Ch. 429

2004 LAWS OF MARYLAND

(a)     appropriating funds available as a result of the award of federal
disaster assistance;

(b)     transferring funds from the State Reserve Fund - Economic
Development Opportunities Fund for projects approved by the Legislative Policy
Committee; and

(c)      appropriating funds for Major Information Technology
Development Project Fund projects approved by the budget committees.

SECTION 25. AND BE IT FURTHER ENACTED, That in the expenditure of
federal funds appropriated in this budget or subsequent to the enactment of this
budget by the budget amendment process:

(1)     State agencies shall administer these federal funds in a manner that
recognizes that federal funds are taxpayer dollars that require prudent fiscal
management, careful application to the purposes for which they are directed, and
strict attention to budgetary and accounting procedures established for the
administration of all public funds.

(2)     For fiscal 2005, except with respect to capital appropriations, to the
extent consistent with federal requirements:

(a)     when expenditures or encumbrances may be charged to either
State or federal fund sources, federal funds shall be charged before State funds are
charged; this policy does not apply to the Department of Human Resources with
respect to federal funds to be carried forward into future years for child care, child
welfare, or welfare reform activities or to the Department of Health and Mental
Hygiene with respect to funds to be carried forward into future years for the purpose
of reducing the waiting list for community services for individuals with
developmental disabilities, or with respect to funds to be carried forward into future
years for HIV/AIDS-related activities;

(b)     when additional federal funds are sought or otherwise become
available in the course of the fiscal year, agencies shall consider, in consultation with
the Department of Budget and Management, whether opportunities exist to use these
federal revenues to support existing operations rather than to expand programs or
establish new ones; and

(c)     the Department of Budget and Management shall take
appropriate actions to effectively establish these as policies of the State with respect
to administration of federal funds by executive agencies.

SECTION 26. AND BE IT FURTHER ENACTED, That for fiscal 2006, capital
funds shall be budgeted in separate eight-digit programs. When multiple projects
and/or programs are budgeted within the same non-transportation eight-digit
program, each distinct program and project shall be budgeted in a distinct
subprogram. To the extent possible, subprograms for projects spanning multiple years
shall be retained to preserve funding history. Furthermore, the budget detail for fiscal
2004 and 2005 submitted with the fiscal 2006 budget shall be organized in the same
fashion to allow comparison between years.

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