ESTABLISHMENT OF NEW STATE FUNDS - 7450

(Revised: 09/2002)

New State funds are created in one of the three following ways:

1. Specific legislation
2. Administratively by DOF with the concurrence of SCO. (Government Code Section 13306)
3. Ballot Initiative

It is general policy to minimize the number of State funds.

Agencies that determine a need to establish a new State fund must submit a request to their DOF budget analyst.  All requests should include the following information:

1. Authorization/justification for the new fund
2. Proposed fund title
3. Proposed administering organization
4. Specific statutory reference and/or legislation (with analysis, if available)
5. Purpose of the fund (nature of expenditures)
6. Source of revenue
7. Proposed period of fund availability
8. Appropriation status (annual, one-time, continuous, etc.)
9. Disposition of any balance upon abolishment of fund

The DOF budget analyst will forward the request to the appropriate unit for processing. FSCU will (a) coordinate the review and establishment of all funds, (b) notify the SCO, budget analyst, and administering organization when the new fund is established, and (c) incorporate the new fund information into the UCM and the Manual of State Funds.