The Department of Planning and Budget advises the Governor on how to wisely use public resources for the benefit of all Virginians by analyzing, developing, and carrying out various fiscal, legislative, programmatic, and regulatory policies.

We advise the Governor in the prudent allocation of public resources and promote the development and implementation of fiscal, legislative, programmatic, and regulatory policies that maximize empowerment of Virginia's citizens and minimize their dependence on government. We serve our customers through creative, proactive, objective, accurate, and timely planning, analysis, and evaluation.

DPB is committed to the following:

• Earning the respect, trust, and confidence of its customers, which include the Governor, the Governor’s Cabinet, elected and appointed officials, state agencies, and the public.


• Allocating public resources prudently and ethically.


• Promoting objective fiscal, legislative, programmatic, and regulatory policies that benefit and protect the Commonwealth and minimize the dependence on government.

The Department of Planning and Budget (DPB) was created by statute in 1976 merging previously existing budget and planning agencies. Sections 2.2-1500 through 2.2-1514 of the Code of Virginia established the agency and set forth the powers and duties of DPB and its Director, the requirements for submitting the executive budget to the General Assembly, and the requirements for submitting the Budget Bill, as follows:

• Development and direction of an integrated policy analysis and planning and budgeting process within state government


• Formulation of an executive budget


• Policy analysis for the Governor


• Review of the activities of state government focusing on budget requirements in the context of the goals and objectives determined by the Governor and the General Assembly


• Operation of a system of budgetary execution to ensure agency activities are conducted within funding limitations provided in the Appropriation Act and in accordance with gubernatorial and legislative intent


• Assessment of the impact of federal funds on state government


• Review and verification of the accuracy of agency estimates of receipts from nongeneral fund revenue


• Oversight of agency capital outlay projects


• Management of the Regulatory Town Hall Website


• Coordinateion of the statewide rulemaking process via the Regulatory Town Hall Website

The Department of Planning and Budget (DPB) leads the Commonwealth’s enhanced integrated strategic planning and budgeting process and     advises the Governor on the allocation of scarce resources.  As part of its statutory responsibility,   DPB advises the Governor on the allocation of resources to large entitlement programs that are mandated or required (such as Medicaid and K-12 education) down to support of small local sheriff offices that protect our smallest communities. Decisions about the proper funding levels for each of these requires comprehensive information and in-depth analysis. DPB also must be poised to react quickly in its advisory capacity to changes in revenue that affect financial responsibility and structural balance in the state’s budget. In order to maximize its ability to successfully respond to economic changes, DPB must focus on transferring its institutional knowledge through the recruitment and development of a well trained staff.

DPB has been addressing pressing workforce issues: a highly competitive market of well-educated and skilled staff; and, an aging workforce in key positions that either are, or soon will be, eligible for retirement. Over the last several years, DPB has increased its staffing levels after analyzing its organizational structure to determine where existing resources can best be directed toward sound succession planning. DPB is addressing the training needs of new and seasoned staff through exposure to national organizations and internal training from other state agencies as well as staff mentoring.

The Commonwealth’s Performance Budgeting System combines under one system: budget development; budget execution; capital; and strategic planning; and, performance measurement. DPB is responsible for overseeing the operation and maintenance of the system. The ongoing cost of this effort is funded through rates charged to state agencies.

DPB's Web-based Electronic Fiscal Impact Statement System simplifies the tracking and development of Fiscal Impact Statements (FIS). FIS are issued on bills introduced during the General Assembly sessions. FIS describe the fiscal impact of proposed legislation and are intended to aid legislators and the Governor's Office in the decision-making process. Each FIS is electronically communicated to the legislative information system where it is posted electronically with the legislation, and electronic copies are sent to the patron and relevant committees. DPB also supports document management systems used by agencies to submit legislative proposals and to provide confidential advice to the Governor's office.

The Virginia Regulatory Town Hall Website application gives greater access to all citizens in the regulatory process electronically. Regulations affect many aspects of the Commonwealth including speed limits, physician qualifications, pollution control requirements, and testing standards in Virginia’s public schools. The Regulatory Town Hall Website allows Virginians to learn about regulations, submit online comments, and sign up to receive email notifications.

Department of Planning and Budget (DPB) relies mostly on salaried classified state employees for the delivery of services to its customers. DPB also employs wage employees to supplement classified staff during peak work periods and unexpected staff turnover. DPB has made recruitment and succession planning a priority and has increased staffing over the last several years to ensure adequate staffing to serve customers and to transfer institutional knowledge to new staff.

DPB is a Virginia executive branch agency that works with the Governor's Office, the General Assembly, and other state agencies to develop and execute the Commonwealth's budget. DPB’s proximity to the Governor’s Office and the General Assembly is critical in fulfilling its mandate.  DPB is located in the Patrick Henry Building adjacent to the capitol. At this time, the current space is adequate to meet DPB’s needs. DPB leases its space from the Department of General Services.

Maintaining funding for core services: The Department of Planning and Budget (DPB) leads the state’s integrated strategic planning and budget process. As part of its statutory responsibility, DPB advises the Governor on the allocation of scarce resources. DPB will remain challenged in the years ahead to maintain necessary funding for the core services of state government and to maintain structural balance.  The state is likely to continue to experience revenue growth and DPB will strive to ensure that there is a balance for all necessary state-funded programs and that large entitlement programs such as Medicaid, K-12, and public safety are adequately funded. Structural balance is maintained by the utilization of recurring revenue to support ongoing operations. The use of one-time or non-recurring revenue for ongoing operations and potential federal reductions puts the state’s bond rating at risk. DPB continues to remain vigilant in maintaining financial responsibility and a structural balance in the state’s budget.

Loss of experienced finance workforce: DPB depends upon obtaining quality information and data from state agencies. As the workforce ages and turnover occurs, many agencies are not able to develop replacement staff. Central agencies like DPB may be called upon more often to help agencies resolve issues that once were managed by agency-based staff.

Over eighty percent of DPB's general fund budget supports personnel costs:   salaries, wages, and fringe benefits. The remaining budget supports day-to-day operations such as: 1) funding for rent; 2) information technology needs; 3) training; 4) office supplies; and 5) other miscellaneous costs.

Funding for ongoing maintenance of the Commonwealth's Performance Budgeting System, which fall under DPB’s oversight, is appropriated to the Department of Accounts.

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The following statistics provide a comprehensive snapshot of the magnitude of the Department of Planning and Budget (DPB) operations during the 2020-2022 biennium. The activities listed in the statistical table are extremely complex and require extensive analysis and review.

There are no anticipated changes to DPB’s customer base.

The Commonwealth’s Performance Budgeting System combines under one system budget development, budget execution, capital, and strategic planning, and performance measurement. As required by Section 2.2-1501 in the Code of Virginia, DPB ensures information generated in the Performance Budgeting System is useful for managing and improving the efficiency and effectiveness of state government operations and is available to the Commonwealth’s citizens and public officials. DPB’s mission-critical products and services are, as follows:

• Budget bill Budget document


• Budget development Budget execution


• Analysis of budget proposals and development of recommendations for the Governor Procedures for monitoring agency expenditures


• Decision briefs for budget execution decisions Coordination of the executive legislative review process


• Fiscal impact statements for legislation introduced in the General Assembly


• Planning and performance measure instructions, handbook, and training for state agencies


• Economic impact statements and policy analyses on proposed regulations


• Development, maintenance and oversight of the Regulatory Town Hall Website


• Assistance with the coordination and management of the regulatory process across state agencies


• Forecasts of major budget items including prison, jail, and juvenile correctional center populations; TANF caseloads; and Supreme Court trial expenditures


• Assessments of programs and services to achieve a more efficient and cost-effective state government Support for legislative and executive task forces


• Advisory assistance to various panels, committees, and commissions


• Presentations on fiscal and budgetary policy


• Response to customers and partners

Among the fifty states, CNBC ranks Virginia third in 2022 as a top state for business, using ten competitiveness categories.  CNBC ranks Virginia highest in business friendliness and infrastructure.  Virginia continues to maintain a AAA bond rating, which has been held for almost 85 years.  For 2021, Virginia ranked number seven on the U.S. News and World Report’s list of best states across eight categories, including economy, opportunity, and fiscal stability.

Accomplishment of this goal helps protect the state’s fiscal reputation, its AAA bond rating, and its status as a best-managed state.

Achievement of this objective assures fiscal integrity in the Commonwealth’s budget by avoiding the use of short-term or “one-time” monies for ongoing or long-term commitments.

• Continue to enhance the Commonwealth's Performance Budgeting System.

• Submit a budget to the General Assembly that manages the available general fund resources resulting from one-time revenues and savings actions.

Accomplishment of this goal helps protect the state’s fiscal reputation, its AAA bond rating, and its status as a best-managed state.

Section 2.2-­4007.04 of the Code of Virginia requires that DPB prepare an economic impact analysis (EIA) for all non­exempt proposed regulations within 45 days of receipt. Typically, an EIA provides a clear and concise description of the expected economic impact of a regulatory proposal on Virginians. An EIA may also benefit policymakers and the public, including: (1) the Governor, when deciding whether or not to approve proposed regulations; (2) legislators in learning about the benefits and costs of regulations; and (3) the regulated community and other members of the public, who may be directly or indirectly affected by the proposed regulations. An EIA is a public document and may be viewed on the Virginia Regulatory Town Hall Website, which is maintained by DPB.

• Make recommendations that result in design improvements and that advance the Governor’s public policy goals.

• Provide economic impact analysis reports that clearly indicate the economic costs and benefits of a proposed regulatory change.

• Provide all analysis and review within the statutory deadlines, thereby benefiting public discourse.

• Verify and enhance the design of proposed (stage) regulations, in order to maximize economic benefits and minimize economic costs.

DPB assists with the production of annual forecasts for the following significant state programs: 1) Medicaid expenditures; 2) public safety admissions and inmate population forecasts for state prisons, local jails, state juvenile correctional facilities, and detention homes; 3) criminal fund; 4) Comprehensive Services Act for At-Risk Youth (CSA); 5) Temporary Assistance for Needy Families (TANF); 6) mandated childcare expenditures; 7) Title IV-E foster care expenditures; and 8) Title IV-E adoption expenditures and special needs (general fund) adoption expenditures.

These forecasts are provided to decision makers as a key input for each year’s budget decisions, as well as supporting longer-range policy and planning for the fiscal management of key budget drivers.

• Effectively communicate forecast results to appropriate stakeholders.

• Maintain expertise on relevant forecasting techniques and models to maintain quality.

• Manage forecast production to optimize usefulness to decision makers.


• Perform other economic analyses and projections, upon request.

Accomplishment of this goal would help protect the state’s fiscal reputation, its AAA bond rating, and its longstanding status as a best-managed state.

Achievement of this objective assures that agency customers are receiving information and analysis in a form that is timely and useful for decision making.

• Keep Cabinet officials informed on upcoming changes and issues.

• Respond to all requests from the Governor, Governor's Policy Office, the Cabinet, and the General Assembly in a timely, efficient, and transparent manner.

This service area consists of two components – budget development and budget execution. The two work in tandem to produce Virginia’s biennial budget and subsequent amended budgets. Each one is described below and is mandated by Section 2.2-1501 of the Code of Virginia. Both components include operating and capital budgets.



Budget development is the methodical process used to create the Governor’s executive budget. It begins with the preparation of budget instructions for state agencies. This initial phase is followed by a second whereby funding requests for new initiatives are submitted by state agencies to the Department of Planning and Budget (DPB) for analysis and evaluation. This phase also requires DPB staff to forecast major budget drivers. Both phases are essential for making recommendations to the Governor on funding issues and levels. They lead to the production of the budget document, budget bill, and any subsequent executive amendments, if necessary. Thereafter, budget development is directed toward analyzing the General Assembly’s committee and conference amendments. This effort assists the Governor in taking actions for the reconvened General Assembly session (amendments and item vetoes) and actions on the re-enrolled budget bill. Budget development concludes with the signing of the budget by the Governor.



Budget execution is the implementation component of Virginia’s budget process that allows state agencies to spend appropriations. Within this component, appropriations and allotments are reviewed and approved, expenditures are monitored, and instructional guidance is issued to state agencies on matters such as year-end close and new-year start-up. Budget execution also includes the preparation of decision briefs that are used in making certain administrative budgetary decisions. Although much of budget execution follows budget development, it is a year-round activity.



 

Budget development is essential to DPB's ability to make recommendations to the Governor on funding issues and position levels, in support of DPB's mission of advising the Governor on how to wisely use public resources for the benefit of all Virginians.



Budget execution includes the preparation of decision briefs that are used in making certain budgetary decisions, which also supports DPB's mission of advising the Governor on how to wisely use public resources for the benefit of all Virginians.

Analysis of budget proposals and development of recommendations for the Governor - leading to production of Budget Bill and Budget Document



Coordination of year-end close and new-year start-up budget execution actions



Analyses of budget to expenditures



Preparation of decision briefs for budget execution decisions



Analyses of federal budget proposals and actions that may affect Virginia



Participation on legislative and executive task forces



Advisory assistance to various panels, committees, and commissions



Presentations on fiscal and budgetary policy to state and national organizations

General fund appropriation supports personal and nonpersonal service costs for this service area.

This service area provides forecasting and regulatory review services. The four primary functions within this service area are: (1) assessing the policy implications and estimating the economic impact of proposed regulations, with the objective of designing regulations that are efficient, effective and least intrusive; (2) coordinating and assist with managing Virginia's regulatory process; (3) advising the Governor's Secretaries and Policy Office on regulatory matters; and (4) assist with forecasting major budget items such as prison, jail, and juvenile correctional center populations; Temporary Assistance for Needy Families caseloads; and Supreme Court trial expenditures.

This service area supports the Department of Planning and Budget's mission of analyzing various fiscal, programmatic, and regulatory policies. The statutory authority of this service area is derived from Chapter 15 of Title 2.2, and from the Administrative Process Act (especially Section 2.2-4007.04 of the Code of Virginia.)

Preparation of economic impact statements and policy analyses of proposed regulations

Maintenance of the Virginia Regulatory Town Hall application

Coordination of the regulatory process across state agencies

Training on the Virginia Regulatory Town Hall and state regulatory process

Assistance with forecasts of major budget items such as prison, jail, and juvenile correctional center populations; Temporary Assistance for Needy Families caseloads; and Supreme Court trial expenditures.

General fund appropriation supports personal and nonpersonal service costs for this service area.

This service area coordinates legislative review processes and handles document management systems used for legislative review in the Executive Branch.  

The legislative review process provides information on proposed legislation to the Governor and members of the General Assembly to assist them in making informed decisions regarding budget, regulatory, and policy issues. This process also helps the Governor and General Assembly provide adequate resources to implement those statutory changes that have a fiscal impact.  This service area coordinates this process in concert with the budget development and execution services under Budget Development and Execution Services (71502).

The legislative processes DPB administers and manages are based around three confidential web based systems. 

The ePAL system is used by agencies to submit legislative proposals to their Cabinet Secretary and the Governor’s office for consideration.  The ePAL system serves as a document management system.  Legislative proposals are reviewed in advance of the General Assembly session.  This time period is often referred to as “pre-session.”

The eLAS system coordinates and tracks documents associated with the review of all introduced legislation. Executive branch agencies, the Cabinet, and the Governor’s office use eLAS to provide confidential advice to the Governor on legislation.  These documents help the Governor formulate a position on the bill.  As is the case with ePAL, the system services as a document management system.

DPB issues a fiscal impact statement (FIS) for most legislation introduced during a General Assembly session that could impact state services. DPB uses the eFIS system to interface with the Department of Legislative Automated Services to issue FIS in a timely manner.

The service area also manages the statewide process for developing and updating strategic plans and program/service area plans and performance measures that make up Virginia's performance management structure.  Agencies update their strategic plans on a biennial basis using the Strategic Planning module in the Performance Budgeting System.  Agencies are also responsible for reporting and publishing all results using this module.

This service area supports DPB's mission of analyzing and developing various fiscal, legislative, programmatic, and regulatory policies. In addition, it provides assessments to support the wise use of public resources for the benefit of all Virginians. The statutory authority of this service area is derived from Chapter 15 of Title 2.2 of the Code of Virginia.

Instructions for agencies regarding development of legislative proposals

Recommendations to the Governor on agency legislative proposals

Publishing of fiscal impact statements on bills introduced to the General Assembly

Coordination of the statewide strategic planning process

General fund appropriation supports personal service and nonpersonal service costs for this service area.

This service area provides employee relations, fiscal, facilities management, clerical, and coordination services.

Through partnerships with the Department of Human Resource Management and the Department of Accounts, DPB staff receive timely personnel and fiscal services. These partnerships blend DPB’s internal knowledge and experience while leveraging resources to examine personnel issues, including recruitment, benefits administration, and performance management, and to strengthen internal controls for payroll and invoice processing.

This service area addresses procurement and information technology needs for the agency in accordance with the Virginia Public Procurement Act and standards established by the Virginia Information Technologies Agency (VITA).  Budget preparation and expenditure tracking services are also provided to ensure that DPB does not exceed allotted appropriation levels.

Finally, staff in this service area address facility needs (e.g., space allotments, renovations, etc.), provide clerical services, and develop DPB's Continuity of Operations Plan.

This service area ensures that sound management practices and qualified staff members are in place to carry out the mission of the agency. The statutory authority of this service area is derived from Chapter 15 of Title 2.2 of the Code of Virginia

Employee relations, fiscal, procurement, information technology, and facility services

General fund (GF) appropriation supports personal and nonpersonal service costs for this service area.