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Budget Process Overview
Oregon’s budget is a tool to carry out the state’s law and policy decisions.  It allocates the state’s General Fund and lottery revenues.  The budget also sets limits on other types of revenues and state positions.  Oregon’s budget must be balanced.  However, the budget may authorize debt financing for some projects and activities. 
 
The budget covers two fiscal years (a biennium).  This means it runs from July 1 of an odd-numbered year to June 30 of the next odd-numbered year.  For example, July 1, 2011 to June 30, 2013.
 
The budget development process has three major phases:  Agency Request, Governor’s Recommended and Legislatively Adopted.

Agency Request Budget
Agencies start the budget early in even-numbered years to develop their Agency Request Budget.  This lays out agency finances and policies for consideration by the Governor.  The Budget and Management Division (BAM) gives agencies guidelines to use in this process.  Agencies send their budget request to BAM by September 1.

Governor's Recommended Budget
The Governor and BAM review the budget request.  They use the Governor’s priorities, budget policies and current law to make budget decisions.  The Governor’s Recommended Budget  document summarizes those decisions.  It gives data on all the state’s revenues and expenditures.  It also gives information on each agency’s budget.  The Department of Revenue puts together a Tax Expenditure Report that is published at the same time.  The Tax Expenditure Report outlines the various reductions available to residents for the income tax.

Legislatively Adopted Budget
The Governor presents the Recommended Budget to the Legislature when it meets at the start of the next calendar year (January of 2011, during the 2011-13 biennium).  Legislative committees review the proposed budget.  They hold public hearings to hear from each agency and the public.  Each budget bill has a Budget Report that presents the committee recommendations.  The Legislature votes on each budget bill.  The budget bills that are enacted into law make up the Legislatively Adopted Budget.  Agencies carry out, or execute, the budget over the two year budget period.  The Emergency Board can make some changes to the budget between legislative sessions.  Special sessions may also be called to deal with budget issues.  The Legislatively Adopted Budget and the changes to it make up the Legislatively Approved Budget.