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Analyst explains deficiency warrants and supplementals; committee reminded of emergency clause
Summary
Kellen McGurkin (LSO) briefed the committee on deficiency warrants, supplementals and rescissions, explaining statutory authority, typical uses (pest control, dam safety, fire suppression) and the constitutional emergency clause required for immediate effect.
Kellen McGurkin, budget and policy analyst with the Legislative Services Office, briefed the Joint Finance and Appropriation Committee on Jan. 7 about deficiency warrants, supplementals and rescission language and their roles in current-year budget adjustments.
"Deficiency warrants allow select agencies to spend monies against the general fund for select purposes as authorized in statute without a prior appropriation," McGurkin told the panel, likening the mechanism to an agency using a credit card and later seeking an appropriation to zero out the outstanding balance.
McGurkin explained that the authority for deficiency warrants is statutory and that the expenditures typically require authorization by a board such as the Board of Examiners or the Board of Land Commissioners. He said the legislature has authorized deficiency…
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