Help us improve in just 2 minutes—share your thoughts in our reader survey.

What is your state’s approval process when the legislature is not in session? (2021)

From Ballotpedia
Jump to: navigation, search
Federalism Banner-Blue.png
Federalism
Federalism Icon 200x200.png
•Key terms
• Court cases
•Major arguments
• State responses to federal mandates
• Federalism by the numbers
• Index of articles about federalism

States employ a variety of processes to apply for and administer federal grants. Ballotpedia's 2021 state survey of the federal grant review process examined the general processes applied by the 50 states in order to seek and distribute federal funds.

Research from the Pew Charitable Trusts found that federal funds made up 32% (roughly $639 billion) of all state revenue in 2017, making them the second-largest source of state revenue behind state tax collections.[1] States direct federal funds to government programs related to education, healthcare, transportation, infrastructure, and other policies.[1]

This page features state 2021 survey responses to the question: What is the approval process when the legislature is not in session?

Background

See also: State survey of the federal grant review process, 2021

From August 5, 2021, to September 27, 2021, Ballotpedia staff contacted the executive and legislative budget offices of all 50 states via email and/or telephone to update a publicly available 2016 survey on state approaches to the federal grant review process.

Our staff contacted state officials with the following survey questions:

  • Approval processes for federal grants
    • What is your state’s process for federal grant applications and the approval process?
    • What is your state’s approval process when the legislature is not in session?
    • How does the legislature monitor the intent of federal grants? What legislative rules allow the state greater oversight of federal funds in the budgets?
  • Contingency plans for the loss or decline of federal funds
    • What is your state’s contingency plan in the case of a decline or loss of federal funds?
  • Quality control processes for federal grants
    • What is your state’s quality control process for tracking the effectiveness of federal funds?
    • Does your state attempt to estimate the cost of federal fund requirements? If so, how?
    • How does your state prioritize federal funds to best meet the needs of constituents?
    • If your state doesn’t appropriate key federal funds like food stamps and unemployment benefits, are your state’s federal funds off-budget? How do you track this information?

Our staff also contacted state officials with the following two new survey questions regarding federal funds made available in response to the coronavirus (COVID-19) pandemic:

  • Coronavirus (COVID-19) pandemic funds
    • Who has decision rights over American Rescue Plan Act (ARPA) State Fiscal Recovery Fund allocations in your state?
    • Who has decision rights over Elementary and Secondary School Emergency Relief (ESSER) Fund allocations in your state?

What is your state’s approval process when the legislature is not in session?

Ballotpedia's 2021 state survey on the federal grant review process included the question: What is the approval process when the legislature is not in session?

The survey revealed the following findings:

  • 14 states require state agencies to obtain legislative approval before receiving federal grants.
  • 35 states do not require legislative approval for state agencies to receive federal grants.
  • One state (Pennsylvania) did not specify whether the state requires legislative approval for the receipt of federal grants.

The following table features 2021 state responses to the question: What is the approval process when the legislature is not in session?

What is the approval process when the legislature is not in session? (2021)
State Response
Alabama "The annual appropriations bills contain a section of language appropriating all grants in excess of the appropriations contained in the bill. Agencies apply for grants independently and submit necessary grant award documentation to the Budget Office to increase their appropriation authority."
Alaska “An agency requests a budget revision to add authority to receive federal funds through the Office of Management and Budget (OMB) to the permanent interim committee of the legislature, called the Legislative Budget and Audit (LB&A) Committee.”
Arizona “The process is the same [as when the legislature is in session].”
Arkansas “See last answer.”[2]
California “The Section 28.00 process described in California's process for approving federal grants.”
Colorado “Since the Colorado General Assembly is not responsible for review federal grant applications (it is an executive function) unless uniquely required by a specific statute or federal law, the grant approval process is not affected by the legislature being out of session. The exception to this is if a statute change is required, if federal law requires a state appropriation, or if the grant is deemed to be so broad (as in the case of federal Coronavirus State Fiscal Recovery Fund money) that state authorities conclude that the funds are not "custodial" funds under the control of the Executive Branch and are instead subject to legislative appropriation. Under these circumstances legislative action would be necessary (see response to prior question).”
Connecticut “With the exception of federal block grants, federal funds are not subject to legislative approval. Pursuant to state law, block grant allocation plans are reviewed by legislative committees when the legislature is not in session.”
Delaware “The approval process is the same regardless of when the Legislature is in session.”
Florida Florida did not respond to the 2021 survey. Click here to view the state's responses to the 2016 survey.
Georgia “See question above.”[2]
Hawaii “The approval process to apply for, receive, and expend an unanticipated federal grant is the non-appropriated process.”
Idaho “The approval process is the same [regardless of whether the legislature is in session].”
Illinois "In compliance with the Grant Accountability and Transparency Act (30 ILCS 708, GATA), state agencies are required to document all Federal and State grant awards in Illinois' centralized database - Catalog of State Financial Assistance (CSFA). The CSFA, populated by state agencies, is publicly available from the Grant Accountability and Transparency Unit (GATU) website, http://www.grants.illinois.gov."
Indiana Indiana did not respond to the 2021 survey. Click here to view the state's responses to the 2016 survey.
Iowa “Every biannual, during the first session of the General Assembly, the “Federal Block Grant Appropriations Act” is passed by the Legislature and signed by the Governor. This bill is to cover the biannual of the General Assembly. This bill appropriates federal block grants as required under Iowa Code 8.41, but also provides for appropriation for all federal funds not covered specifically in the bill for the State for the upcoming biannual.”
Kansas “All state agencies, in the appropriations bill, are granted general authority to receive and expend federal funds. However, if a state agency has been awarded a new federal grant when the Legislature is not in session and a federal fund has not been created for inclusion in the appropriations bill with which to receipt and expend those dollars, the agency would request executive directive action with the Division of the Budget. Executive Directives are formal orders issued by the Governor that implement certain personnel and fiscal actions that are purely executive in character and considered quasi-legislative. Upon receipt of such requests, an Executive Directive is drafted and must be reviewed and approved by the Director of the Budget. Five copies are signed by the Governor, one of which is retained by the Governor, and one of each of the remaining signed copies is retained by the Division of the Budget, the Secretary of the Senate, the Chief Clerk of the House, and the Secretary of State’s Office. The copies are ultimately sent to the Secretary of State’s Office for filing and become a part of the agency’s approved budget. The creation of the new federal fund is initiated by the agency for inclusion in the Statewide Management, Accounting & Reporting Tool (SMART) with the Division of Accounts and Reports and in the Internet Budget and Reporting System (IBARS) with the Division of the Budget.”
Kentucky “Kentucky Revised Statutes, KRS 45.031, also provides, 'Any application for federal funds, aids, loans, or grants which will require state matching or replacement funds at the time of application or at any time in the future, when funds have not been appropriated for that express purpose, must be approved by the General Assembly, if in session. When the General Assembly is not in session, the application shall be reported to and reviewed by the Interim Joint Committee on Appropriations and Revenue, as provided by KRS 48.500(3).'”
Louisiana “Although no legislative is approval is required for grant applications, legislative authority is required for all revenues and expenditures. During the regular legislative session the legislature approves the state budget which includes fiscal authority for each department. This budget authority includes federal grant funding. If a grant is awarded when the legislature is not in session further approval may or may not be required. If sufficient budget authority exists within the department to cover the amount of the grant for that fiscal period, there is no additional legislative approval necessary. If there is inadequate authority, additional authority must be requested from and approved by the Joint Legislative Committee on the Budget.”
Maine Maine did not respond to the 2021 survey. Click here to view the state's responses to the 2016 survey.
Maryland “Federal funds can be appropriated through budget amendments SFP 7-209 with additional qualifications added through annual budget bill language (see for example, Section 30 of Chapter 143 of 2016 (the Fiscal Year 2017 budget bill).”
Massachusetts “Agency heads, in conjunction with their respective secretariats, authorize the application for and approval of federal grants. Legislative approval is often provided but not strictly speaking required.”
Michigan “See last response.”[2]
Minnesota “Subd. 5. Legislative Advisory Commission review. Federal money that becomes available under subdivision 3, 3a, 3b, or 4 may be allotted after the commissioner of management and budget has submitted the request to the members of the Legislative Advisory Commission for their review and recommendation for further review. If a recommendation is not made within ten days, no further review by the Legislative Advisory Commission is required, and the commissioner shall approve or disapprove the request. If a recommendation by any member is for further review the governor shall submit the request to the Legislative Advisory Commission for its review and recommendation. Failure or refusal of the commission to make a recommendation promptly is a negative recommendation.


"Subd. 6. Interim procedures; nonurgencies. If federal money becomes available to the state for expenditure after the deadline in subdivision 2 or while the legislature is not in session, and subdivision 4 does not apply, a request to expend the federal money may be submitted by the commissioner of management and budget to members of the Legislative Advisory Commission for their review and recommendation. This request must be submitted by October 1 of any year. If any member of the commission makes a negative recommendation or a recommendation for further review on a request by October 20 of the same year, the commissioner shall not approve expenditure of that federal money. If a request to expend federal money submitted under this subdivision receives a negative recommendation or a recommendation for further review, the request may be submitted again under subdivision 2. If the members of the commission make a positive recommendation or no recommendation, the commissioner shall approve or disapprove the request and the federal money may be allotted for expenditure.”

Mississippi “When the Legislature is not in session, state statute allows the agencies to escalate their annual budget for 100 percent federal funds (no match requirement). If there is any type of match requirement, the agency may not escalate their budget. They would need to wait to have their appropriation amended by the Legislature.”
Missouri “See last response.”[2]
Montana “Montana law (17-7-402, MCA) allows agencies to add additional federal funds through a budget amendment process. These types of amendments can only be made if the federal funds could not have been anticipated while the legislature was establishing the budget for the biennium and if there is no present or future commitment of the state’s general fund. Additionally, these federal funds cannot be added unless there is approval from the agency’s approving authority (for example, the governor or the governor’s designated representative is the approving authority for the executive branch). Statute does not require legislative review prior to approval of budget amendments. However, budget amendments are reviewed by the Legislative Finance Committee (a bicameral, bipartisan interim committee) after the amendments are made and the committee can send comments to the approving authority.”
Nebraska “No separate process. Control is more at the agency/executive branch level. Coordination with the Legislative branch can and usually does occur for non-routine federal grant opportunities that come up in interims.”
Nevada “See NRS 353.220, 353.245, 353.335 (NRS: CHAPTER 353 - STATE FINANCIAL ADMINISTRATION)”
New Hampshire “See last response. The Governor and Council and the Fiscal Committee meet year-round.”
New Jersey “The legislature is generally not involved in the application or approval process.”
New Mexico “Same. Legislature does not need to approve federal grant applications/federal funding. The exception is TANF: federal regulations require legislature to appropriate by various categories of expenditures.”
New York New York did not respond to the 2021 survey. Click here to view the state's responses to the 2016 survey.
North Carolina “During the interim between legislative sessions, Governmental Operations meets on a periodic basis. Meetings are typically scheduled during the third week of the month. Meetings may be held during the legislative session if needed. If the Commission does not hold a meeting to hear required prior consultation items within 90 days and the request has been submitted to Governmental Operations by OSBM, the consultation requirement is deemed satisfied.”


"If the State has not yet passed a budget and an agency receives a new grant. They may expend funds under $2.5 million with a report to Governmental Operations. If the grant is over $2.5 million they must consult with Governmental Operations. If the state is in a state of emergency (Natural Disaster, Public Health Crisis, etc), an agency may budget and expend grant funds up to 1% or 10million (whichever is less) with a report to Governmental Operations – any funds over that amount would then be subject to a consultation requirement (or some action by the General Assembly if they so choose).

"The approval process does not apply for grants that are part of an agencies continuing “base budget.”’

North Dakota "During the interim, the authority to accept and expend additional federal funds is considered by the Emergency Commission and the Budget Section, according to North Dakota Century Code Section 54-16-04.1. The Emergency Commission, upon a finding that an emergency exists and with the advice of the Office of Management and Budget, may authorize a state officer to receive federal funds, not otherwise appropriated by the legislative assembly. All requests of more than $50,000, but less than aggregate amount of $50.0 million can be approved by the Emergency Commission, the requests also receive approval from the Budget Section. The Budget Section consists of 43 members of the Legislative Assembly including leadership and appropriations committee members, who receive certain reports, approve transfers, and approve acceptance of certain funds to state agencies during each interim. If the aggregate amount of funding requested exceed $50.0 million then any additional request to receive and expend funds must be approved during a regular legislative session or a special legislative session called by the governor. The aggregate amount limit does not apply to federal highway administration emergency relief funds or disaster or emergency recovery funding received by the state."
Ohio “If federal grants are received that require an increase in appropriation authority to expend the funds, the State Controlling Board may increase appropriation authority.”
Oklahoma Oklahoma did not respond to the 2021 survey. Click here to view the state's responses to the 2016 survey.
Oregon “The Legislature and the Executive Branch developed an interim procedure that allows for agencies to submit federal grant applications when the Legislature is not in session, but the agency submitting the application must seek official retroactive approval to apply from the legislative review agency the next time that review agency meets. In order to use this process, the agency must send in a letter to the Legislative Fiscal Office which is forwarded to legislative leadership that outlines the grant being applied for at least 10 days prior to the submittal of the application. The Emergency Board and the interim Joint Committee on Ways and Means meet approximately once per calendar quarter when the Legislature is not in session. If retroactive approval to apply is not provided, the agency must withdraw the federal grant application.”
Pennsylvania “N/A, unless the change in federal funding is made to a program that had previously been appropriated and the funding is distributed via formula. In those cases, funding authorization can be changed without an appropriation change from the legislature.”
Rhode Island “When the general assembly is not in session, the application shall be reported to and reviewed by the director pursuant to rules and regulations promulgated by the director.


"(3) When any federal funds, aids, loans, or grants are received by any state department, agency, advisory council, or instrumentality of the state, a report of the amount of funds received shall be filed with the office; and this report shall specify the amount of funds that would reimburse an agency for indirect costs, as provided for under federal requirements.

"(4) The controller may refuse to issue approval for the disbursement of any state or federal funds from the state treasury as the result of any application that is not approved as provided by this section, or in regard to which the statement or reports required by this section were not filed.

"(5) The controller shall be responsible for the orderly administration of this section and for issuing the appropriate guidelines and regulations from each source of funds used.”

"History of Section.

"(P.L. 2012, ch. 241, art. 4, § 5; P.L. 2019, ch. 88, art. 4, § 9.)

“§ 35-1.1-5 Federal grants management. 

“http://webserver.rilin.state.ri.us/Statutes/TITLE35/35-1.1/35-1.1-5.HTM [webserver.rilin.state.ri.us]” 

South Carolina South Carolina did not respond to the 2021 survey. Click here to view the state's responses to the 2016 survey.
South Dakota “The Legislature is not involved in the approval process of federal grants. However the Legislature does approve the state budget which includes ‘federal fund spending authority.’”
Tennessee Tennessee did not respond to the 2021 survey. Click here to view the state's responses to the 2016 survey.
Texas “State agencies are authorized to receive federal funds during the interim by Article IX, Section 13.01 (b) of the 2022-23 General Appropriations Act (GAA). This section appropriates funds received from the federal government to the agency or institution for the purposes for which the federal grant, allocation, aid, payment, or reimbursement was made for amounts less than $10 million above what was appropriated to the agency in their respective bill pattern. For amounts in excess of $10 million above what the agency has already been appropriated, additional notification and approval requirements must be met before the agency can receive or expend such funds as directed by Article IX, Section 13.02 of the 2022-23 GAA.”
Utah “Throughout the year and during interim, agencies are then required to submit ALL grants (whether they were approved by the legislature during last session or brand new grants) to the governor's office to a centralized grants reporting system. Grants reported to the system are either approved by the Governor's office, go to the monthly interim appropriations committee, or marked as already receiving approval if they were approved during the last legislative session.”
Vermont “During the off session, grants are forwarded (once approved by the Administration) to the Joint Fiscal Committee for consideration. The Joint Fiscal Committee consists of ten members, five from each branch and representatives from each party. If a legislator has questions, the grant review is scheduled for the next meeting; otherwise, the grant is considered approved after 30 days.”
Virginia Virginia did not respond to the 2021 survey. Click here to view the state's responses to the 2016 survey.
Washington “When outside of session, we follow an unanticipated receipts process as outlined in RCW 43.79.270 and 43.79.280. This process has the agency submitting the spending request to both OFM and House and Senate simultaneously. A 10-day review is required, in order to give legislative fiscal staff time to review the request and to deny it if they feel it is not in keeping with legislative policy. If they do not deny it, the spending authority is approved by OFM.”
West Virginia West Virginia did not respond to the 2021 survey. Click here to view the state's responses to the 2016 survey.
Wisconsin Wisconsin did not respond to the 2021 survey. Click here to view the state's responses to the 2016 survey.
Wyoming Wyoming did not respond to the 2021 survey. Click here to view the state's responses to the 2016 survey.

State responses to other survey questions

See also: State responses to the federal grant review process survey, 2021

Click on a question below to view state responses to the 2021 survey on the federal grant review process:

See also

External links

Footnotes

  1. ↑ 1.0 1.1 Pew Charitable Trusts, "Federal Funds Hover at a Third of State Revenue," October 2019
  2. ↑ 2.0 2.1 2.2 2.3 Click here to view the answer to the previous question.
v • e
Federalism
Overviews
Terms
Court cases
Legislation
Federal grant survey
Federalism by the numbers
Retrieved from "https://ballotpedia.org/wiki/index.php?title=What_is_your_state’s_approval_process_when_the_legislature_is_not_in_session%3F_(2021)&oldid=8583277"