Senate File 2375 - Introduced SENATE FILE 2375 BY COMMITTEE ON STATE GOVERNMENT (SUCCESSOR TO SSB 3173) (COMPANION TO LSB 5393HV BY COMMITTEE ON STATE GOVERNMENT) A BILL FOR An Act relating to the powers, duties, and responsibilities 1 of state government entities associated with the budget, 2 financial control, and information technology, making 3 penalties applicable, and making appropriations. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5393SV (1) 90 ns/jh

S.F. 2375 DIVISION I 1 BUDGET AND FINANCIAL CONTROL —— INFORMATION TECHNOLOGY 2 Section 1. Section 8.2, Code 2024, is amended to read as 3 follows: 4 8.2 Definitions. 5 When used in this chapter : 6 1. “Appropriable receipts” means receipts that are available 7 for appropriation. 8 2. “Appropriated receipts” means receipts that have been 9 appropriated by the general assembly. 10 1. 3. “Block grant” means funds from the federal government 11 awarded in broad program areas within which the state is given 12 considerable latitude in determining how funds are used and for 13 which the state develops its own plan for spending according 14 to general federal guidelines. “Block grant” does not include 15 education research grants. 16 4. “Broadband” means a high-speed, high-capacity electronic 17 transmission medium, including fixed wireless and mobile 18 wireless mediums, that can carry data signals from independent 19 network sources by establishing different bandwidth channels 20 and that is commonly used to deliver internet services to the 21 public. 22 5. “Broadband infrastructure” means the physical 23 infrastructure used for the transmission of data that provides 24 broadband services. “Broadband infrastructure” does not include 25 land, buildings, structures, improvements, or equipment not 26 directly used in the transmission of data via broadband. 27 2. 6. “Budget” means the budget document required by this 28 chapter to be transmitted to the legislature general assembly . 29 3. 7. “Categorical grant” means federal funds applied 30 for and received by the state which are in the form of 31 entitlements, formula grants, discretionary grants, open-ended 32 entitlements , or another form that may be used only for 33 specific , narrowly defined activities , except funds for 34 student aid and assistance; grants, contracts , and cooperative 35 -1- LSB 5393SV (1) 90 ns/jh 1/ 103

S.F. 2375 agreements for research and training for which no appropriated 1 matching funds are required; and reimbursements for services 2 rendered. 3 4. “Code” or “the Code” means the Code of Iowa. 4 8. “Communications service provider” means a service 5 provider that provides broadband service. 6 9. “Crop operation” means the same as defined in section 7 717A.1. 8 10. “Custodial funds” means those funds from various 9 deposits, taxes, or other means that are properly collected 10 from, held for, and distributed to individuals, private 11 organizations, and other governments as provided by law. 12 5. 11. The terms “department and establishment” and 13 “department” or “establishment” , “department or establishment” 14 mean any executive department, commission, board, institution, 15 bureau, office, or other agency of the state government, by 16 whatever name called, that uses, expends, or receives any 17 state government funds, including the state department of 18 transportation, except for funds which that are required 19 to match federal aid allotted to the state by the federal 20 government for highway special purposes, but excluding the 21 courts and the legislature general assembly . 22 12. “Facilitate” means a communication service provider’s 23 ability to provide broadband service at or above the download 24 and upload speeds specified in the definition of targeted 25 service area in this section to a home, farm, school, or 26 business within a commercially reasonable time and at a 27 commercially reasonable price upon request by a consumer. 28 13. “General fund” means the general fund of the state 29 established pursuant to section 444.21. 30 6. 14. “Government” means the government of the state of 31 Iowa. 32 7. “Private trust funds” means any and all endowment 33 funds and any and all moneys received by a department or 34 establishment from private persons to be held in trust and 35 -2- LSB 5393SV (1) 90 ns/jh 2/ 103

S.F. 2375 expended as directed by the donor. 1 8. “Repayment receipts” means those moneys collected by a 2 department or establishment that supplement an appropriation 3 made by the legislature. 4 15. “Government funds” means all moneys appropriated by the 5 general assembly, or moneys collected by or for the state, or a 6 department or establishment of the state, pursuant to authority 7 granted by law. 8 16. “Information technology” means computing and electronics 9 applications used to process and distribute information in 10 digital and other forms and includes information technology 11 devices, information technology services, infrastructure 12 services, broadband and broadband infrastructure, and 13 value-added services. 14 17. “Information technology device” means equipment or 15 associated software, including programs, languages, procedures, 16 or associated documentation, used in operating the equipment 17 which is designed for utilizing information stored in an 18 electronic format. “Information technology device” includes 19 but is not limited to computer systems, computer networks, and 20 equipment used for input, output, processing, storage, display, 21 scanning, and printing. 22 18. “Information technology services” means services 23 designed to do any of the following: 24 a. Provide functions, maintenance, and support of 25 information technology devices. 26 b. Provide services including but not limited to any of the 27 following: 28 (1) Computer systems application development and 29 maintenance. 30 (2) Systems integration and interoperability. 31 (3) Operating systems maintenance and design. 32 (4) Computer systems programming. 33 (5) Computer systems software support. 34 (6) Planning and security relating to information 35 -3- LSB 5393SV (1) 90 ns/jh 3/ 103

S.F. 2375 technology devices. 1 (7) Data management consultation. 2 (8) Information technology education and consulting. 3 (9) Information technology planning and policies. 4 (10) Establishment of local area network and workstation 5 management policies. 6 19. “Information technology staff” includes any employees 7 performing information technology services, including but not 8 limited to department or establishment employees in information 9 technology classifications, contractors, temporary workers, and 10 any other employees providing information technology services. 11 20. “Infrastructure services” includes all of the following: 12 a. Data centers used to support mainframe and other 13 computers and their associated components including servers, 14 information networks, storage systems, redundant or backup 15 power systems, redundant data communications connections, 16 environmental controls, and security devices. 17 b. Servers, mainframes, or other centralized processing 18 systems. 19 c. Storage systems, including but not limited to disk, tape, 20 optical, and other structured repositories for storing digital 21 information. 22 d. Computer networks commonly referred to as local area 23 networks. 24 e. Network services, including equipment and software 25 which support local area networks, campus area networks, wide 26 area networks, and metro area networks. Network services 27 also include data network services such as routers, switches, 28 firewalls, virtual private networks, intrusion detection 29 systems, access control, internet protocol load balancers, 30 event logging and correlation, and content caching. 31 f. Groupware applications used to facilitate collaboration, 32 communication, and workflow, including electronic mail, 33 directory services, calendaring and scheduling, and imaging 34 systems. 35 -4- LSB 5393SV (1) 90 ns/jh 4/ 103

S.F. 2375 g. Information technology help desk services. 1 h. Cybersecurity functions and equipment. 2 i. Digital printing and printing procurement services. 3 j. Data warehouses, including services that assist in 4 managing and locating digital information. 5 k. Disaster recovery technology and services. 6 l. Cloud computing solutions including but not limited 7 to solutions based on software as a service, platform as a 8 service, and infrastructure as a service. 9 m. Other similar or related services as determined by the 10 director of the department of management. 11 21. “Private purpose trust funds” means trust arrangements 12 under which the principal and income benefit individuals, 13 private organizations, or other governments. “Private purpose 14 trust funds” does not include pension or other employee benefit 15 trust funds or investment trust funds. 16 9. 22. “Special fund” “Special revenue fund” means any 17 and all government fees and other revenue receipts earmarked 18 to finance a governmental agency to which no a general fund 19 appropriation is not made by the state. 20 10. “State funds” means any and all moneys appropriated by 21 the legislature, or money collected by or for the state, or an 22 agency thereof, pursuant to authority granted by any of its 23 laws. 24 23. “Supported entity” means a unit of state government, 25 which is an authority, board, commission, committee, council, 26 department, or independent agency as defined in section 7E.4, 27 including but not limited to each principal central department 28 enumerated in section 7E.5. However, “supported entity” does 29 not mean any of the following: 30 a. The office of the governor or the office of an elective 31 constitutional or statutory officer. 32 b. The general assembly, or any office or unit under its 33 administrative authority. 34 c. The judicial branch, as provided in section 602.1102. 35 -5- LSB 5393SV (1) 90 ns/jh 5/ 103

S.F. 2375 d. A political subdivision of the state or its offices 1 or units, including but not limited to a county, city, or 2 community college. 3 e. The state board of regents and institutions operated 4 under its authority. 5 24. “Targeted service area” means any of the following: 6 a. A United States census bureau census block located 7 in this state, including any crop operation located within 8 the census block, or other geographic unit the department of 9 management sets by rule, within which no communications service 10 provider offers or facilitates broadband service at or above 11 the tier 1, tier 2, or tier 3 download and upload speeds. As 12 used in this subsection: 13 (1) “Tier 1” means a maximum download speed of less than 14 twenty-five megabits per second and a maximum upload speed of 15 less than three megabits per second. 16 (2) “Tier 2” means a minimum download speed of greater than 17 or equal to twenty-five megabits per second but less than fifty 18 megabits per second. 19 (3) “Tier 3” means a minimum download speed of greater than 20 or equal to fifty megabits per second but less than eighty 21 megabits per second. 22 b. Any geographic area, as the department of management sets 23 by rule, that is materially underserved by broadband service 24 such that tier 1, tier 2, and tier 3 download and upload speeds 25 are not meaningfully available. The department of management’s 26 power to determine the geographic area by rule under this 27 paragraph includes the power to define and interpret policies 28 as to whether a geographic area is materially underserved and 29 broadband service is meaningfully available. 30 25. “Underserved area” means any portion of a targeted 31 service area within which no communications service provider 32 facilitates broadband service meeting the tier 1 download and 33 upload speeds specified in the definition of targeted service 34 area. 35 -6- LSB 5393SV (1) 90 ns/jh 6/ 103

S.F. 2375 11. 26. “Unencumbered balance” means the unobligated 1 balance of an appropriation after charging thereto to the 2 appropriation all unpaid liabilities for goods and services and 3 all contracts or agreements payable from an the appropriation 4 or a special fund . 5 27. “Value-added services” means services that offer or 6 provide unique, special, or enhanced value, benefits, or 7 features to the customer or user including but not limited to 8 services in which information technology is specially designed, 9 modified, or adapted to meet the special or requested needs 10 of the user or customer; services involving the delivery, 11 provision, or transmission of information or data that require 12 or involve additional processing, formatting, enhancement, 13 compilation, or security; services that provide the customer 14 or user with enhanced accessibility, security, or convenience; 15 research and development services; and services that are 16 provided to support technological or statutory requirements 17 imposed on supported entities and other governmental entities, 18 businesses, and the public. 19 Sec. 2. Section 8.3A, subsection 1, paragraph a, Code 2024, 20 is amended to read as follows: 21 a. “Capital project” means a project that consists 22 of nonroutine repairs and replacements unrelated to new 23 construction for which the cost is two hundred fifty thousand 24 dollars or more, new construction, infrastructure or site 25 development, equipment, or information technology. “Capital 26 project” includes land acquisition and projects that extend the 27 useful life of or change the functional use of a facility. 28 “Capital project” does not include highway and right-of-way 29 projects or airport capital projects undertaken by the state 30 department of transportation and financed from dedicated 31 funds or capital projects funded by nonstate grants, gifts, 32 or contracts obtained at or through state universities, if 33 the projects do not require a commitment of additional state 34 resources for maintenance, operations, or staffing. 35 -7- LSB 5393SV (1) 90 ns/jh 7/ 103

S.F. 2375 Sec. 3. Section 8.4, Code 2024, is amended to read as 1 follows: 2 8.4 Department of management. 3 The department of management is created, which is directly 4 attached to the office of the governor and under the general 5 direction, supervision, and control of the governor. The 6 office is in immediate charge of an officer to be known 7 as “the director”, who shall be appointed by the governor, 8 subject to confirmation by the senate, and shall hold office 9 at the governor’s pleasure and shall receive a salary as set 10 by the governor. The director may establish, abolish, and 11 consolidate divisions within the department of management 12 when necessary for the efficient performance of the various 13 functions and duties of the department of management. Before 14 entering upon the discharge of duties, the director shall 15 take the constitutional oath of office and give a surety bond 16 in the penalty fixed by the governor, payable to the state, 17 which shall not be less than twenty-five thousand dollars, 18 conditioned upon the faithful discharge of the director’s 19 duties . The premium on the bond shall be paid out of the state 20 treasury. 21 Sec. 4. Section 8.5, subsection 1, Code 2024, is amended to 22 read as follows: 23 1. Assistants. Employ, with the approval of the governor, 24 two assistants and such clerical assistants as the director may 25 find necessary. 26 Sec. 5. Section 8.5, Code 2024, is amended by adding the 27 following new subsections: 28 NEW SUBSECTION . 5. Investigations. Make such 29 investigations of the organization, activities, and methods of 30 procedure of the several departments and establishments as the 31 director of the department of management may be called upon to 32 make by the governor or general assembly. 33 NEW SUBSECTION . 6. Legislative assistance. 34 a. Furnish to any committee of either house of the general 35 -8- LSB 5393SV (1) 90 ns/jh 8/ 103

S.F. 2375 assembly having jurisdiction over revenues or appropriations 1 such assistance and information regarding the financial affairs 2 of the government as the committee may request. 3 b. Develop and recommend legislative proposals deemed 4 necessary for the continued efficiency of the department of 5 management in performing information technology functions, 6 and review legislative proposals generated outside of the 7 department which are related to matters within the department’s 8 purview. 9 NEW SUBSECTION . 7. Rules. Make such rules, subject to the 10 approval of the governor, as may be necessary for effectively 11 carrying on the work of the department of management. The 12 director may, with the approval of the executive council, 13 require any state official, agency, department, or commission, 14 to require any applicant, registrant, filer, permit holder, 15 or license holder, whether individual, partnership, trust, or 16 corporation, to submit to said official, agency, department, 17 or commission, the social security number or the tax number or 18 both so assigned to said individual, partnership, trust, or 19 corporation. 20 NEW SUBSECTION . 8. Allotments. Perform the necessary work 21 involved in reviewing requests for allotments as are submitted 22 to the governor for approval. 23 NEW SUBSECTION . 9. Budget document. Prepare the budget 24 document and draft the legislation to make it effective. 25 NEW SUBSECTION . 10. Taxation transparency and 26 disclosure. Exercise the powers and perform the duties 27 and responsibilities of the director and the department as 28 authorized or required under chapter 8G. 29 NEW SUBSECTION . 11. General control. Perform such other 30 duties as may be required to effectively control the financial 31 operations of the government as limited by this chapter. 32 NEW SUBSECTION . 12. Capital project budgeting 33 requests. Compile annually all capital project budgeting 34 requests of all state agencies, as those terms are defined in 35 -9- LSB 5393SV (1) 90 ns/jh 9/ 103

S.F. 2375 section 8.3A, and to consolidate the requests, with individual 1 state agency priorities noted, into a report for submission 2 with the budget documents by the governor pursuant to section 3 8.22. Any additional information regarding the capital 4 project budgeting requests or priorities shall be compiled and 5 submitted in the same report. 6 NEW SUBSECTION . 13. Capital project planning and budgeting 7 authority. Call upon any state agency, as defined in section 8 8.3A, for assistance the director may require in performing the 9 director’s duties under subsection 12. All state agencies, 10 upon the request of the director, shall assist the director and 11 are authorized to make available to the director any existing 12 studies, surveys, plans, data, and other materials in the 13 possession of the state agencies which are relevant to the 14 director’s duties. 15 NEW SUBSECTION . 14. State tort claims —— risk management 16 coordinator. Designate a position within the department of 17 management to serve as the executive branch’s risk management 18 coordinator. 19 a. The risk management coordinator shall have all of the 20 following responsibilities: 21 (1) Coordinating and monitoring risk control policies and 22 programs in the executive branch, including but not limited 23 to coordination with the employees of departments who are 24 responsible for the workers’ compensation for state employees 25 and management of state property. 26 (2) Consulting with the attorney general with respect to 27 the risk control policies and programs and trends in claims and 28 liability of the state under chapter 669. 29 (3) Coordinating the state’s central data repository for 30 claims and risk information. 31 b. The costs of salary, benefits, and support for the risk 32 management coordinator shall be authorized by the state appeal 33 board established in chapter 73A and shall be paid as claims 34 for services furnished to the state under section 25.2. 35 -10- LSB 5393SV (1) 90 ns/jh 10/ 103

S.F. 2375 NEW SUBSECTION . 15. Salary model administrator. Designate 1 a position within the department of management to serve as the 2 salary model administrator. 3 a. The salary model administrator shall work in conjunction 4 with the legislative services agency to maintain the state’s 5 salary model used for analyzing, comparing, and projecting 6 state employee salary and benefit information, including 7 information relating to employees of the state board of 8 regents. 9 b. The department of revenue, the department of 10 administrative services, the institutions governed by the state 11 board of regents pursuant to section 262.7, each judicial 12 district’s department of correctional services, and the state 13 department of transportation shall provide salary data to the 14 department of management and the legislative services agency 15 to operate the state’s salary model. The format and frequency 16 of provision of the salary data shall be determined by the 17 department of management and the legislative services agency. 18 c. The information shall be used in collective bargaining 19 processes under chapter 20 and in calculating the funding needs 20 contained within any annual salary adjustment legislation. 21 A state employee organization as defined in section 20.3, 22 subsection 4, may request information produced by the model, 23 but the information provided shall not contain information 24 attributable to individual employees. 25 NEW SUBSECTION . 16. Chief information officer. Designate a 26 position within the department of management to serve as the 27 chief information officer for the department and supported 28 entities, who shall be the sole chief information officer for 29 the department and supported entities. 30 NEW SUBSECTION . 17. Gubernatorial advice. Provide advice 31 to the governor, including advice related to information 32 technology. 33 NEW SUBSECTION . 18. Information technology 34 consultation. Consult with departments and establishments on 35 -11- LSB 5393SV (1) 90 ns/jh 11/ 103

S.F. 2375 issues related to information technology. 1 NEW SUBSECTION . 19. Cybersecurity. Exercise the sole 2 authority in the executive branch of state government for 3 convening cross-jurisdictional, multi-entity collaborations to 4 address cybersecurity issues for supported entities. 5 NEW SUBSECTION . 20. Designation of services —— funding —— 6 customer council. 7 a. Establish a process by which the department of 8 management, in consultation with the department of 9 administrative services, determines which services provided 10 by the department of administrative services shall be funded 11 by an appropriation and which services shall be funded by the 12 governmental entity receiving the service. 13 b. Establish a process for determining whether the 14 department of administrative services shall be the sole 15 provider of a service for purposes of those services which the 16 department of management determines under paragraph “a” are to 17 be funded by the governmental entities receiving the service. 18 c. (1) Establish, by rule, a customer council responsible 19 for overseeing the services provided solely by the department 20 of administrative services. The rules adopted shall provide 21 for all of the following: 22 (a) The method of appointment of members to the council by 23 the governmental entities required to receive the services. 24 (b) The duties of the customer council which shall be as 25 follows: 26 (i) Annual review and approval of the department of 27 administrative services’ business plan regarding services 28 provided solely by the department of administrative services. 29 (ii) Annual review and approval of the procedure for 30 resolving complaints concerning services provided by the 31 department of administrative services. 32 (iii) Annual review and approval of the procedure 33 for setting rates for the services provided solely by the 34 department of administrative services. 35 -12- LSB 5393SV (1) 90 ns/jh 12/ 103

S.F. 2375 (c) A process for receiving input from affected 1 governmental entities as well as for a biennial review by the 2 customer council of the determinations made by the department 3 of management of which services are funded by an appropriation 4 to the department of administrative services and which services 5 are funded by the governmental entities receiving the service, 6 including any recommendations as to whether the department of 7 administrative services shall be the sole provider of a service 8 funded by the governmental entities receiving the service. The 9 department of management, in consultation with the department 10 of administrative services, may change the determination of 11 a service if the change is in the best interests of those 12 governmental entities receiving the service. 13 (2) If a service to be provided may also be provided to the 14 judicial branch or legislative branch, then the rules shall 15 provide that the chief justice of the supreme court may appoint 16 a member to the customer council, and the legislative council 17 may appoint a member from the senate and a member from the 18 house of representatives to the customer council, respectively, 19 at their discretion. 20 NEW SUBSECTION . 21. Other powers and duties. Exercise and 21 perform such other powers and duties as may be prescribed by 22 law. 23 Sec. 6. Section 8.8, Code 2024, is amended to read as 24 follows: 25 8.8 Special olympics fund —— appropriation. 26 A special olympics fund is created in the office of the 27 treasurer of state under the control of the department of 28 management. There is appropriated annually from the general 29 fund of the state to the special olympics fund department of 30 management one hundred thousand dollars for distribution to 31 one or more organizations which administer special olympics 32 programs benefiting the citizens of Iowa with disabilities. 33 Sec. 7. Section 8.9, subsection 1, Code 2024, is amended to 34 read as follows: 35 -13- LSB 5393SV (1) 90 ns/jh 13/ 103

S.F. 2375 1. The office of grants enterprise management is 1 established in the department of management. The function of 2 the office is to develop and administer a system process to 3 track , identify, advocate for, and coordinate nonstate block 4 grants as defined in section 8.2, subsections 1 and 3 5 and categorical grants . Staffing for the office of grants 6 enterprise management shall be provided by a facilitator 7 appointed by the director of the department of management. 8 Additional staff may be hired, subject to the availability of 9 funding. 10 Sec. 8. Section 8.10, Code 2024, is amended to read as 11 follows: 12 8.10 Facilitator’s duties. 13 The specific duties of the facilitator of the office of 14 grants enterprise management may include the following: 15 1. Establish Coordinate a grants network representing all 16 state agencies to assist the grants enterprise management 17 office in an advisory capacity. Each state agency shall 18 designate an employee on the management or senior staff 19 level to serve as the agency’s federal funds coordinator and 20 represent the agency on the grants network. An agency may not 21 create a staff position for a federal funds coordinator. The 22 coordinator’s duties shall be in addition to the duties of the 23 employee of the agency. 24 2. Develop a plan for increased state access to funding 25 sources other than the general fund of the state. 26 3. Develop procedures to formally notify appropriate state 27 and local agencies of the availability of discretionary federal 28 funds and, when necessary, coordinate the application process. 29 4. 2. Establish an automated information system process 30 database for grants applied for and received and to track 31 congressional activity . 32 5. Provide information and counseling to state agencies and 33 political subdivisions of the state concerning the availability 34 and means of obtaining state, federal, and private grants. 35 -14- LSB 5393SV (1) 90 ns/jh 14/ 103

S.F. 2375 6. Provide grant application writing assistance and 1 training to state agencies and political subdivisions of the 2 state, directly or through interagency contracts, cooperative 3 agreements, or contracts with third-party providers. 4 7. 3. Monitor the federal register and other federal or 5 state publications to identify funding opportunities , with 6 special emphasis on discretionary grants or other funding 7 opportunities available to the state . 8 8. Periodically review the funding strategies and methods 9 of those states that rank significantly above the national 10 average in the per capita receipt of federal funds to determine 11 whether those strategies and methods could be successfully 12 employed by this state. 13 Sec. 9. NEW SECTION . 8.13 Establishment of funds. 14 1. The department of management may establish one or more 15 funds within the state treasury under the control of the 16 department. Moneys deposited in or accruing to such a fund are 17 appropriated to the department for purposes of administering 18 the department. 19 2. a. Notwithstanding section 8.33, moneys in such a fund 20 that remain unencumbered or unobligated at the close of a 21 fiscal year shall not revert but shall remain available for 22 expenditure for the purposes designated. 23 b. This subsection does not apply to moneys annually 24 appropriated to the department of management by the general 25 assembly in an Act of the general assembly. Such moneys shall 26 be subject to reversion as otherwise provided by law. 27 3. Notwithstanding section 12C.7, subsection 2, interest 28 or earnings on moneys in such a fund shall be credited to the 29 fund. 30 Sec. 10. Section 8.21, subsection 1, Code 2024, is amended 31 to read as follows: 32 1. Not later than February 1 of each legislative regular 33 session of the general assembly , the governor shall transmit 34 to the legislature general assembly a document to be known as 35 -15- LSB 5393SV (1) 90 ns/jh 15/ 103

S.F. 2375 a budget, setting forth the governor’s financial program for 1 the ensuing fiscal year and having the character and scope set 2 forth in sections 8.22 through 8.29 this subchapter . 3 Sec. 11. Section 8.22, subsection 1, Code 2024, is amended 4 to read as follows: 5 1. Part I —— Governor’s budget message. Part I shall consist 6 of the governor’s budget message, in which the governor shall 7 set forth all of the following: 8 a. Part I shall consist of the governor’s budget message, in 9 which the governor shall set forth: 10 (1) (a) The governor’s program for meeting all the 11 expenditure needs of the government for the fiscal year, 12 indicating the classes of funds, general or special, from which 13 appropriations are to be made and the means through which 14 the expenditures shall be financed. The governor’s program 15 shall include a single budget request for all capital projects 16 proposed by the governor. The request shall include but is not 17 limited to all of the following: 18 (b) The governor’s program shall include a single budget 19 request for all capital projects proposed by the governor. The 20 request shall include but is not limited to the following: 21 (i) (1) The purpose and need for each capital project. 22 (ii) (2) A priority listing of capital projects. 23 (iii) (3) The costs of acquisition, lease, construction, 24 renovation, or demolition of each capital project. 25 (iv) (4) The identification of the means and source of 26 funding each capital project. 27 (v) (5) The estimated operating costs of each capital 28 project after completion. 29 (vi) (6) The estimated maintenance costs of each capital 30 project after completion. 31 (vii) (7) The consequences of delaying or abandoning each 32 capital project. 33 (viii) (8) Alternative approaches to meeting the purpose or 34 need for each capital project. 35 -16- LSB 5393SV (1) 90 ns/jh 16/ 103

S.F. 2375 (ix) (9) Alternative financing mechanisms. 1 (x) (10) A cost-benefit analysis or economic impact of each 2 capital project. 3 b. (1) Financial statements giving in summary form: 4 (a) The condition of the treasury at the end of the last 5 completed fiscal year, the estimated condition of the treasury 6 at the end of the year in progress, and the estimated condition 7 of the treasury at the end of the following fiscal year if the 8 governor’s budget proposals are put into effect. 9 (b) Statements showing the bonded indebtedness of the 10 government, debt authorized and unissued, debt redemption and 11 interest requirements, and condition of the sinking funds, if 12 any. 13 (c) A summary of appropriations recommended for the 14 following fiscal year for each department and establishment 15 and for the government as a whole, in comparison with the 16 actual expenditures for the last completed fiscal year and the 17 estimated expenditures for the year in progress. 18 (d) A summary of the revenue, estimated to be received by 19 the government during the following fiscal year, classified 20 according to sources, in comparison with the actual revenue 21 received by the government during the last completed fiscal 22 year and estimated income during the year in progress. 23 (e) A statement of federal funds received in the form of 24 block or categorical grants which were not included in the 25 governor’s budget for the previous fiscal year and a statement 26 of anticipated block grants and categorical grants. The 27 budget shall indicate how the federal funds will be used and 28 the programs to which they will be allocated. The amount of 29 state government funds required to implement the programs to 30 which the federal funds will apply shall also be indicated. 31 The departments and establishments shall provide information 32 to the director on the anticipated federal block grants and 33 categorical grants to be received on or before November 1 of 34 each year. The director shall use this information to develop 35 -17- LSB 5393SV (1) 90 ns/jh 17/ 103

S.F. 2375 an annual update of the statement of federal funds received 1 which shall be provided to the general assembly. 2 (f) Other financial statements, data, and comments as in the 3 governor’s opinion are necessary or desirable in order to make 4 known in all practicable detail the financial condition and 5 operation of the government and the effect that the budget as 6 proposed by the governor will have on the financial condition 7 and operation. 8 (g) A separate report containing a complete list of all 9 standing appropriations showing the amount or estimated 10 amount of each appropriation and the purpose for which the 11 appropriation is made. 12 (2) If the estimated revenues of the government for the 13 ensuing fiscal year as set forth in the budget on the basis of 14 existing laws, plus the estimated amounts in the treasury at 15 the close of the year in progress, available for expenditure in 16 the ensuing fiscal year are less than the aggregate recommended 17 for the ensuing fiscal year as contained in the budget, the 18 governor shall make recommendations to the legislature in 19 respect to the manner in which the deficit shall be met, 20 whether by an increase in the state tax or the imposition of 21 new taxes, increased rates on existing taxes, or otherwise, 22 and if the aggregate of the estimated revenues, plus estimated 23 balances in the treasury, is greater than the recommended 24 appropriations for the ensuing fiscal year, the governor shall 25 make recommendations in reference to the application of the 26 surplus to the reduction of debt or otherwise, to the reduction 27 in taxation, or to such other action as in the governor’s 28 opinion is in the interest of the public welfare. 29 c. Supplemental estimates for such appropriations as in 30 the governor’s judgment may be necessary or otherwise in the 31 public interest. The governor shall accompany such estimates 32 with a statement of the reasons therefor, including the 33 reasons for their omission from a prior budget, if applicable. 34 Whenever such supplemental estimates amount to an aggregate 35 -18- LSB 5393SV (1) 90 ns/jh 18/ 103