| CNIC Initiative |
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| Frequently Asked Questions |
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March 16, 2005
The CNIC Budget Development Process – 2005 Legislative Session
In-scope Costs: Participating agencies are now being asked to confirm their current budgeted in-scope costs for the 2005-07 biennium. The CNIC Steering Committee has asked CNIC staff to work with agencies, the Budget and Management Division, and the Legislative Fiscal Office (LFO) to assist in completing this task. These costs form the base from which savings will continue to be measured. This process should be completed by mid-April 2005.
Placeholder Packages: CNIC participating agencies each have a “placeholder” package (Package 095) included in their Governor’s Recommended Budgets (GRB). The package will be used to shift expenditure limitation for confirmed in-scope costs from current categories and accounts (which could include personal services, services and supplies, and capital outlay accounts) to certain services and supplies accounts that represent the purchase of data and networking services from the state data center.
DAS CNIC Packages: The Department of Administrative Services’ (DAS) GRB includes two additional packages intended to capture the one-time costs (Package 451) and 2005-07 operational costs (Package 450) for the new state data center. These packages will be populated and refined as architectural and design work is completed for the CNIC project.
Separate CNIC Bill: LFO is planning to run agencies through initial Ways and Means budget approval processes without consideration of the CNIC project (i.e., with in-scope costs contained within the budget as if there was no CNIC project). LFO then plans to run a separate bill through the Ways and Means process to accommodate the changes related to CNIC. That bill would include the expenditure limitation for one-time and operating costs associated with the state data center. The budget report would also reference the expenditure limitation category shift within each agency as well as any position and FTE elimination and/or phase-outs.
Because the final decisions about the architecture of the state data center have not been made, there is potential for confusion or misunderstanding about the current budget-related processes and actions. In anticipation of some of these questions, we have prepared the following Q&A.
Q1. How can you build a budget for the state data center when CNIC is still in the architecture phase? On what will you base the numbers?
A1. The initial budget build will be based on the results of the recent scope-setting stage (Stage Zero) and any decisions that have been made prior to the time the budget is heard in Ways and Means. Where final decisions haven’t been made, expenditure limitation will be established based on well-informed estimates. There may be a need to approach the Emergency Board to make budgetary adjustments as plans are finalized.
Q2. Does this mean architecture decisions have already been made and the work of the technical work groups is really irrelevant?
A2. No. The CNIC Steering Committee has not made any decisions about the architecture of the future center. Stage One (architecture design) runs through the end of April. At that time the Steering Committee will take under consideration the recommendations made by work groups and only then will final architecture decisions be made. Depending on how fast the Legislature works budgets, we may be able to wait and incorporate architecture decisions in the CNIC budget.
Q3. Why can’t the Legislature wait until CNIC is further along before asking for budget information?
A3. Ways and Means subcommittees are already reviewing agency budgets. The project must be prepared to present budget recommendations when requested. It is reasonable to provide the Legislature with budget estimates which can be refined as additional architectural decisions are made.
Q4. What happens when the Legislature adjourns? Are we stuck with the budget at that point?
A4. Not necessarily. There are additional budget processes agencies can use to make adjustments (i.e. through Emergency Board action (if the Legislature has adjourned) and/or through other administrative actions).
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