How does the budget process work?

Published 12/30/2013 11:43 AM   |    Updated 12/30/2013 11:43 AM
How does the budget process work?
The State of Indiana has a biennial budget, meaning that each budget contains appropriations for two fiscal years. Fiscal years in Indiana begin on July 1st and end on June 30th of the following year.
The budget drafting process begins during even-numbered years with the State Budget Agency issuing Biennial Budget Instructions to state agencies. The instructions provide guidance to agencies in submitting requests for funding. Each agency submits a budget request, which includes a Current Services Budget, representing the cost of maintaining agency services at current levels. The budget submission may also contain New Services Requests, covering proposed increases.
The legislative process then begins in the House of Representatives, when the Speaker of the House assigns the budget bill to the House Ways and Means Committee. When deliberations are completed on the proposed agency budgets, the Ways and Means Committee reports the bill out for consideration by the entire House, usually in an amended form. The bill may be further amended on second reading, then moves to third reading for approval. Once approved by the House on third reading, the budget bill is sent to the Senate for consideration, where it undertakes a very similar process.
Once passed through the Senate on third reading, the budget bill goes to conference committee to resolve any differences between the House and Senate versions, unless the Senate passes the exact House version of the budget bill (a rare occurrence). The budget conference committee is composed of four legislators, called conferees. The bill must be approved unanimously by these legislative conferees before it can be reported back to either chamber.
After the budget bill has been adopted by both chambers, it moves to the Governor for signature or veto. Once signed, the appropriation act becomes the State of Indiana budget for the subsequent biennium, and the process of budget implementation begins.
Please visit for more information on Indiana’s budget process.
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