Question

Based on the approach outlined by Mikesell, how does the typical state budget process work, and what are the various actors involved in that process?

Answer 1

State budgeting is a continual process—it does not stop with budget enactment. Throughout the budget cycle, states monitor expenditures (and revenues) to ensure funding needs are met and state resources are sufficient to fulfill spending obligations, and take mid-year actions when necessary.

The budget cycle consists of four phases: (1) preparation and submission, (2) approval, (3) execution, and (4) audit and evaluation. The preparation and submission phase is the most difficult to describe because it has been subjected to the most reform efforts.

Budgeting for the national government involves four (4) distinct processes or phases : budget preparation, budget authorization, budget execution and accountability. While distinctly separate, these processes overlap in the implementation during a budget year.