Budget Terms and Definitions

SELECTED BUDGET TERMS AND DEFINITIONS*

Allocations	The total amount of estimated expenditures authorized by the Legislature from resources legally restricted or otherwise designated for specific operating purposes. All non-General Fund sources are "allocated" including: Highway Fund, Other Special Revenue, Federal Expenditure Funds, Federal Block Grant Funds, Enterprise Funds, Internal Service Funds, etc. The Legislature allocates to "programs" and to "line categories" within programs. (See Appropriations below.)
Allotments	The quarterly distribution by the Executive Branch of all appropriations (and allocations), revenues, transfers and other funds made available to a department or agency for expenditure (see 5 MRSA §1667).
Appropriations	The total amount of estimated expenditures authorized by the Legislature from unrestricted or undesignated resources of a current nature (i.e., the General Fund). The Legislature appropriates to "programs" (e.g., General Purpose Aid for Local Schools) and to "line categories" within programs (e.g., Personal Services, All Other, Capital Expenditures, Unallocated).
Biennium	The two fiscal years beginning in an even-numbered fiscal year which represents the period covered by the biennial budget of the State (e.g., we are currently in the "2002-2003 biennium", the 2-year budgeting period ending June 30, 2003).
Biennial Budget (Document)	The two year financial plan which shows the estimated expenditures of the various departments and agencies of Maine State Government and the resources available (or proposed to be made available) to fund them.
Bond Issue	A financing instrument for major capital purchases, projects, repairs, renovations or other limited projects by which the State incurs debt and retires the principal and interest amounts over time. The State, if authorized by the voters, most frequently issues "general obligation bonds" in which the full faith and credit of the State is pledged.
Budget Bills	Legislative Documents, almost always submitted by the Governor, that seek appropriations, deappropriations, allocations, deallocations and/or revenue adjustments to finance Maine State Government and other public purposes and may seek statutory or unallocated language changes to implement fiscal policy. Included are:
	"Emergency" - proposals in the First Regular Session to resolve budget issues for the past 5-6 months of that fiscal year.
	"Part 1" - proposals in the First Regular Session to resolve budget issues for the upcoming biennium to maintain expenditures as authorized under current law (also called "Current Services").
	"Part 2" - proposals in the First Regular Session to resolve budget issues of a new initiative, supplementary or organizational nature for the upcoming biennium (also called "new and expanded services").
	"Supplemental" - proposals in the Second Regular Session or a Special Session to resolve budget issues to resolve budget issues for the balance of the current biennium.
"Current Services"	See "Part 1" definition, above.
Fiscal Note	A 1-2 page summary issued by the Office of Fiscal & Program Review describing the fiscal impact of a bill or an amendment; or that part of a bill or amendment that contains the same information (as required by the Joint Rules).
Federal Financial Participation (FFP)	The federal share of joint state/federal programs such as Medicaid (FY 03 rate - 66.22%). For the state fiscal year, SFY 03, a blended rate of 66.31% for the federal share and 33.69% for the state share is used to account for the difference between the FFY and SFY.
Fiscal Year (Federal)	The legal accounting and budgetary cycle of the Federal Government covering the period of October 1 through September 30.
Fiscal Year (State)	The legal accounting and budgetary cycle of the Maine State Government covering the period of July 1 through June 30 (see 5 MRSA §1501). The SFY is referred to by including the two calendar years involved (e.g., FY 2002-03) or, more commonly, by including the calendar year in which that fiscal year ends (e.g., FY 03, which ends on June 30, 2003).
Financial Orders	Used primarily to implement the budget or to make changes to the enacted budget. Implemented by the Executive Branch, financial orders are used to make transfers between line categories and programs within the same department or agency. Financial orders may also be used now to establish limited-period, project or any other temporary positions until the statutory adjournment date for the next regular session of the Legislature. Most transfers require a 30-day wait before they become effective although an "emergency" waiver can be granted by the Joint Standing Committee on Appropriations and Financial Affairs upon an affirmative vote (see 5 MRSA §1585 and PL 1999, C. 16, Part A).
Line Category	The four expenditure groups to which the Legislature appropriates and allocates funds:
	Personal Services - state employee salaries and benefits;
	All Other - operational support, grants, etc.;
	Capital Expenditures - capital asset purchases, construction and certain repairs;
	Unallocated - undesignated expenditures.
"New & Expanded"	See "Part 2" definition, above.
Performance Budgeting	The method for developing and finalizing an agency's request for appropriations and/or allocations derived from its strategic plan and consistent with an agency’s statutory responsibilities. Performance budgeting allocates resources based on the achievement of measurable objectives which, in turn, are related to the agency’s mission and goals (see 5 MRSA c.151-C).
Position	A job in a state department or agency that has been authorized by the Legislature.
Rainy Day Fund (Maine)	A General Fund program created in statute to reserve funds for prepayment of outstanding General Fund bonds or for major construction estimated to cost $500,000 or more (see 5 MRSA §1513). The Rainy Day Fund is capped at 6% of General Fund revenues of the preceding state fiscal year.
State Contingent Account	An Annual sum of $350,000 made available to the Governor for statutorily-defined uses such as emergencies, promotion of Maine, etc. (see 5 MRSA §1507).
Strategic Plan	A long-range, policy-oriented document that maps an explicit path between the present and a vision of the future. A strategic plan is derived from an assessment, goal-setting, and decision-making process that relies on careful consideration of an agency’s capabilities and environment. A strategic plan identifies a state agency’s mission, goals, measurable objectives, and strategies and leads to priority-based resource allocation and other decisions (see 5 MRSA c.151-C).
Structural Gap	Defined by OFPR as the difference between projected General Fund (or Highway Fund) revenue estimated to be collected in the upcoming biennium based on current law and economic conditions, and projected General Fund (or Highway Fund) current services appropriations that are needed to maintain the current level of legislatively approved and/or funded program effort for that same period of time
Unappropriated Surplus	An account maintained by the State Controller to include the balances of all revenue and appropriations not otherwise provided by law, including all necessary adjustments (see 5 MRSA §1544).

*Sources: Bureau of the Budget
Maine Revised Statutes Annotated
Office of Fiscal & Program Review