Program Execution

(a)Except as limited by policy decisions of I Maga’lahi (the Governor), appropriations by I Liheslatura (the Legislature), and other provisions of law, the territorial agencies shall have full authority for administering their program service assignments, and shall be responsible for their proper management, provided that I Maga’lahi’s COL1312018 CH. 4 PROGRAM BUDGETING AND FINANCIAL MANAGEMENT (the Governor’s) policy decisions shall not limit the authority of the Department of Education.

(b)Each territorial agency, (other than I Liheslatura (the Legislature) and the courts), shall prepare an annual plan for the operation of each of its assigned programs. The operations plan shall be prepared in the form and content and be transmitted on the date prescribed by the Bureau of Budget and Management Research.

(c)The Bureau of Budget and Management Research shall:

(1)Review each operations plan to determine that it is consistent with the policy decisions of I Maga’lahi (the Governor) and appropriations by I Liheslatura (the Legislature), that it reflects proper planning and efficient management methods, that appropriations have been made for the planned purpose and will not be exhausted before the end of the fiscal year.

(2)Approve the operations plan if satisfied that it meets the requirements under Paragraph (1). Otherwise the Bureau of Budget and Management Research shall require revision of the operations plan in whole or in part.

(3)Modify or withhold the planned expenditures at any time during the appropriation period if the Bureau of Budget and Management Research finds that such expenditures are greater than those necessary to execute the programs at the level authorized by I Maga’lahi (the Governor) and I Liheslatura (the Legislature), or that the receipts and surpluses will be insufficient to meet the authorized expenditure levels, provided that no planned expenditures necessary to provide every public school student an adequate public education shall be modified or withheld. The Director of the Bureau of Budget and Management Research, in collaboration with the Director of Revenue and Taxation and the Director of Administration, shall determine revenue tracking for every fiscal year based on the actual collections of every preceding month, and prepare monthly Comparative Revenue and Expenditure Analysis Reports that compare the budgeted and actual revenues and departmental program appropriations with expenditures and encumbrances. If revenues are tracking below projected revenues for the year, the Bureau of Budget and Management Research shall adjust and sequester an amount of the remaining allotments equal to the percentage of revenues that are below the fiscal year’s projected COL1312018 CH. 4 PROGRAM BUDGETING AND FINANCIAL MANAGEMENT revenues. The Director of the Bureau of Budget and Management Research, the Director of Administration, and the Director of Revenue and Taxation shall certify said reports, which shall be transmitted to I Maga’lahen Guåhan and the Speaker of I Liheslaturan Guåhan no later than twenty

(20)days after the end of each month.

(d)No territorial agency (except I Liheslatura (the Legislature) and the courts), may increase the salaries of its employees, employ additional employees or expend money or incur any obligations except in accordance with law and with a properly approved operations plan.

(e)The Bureau of Budget and Management Research shall report quarterly to I Maga’lahi (the Governor) and I Liheslatura (the Legislature) on the operations of each territorial agency, relating actual accomplishments to those planned, and modifying, if necessary, the operations plan of any agency for the balance of the fiscal year.

(f)Fiscal Realignment Plan. Thirty

(30)days after the close of each quarter of the fiscal year, the Directors of the Department of Administration, Department of Revenue and Taxation, and the Bureau of Budget and Management Research shall determine whether actual revenues collected for that quarter are consistent with the projected revenues for the fiscal year. If said Directors determine that projected fiscal year revenues, based on actual revenues collected, are three percent (3%) or more less than revenue projections adopted by the annual Budget Act, I Maga’lahen Guåhan shall submit to the Speaker of I Liheslaturan Guåhan a Fiscal Realignment Plan that shall address the revenue disparity. Said Plan may include, but is not limited to, cost-containment and austerity measures, governmental reorganization plans and other such actions. I Maga’lahi shall submit to the Speaker of I Liheslaturan Guåhan proposed legislation, in a bill format, to implement the Fiscal Realignment Plan if legislative action is required.

(g)Continuing Appropriations

(1)shall not be filled in the first quarter of the current fiscal year if the Monthly Comparative Revenue and Expenditure Analysis Report filed pursuant to 5 GCA § 4109(c)(3) in September of the previous fiscal year indicates unfavorable revenue collections to estimated revenues;

(2)shall not be filled after the first quarter of the current fiscal year if the cumulative year-to-date current fiscal year deposits into COL1312018 CH. 4 PROGRAM BUDGETING AND FINANCIAL MANAGEMENT the Income Tax Refund Efficient Payment Trust Fund are less than the budgeted provision pursuant to the monthly audits required pursuant to 11 GCA § 51106(b).

(3)may be filled for any current fiscal year expenses and shall automatically de-appropriate the equal amount from the branch, agency or department from its current fiscal year revenues appropriated. The de-appropriated revenues, if available on September 1 of the current fiscal year, are reserved for the branch, agency or department which may be expended by a new legislative appropriation.