District of Columbia CONSTITUTION
ARTICLE IV
BUDGET AND FINANCIAL MANAGEMENT

Art. IV §1 | FISCAL YEAR

The Legislative Assembly shall establish by Act the fiscal year of the State of Washington, D.C.

Art. IV §2 | SUBMISSION OF ANNUAL BUDGET

a. The Governor shall prepare and submit to the Legislative Assembly each year, at such time as the Legislative Assembly shall direct, and shall make available to the public, a proposed annual budget for the State of Washington, D.C. government. It shall:

(A) Reflect the actual financial condition of the State of Washington, D.C. government;

(B) Specify the agencies and purposes for which funds are being requested; and

(C) Be prepared on the assumption that proposed expenditures for such fiscal year shall not exceed estimated resources from existing sources and proposed resources.

2. Be accompanied by:

(A) An annual budget message that shall include supporting financial and statistical information for the forthcoming fiscal year and information on the approved budgets and expenditures for the immediately preceding 3 fiscal years;

(B) A multiyear financial plan of revenues and expenses, including multiyear operating and capital improvement plans for all agencies; and

(C) A summary of the budget for distribution to the general public.

3. The proposed budget and financial plan shall be certified by the Chief Financial Officer as balanced and the Governor shall not forward to the Legislative Assembly a budget that is not balanced. The budget shall identify any new sources of revenue that shall be necessary to balance the budget as submitted.

b. The budget prepared and submitted by the Governor shall include, but not be limited to, recommended expenditures at a reasonable level for agencies under the authority of the Governor, and expenditures for the Legislative Assembly, the State of Washington, D.C. court system, the Office of the Attorney General, the Office of the Chief Financial Officer, the State Board of Education, and the Board of Elections for each such entity.

c. The Governor may prepare and submit to the Legislative Assembly such supplemental or deficiency budget proposals as are necessary, including proposals to increase revenues to meet any such increased expenditure, and may prepare and submit to the Legislative Assembly for approval, by Resolution, proposed reprogrammings of budgeted amounts.

The Legislative Assembly may by Act designate categories and classes of supplemental and deficiency budget modifications and reprogrammings for which approval by the Legislative Assembly is not required or for which approval of the Legislative Assembly will be deemed to have occurred upon the expiration of a specified period of time after the Governor submits the proposal to the Legislative Assembly.

Art. IV §3 | ADOPTION OF BUDGET BY LEGISLATIVE ASSEMBLY

The Legislative Assembly, within 77 calendar days after receipt of the budget proposal from the Governor, and after a public hearing, shall adopt by Act the annual budget for the State of Washington, D.C. government. No amount may be obligated or expended by any officer or employee of the State of Washington, D.C. government unless such amount has been approved by Act of the Legislative Assembly, and then only according to such Act, or as otherwise provided in section 2(c) of this Article.

Art. IV §4 | ANNUAL FINANCIAL STATEMENTS AND AUDITS

Within 123 days following the close of the fiscal year, the Governor shall submit to the Legislative Assembly a complete and audited financial statement and report for the preceding fiscal year.

Art. IV §5 | BALANCED BUDGET

The Legislative Assembly shall not approve any budget that would result in expenditures being in excess of all resources that the Chief Financial Officer estimates will be available from all funds available to the State of Washington, D.C. for such fiscal year.

Art. IV §6 | REVIEW OF CONTRACTS BY THE LEGISLATIVE ASSEMBLY

By Act, the Legislative Assembly may establish which contracts shall be subject to its review and approval; provided, that the scope of contracts subject to the review of the Legislative Assembly shall not exceed the scope of those contracts that were subject to approval of the former Council of the District of Columbia.

Art. IV §7 | EMERGENCY AND CONTINGENCY RESERVE FUNDS

1. The Governor shall deposit into an emergency cash reserve fund not later than the first day of each fiscal year such an amount as may be required to maintain a balance in the fund of at least 2 percent of the operating expenditures of the government of the State of Washington, D.C.; provided, that if the Governor uses money from the fund during a fiscal year, the State of Washington, D.C. shall appropriate sufficient funds each fiscal year in the budget process to replenish any amounts allocated from the emergency reserve fund during the preceding fiscal years so that not less than 50 percent of any amount allocated in the preceding fiscal year or the amount necessary to restore the emergency reserve fund to the 2 percent required balance, whichever is less, is replenished by the end of the first fiscal year following each such allocation and 100 percent of the amount allocated or the amount necessary to restore the emergency reserve fund to the 2 percent required balance, whichever is less, is replenished by the end of the second fiscal year following each such allocation; provided further, that if an amount is allocated from the emergency cash reserve fund for cash-flow management purposes, the Governor shall fully replenish the fund in the amount allocated not later than the earlier of the expiration of the 9-month period that begins on the date the allocation is made or the last day of the fiscal year.

2. The Governor may use the emergency cash reserve fund to provide for unanticipated and nonrecurring extraordinary needs of an emergency nature, including for expenses associated with a natural disaster or calamity or a state of emergency as declared by the Governor, for unexpected obligations of federal law, and for cash-flow management purposes in an amount of not more than 50 percent of the balance of the fund.

1. The Governor shall deposit into a contingency cash reserve fund not later than the first day of each fiscal year such amount as may be required to maintain a balance in the fund of at least 4 percent of the operating expenditures of the government of the State of Washington, D.C.; provided, that the government of the State of Washington, D.C. shall appropriate sufficient funds each fiscal year in the budget process to replenish any amounts allocated from the contingency reserve fund during the preceding fiscal years so that not less than 50 percent of any amount allocated in the preceding fiscal year or the amount necessary to restore the contingency reserve fund to the 4 percent required balance, whichever is less, is replenished by the end of the first fiscal year following each such allocation and 100 percent of the amount allocated or the amount necessary to restore the contingency reserve fund to the 4 percent required balance, whichever is less, is replenished by the end of the second fiscal year following each such allocation; provided further, that if an amount is allocated from the contingency cash reserve fund for cash-flow management purposes, the Governor shall fully replenish the fund in the amount allocated not later than the earlier of the expiration of the 9-month period that begins on the date the allocation is made or the last day of the fiscal year.

2. The Governor may use the contingency cash reserve fund to provide for nonrecurring or unforeseen needs that arise during the fiscal year, including for expenses associated with unforeseen weather or other natural disasters, unexpected obligations created by federal law or new public safety, health, welfare, or education needs or requirements that have been identified after the budget process has occurred, for opportunities to achieve cost savings, to cover revenue shortfalls experienced by the District government for 3 consecutive months (based on a 2-month rolling average) that are 5 percent or more below the budget forecast, and for cash-flow management purposes in an amount of not more than 50 percent of the balance of the fund.

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District of Columbia CONSTITUTIONARTICLE IVBUDGET AND FINANCIAL MANAGEMENT

Art. IV §1 | FISCAL YEAR

Art. IV §2 | SUBMISSION OF ANNUAL BUDGET

Art. IV §3 | ADOPTION OF BUDGET BY LEGISLATIVE ASSEMBLY

Art. IV §4 | ANNUAL FINANCIAL STATEMENTS AND AUDITS

Art. IV §5 | BALANCED BUDGET

Art. IV §6 | REVIEW OF CONTRACTS BY THE LEGISLATIVE ASSEMBLY

Art. IV §7 | EMERGENCY AND CONTINGENCY RESERVE FUNDS

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