fy 13-14 executive budget review department of revenue

Representative Jim Fannin Chairman

Representative Simone Champagne Vice Chairman

FY 13-14 Executive Budget Review DEPARTMENT OF REVENUE

House Committee on Appropriations by House Fiscal Division

March 21, 2013

House Fiscal Division

Budget Overview – Department Structure 3

– Means of Finance Comparison 4

– 10-Year Budget History 5

– Agency Budget Comparisons 6

– Major Sources of Revenues 7

– Expenditure Breakdown 8

– Expenditure History 9

– Significant Budget Adjustments 11

– Discretionary/Non-Discretionary Funding 12

– Salaries and Positions 14

– State Comparisons 18

– Department Contacts 20

REV 2

Agenda

Paul Prejean 225-342-1394

House Fiscal Division REV 3

Department Structure

• Tax Collection

• Alcohol and Tobacco Control • Administrative and Certification Division

• Enforcement Division

• Office of Charitable Gaming • Administration Section

• Licensing Section

• Audit Section

Office of Revenue



Means of Finance

Means of Finance Actual

Expenditures

FY 11-12

Existing

Operating

Budget

FY 12-13

(12/1/12)

Executive

Budget

Recommended

FY 13-14

Change from

FY12-13 to

FY13-14

Percent

Change from

FY12-13 to

FY13-14

State General Fund $0 $61,864 $0 ($61,864) -100.0%

Interagency Transfers $338,219 $347,300 $321,300 ($26,000) -7.5%

Fees and Self-Gen Rev $82,838,735 $94,989,819 $80,392,436 ($14,597,383) -15.4%

Statutory Dedications $671,751 $705,041 $647,928 ($57,113) -8.1%

Federal Funds $329,395 $883,007 $883,007 $0 0.0%

TOTAL $84,178,100 $96,987,031 $82,244,671 ($14,742,360) -15.2%

Authorized Positions 802 792 689 (103) -13.0%


Self-generated Revenues •Decrease is due to personnel reductions, non-recurred carryforwards, closure of district offices, and reductions for various department expenditures including travel, operating services, supplies, professional services and other charges.

• Eliminates 57 T.O. and 11 Non-T.O. positions and associated funding • Transfers 46 T.O. to the Division of Administration for consolidation purposes. There

is no funding associated with the transfer.


$80.4 $85.4

$78.6

$84.4 $91.5

$96.3 $92.7

$86.1 $84.2

$97.0

$82.2

$0

$20

$40

$60

$80

$100

$120

$140

FY 03-04

FY 04-05

FY 05-06

FY 06-07

FY 07-08

FY 08-09

FY 09-10

FY 10-11

FY 11-12

FY 12-13

(12/1/12)*

FY 13-14**

Fun

din

g A

mo

un

t (i

n m

illio

ns)

Fiscal Year

DEPARTMENT OF REVENUE

(Total Means of Finance)

REV 5

10-Year Budget History


*Existing Operating Budget as of 12/1/12 **Governor’s Executive Budget Recommendation Source: Executive Budget Supporting Documents


Department of Revenue Agency Budget

Comparisons

Agencies FY 12-13 FY 13-14 Difference

Tax Collection $86,997,538 $74,069,648 ($12,927,890)

Alcohol and Tobacco $7,461,560 $6,277,370 ($1,184,190)

Office of Charitable Gaming $2,527,933 $1,897,653 ($630,280)

TOTAL $96,987,031 $82,244,671 ($14,742,360)

Total Means of Financing



Self-generated Revenues - $80.4 million

• Late payment/delinquent fees, and negligence fees.

• Fees assessed to the alcohol and tobacco industry through the required purchase of various licenses, permits, and fines for violations.

REV 7

Major Sources of Revenues FY 13-14



Expenditure Breakdown

Expenditures

FY 11-12

Actual

Expenditures

FY 12-13

Existing Operating

Budget (12/1/12)

FY 13-14

Executive Budget

Recommendation

Change from

FY 12-13 to

FY 13-14

Percent

Change from

FY12-13 to

FY13-14

Salaries $38,139,120 $39,251,562 $34,221,493 ($5,030,069) -12.8%

Other Compensation $1,976,888 $2,498,801 $1,103,256 ($1,395,545) -55.8%

Related Benefits $18,364,625 $19,068,603 $17,026,348 ($2,042,255) -10.7%

Travel $637,313 $974,916 $656,785 ($318,131) -32.6%

Operating Services $9,219,138 $11,409,235 $10,815,312 ($593,923) -5.2%

Supplies $373,098 $578,585 $461,390 ($117,195) -20.3%

Prof Srvcs $1,389,972 $5,027,449 $2,035,667 ($2,991,782) -59.5%

Other Charges $12,319,996 $15,901,115 $14,945,864 ($955,251) -6.0%

Acq/Major Repairs $1,757,950 $2,276,765 $978,556 ($1,298,209) -57.0%

Unallotted $0 $0 $0 $0 0.0%

TOTAL EXP $84,178,100 $96,987,031 $82,244,671 ($14,742,360) -15.2%

Salaries, Other Compensation and Related Benefits: Reduction of 57 T.O. and 11 Non-T.O. FTE

Travel and Supplies: Decreased due to reduction in personnel and closure of district offices

Professional Services: Decrease due to suspension of information system upgrades pending the outcome of the tax reform legislation and back office consolidation

Other Charges : Decrease due to suspension of tax system upgrades pending the outcome of tax reform legislation

Acquisitions and Major Repairs: Non-recurred funding for software upgrades for Vista Capture processing system



6-Year Expenditure History (in millions)


$61.4

$56.9 $57.0

$58.5

$60.8

$52.4

$46

$48

$50

$52

$54

$56

$58

$60

$62

$64

08-09 09-10 10-11 11-12 12-13* 13-14**

Personal Services

$10.6

$12.8

$10.1 $10.2

$13.0 $11.9

$0

$2

$4

$6

$8

$10

$12

$14

08-09 09-10 10-11 11-12 12-13* 13-14**

Operating Expenses

$5.4

$8.2

$1.3 $1.4

$5.0

$2.0

$0

$1

$2

$3

$4

$5

$6

$7

$8

$9

08-09 09-10 10-11 11-12 12-13* 13-14**

Professional Services

$3.1

$1.4

$1.8 $1.8 $2.3

$1.0

$0

$1

$2

$3

$4

08-09 09-10 10-11 11-12 12-13* 13-14**

Acquisitions & Major Repairs


6-Year Expenditure History (in millions)


*Existing Operating Budget as of 12/1/12 **Governor’s Executive Budget Recommendation Source: Executive Budget Supporting Documents

$15.7

$13.5

$15.8

$12.3

$15.9

$14.9

$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

08-09 09-10 10-11 11-12 12-13* 13-14**

Other Charges


Significant Adjustments

$0 SGF $0 IAT ($5,519,455) SGR $0 SD $0 FED TOTAL ($5,519,455)




$0 SGF $0 IAT ($1,030,324) SGR ($57,113) SD $0 FED TOTAL ($1,087,437)

$0 SGF $0 IAT ($844,665) SGR $0 SD $0 FED TOTAL ($844,665)

Reduces funding associated with the closure of district and regional offices. The closures are in Dallas,

Houston, Lake Charles, Alexandria, Monroe, Shreveport and Lafayette.

Reduces funding for personnel reductions. Eliminates 57 T.O. and 11 Non-T.O. and associated funding.

Reduces funding for various departmental expenditures including travel, operating services, supplies,

professional services, and other charges.

Non-recurs one-time funding for software upgrades.

Non-recurs funding for non-recurring carryforwards.

Reduces funding to statewide adjustments which includes state employees' retirement system base

adjustment, group insurance rate adjustment for active employees and retirees, attrition and maintenance

in state owned buildings.



Discretionary/Nondiscretionary Funding in FY 13-14

Executive Budget


Discretionary $73 M

89%

Non-Discretionary

$9.2 M

11%

Revenue Total Budget $82.2 Million

CategoryNondiscretionary

Amount

Constitutionally Required $0

Court Orders $0

Debt Service $3,953,049

Federal Mandate $0

Statutory Obligation $728,921

Legislative Discretion $0

Unavoidable Obligations $4,557,381

TOTAL $9,239,351


Discretionary/Nondiscretionary Funding in FY 13-14

Executive Budget


Program Discretionary Nondiscretionary

Tax Collection $65,000,722 $9,068,926

Alcohol and Tobacco Control $6,106,945 $170,425

Office of Charitable Gaming $1,897,653 $0

TOTAL $73,005,320 $9,239,351


FY13-14 Salaries and Positions


$35.3 million for Salaries and Other Compensation

$17 million for Related Benefits

Total Personnel Services = $52.3 million, 78% of the Department of Revenue total Executive Budget Recommendation (excluding Other Charges)

689 Authorized Positions (677 classified and 12 unclassified)

6 full-time non-T.O. positions

As of 1/30/2013, Department of Revenue had 71 vacancies


Salaries and Positions


Source: ISIS-HR

1,023

1,006

1,004

985 921

860

835

818

600

700

800

900

1,000

1,100

1,200

2005 2006 2007 2008 2009 2010 2011 2012

TOTAL FULL-TIME EQUIVALENT (FTE) POSITIONS




Source: ISIS-HR and Civil Service

$42,109

$49,386

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

CLASSIFIED AVERAGE ANNUAL PAY PER FTE




Source: ISIS-HR and Civil Service

$63,074

$107,857

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000 UNCLASSIFIED AVERAGE ANNUAL PAY PER FTE


State Comparisons


Sources: United States Census Bureau, Louisiana department of Revenue, and the 2011 Survey of State Government Tax Collections

Louisiana ranks 8th in taxes per capita in the Southern Region at $1,938 per person

Louisiana ranks 7th in total tax collections in the Southern Region with a total tax collection of approximately $8.9 billion

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

Per Capita State Tax Collection

$- $5,000,000,000

$10,000,000,000 $15,000,000,000 $20,000,000,000 $25,000,000,000 $30,000,000,000 $35,000,000,000 $40,000,000,000 $45,000,000,000 $50,000,000,000

Tax Collected (2011)


Department Contacts

Title Agency Head Phone

Executive Counsel Tim Barfield 225-219-2700

Deputy Secretary Jane Smith 225-219-2152

Assistant Secretary Joseph Vaughn 225-219-2467

Undersecretary Natalie Howell 225-219-2710
