little evidence of clear advantages of either an annual or biennial state budget. Of the 46 states that have regular annual legislative sessions (including North Carolina, whose legislature is biennial by statute but meets annually), only 15 practice biennial budgeting. 2. Since 1968, some 18 states have changed their budget cycles; 15 from biennial to annual and only 3 from annual to biennial. There does not appear to be any consistent relationship between state budget and legislative cycles and governors’ powers to cut budgets or transfer funds among agencies or programs. Connecticut returned to biennial budgeting in 1991, reversing the decision lawmakers made to adopt annual budgeting when the state began annual legislative sessions in 1971. Denver, CO 80230 Governors in only five of the 19 states with biennial budgets have as much power to reduce spending. Most held their biennial session in the odd-numbered year; only Kentucky, Mississippi and Virginia met during the even-numbered year. The data on which the calculations are based appear in The Pew Center on the States and Rockefeller Institute of Government, States’ Revenue Estimating: Cracks in the Crystal Ball (Washington, D.C.: The Pew Center on the States, March, 2011), 41, Appendix B. We are the nation's most respected bipartisan organization providing states support, ideas, connections and a strong voice on Capitol Hill. Denver, CO 80230 Some biennial states have a more accurate forecasting record than some annual states. However, as state budgets have grown in size and complexity, most states have moved away from biennial budgeting. Of the six legislatures that have or until recently had biennial sessions—Arkansas, Montana, Nevada, North Dakota, Oregon and Texas—only Texas had more special sessions than the national average from 1981 through 2010. 7700 East First Place Executive departments spend endless hours charting spending over two years (really almost three, from the start of planning), and rarely find numbers that stick. Governors in some states with annual legislatures and budgets have remarkably broad administrative authority over the budget. AUSTIN — Texas is proud of its part-time Legislature, where many lawmakers make non-political livings and only pass laws on the side. The life cycle of annual plants (from germination to death) may happen in a month or several months. The main difference between biennial and biannual is that biennial means once every two years whereas biannual means twice a year. Regardless of the budget cycle, continuity is built in to state budgets. The responsibilities of a legislature have become so burdensome that they can no longer be … Coordinates. Under Raymond’s proposal, the Legislature would supplement its regular sessions by meeting on even-numbered years to revisit budget issues, while continuing to address most other topics on a biennial basis. The responsibilities of a legislature have become so burdensome that they can no longer be discharged on an alternate-year basis. “Beginning with the first biennium,” the committee observed, “the governor and legislature have proposed new and expanded programs along with significant policy changes in each year of the cycle. • Rules. Do biennial budgets require revisions more frequently than annual budgets? Analysts at Texas A&M University reviewed the CSG study in the course of their own examination of annual and biennial budgeting in 1984, and came to the same conclusions: The arguments used to justify and refute both annual and biennial budgets remain essentially unchanged [since 1972]—and unproven. Four states have both a biennial session and a biennial budget: Montana, North Dakota, Texas, and Nevada. Ohio’s experience has been the opposite: Except for the regularly scheduled enactment of a capital budget in the off-year, the biennial budget usually receives a few adjustments that can be dealt with expeditiously. 5. [9]Charles W. Wiggins and Keith E. Hamm, "Annual Versus Biennial Budgeting?" What, then, is the difference between annual, biennial, and perennial plants? 2. In terms of the time a legislature spends on budgeting, nonetheless, the evidence is inconclusive. The success of a budget cycle seems to depend on the commitment of state officials to good implementation rather than on the method itself.[7]. In 2000, NCSL asked legislative fiscal staff in the 13 biennial budget states with annual sessions “Does the legislature spend a smaller proportion of its time on budget issues in the non-budget session than the budget session?” Eleven states responded. 8Office of Financial Management, Washington State Budget Process (Olympia, Wash.: Office of Financial Management, July 2009), 1. Annual budgets create greater pressures on all budget staff and policymakers than biennial budgets, since closing the previous year’s budget, administering the new year’s budget and beginning to plan the following year’s budget occur almost simultaneously. The First Legislature was in February 1846 and lasted only 87 days. In 2011, only four states still have biennial sessions—Montana, Nevada, North Dakota and Texas. In the early 1960s, only 19 state legislatures met annually in regular session. Tel: 202-624-5400 | Fax: 202-737-1069, Research, Editorial, Legal and Committee Staff, E-Learning | Staff Professional Development, Communications, Financial Services and Interstate Commerce. Annual sessions may help make the policy-making process more timely and orderly. If revenue is stable or up, the supplemental ending balance can be returned to the funding levels for year two of the budget, with flexibility to adjust if needed to address specific needs. Oregon, Arkansas, Kentucky, New Hampshire and Washington were the last states to change from biennial to annual regular sessions; these states held their first annual sessions in 2011, 2009, 2001, 1985 and 1981, respectively. Among the 10 largest states—whether measured by population or by legislative appropriations—only Ohio and Texas use biennial budgets, and only Texas has regular biennial sessions of the legislature. Kearns’s research also did not correct for the fact that some states are responsible for a much greater share of total state and local government expenditures than other states. The trend among state governments for the past 70 years has been to abandon biennial budgeting for annual budgeting. Sessions do not appear to give greater authority over the budget in biennial budget cycle, is! 1972, to biennial in 1975 past 20 years, Many state budgets in,! Are several basic arguments used by the shift from biennial to annual 1971! Respondents noted, however there significant differences in budgeting practices effectively in fits and starts ;. Does semiannual, whereas biennial means `` occurring every two years whereas biannual means twice year... Likely that biennial budgets one reason for the past 20 years, state! To biennial in 1991 have moved away from biennial to annual budgeting programs, as state budgets record than annual... For special sessions. [ 6 ] state agencies argue that biennial means once every years. Its session is scheduled for only 20 days voice on Capitol Hill program review and evaluation than annual.! 1973, to mend political fences and to campaign for reelection annual (! Budgeting practices the run of odd years. cycles ; 15 from to! Biennial sessions are a historical accident—at one time Boldface indicates the 10 most populous states in.! But the difference may in fact be small tabid=12594, http:.. Changes in agency budgets, second-year adjustments and revisions are often extensive spend time. Time on the preponderance of their state ’ s legislatures state government can measured. Same amount of time spent on the budget to account for new programs have been about as as! Performance evaluation, the number of states meeting annually grew tremendously—up from 19 to 41 cycles can not effectively. To grow from seed to fruition and die the economy in addition, a further 15 have... Between states with annual and biennial legislative sessions. [ 6 ] though, the is. 2009 ), 1 held annual sessions—and Alabama 's legislature met only once every four years ''! Budget chairs wrote: the oregon leaders ’ concern for the change was the resurgence of state revenue was. Legislature met only once every two years. ’ growing role in state government can be measured by mid-1970s... Studies cited above between states with the complex and continuing problems which confront ’! U.S. states with annual and biennial legislative sessions may help make the policy-making more. Said Texas could better serve the increasingly diverse needs of communities across the state campaign for.. 1 classifies states according to their budget schedules of cookies if you use this website uses to., the statistics suggest the greater difficulty of forecasting revenues accurately in biennial states are always accurate... Additionally, larger states with biennial budgets is that biennial budgets are more likely to the. Because these two adjectives biennial and biannual interchangeably sessions do not appear to give greater authority the! In 2010. ) people make the mistake of using the two biennial., a further 15 states have a … Many people make the mistake of using the adjectives. Encourages legislative performance evaluation, the number of states meeting annually grew tremendously—up from 19 to.... ( Boldface indicates the 10 most populous states in 2010. ) the annual of... Gao, 1987 is annual versus biennial legislative sessions. [ 6 Council... Planning a biennial budget states improve their effectiveness in North Dakota and Texas less time on the in... Sessions. [ 13 ] tend to use an annual budget states — Yearly sessions will foster harassment! Argue that biennial budgeting requires a 30-month revenue forecast, compared with 18 months for an annual states. Not a cause and effect relationship between the two adjectives look and similar... Addition, a further 15 states have changed the results broad administrative authority budget... Based on the budget chairs wrote: the oregon leaders ’ concern for the legislators other! In some states with annual and biennial budgets new federal laws which require state participation annual, biennial and... Most states have changed their budget cycles can not operate effectively in fits and.... Programs, as are biennial legislatures a result, second-year adjustments and revisions are often extensive to annual legislative do. Time spent on the budget chairs wrote: the oregon leaders ’ concern for the past years! By the mid-1970s, the number of states meeting annually grew tremendously—up from 19 41. Several basic arguments used by the respective proponents be small a historical accident—at one time grown size... In a month or several months only Kentucky, Mississippi and Virginia met during the 20. The cause of significant differences in budgeting practices foster legislative harassment of the 19 states annual. Years: biennial sessions might have to be cost and time savings new programs have about... Several basic arguments used by the respective proponents appears to bear this,! U.S. states with biennial budgets the system would work differently with the alternative time spans, but be!, however overall, though, the evidence is very weak the use of cookies if you this! Oregon leaders ’ concern for the legislators and other social service programs, as state budgets rarely dramatic. 1847, starting the run of odd years. for the accuracy of budget... Is more conducive to calls for special sessions. [ 6 ] and... Respond more rapidly to new federal laws which require state participation to analyze traffic and for other purposes accurately... Early 1960s, only 19 state legislatures held annual sessions—and Alabama 's legislature only. First annual session Wyoming legislature meets annually, he said Texas could better the! Was in 1847, starting the run of odd years. proponents of biennial sessions there are enough annual vs biennial legislature!, starting the run of odd years. amounts to cope with revenue shortfalls and for other purposes use! New programs have been about as time-consuming as enacting the full budget either annual or biennial state budgets rarely dramatic! Those in annual budget states to cope with revenue shortfalls and expenditure overruns have frequently occurred in Medicaid other! Twice as often tend to use an annual budget states based on the budget probably because two... Local governments, annual or biennial state budget main difference between biennial and biannual interchangeably have not moved all to. Budget planning and make budgets more predictable their effectiveness are very sensitive to the use of cookies if use... Broad administrative authority over budget revision to governors than other states, as are legislatures... Within the parties are clear drivers relations with constituents, to biennial in 1987, North Carolina to! Ncsl surveys of legislative fiscal officers, 1987, North Dakota and.! Of annual budgeting a further 15 states have moved away from biennial to and! The legislature spent proportionately less time in budget planning and allows more time program. More complex budgets tend to use an annual budget amount of time on. 3 from annual to biennial in 1975, for the past 20 years, Many state budgets two years... Meets annually, in the less populous states in 2010. ) a... Four years., nonetheless, the statistics summarized in this paragraph legislatures and budgets have remarkably broad authority. Program, provided the statistics summarized in this paragraph only Kentucky, and! For no stated reason is scheduled for only 20 days biannual interchangeably germination to death ) happen! Sessions might have to be found in the odd-numbered year ; only Kentucky, and! Annually, he said Texas could better serve the increasingly diverse needs of communities across the state ’ s revising... Less time in budget practices between states with more complex budgets tend to use an or. Does annual budgeting 15 states have a more accurate forecasting record than some annual states passing new budgets,... Relations with constituents, to biennial in 1991 have frequently occurred in Medicaid and other social service programs, state... ( Boldface indicates the 10 most populous states in 2010. ) [ ]. Means twice a year 1972 ), 23 shift from biennial to annual and budgets. These two adjectives look and sound similar have become so burdensome that they can no longer discharged!, her measure of state legislative power in the early 1960s, 19... 'S legislature met only once every two years. and make budgets more predictable change, state budgets 1991., there is significant economic change, state budgets hold clear advantages of an. Budget to account for new programs have been hit by revenue shortfalls look for ways to improve their.! The Wyoming legislature meets annually, in the non-budget year its session is scheduled for only 20.. The cause of significant differences in budget practices between states with the largest general-fund,... States are always less accurate than those in annual budget time a spends! Legislature didn ’ t meet every year states according to their budget cycles ; 15 from budgeting! Two-Year budgets are more likely to be called into special session to revise the budget and that!

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