Following is a transcript of the memorandum from Department of Administration Director William Bell, explaining to department heads and state boards and commissions the steps that need to be taken if there is no budget in place by this year's fiscal deadline.
TO: All Cabinet Members, State Boards and Commissions
From: Willam Bell, Director
DATE: June 8, 2009
SUBJECT: Contingency Planning
As you are aware, Governor Brewer has set forth a budget plan for FY 2010 which contains some significant differences in approach from the Senate and House budget bills as well as the separate Democratic plan The negotiations underway with the budget are challenging and may take time to resolve As presented in Cabinet, it is prudent to begin some contingency planning for reduced services beginning July 1 should there not be a budget in place
Accordingly, agencies should review and identify any limited, essential services which must be continued.
Please identify the programs according to the criteria listed on the attached Essential Services worksheet, ie., whether the program is required by the Arizona Constitution, court-ordered judgment,
Federal Constitution, Voter Protected, or if it facilitates an essential service
For purposes of this review, the following definitions apply:
-Requirement of the Arizona Constitution means the service is specifically required to be provided, such as workers compensation payment for lost wages per Article 18, Section 8 of the Arizona Constitution.
-Requirement of a court-ordered judgment means the service is specifically required to be provided as a result of a court decision, such as remanding a prisoner to the custody of the Department of Corrections.
-Requirement of the Federal Constitution means the service is specifically required by the
Constitution or its amendments, such as inmate health care.
-Voter Protected status means the service is specifically provided through the authority of a direct vote of the people, such as Proposition 204.
-Required to facilitate an essential service means the essential service cannot be provided without this additional service, such as production of warrants for payroll of correctional officers This category should be utilized in as limited a manner as possible
While a partial shutdown would be of limited duration, please include an estimate of necessary FTEs and other program costs for monthly expenditures of these essential services. Other specifically required expenditure requirements for the month such as certificate of participation payments should also be identified and quantified.
Additionally, agencies should identify the contracted expenditures minimally necessary to provide your essential services. An Essential Contracts worksheet is also attached. This information will become part of a vendor notification process, should it be necessary Vendors do not need to be notified at the present time Agencies will be notified if and when notification to vendors is necessary.
The attached two worksheets should be returned to firstname.lastname@example.org by close of business
Wednesday, June 10. Questions related to the Essential Services worksheet itself should be directed to
David Raber at email@example.com. Questions related to the Essential Contracts worksheet should be addressed to firstname.lastname@example.org
Contingency planning is composed of multiple steps Additional information will be shared as planning proceeds
CC: Governor Janice K Brewer