Rebecca Bietti of the Office of Legislative Legal Services briefed the Capital Development Committee on statutes that define the governor’s authority to reduce spending when revenues are insufficient, with emphasis on capital construction rules.
Bietti reviewed two statutes: one that gives broad executive discretion to suspend functions of state agencies when revenues are insufficient (as articulated to the committee as “20‑4‑2102” in the presentation) and another, 24‑75‑201.5, that sets a specific trigger tied to OSPB quarterly revenue estimates and reserve levels and requires the governor to formulate, notify the General Assembly of, and implement a plan to reduce general fund expenditures. She said those statutes together impose limits on the governor’s authority over capital construction by requiring consultation with the Capital Development Committee (CDC) and the Joint Budget Committee (JBC) and by directing that restrictions follow CDC’s established order of priority unless CDC and JBC jointly approve a different order.
Bietti explained the statutory language originated from a 1991 bill (Senate Bill 91‑117) that clarified governor authority after capital freezes in the late 1980s and early 1990s; that bill also provided for tolling the six‑month encumbrance deadline when the governor restricts capital construction under the statute. She noted the specific statutory triggers discussed had not been met at the time of the briefing but that both statutes are included in the governor’s special session call, which limits opportunities to change those statutes before special session actions.
Committee members asked about the meaning of “consultation” versus “approval” in the statute and about whether controlled maintenance should be given explicit statutory protection; Bietti said the language is not defined and clarified that different terms used in the same subsection likely indicate different legal effects. She recommended the committee consider statutory clarification if members seek stronger legislative protections for controlled maintenance appropriations.