Office of Management and Budget (Indiana)
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| Office of Management and Budget (Indiana) | |
|---|---|
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| Name | Office of Management and Budget (Indiana) |
| Formed | 2005 |
| Headquarters | Indianapolis, Indiana |
| Jurisdiction | Indiana |
| Chief1 name | Daniel Elliott |
| Chief1 position | Director |
| Parent agency | Governor of Indiana |
Office of Management and Budget (Indiana) The Office of Management and Budget (Indiana) is the executive office charged with executive branch budget coordination, fiscal policy, and administrative oversight within Indiana. It operates under the authority of the Governor of Indiana and interacts with the Indiana General Assembly, Indiana State Budget Agency, and state agencies such as the Indiana Department of Transportation and Indiana Department of Education. The office provides technical guidance to the Indiana State Police, Indiana Economic Development Corporation, and other entities to align expenditures with the Biennial budget and statewide priorities.
History
The office traces institutional roots to executive budget offices established in the early 20th century in states following reforms influenced by the Progressive Era and the federal Bureau of the Budget. In Indiana, successive governors including Mitch Daniels, Eric Holcomb, and Mike Pence reshaped executive management structures to centralize financial controls and performance management. The office evolved through interactions with the Indiana General Assembly during budget crises, tax reform debates exemplified by the 2013 Indiana tax reforms, and policy shifts prompted by national events such as the Great Recession (2008–2009) and the COVID-19 pandemic in Indiana. It has coordinated with entities like the Indiana State Budget Agency and engaged with external partners including the Government Finance Officers Association and consulting firms that advise on zero-based budgeting and performance-based budgeting reforms.
Organization and Leadership
The office is led by a Director appointed by the Governor of Indiana and confirmed according to state procedures. Leadership has included appointees with experience from the Office of Management and Budget (federal), state cabinets, and private sector firms such as McKinsey & Company and Deloitte. Organizational units typically mirror practices used by the United States Office of Management and Budget and include divisions for budget analysis, policy development, capital planning, and enterprise risk management. The office works closely with the Indiana Auditor of State, Indiana Treasurer of State, and the chief financial officers of agencies like the Indiana Department of Health and Indiana Family and Social Services Administration to execute financial controls and reporting.
Functions and Responsibilities
The office’s core responsibilities include preparing the governor’s budget proposal, coordinating administrative rules, and overseeing statewide fiscal policy. It issues guidance on financial management to agencies such as the Indiana Department of Natural Resources, Indiana Department of Correction, and Indiana Housing and Community Development Authority. The office administers grant oversight and compliance linked to federal programs like those from the U.S. Department of Health and Human Services and the U.S. Department of Transportation, and manages capital budget planning involving projects with the Federal Highway Administration and public-private partnerships with firms like Apex Clean Energy.
Budgeting and Financial Management Processes
The office leads formulation of the governor’s biennial budget, coordinating submissions from cabinet agencies including the Indiana Department of Workforce Development and the Indiana Commission for Higher Education. It applies methodologies parallel to those used by the Congressional Budget Office and the Government Accountability Office for fiscal forecasting, revenue estimation, and long-term liability analysis related to public pension systems such as the Indiana Public Retirement System. The office manages cash flow forecasting, debt issuance approvals liaising with the Indiana Finance Authority, and performance-based allocations tied to metrics used by Harvard Kennedy School-influenced reforms in performance budgeting.
Policy Development and Legislative Interaction
The office crafts fiscal implications for executive proposals, prepares fiscal notes for the Indiana General Assembly, and advises the governor on tax policy, appropriations, and regulatory impacts. It testifies before committees such as the Indiana Senate Appropriations Committee and the Indiana House Ways and Means Committee, and collaborates with legislative staff, the Office of the Indiana Attorney General, and entities like the Indiana Chamber of Commerce on economic development incentives. During major legislative initiatives—ranging from education funding reforms influenced by Eli Broad-style models to infrastructure packages aligning with federal Infrastructure Investment and Jobs Act funds—the office provides analysis on costs, offsets, and implementation timelines.
Performance Measurement and Accountability
Building on national practices promoted by the Performance.gov and the Mercatus Center, the office implements performance measurement frameworks, dashboards, and annual reports to track outcomes for agencies including the Indiana Department of Child Services and the Indiana Department of Environmental Management. It oversees audits and internal controls coordinating with the Indiana State Board of Accounts and external auditors like PwC when required. The office integrates results-based budgeting, key performance indicators, and program evaluations often conducted with academic partners from institutions such as Indiana University Bloomington and Purdue University.
Notable Initiatives and Programs
Notable initiatives have included statewide fiscal modernization efforts, the adoption of integrated financial management systems similar to those used by the State of Texas, and oversight of large capital projects such as highway expansion with the Indiana Department of Transportation and major campus investments with the Indiana University Health system. The office played a central role in administering pandemic relief funds alongside the Indiana State Department of Health and coordinating stimulus-related programs tied to the Coronavirus Aid, Relief, and Economic Security Act. It has supported workforce development financing linked to TechPoint initiatives and collaborated on higher education affordability strategies involving the Lumina Foundation.