Frequently Asked Questions about Continuous Appropriations

Frequently Asked Questions about Continuous Appropriations By Chris Micheli

            Does California law define an appropriation or a “continuous appropriation”? No, state law does not define the term “appropriation,” even though we find that term in the state Constitution as well as numerous statutes.

Hoes is the term appropriation defined by California’s Legislative Counsel? The Office of Legislative Counsel defines an appropriation as “the amount of money made available for expenditure by a specific entity for a specific purpose, from the General Fund or other designated state fund or account.”

            Is there a legislative branch definition of continuous appropriation? The Senate Committee on Budget & Fiscal Review provides this definition for the term: “Amount available each year under a permanent constitutional or statutory expenditure authorization. A continuous appropriation is not dependent on passage of the budget.”

            Is there an executive branch definition of continuous appropriation? Yes, the California Department of Finance glossary of terms includes two definitions of the term:  First, “an appropriation for a set amount that is available for more than one year.” Second, “constitutional or statutory expenditure authorization that is renewed each year without further legislative action. The amount available may be a specific, recurring sum each year; all or a specified portion of the proceeds of specified revenues that have been dedicated permanently to a certain purpose; or, whatever amount is designated for the purpose as determined by formula, e.g., school apportionments.”

Do continuous appropriations ever expire? Yes, Government Code Section 13340 sunsets statutory continuous appropriations on June 30 with exceptions specified in that code section and other statutes. Control Section 30.00 of the annual Budget Act traditionally extends the continuous appropriations for one additional fiscal year.

            What is the purpose of a continuous appropriation? The point of a continuous appropriation is to provide a specified sum of state funds on a continuous basis without the need to go through the annual budget process.

 

How can a reader determine if a bill contain a continuous appropriation? First, the bill’s Title will include the phrase: “and making an appropriation therefor.” Second, in the Legislative Counsel’s Digest for the bill, there will be language such as: “This bill would continuously appropriate __ of the annual proceeds of the fund to __.” Third, the text of the bill will contain language similar to the following (taken from a 2021 Session bill): “Beginning with the 2022–23 fiscal year, 25 percent of the annual proceeds of the fund are hereby continuously appropriated, without regard to fiscal year, in an equal percentage to each of the 58 counties in the state for the purpose of __.”

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