HF 2694

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to finance; requiring reports and recommendations to bring the state
budget into compliance with generally accepted governmental accounting
principles; requiring disclosure of the impact of inflation on state expenditures;
amending Minnesota Statutes 2004, sections 16A.055, subdivision 1; 16A.103,
subdivisions 1a, 1b; 16A.11, subdivision 2.

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

Section 1.

Minnesota Statutes 2004, section 16A.055, subdivision 1, is amended to
read:

Subdivision 1.

List.

new text begin (a) new text end The commissioner shall:

(1) receive and record all money paid into the state treasury and safely keep it until
lawfully paid out;

(2) manage the state's financial affairs;

(3) keep the state's general account books according to generally accepted
government accounting principles;

(4) keep expenditure and revenue accounts according to generally accepted
government accounting principles;

(5) develop, provide instructions for, prescribe, and manage a state uniform
accounting system;

(6) provide to the state the expertise to ensure that all state funds are accounted for
under generally accepted government accounting principles; and

(7) coordinate the development of, and maintain standards for, internal auditing in
state agencies and, in cooperation with the commissioner of administration, report to the
legislature and the governor by January 31 of odd-numbered years, on progress made.

new text begin (b) As part of the comprehensive annual financial report, the commissioner shall
list any laws that require the state's general fund budget not to be reported in accordance
with generally accepted government accounting principles.
new text end

Sec. 2.

Minnesota Statutes 2004, section 16A.103, subdivision 1a, is amended to read:

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 new text begin inflation and new text end variables outside the control of the
legislature. deleted text begin Expenditure estimates must not include an allowance for inflation.
deleted text end

Sec. 3.

Minnesota Statutes 2004, section 16A.103, subdivision 1b, is amended to read:

Subd. 1b.

Forecast variable.

In determining new text begin the rate of inflation, the application
of inflation, new text end 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 commissioner must consult with the chairs and lead minority members of the
senate State Government Finance Committee and the house 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 commissioner must inform the chairs and lead minority members of the senate
State Government Finance Committee and the house Ways and Means Committee, and
legislative fiscal staff of any changes in these variables from the previous forecast.

Sec. 4.

Minnesota Statutes 2004, section 16A.11, subdivision 2, is amended to read:

Subd. 2.

Part one: message.

Part one of the budget, the governor's message,
shall include the governor's recommendations on the financial policy of the state for the
coming biennium, describing the important features of the budget plan, embracing a
general budget summary setting forth the aggregate figures of the budget so as to show
the balanced relation between the total proposed expenditures and the total anticipated
income, with the basis and factors on which the estimates are made, the amount to be
borrowed, and other means of financing the budget for the coming biennium, compared
with the corresponding figures for at least the last two completed fiscal years and the
current year. new text begin The budget plan must include recommendations on how to bring the budget
into compliance with generally accepted governmental accounting principles. new text end The
budget plan shall be supported by explanatory schedules or statements, classifying its
expenditures by agencies and funds, and the income by agencies, sources, funds, and the
proposed amount of new borrowing, as well as proposed new tax or revenue sources. The
budget plan shall be submitted for all special and dedicated funds, as well as the general
fund, and shall include the estimated amounts of federal aids, for whatever purpose
provided, together with estimated expenditures from them.

Sec. 5. new text begin EFFECTIVE DATE.
new text end

new text begin This act is effective the day following final enactment.
new text end