Everything You Need to Know About Legislative and Budget Sessions

You may have heard of legislative and budget sessions, but weren’t completely sure what those were. See below to learn about how these sessions work! We’re here to help clarify any questions you may have. 

Every summer and fall, Indiana lawmakers meet to examine various issues within the state and prepare for the upcoming legislative session, or General Assembly. The legislative session is the process through which proposed bills go to possibly become laws. Indiana’s 2021 legislative session convenes January 11 and adjourns on April 29. 

According to the Indiana General Assembly Senate Rules, every bill and resolution may have one Senator designated as author or sponsor and is permitted to have one Senator designated as the second author or sponsor. In addition, any number of Senators are allowed to be designated as co-authors or cosponsors. According to the General Assembly House Rules, there may be no more than three coauthors or cosponsors of a bill. 

It is probably no surprise to anyone that one of the primary issues that the interim is addressing this year is how to proceed during the COVID-19 pandemic. Earlier this spring, the legislature created a new six-member Legislative Continuity Committee, which will work to decipher how the legislative branch can best prepare for future emergencies, along with how the legislature can continue to operate safely.

The budget session occurs during the first session of the General Assembly. This is when lawmakers establish a comprehensive budget to fund government services for the next two fiscal years. The budget session process is lengthy, so feel free to settle in and get comfortable as you learn more below!

There are four primary phases, the first of which is Preparation. This begins with 1) a budget request submission that state agencies issue to the State Budget Agency. This submission contains Biennial Budget Instructions that provide guidance to state agencies in submitting funding requests. Once the state agencies submit the requests, 2) the Budget Agency reviews them in detail. 

The Budget Director then discusses the analyses with the Governor who determines whether to approve the requests and present them to the Budget Committee. This Committee has four legislators: one Democrat and one Republican from both the House of Representatives and the Senate. 3) After the Budget Committee holds public hearings with state agencies to outline their budget requests, it creates a budget recommendation to the Governor. 

The next step within the Preparation phase is 4) the state revenue forecast, which is made annually in December and April. The Indiana Economic Forum prepares the forecast for the economic outlook of the state and the Revenue Forecast Technical Committee uses this economic forecast to establish projections of revenue for sales tax, income tax, and other sources. 

Finally, the Budget Committee and the State Budget Agency use the budget recommendation to formulate an itemized Budget Report and a preliminary draft of the budget bill. The Budget Committee submits both of these documents to the Governor who delivers them to the General Assembly.

Second is the Adoption phase, where the Indiana General Assembly debates the proposed budgets within the budget bill and decides the amounts and purposes for which tax dollars may be spent. This process starts in 1) the House of Representatives, where the Speaker of the House assigns the budget bill to the House Ways and Means Committee. 

The Committee considers the proposed bill and holds hearings where the agency representatives and the public can voice their input. Then, the Committee reports the bill (usually in amended form) out for consideration by the entire House. Once the report is adopted and the bill goes through two more readings, a majority vote is required for it to pass. 

If it passes, the bill goes to -- you guessed it -- 2) the Senate for consideration. There, the Appropriations Committee is in charge of budget deliberations in which, similar to the House process, it conducts public hearings prior to issuing a report. Again, after any necessary amendments, the budget bill goes through two more reading processes. Once passed, the bill proceeds to a conference committee that resolves variations between the House and Senate versions. 

For the bill to pass this stage, all four legislators must unanimously approve it before it can report back to either chamber, where it will be adopted or rejected. If either chamber rejects the bill, it must return to the conference committee to renew negotiations. When both chambers adopt the budget bill, 3) it goes to the Governor for a signature or a veto. If the Governor vetoes the bill, which is called a gubernatorial veto, a majority vote in both the House and the Senate can override the veto. 

Phase three is Implementation, beginning with 1) the establishment of accounts. This consists of the Budget Agency making a list of all appropriations made by law for the upcoming budget session. Appropriations set the overall spending limits for each account needed to execute the budget during each fiscal year. Collaborating with the Auditor of State, the Budget Agency is responsible for establishing these accounts.

A necessary portion of the Implementation phase are 2) allotments, which essentially control spending by limiting the amount of an appropriation that may be extended during a given time. Typically, the Budget Agency creates a quarterly allotment schedule for each account, so that sufficient funds remain available throughout the year. In order to further ensure this, 3) the Budget Committee oversees budget implementation and often reviews the appropriations before any funds may be allotted or spent. The Auditor of State performs a key role in providing daily 4) allotment and trial reports, which help to keep agencies informed on their account balances. Additionally, 5) the Budget Director is authorized to transfer appropriations within the state, if necessary. 

Last but certainly not least is the Audit phase. The State Board of Accounts provides separate annual financial and compliance audits, issuing thoughts on the financial statements prepared by the State Auditor. These audits are a very important part of the process, as they verify the status, accounting, and disposition of all funds for which the State is responsible.

The last budget session was held on July 1, 2019 and ends on June 30, 2021. The budget session for the 2020-2021 fiscal years increased funding in areas including education, child services, pensions, and Medicaid.

Legislative and budget sessions are very important processes for legislation in Indiana. Both determine the future laws and funding in our state. Women4Change advocates that this upcoming session prioritizes women’s economic stability; maternal & infant mortality and women’s health; sexual assault & consent; and fair voting & voter access. Due to the pandemic, these sessions might look a little different this time around, but they will be as important as ever in achieving our goal to protect Hoosier women’s rights.