Page updated 10/09/2019
This is a complicated question involving the structure and revenue source of funds used by each agency. Agencies should consult with agency budget staff, their OFM-assigned budget analyst, and the OFM Central Services budget analyst directly to better understand the relationship between allocations and associated funding.
There are some general scenarios to be aware of.
- Agencies funded predominantly by General Fund-State (GF-S) usually get a budget adjustment and related funding to pay the anticipated costs.
- Agencies that spend dedicated funds may have their expenditure authority increased but might not receive additional revenue authority; some of these agencies may be in the position of raising rates/fees or restructuring internal expenses to pay the allocations. Agencies should contact the agency and OFM budget staff directly to better understand the relationship between allocations and associated funding.
- Other central-service providing agencies (e.g DES and AGO) may also need to adjust their rates because of changes in the WaTech rates. Generally, for these types of central service-providing agencies, OFM adjusts the expenditure and revenue authority that allows them to cover the increased costs.
- Commission on African American Affairs spends GF-S. If their bill increases by $5,000, OFM generally increases its budget by $5,000 GF-S to pay the higher cost.
- Office of the State Treasurer spends out of the State Treasurer’s Service Account, populated from revenue generated through investments, fees, transactions, etc. Their revenue source is separate and distinct from their expenditure authority. OFM will increase their expenditure authority in order to pay the increased bill, but the State Treasurer will not see a corresponding increase in revenue.
- The AGO spends out of the Legal Services Revolving Account. If their bill will increase by $1M, OFM would likely increase their budget by $1M, and increase their client agencies’ budgets by a total of $1M (commensurate with the spread across the agencies) so their clients can pay the higher bills.