The 2009 Executive Budget Document
Department of the TreasuryMission Statement
The Department of the Treasury is dedicated to serving the Commonwealth by providing excellent financial management and outstanding customer service.Operating Budget History
|General Fund||Nongeneral Fund||Positions|
|2005 Appropriation||$ 9,452,975||$ 7,548,369||120.00|
|2006 Appropriation||$ 13,213,986||$ 7,885,709||122.00|
|2007 Appropriation||$ 9,688,512||$ 8,352,347||123.00|
|2008 Appropriation||$ 7,851,264||$ 8,498,179||123.00|
|General Fund||Nongeneral Fund||Positions|
|2009 Base Budget||$ 7,825,026||$ 9,157,762||124.00|
|2009 Addenda||$ (897,204)||$ 0||(3.00)|
|2009 Total||$ 6,927,822||$ 9,157,762||121.00|
|2010 Base Budget||$ 7,825,026||$ 9,162,590||124.00|
|2010 Addenda||$ 534,447||$ 384,043||(3.00)|
|2010 Total||$ 8,359,473||$ 9,546,633||121.00|
Recommended Operating Budget Addenda
Reflect Governor’s October reductions in agency budgetsReflects the reductions approved by Governor Kaine in October 2008 for 2009 and the corresponding continuation of savings in 2010. See Part D of this document for reduction details. For 2009, a decrease of $897,204 (GF) and three positions. For 2010, a decrease of $888,895 (GF) and an increase of $351,343 (NGF).
Implement targeted reductionsImplements targeted reductions for 2009 and 2010 included in Governor Kaine's 2008-2010 Budget Reduction Plan. Reduction details can be found in Part D of this document. For 2010, a decrease of $44,658 (GF) and an increase of $32,700 (NGF).
Increase funding for banking services feesProvides additional general fund dollars for banking services fees. Banking services fees are paid with a combination of cash and compensating balances on deposit with the banks. This would free compensating balances which would be invested in the Primary Liquidity Investment Portfolio. The estimated earnings on the Primary Liquidity Investment Portfolio exceed those of banks. It is anticipated that this will generate $2.6 million in general fund revenue. For 2010, $1.5 million (GF).
Budget Reduction Strategies
October Reduction Strategies
Capture savings due to lower maintenance costs
Capture savings resulting from lower hardware maintenance costs. The agency recently purchased a new Xerox printer, which should result in lower hardware maintenance costs.
FY 2009 FY 2010 General Fund Savings $ (30,000) $ (30,000)
Eliminate information systems hardware not being used
Reduce the amount paid to the Virginia Information Technology Agency (VITA) by reducing the inventory of non-essential information technology equipment. The agency has several extra servers that will be surplused.
FY 2009 FY 2010 General Fund Savings $ (36,000) $ (48,000)
Eliminate vacant positions
Eliminates three vacant positions throughout the agency.
FY 2009 FY 2010 General Fund Savings $ (269,513) $ (228,936) Position Changes (3.00) (3.00)
Increase Virginia College Building Authority (VCBA) pool fee revenue
Capture anticipated additional revenue generated from the VCBA pool fee charged to institutions of higher education participating in VCBA's pooled bond program. This revenue is deposited to the general fund. Treasury estimates that an additional $100,000 will be collected and deposited to the general fund in FY 2009. This strategy captures the anticipated additional revenue.
FY 2009 FY 2010 Revenue / Transfers $ 100,000 $ 0
Reallocate cost of positions to nongeneral fund sources
Supplant general fund dollars for positions with the appropriate nongeneral fund source, based on the programs the positions support. This will require additional nongeneral fund appropriations.
FY 2009 FY 2010 General Fund Savings $ (310,734) $ (351,343) NGF Appropriation $ 0 $ 351,343
Recover cost of accounting services
Recover the cost of preparing the annual financial statements for the Tobacco Settlement Financing Corporation. Treasury is responsible for the issuance and management of debt and other financial obligations for the Commonwealth and several of its boards and authorities, including the Tobacco Settlement Financing Corporation. Until this year, a private company prepared the corporation's annual financial statements. Beginning in FY 2009, Treasury assumed responsibility for their preparation.
FY 2009 FY 2010 General Fund Savings $ (25,000) $ (25,000)
Reduce banking services fees
Capture savings resulting from the discontinuance of certain services and the renegotiation of certain banking contracts.
FY 2009 FY 2010 General Fund Savings $ (57,000) $ (57,000)
Reduce purchase of check stock
Reduce funding provided for the purchase of check stock to capture savings attributable to the increased use of electronic payment methods and a corresponding reduction in the volume of paper checks issued by the department.
FY 2009 FY 2010 General Fund Savings $ (118,957) $ (73,616)
Reduce purchase of earnings notices paper stock
Reduce the quantity of earnings notices stock purchased, as the volume of earnings notices being printed is declining.
FY 2009 FY 2010 General Fund Savings $ (50,000) $ (75,000)
December Reduction Strategies
Increase revenue from reinvesting compensating balances
Generates additional revenue as the result of removing certain amounts deposited in various banks and reinvesting in a higher yielding portfolio.
FY 2009 FY 2010 Revenue / Transfers $ 0 $ 2,600,000
Reduce check processing staff
Reduces the number of positions in the check processing unit. With the move to electronic payments and the reduction in paper checks, this action eliminates one check processing position.
FY 2009 FY 2010 General Fund Savings $ 0 $ (32,700) NGF Appropriation $ 0 $ 32,700
Remove additional funding for pay practices
Removes the half-percent pay practices funding granted to Executive branch agencies in the 2006-08 biennium.
FY 2009 FY 2010 General Fund Savings $ 0 $ (11,958)
Transfer excess Virginia College Building Authority (VCBA) private college financing fees
Transfers excess VCBA private college financing fee revenue to the general fund. Private colleges that finance projects through the VCBA are assessed a fee. This revenue is deposited to a nongeneral fund. The fund currently has a balance of $170,000. This strategy will transfer any balance in the fund in excess of $20,000. In FY 2010, the estimated transfer is $150,000.
FY 2009 FY 2010 Revenue / Transfers $ 0 $ 150,000