AB 73

Currently, no later than September 15 of each even-numbered year, state

agencies in the executive branch are required to submit to the Department of

Administration and the Legislative Fiscal Bureau their budget requests. This bill

requires that the budget requests contain an analysis of the implications for agency

expenditures and operations in the event of federal government insolvency or

substantially reduced federal payments to the agency. More specifically, the

analyses must do all of the following:

1. Identify the risks to the agency if the federal government were unable to meet

its financial or service commitments.

2. Estimate the impact of the risks to the agency under item 1. in terms of the

potential loss of federal revenue and its effect on agency operations.

3. Recommend strategies to better allow the agency to minimize the loss of

federal revenue, to adjust to any loss of federal revenue, and to reduce the impact of

any loss of federal revenue on agency operations without eliminating any programs

or services.

4. Recommend a plan for monitoring indicators that track the federal

government's ability to meet its financial obligations.

5. Include in the plan under item 4. specific steps that the agency must take

in the event the indicators signal that the federal government may be unable to meet

its financial obligations.