To amend section 126.02 and to enact sections 101.61, 103.31, 103.32, 103.33, 103.34, 103.35, 103.36, 103.37, and 103.38 of the Revised Code to provide for the preparation of a state biennial budget independent of that submitted by the Governor and to authorize the Legislative Service Commission, upon the request of the Speaker of the House of Representatives or the President of the Senate, to arrange for an independent actuarial review of a proposed bill, specified analyses of economic policy initiatives and state benchmarking data, and a study of the state's long-range financial outlook.

Section 1.  That section 126.02 be amended and sections 101.61, 103.31, 103.32, 103.33, 103.34, 103.35, 103.36, 103.37, and 103.38 of the Revised Code be enacted to read as follows:

Sec. 101.61.  The chairperson of the house finance committee or the chairperson of the senate finance committee, upon receipt of the information certified by the director of budget and management under section 126.02 of the Revised Code and the budget request of each state agency, may instruct the legislative service commission on the preparation of a main operating appropriations bill independent of the state budget submitted by the governor under section 107.03 of the Revised Code.

Sec. 103.31. The speaker of the house of representatives or the president of the senate may, at any time, request the director of the legislative service commission to arrange for the performance of an independent actuarial review of any proposed bill. Subject to section 103.37 of the Revised Code, the director may, in making this arrangement, retain one or more private actuaries on a consulting basis. Any actuary retained shall be a member in good standing of the American academy of actuaries.

Sec. 103.32. (A) The speaker of the house of representatives or the president of the senate may, at any time, request the director of the legislative service commission to arrange for either of the following:

(1) A dynamic forecast and analysis of any tax proposal or other economic policy initiative;

(2) A compilation of benchmarking data that compares this state to other states with respect to key business and fiscal metrics.

(B) Subject to section 103.37 of the Revised Code, the director may retain tax analysts, economists, and other finance or business professionals on a consulting basis to assist the commission in the completion of any request received under division (A) of this section.

Sec. 103.33. The speaker of the house of representatives or the president of the senate may, at any time, request the director of the legislative service commission to arrange for a study of the long-range financial outlook of the state in accordance with sections 103.34 and 103.35 of the Revised Code for the purpose of providing impartial, accurate information to assist the general assembly in establishing the state's biennial budget. Subject to section 103.37 of the Revised Code, the director may, in making this arrangement, retain certified public accountants, certified financial analysts, economists, and banking professionals on a consulting basis.

Sec. 103.34. A study of the long-range financial outlook of the state shall, at a minimum, include all of the following:

(A) A review of the current fiscal position of the state, including the state debt and debt service, and the establishment of a method for a long-range financial projection at the state level in order to help maintain the state's financial stability between fiscal years and avoid future budget problems;

(B) The integration of baseline projections of the budget requirements of the major programs comprising the state's budget with revenue estimates for the state based on current law;

(C) Economic forecasts for the state;

(D) A review of the demographics of the state;

(E) The collection of information from state agencies about their financial status and projections for the next four fiscal years.

Sec. 103.35. (A) Upon completion of the review and analysis required under section 103.34 of the Revised Code, those conducting the study shall issue a long-range financial outlook report. The report shall include, but shall not be limited to, the following information:

(1) Projections of future financial needs of the state for the next four fiscal years;

(2) Projections of future resources of the state;

(3) Actual revenues for the previous three fiscal years and revenue estimates for the next four fiscal years;

(4) A review of both revenue estimates and projections for the budget requirements and expenditures of major state-funded programs;

(5) Per agency workload estimates for state agencies.

(B) The legislative service commission shall submit the report to the general assembly.

Sec. 103.36. The legislative service commission may request any department, division, institution, board, authority, bureau, or other instrumentality or officer of the state, a county, a municipal corporation, a township, a school district, or other governmental entity of the state to provide any information the commission requires for purposes of an actuarial review conducted under section 103.31 of the Revised Code, a forecast and analysis performed under division (A)(1) of section 103.32 of the Revised Code, the state benchmarking data compiled pursuant to division (A)(2) of section 103.32 of the Revised Code, or a study of the long-range financial outlook of the state conducted under sections 103.33 to 103.35 of the Revised Code. The commission shall specify the manner of compliance, and the period of time for compliance, in its request.

An instrumentality, officer, or entity shall comply with a request within the period of time specified in the request.

Sec. 103.37. The state shall not enter into a contract with any consultant under section 103.31, 103.32, or 103.33 of the Revised Code unless the director of the legislative service commission makes a written determination prior to entering into the contract or within a reasonable time after entering into the contract that utilizing such a consultant is both cost effective and in the public interest. Any written determination shall include findings as to whether there exist sufficient and appropriate technical and financial resources within the legislative service commission to handle the matter involved.

A copy of each such contract between the state and a consultant shall be posted on the commission's web site and shall remain posted on the web site for the duration of the contract.

Sec. 103.38.  By the first day of September of each year, the director of the legislative service commission shall submit a report to the commission regarding the use in the preceding fiscal year of consultants to assist the commission in the completion of any request received under section 103.31, 103.32, or 103.33 of the Revised Code, if such consultants were used.

Sec. 126.02.  The director of budget and management shall prepare and submit to the governor, biennially, not later than the first day of January preceding the convening of the general assembly, state budget estimates of revenues and expenditures for each state fund and budget estimates for each state agency, except such estimates as are required under section 126.022 of the Revised Code. The budget estimates for each state agency for which direct appropriations are proposed shall include the following details:

(A) Estimates of the operating budget;

(B) Estimates of the subsidy appropriations necessary, delineated by a distinct subsidy program;

(C) Estimates for special purposes, delineated by a distinct special purpose program;

(D) Estimates of appropriations necessary from each fund in reasonable detail to allow for adequate planning and oversight of programs and activities.

In the preparation of state revenue and expenditure estimates, the director of budget and management shall, not later than the fifteenth day of September in the year preceding the first regular session of the general assembly, distribute to all affected state agencies the forms necessary for the preparation of budget requests, which shall be in the form prescribed by the director in consultation with the legislative service commission to procure information concerning the revenues and expenditures for the preceding and current bienniums, an estimate of the revenues and expenditures of the current fiscal year, and an estimate of the revenues and proposed expenditures for the respective agencies for the two succeeding fiscal years for which appropriations have to be made. Each such agency shall, not later than the first day of November, file with the director its estimate of revenues and proposed expenditures for the succeeding biennium.

Each such agency shall, not later than the first day of December and, at the same time, file with the chairperson of the finance committees of the senate and house of representatives and the legislative service commission a duplicate copy of such budget request.

The budget request shall be accompanied by a statement in writing giving facts and explanation of reasons for the items requested. The director and the legislative service commission may make further inquiry and investigation as to any item desired. The director may approve, disapprove, or alter the requests, excepting those for the legislative and judicial branches of the state. The requests as revised by the director constitute the state budget estimates of revenues and expenditures which the director is required to submit to the governor.

Not later than the thirty-first day of December of each even-numbered year or, if in the following year a new governor is inaugurated, the thirty-first day of January of that inauguration year, the director shall certify to the chairperson of the finance committees of the senate and house of representatives and the legislative service commission the estimated beginning cash balance of the general revenue fund for the next fiscal year, the estimated expenditure levels for all general revenue fund and non-general revenue fund appropriation items for the current fiscal year, and the estimated baseline nontax revenues to the general revenue fund for the following two fiscal years, that will be used in preparing the state budget presented to the governor.

The director shall determine a method to incorporate the principles of zero-based budgeting into the forms prescribed in this section.

Section 2.  That existing section 126.02 of the Revised Code is hereby repealed.