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HF 900

as introduced - 90th Legislature (2017 - 2018) Posted on 02/09/2017 01:31pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to state government; providing for a more open and transparent budgeting
process; establishing a budget committee; requiring reporting of budget forecasts
and documents; amending Minnesota Statutes 2016, sections 16A.10; 16A.103;
proposing coding for new law in Minnesota Statutes, chapter 16A.

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

Section 1.

new text begin [16A.096] BUDGET COMMITTEE.
new text end

new text begin Subdivision 1. new text end

new text begin Committee established. new text end

new text begin A budget committee is established to forecast
revenue and expenditures for all obligations imposed by law and those projected to occur
from outside variables. The forecast of revenues and expenditures shall be used to create
the state budget for each biennium.
new text end

new text begin Subd. 2. new text end

new text begin Committee members. new text end

new text begin (a) The budget committee shall consist of the following
members:
new text end

new text begin (1) the commissioner of revenue or the commissioner's designee;
new text end

new text begin (2) the commissioner of management and budget or the commissioner's designee;
new text end

new text begin (3) two members of the house of representatives, of which one member shall be appointed
by the speaker of the house and one member shall be appointed by the minority leader of
the house of representatives; and
new text end

new text begin (4) two members of the senate, of which one member shall be appointed by the majority
leader of the senate and one member shall be appointed by the minority leader of the senate.
new text end

new text begin (b) The appointed legislative members serve at the pleasure of the appointing authority
and shall continue to serve until their successors are appointed.
new text end

new text begin (c) The meetings of the committee shall be convened and chaired by the commissioner
of revenue.
new text end

new text begin Subd. 3. new text end

new text begin Committee duties. new text end

new text begin The budget committee shall hold public hearings with state
agencies to review their budget requests. All documents that are requested and reviewed
by the committee and the committee's final report must be published online at the Web sites
for the legislature, the Department of Revenue, and the Office of Minnesota Management
and Budget for public review. The budget committee shall prepare a budget forecast and
an itemized report that outlines the appropriations that appear to be necessary to carry on
state government in the succeeding budget period. The report must show the recommended
operating and construction budget for each state agency, commission, and council separately.
new text end

Sec. 2.

Minnesota Statutes 2016, section 16A.10, is amended to read:


16A.10 BUDGET PREPARATION.

Subdivision 1.

Budget format.

In each even-numbered calendar year the commissioner
shall prepare budget forms and instructions for all agencies, including guidelines for reporting
agency performance measures, subject to the approval of the governor. The commissioner
shall request and receive advisory recommendations from new text begin the budget committee and new text end the
chairs of the senate Finance Committee and house of representatives Ways and Means
Committee before adopting a format for the biennial budget document. By June 15, the
commissioner shall send the proposed budget forms to the appropriations and finance
committeesnew text begin and the budget committeenew text end . The committees have until July 15 to give the
commissioner their advisory recommendations on possible improvements. To facilitate this
consultation, the commissioner shall establish a working group consisting of executive
branch staff and designees of the chairs of the senate Finance and house of representatives
Ways and Means Committeesnew text begin and the budget committeenew text end . The commissioner must involve
this group in all stages of development of budget forms and instructions. The budget format
must show actual expenditures and receipts for the most recent fiscal year, estimated
expenditures and receipts for the current fiscal year, and estimates for each fiscal year of
the next biennium. Estimated expenditures must be classified by funds and character of
expenditures and subclassified by programs and activities. Agency revenue estimates must
have supporting documentation to show how the estimates were made and what factors
were used. Receipts must be classified by funds, programs, and activities. Expenditure and
revenue estimates must be based on the law in existence at the time the estimates are
prepared.

Subd. 1a.

Purpose of performance data.

Performance data shall be presented in the
budget proposal to:

(1) provide information so that the legislature can determine the extent to which state
programs are successful;

(2) encourage agencies to develop clear goals and objectives for their programs; and

(3) strengthen accountability to Minnesotans by providing a record of state government's
performance in providing effective and efficient services.

Subd. 1b.

Performance data format.

Agencies shall present performance data that
measures the performance of programs in meeting program goals and objectives. Measures
reported may include indicators of outputs, efficiency, outcomes, and other measures relevant
to understanding each program. Agencies shall present as much historical information as
needed to understand major trends and shall set targets for future performance issues where
feasible and appropriate. The information shall appropriately highlight agency performance
issues that would assist new text begin the budget committee and new text end legislative review and decision making.

Subd. 1c.

Performance measures for change items.

For each change item in the budget
proposal requesting new or increased funding, the budget document must present proposed
performance measures that can be used to determine if the new or increased funding is
accomplishing its goals. To the extent possible, each budget change item must identify
relevant statewide goals and indicators related to the proposed initiative.

Subd. 2.

By October 15 and November 30.

By October 15 of each even-numbered
year, an agency must file the following with the deleted text begin commissionerdeleted text end new text begin budget committeenew text end :

(1) budget estimates for the most recent and current fiscal years;

(2) its upcoming biennial budget estimates;

(3) a comprehensive and integrated statement of agency missions and outcome and
performance measures; and

(4) a concise explanation of any planned changes in the level of services or new activities.

The commissioner shall prepare and file the budget estimates for an agency failing to
file them. By November 30, the commissioner shall send the final budget format, agency
budget estimates for the next biennium, and copies of the filed material to the new text begin budget
committee, and the
new text end Ways and Means and Finance Committees, except that the commissioner
shall not be required to transmit information that identifies executive branch budget decision
items.

Subd. 3.

Duties to governor-elect.

Immediately after the election of a new governor,
the commissioner shall report the budget estimates and make available to the governor-elect
all department information, staff, and facilities relating to the budget.

Sec. 3.

Minnesota Statutes 2016, section 16A.103, is amended to read:


16A.103 FORECASTS OF REVENUE AND EXPENDITURES.

Subdivision 1.

State revenue and expenditures.

In February and November each year,
the deleted text begin commissionerdeleted text end new text begin budget committeenew text end shall prepare a forecast of state revenue and
expenditures. The November forecast must be delivered to the legislature and governor no
later than the end of the first week of December. The February forecast must be delivered
to the legislature and governor by the end of February. Forecasts must be delivered to the
legislature and governor on the same day. If requested by the Legislative Commission on
Planning and Fiscal Policy, delivery to the legislature must include a presentation to the
commission.

Subd. 1a.

Forecast parameters.

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.

Subd. 1b.

Forecast variable.

In determining the amount of state bonding as it affects
debt service, the calculation of investment income, and the other variables to be included
in the expenditure part of the forecast, the deleted text begin commissionerdeleted text end new text begin budget committeenew text end must consult
with the chairs and lead minority members of the senate State Government Finance
Committee and the house of representatives Ways and Means Committee, and legislative
fiscal staff. This consultation must occur at least three weeks before the forecast is to be
released. No later than two weeks prior to the release of the forecast, the deleted text begin commissionerdeleted text end new text begin
budget committee
new text end must inform the chairs and lead minority members of the senate State
Government Finance Committee and the house of representatives Ways and Means
Committee, and legislative fiscal staff of any changes in these variables from the previous
forecast.

Subd. 1c.

Expenditure data.

State agencies must submit any revisions in expenditure
data the deleted text begin commissionerdeleted text end new text begin budget committeenew text end determines necessary for the forecast to the
deleted text begin commissionerdeleted text end new text begin budget committeenew text end at least four weeks prior to the release of the forecast. The
information submitted by state agencies and any modifications to that information made by
the deleted text begin commissionerdeleted text end new text begin budget committeenew text end must be made available to legislative fiscal staff no
later than three weeks prior to the release of the forecast.

Subd. 1d.

Revenue data.

On a monthly basis, the commissioner must providenew text begin the budget
committee and
new text end legislative fiscal staff with an update of the previous month's state revenues
no later than 12 days after the end of that month.

Subd. 1e.

Economic information.

The commissioner must review economic information
including economic forecasts withnew text begin the budget committee andnew text end legislative fiscal staff no later
than two weeks before the forecast is released. The commissioner must invitenew text begin the budget
committee and
new text end the chairs and lead minority members of the senate Finance Committee and
the house of representatives Ways and Means Committee, and legislative fiscal staff to
attend any meetings held with outside economic advisors. The commissioner must providenew text begin
the budget committee and
new text end legislative fiscal staff with monthly economic forecast information
received from outside sources.

Subd. 1f.

Personal income.

In addition, the deleted text begin commissionerdeleted text end new text begin budget committeenew text end shall
forecast Minnesota personal income for each of the years covered by the forecast and include
these estimates in the forecast documents.

Subd. 1g.

Period to be forecast.

A forecast prepared during the first fiscal year of a
biennium must cover that biennium and the next biennium. A forecast prepared during the
second fiscal year of a biennium must cover that biennium and the next two bienniums.

Subd. 1h.

Revenue uncertainty information.

The commissioner shall report to the
legislature within 14 days of a forecast under subdivision 1 on uncertainty in Minnesota's
general fund revenue projections. The report shall present information on: (1) the estimated
range of forecast error for revenues; and (2) the data and methods used to construct those
measurements.

Subd. 2.

Local revenue.

In February and November of each year, the commissioner of
revenue shall prepare and deliver to thenew text begin budget committee, thenew text end governornew text begin ,new text end and the legislature
forecasts of revenue to be received by school districts as a group, counties as a group, and
the group of cities and towns that have a population of more than 2,500. The forecasts must
assume the continuation of current laws, projections of valuation changes in real property,
and reasonable estimates of projected growth in the national and state economies and affected
populations. Revenue must be estimated for property taxes, state and federal aids, local
sales taxes, if any, and a single projection for all other revenue for each group of affected
local governmental units.