View all text of Subchapter II [§ 2141 - § 2152]
§ 2142. Approval of Budgets
(a) Reasonable schedule for development of Budgets
(b) Revenue forecast
(c) Budgets developed by Governor
(1) Governor’s proposed budgetsThe Governor shall submit to the Oversight Board proposed Budgets by the time specified in the notice delivered under subsection (a). In consultation with the Governor in accordance with the process specified in the notice delivered under subsection (a), the Oversight Board shall determine in its sole discretion whether each proposed Budget is compliant with the applicable Fiscal Plan and—
(A) if a proposed Budget is a compliant budget, the Oversight Board shall—
(i) approve the Budget; and
(ii) if the Budget is a Territory Budget, submit the Territory Budget to the Legislature; or
(B) if the Oversight Board determines that the Budget is not a compliant budget, the Oversight Board shall provide to the Governor—
(i) a notice of violation that includes a description of any necessary corrective action; and
(ii) an opportunity to correct the violation in accordance with paragraph (2).
(2) Governor’s revisions
(d) Budget approval by Legislature
(1) Legislature adopted budgetThe Legislature shall submit to the Oversight Board the Territory Budget adopted by the Legislature by the time specified in the notice delivered under subsection (a). The Oversight Board shall determine whether the adopted Territory Budget is a compliant budget and—
(A) if the adopted Territory Budget is a compliant budget, the Oversight Board shall issue a compliance certification for such compliant budget pursuant to subsection (e); and
(B) if the adopted Territory Budget is not a compliant budget, the Oversight Board shall provide to the Legislature—
(i) a notice of violation that includes a description of any necessary corrective action; and
(ii) an opportunity to correct the violation in accordance with paragraph (2).
(2) Legislature’s revisions
(e) Certification of Budgets
(1) Certification of developed and approved Territory Budgets
(2) Certification of developed Instrumentality Budgets
(3) Deemed certification of Territory BudgetsIf the Governor and the Legislature fail to develop and approve a Territory Budget that is a compliant budget by the day before the first day of the fiscal year for which the Territory Budget is being developed, the Oversight Board shall submit a Budget to the Governor and the Legislature (including any revision to the Territory Budget made by the Oversight Board pursuant to subsection (d)(2)) and such Budget shall be—
(A) deemed to be approved by the Governor and the Legislature;
(B) the subject of a compliance certification issued by the Oversight Board to the Governor and the Legislature; and
(C) in full force and effect beginning on the first day of the applicable fiscal year.
(4) Deemed certification of Instrumentality BudgetsIf the Governor fails to develop an Instrumentality Budget that is a compliant budget by the day before the first day of the fiscal year for which the Instrumentality Budget is being developed, the Oversight Board shall submit an Instrumentality Budget to the Governor (including any revision to the Instrumentality Budget made by the Oversight Board pursuant to subsection (c)(2)) and such Budget shall be—
(A) deemed to be approved by the Governor;
(B) the subject of a compliance certification issued by the Oversight Board to the Governor; and
(C) in full force and effect beginning on the first day of the applicable fiscal year.
(f) Joint development of Budgets
(Pub. L. 114–187, title II, § 202, June 30, 2016, 130 Stat. 566.)