Chapter 126-2 Lack of Funds

126-2-01 Lack of funds.

(A) Definitions

(1) "Appropriation" means an authorization granted by the general assembly to make expenditures and to incur obligations for specific purposes.

(2) "Expenditure" means a reduction of the balance of an appropriation by a disbursement or encumbrancing document after legal requirements have been met.

(3) "Fund" means an independent fiscal and accounting entity with a self-balancing set of accounts recording cash or other resources, together with all related liabilities, obligations, reserves, and fund balances which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special rules, restrictions, or limitations.

(4) "Lack of funds" means an appointing authority has a current or projected deficiency of funding necessary to maintain current or projected levels of staffing and operations.

(B) Employees may be laid off because of a lack of funds within an appointing authority. An appointing authority shall lay off employees in accordance with sections 124.321 to 124.327 of the Revised Code and the rules of the director of administrative services.

(C) For appointing authorities which employ persons whose salary or wage is paid by warrant of the auditor of state or by electronic funds transfer (EFT) made by the auditor of state, the director of budget and management shall determine whether there is a lack of funds within an appointing authority.

(D) The director of budget and management shall first determine whether an appropriation or fund within an appointing authority has a current or projected deficiency of funding necessary to maintain current or projected levels of staffing and operations.

In order to make such a determination, the director of budget and management shall analyze the appropriation or fund which appears to have a deficiency of funding.

(1) The director of budget and management shall ascertain the expenditures already charged to the appropriation and the projected expenditures for the remainder of the fiscal year, including termination or unemployment costs that may be incurred in the event of a layoff.

(2) The director of budget and management shall ascertain whether the appropriation is sufficient to maintain current or projected levels of staffing and operations. If the appropriation is made from a fund other than the general revenue fund, the director shall also ascertain whether the cash balance and anticipated revenues in the fund are sufficient to maintain current or projected levels of staffing and operations.

(3) If the director of budget and management determines that the appropriation or, if applicable, the fund's cash balance and anticipated revenues are not sufficient to maintain current or projected levels of staffing and operations, the director shall find that the appropriation or fund has a current or projected deficiency of funding.

(E) If the director of budget and management finds that an appropriation or fund has a current or projected deficiency of funding, the director may analyze all appropriations made to the appointing authority in order to determine whether there is a lack of funds within an appointing authority.

(1) For each appropriation the director of budget and management shall ascertain the expenditures already charged to the appropriation and the projected expenditures for the remainder of the fiscal year, including termination or unemployment costs that may be incurred in the event of a layoff.

(2) For each appropriation the director of budget and management shall ascertain whether the appropriation is sufficient to maintain current or projected levels of staffing and operations. If the appropriation is made from a fund other than the general revenue fund, the director shall also ascertain whether the cash balance and the anticipated revenues in the fund are sufficient to maintain current or projected levels of staffing and operations.

(3) The director of budget and management shall ascertain whether a transfer of all or part of an appropriation or a transfer between funds of all or part of a cash balance in excess of need or other appropriate action would correct a current deficiency or avoid a projected deficiency of funding in an appropriation or fund.

(a) The director of budget and management may require the appointing authority to take appropriate action to correct a current deficiency or avoid a projected deficiency of funding in an appropriation or fund.

(b) All transfers of appropriations or transfers of cash between funds are subject to approval by the controlling board or the director of budget and management as required by law.

(4) If the director of budget and management determines that a transfer of all or part of an appropriation or a transfer between funds of all or part of a cash balance in excess of need or other appropriate action would not correct a current deficiency or avoid a projected deficiency of funding in an appropriation or fund, the director may find that there is a lack of funds within an appointing authority to maintain current or projected levels of staffing and operations.

(F) Instead of following the provisions of paragraphs (D) and (E) of this rule, the director of budget and management may determine that there is a lack of funds within an appointing authority if the director finds that a program within the appointing authority has a current or projected deficiency of federal funding necessary to maintain current or projected levels of program staffing and operations.

In order to make such a determination, the director of budget and management shall analyze the appropriation made to the appointing authority for the program and the fund which appears to have a deficiency of federal funding.

(1) The director of budget and management shall ascertain the program expenditures already charged to the appropriation and the projected expenditures for the remainder of the fiscal year, including termination or unemployment costs that may be incurred in the event of a layoff.

(2) The director of budget and management shall ascertain whether the cash balance and anticipated federal revenues in the fund are sufficient to maintain the current or projected levels of program staffing and operations.

(3) If the director of budget and management determines that the fund's cash balance and anticipated federal revenues are not sufficient to maintain the current or projected levels of program staffing and operations, the director may find that the fund has a current or projected deficiency of funding. On the basis of such a deficiency, the director may find that there is a lack of funds within an appointing authority.

The director of budget and management is not required to analyze all appropriations made to the appointing authority. The director is not required to ascertain whether a transfer of all or part of an appropriation or a transfer between funds of all or part of a cash balance in excess of need or other action would correct a current or projected deficiency of federal funding necessary to maintain current or projected levels of program staffing and operations.

(G) After following the provisions of this rule, the director of budget and management shall make a determination regarding the status of funds within the appointing authority. If the director of budget and management finds that there is a lack of funds within an appointing authority, the director shall inform the appointing authority of the amount of the current or projected deficiency of funding necessary to maintain current or projected levels of staffing and operations.

Eff 4-26-82 (Emer.); 7-29-82; 5-15-88; 1-6-03
Rule promulgated under: RC 119.03
Rule authorized by: RC 124.321
Rule amplifies: RC 124.321
R.C. 119.032 Review Dates: 10/09/2002 and 10/09/2007