The Department of Planning and Budget was created by statute in 1976, merging previously existing budget and planning agencies. Sections 2.2-1500 through 2.2-1510 of the Code of Virginia establish the agency and set forth the powers and duties of the department and the director, the requirements for submitting the executive budget to the General Assembly, and the requirements for submitting the Budget Bill.
The Code specifically assigns these responsibilities to DPB:
- Development and direction of an integrated policy analysis, planning, and budgeting process within state government.
- Review and approval of all sub-state district systems boundaries established or proposed for establishment by state agencies.
- Formulation of an executive budget.
- Conduct of policy analysis and program evaluation for the Governor.
- Continuous review of the activities of state government focusing on budget requirements in the context of the goals and objectives determined by the Governor and the General Assembly and monitoring the progress of agencies in achieving goals and objectives.
- Operation of a system of budgetary execution to ensure that agency activities are conducted within fund limitations provided in the appropriation act and in accordance with gubernatorial and legislative intent.
- Development and operation of a system of standardized reports of program and financial performance for management.
- Coordination of statistical data by reviewing, analyzing, monitoring, and evaluating statistical data developed and used by state agencies and by receiving statistical data from outside sources, such as research institutes and the federal government.
- Assessment of the impact of federal funds on state government by reviewing, analyzing, monitoring, and evaluating the federal budget, as well as solicitations, applications, and awards for federal financial aid programs on behalf of state agencies.
- Review and verify the accuracy of agency estimates of receipts from donations, gifts, or other nongeneral fund revenue.
- Development, coordination and implementation of a performance management system involving strategic planning, performance measurement, evaluation, and performance budgeting within state government.
- Development, implementation, and management of an Internet-based information technology system to ensure that citizens have access to performance information.
- Development, implementation and management of an Internet-based information technology system to ensure that citizens have access to meeting minutes and information pertaining to the development of regulatory policies.
- Development, coordination and management of a school efficiency review program.
- Preparation of "The Executive Budget" and "Executive Amendments to the Appropriation Act" in easily understood language, cross-referenced to the Governor's recommended budget bill or amendments to the Appropriation Act, the documents to be placed on the Internet.
- For every even-numbered year's legislative session, preparation and submission of a six-year financial plan comprised of the usual biennial budget, projections of revenues, and estimates of appropriations required for each major program for an additional four-year period.
The annual appropriation act and other statutes also affect DPB and the budget process. In addition, Executive Orders (EOs) may assign other responsibilities to the agency. EO 21(2002) establishes guidelines for executive branch review of state agency regulations and assigns a large role in maintaining and implementing the process to DPB. EO 67(2004) addresses DPB's role in investigating waste, fraud, and abuse.