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Budget Agency, Budget Committee & Legislative Review

The Budget Agency reviews the submitted budget requests and formulates recommendations.  The requests are adjusted as approved by the Governor, and then presented to the Budget Committee.  The Budget Committee is composed of four legislators – one Democrat and one Republican from both the House of Representatives and the Senate – and the Director of the Budget Agency. The Budget Committee holds public hearings with state universities to outline their capital budget requests.  After the hearings are completed and future revenue estimates are presented via the Revenue Forecast, the committee makes a single, comprehensive budget recommendation to the Governor.  The second phase of the budget process is the legislative adoption of the budget by the Indiana General Assembly.  The legislative budget process begins in the House of Representatives, where the Ways and Means Committee considers the budget bill and holds hearings.  The Committee amends the budget bill, and passes it back to the full House of Representatives where individual representatives may offer amendments.  After consideration of these amendments, the bill is placed on its final passage for approval.  Once passed by a majority vote, the bill is sent to the Senate for consideration where the process is repeated beginning with the Senate Appropriations Committee.  Once passed by the Senate, the bill goes to Conference Committee where differences between the House and Senate versions of the budget bill are resolved.  When the conference committee reports out a revised recommended budget, each chamber adopts or rejects it.  If rejected by either chamber, the conference committee must reconvene and renew negotiations.   After the budget bill has been adopted by both chambers, it goes to the Governor for signature or veto.  The Governor must sign the bill or veto it in its entirety.  A gubernatorial veto may be overridden by a majority vote in both the House and Senate.  Once signed, the appropriation act becomes the State of Indiana budget for the subsequent biennium, and the process of budget implementation begins.