HF 2312

as introduced - 91st Legislature (2019 - 2020) Posted on 03/13/2019 04:57pm

A bill for an act
relating to state government; providing for zero-based budgeting; amending
Minnesota Statutes 2018, sections 16A.103, subdivision 1a; 16A.11, subdivision
3; proposing coding for new law in Minnesota Statutes, chapter 16A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2018, section 16A.103, subdivision 1a, is amended to read:

Subd. 1a.

Forecast parameters.

new text begin (a) Except as provided in paragraph (b), new text end the forecast
must assume the continuation of current laws and reasonable estimates of projected growth
in the national and state economies and affected populations. Revenue must be estimated
for all sources provided for in current law. Expenditures must be estimated for all obligations
imposed by law and those projected to occur as a result of variables outside the control of
the legislature. Expenditure estimates must not include an allowance for inflation.

new text begin (b) Notwithstanding paragraph (a) and any appropriations established in law, all
expenditures for a department, institution, or agency of the executive branch estimated for
the November forecast must be zero if the scheduled year under section 16A.111, subdivision
3, for the department, institution, or agency coincides with the calendar year of the November
forecast. The forecasted expenditures in the February forecast must be zero for a department,
institution, or agency of the executive branch if they were zero in the preceding November
forecast as a result of the requirements of this paragraph. The commissioner shall not apply
this paragraph to forecasted expenditures for the current biennium, but shall apply the
requirements of this paragraph to the forecasted expenditures for the next two biennia.
new text end

Sec. 2.

Minnesota Statutes 2018, section 16A.11, subdivision 3, is amended to read:

Subd. 3.

Part two: detailed budget.

(a) Part two of the budget, the detailed budget
estimates both of expenditures and revenues, must contain any statements on the financial
plan which the governor believes desirable or which may be required by the legislature.
The detailed estimates shall include the governor's budget arranged in tabular form.

(b) Tables listing expenditures for the next biennium must show the appropriation base
for each year. The appropriation base is the amount appropriated for the second year of the
current biennium. The tables must separately show any adjustments to the base required by
current law or policies of the commissioner of management and budget. For forecasted
programs, the tables must also show the amount of the forecast adjustments, based on the
most recent forecast prepared by the commissioner of management and budget under section
16A.103. For all programs, the tables must show the amount of appropriation changes
recommended by the governor, after adjustments to the base and forecast adjustments, and
the total recommendation of the governor for that year.

(c) The detailed estimates must include a separate line listing the total cost of professional
and technical service contracts for the prior biennium and the projected costs of those
contracts for the current and upcoming biennium. They must also include a summary of the
personnel employed by the agency, reflected as full-time equivalent positions.

(d) The detailed estimates for internal service funds must include the number of full-time
equivalents by program; detail on any loans from the general fund, including dollar amounts
by program; proposed investments in technology or equipment of $100,000 or more; an
explanation of any operating losses or increases in retained earnings; and a history of the
rates that have been charged, with an explanation of any rate changes and the impact of the
rate changes on affected agencies.

new text begin (e) Notwithstanding paragraph (b) and any appropriation established in law, for any
department, institution, or agency in the executive branch that is in a scheduled year under
section 16A.111, subdivision 3, in the year prior to the year in which part two of the budget
must be submitted, the appropriation base for any appropriation made to that department,
institution, or agency for the next two biennia must be zero. The commissioner must display
the appropriation base established under this paragraph in the tables and narrative of part
two of the budget.
new text end

Sec. 3.

new text begin [16A.111] ZERO-BASED BUDGETING.
new text end

new text begin Subdivision 1. new text end

new text begin Zero-based budget. new text end

new text begin (a) By November 30, each department, institution,
and agency of the executive branch within a scheduled year must submit to the commissioner
a proposed detailed operating budget for the biennium beginning July 1 of the following
year using zero-based budgeting, including a zero-based budget plan. The commissioner
of management and budget shall provide technical assistance to enable each department,
institution, or agency to complete its proposed detailed operating budget as specified by the
commissioner of management and budget.
new text end

new text begin (b) The commissioner of management and budget shall adopt policies and procedures
for each department, institution, and agency to implement the provisions of this section.
new text end

new text begin (c) As used in this section, "zero-based budgeting" means a method of determining the
budget of a department, institution, or agency for which the budget of the department,
institution, or agency:
new text end

new text begin (1) is deemed to be zero in the November forecast, the February forecast, and the
governor's budget recommendations that precede the establishment of a biennial budget;
and
new text end

new text begin (2) has justified each proposed expenditure for the biennium covered by the budget as
if it were a new expenditure.
new text end

new text begin (d) Each department, institution, and agency of the executive branch that is required to
prepare a detailed operating budget and a zero-based budget plan under this subdivision
must submit the detailed operating budget and zero-based budget plan to the legislature.
This information must be submitted to the legislature at the same time that part two of the
governor's budget is required to be submitted under section 16A.11, subdivision 1.
new text end

new text begin Subd. 2. new text end

new text begin Zero-based budget plan. new text end

new text begin A zero-based budget plan includes the following
information:
new text end

new text begin (1) a description of activities that comprise the agency, and a justification for the existence
of each activity by reference to statute or other legal authority;
new text end

new text begin (2) for each activity, a quantitative estimate of any adverse impacts that could reasonably
be expected should the activity be discontinued, together with a full description of the
methods by which the adverse impact is estimated;
new text end

new text begin (3) a list of quantifiable program outcomes that measure the efficiency and effectiveness
of each program;
new text end

new text begin (4) for each activity, an itemized account of expenditures that would be required to
maintain the activity at the minimum level of service required by statutory authority, together
with a concise statement of the quantity and quality of services required at that minimum
level;
new text end

new text begin (5) for each activity, an itemized account of expenditures required to maintain the quantity
and quality of services being provided and the number of personnel required to accomplish
each program; and
new text end

new text begin (6) a ranking of all activities that shows the relative contribution of each activity to the
overall goals and purposes of the agency at current service levels.
new text end

new text begin Subd. 3. new text end

new text begin Scheduled year. new text end

new text begin (a) The scheduled year is 2020 and every ten years thereafter
for the following agencies: Department of Administration, Department of Agriculture,
Department of Commerce, Department of Corrections, Department of Education, Department
of Human Rights, Department of Human Services, Department of Military Affairs,
Department of Natural Resources, Department of Transportation, Minnesota Racing
Commission, Office of Higher Education, and all advisory groups associated with these
agencies.
new text end

new text begin (b) The scheduled year is 2022 and every ten years thereafter for the following agencies:
Council for Minnesotans of African Heritage, Department of Employment and Economic
Development, Department of Health, Department of Management and Budget, Department
of Public Safety, Gambling Control Board, Metropolitan Council, Minnesota Council on
Latino Affairs, Pollution Control Agency, Science Museum, the Minnesota State Academies,
University of Minnesota, and all advisory groups associated with these agencies.
new text end

new text begin (c) The scheduled year is 2024 and every ten years thereafter for the following agencies:
Agriculture Utilization Research Institute, all health-related boards listed in section 214.01,
Council on Asian-Pacific Minnesotans, Department of Labor and Industry, Department of
Revenue, Explore Minnesota Tourism, Minnesota State Colleges and Universities, Minnesota
Indian Affairs Council, Peace Officer Standards and Training Board, Professional Educator
Licensing and Standards Board, the Minnesota Historical Society, the Perpich Center for
Arts Education, and all advisory groups associated with these agencies.
new text end

new text begin (d) The scheduled year is 2026 and every ten years thereafter for the following agencies:
all non-health-related boards listed in section 214.01 except as otherwise provided in this
section, Arts Board, Board of Animal Health, Board of School Administrators, Board of
Soil and Water Resources, Department of Veterans Affairs, Emergency Medical Services
Regulatory Board, Mayo Medical School, Office of Administrative Hearings, Public Utilities
Commission, Uniform Laws Commission, Workers' Compensation Board, and all advisory
groups associated with these agencies.
new text end

new text begin (e) The scheduled year is 2028 and every ten years thereafter for the following agencies:
Amateur Sports Commission, Capitol Area Architectural and Planning Board, Board of
Teaching, Bureau of Mediation Services, Campaign Finance and Public Disclosure Board,
Destination Medical Center, Higher Education Facilities Authority, Iron Range Resources
and Rehabilitation Board, Minnesota Conservation Corps, Minnesota Zoo, Private Detectives
Board, and all advisory groups associated with these agencies.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019.
new text end