HF 3562

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to the state budget development; requiring 
  1.3             consideration of effects on the state's bond rating; 
  1.4             amending Minnesota Statutes 2000, section 16A.11, 
  1.5             subdivision 4; proposing coding for new law in 
  1.6             Minnesota Statutes, chapter 16A. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2000, section 16A.11, 
  1.9   subdivision 4, is amended to read: 
  1.10     Subd. 4.  [INFORMATION; HEARINGS.] (a) The commissioner 
  1.11  shall, on request, give the governor or the legislature 
  1.12  information on the budget and attend legislative budget hearings.
  1.13     (b) The commissioner shall provide for each biennial budget 
  1.14  that covers the general fund and each capital budget and as part 
  1.15  of any supplemental budget recommendations prepared in response 
  1.16  to a reduction in available general fund resources of five 
  1.17  percent or more for a fiscal year, an analysis of the potential 
  1.18  impact of the budget on the state's bond rating. 
  1.19     Sec. 2.  [16A.111] [BONDING RATINGS; LEGISLATIVE 
  1.20  CONSIDERATION OF EFFECTS OF BUDGET PROPOSALS.] 
  1.21     (a) The provisions of this section apply to: 
  1.22     (1) a budget resolution adopted by a house of the 
  1.23  legislature under a legislative rule; 
  1.24     (2) a legislative resolution under section 16A.102; and 
  1.25     (3) a capital budget proposed to be adopted by the 
  1.26  committee of a house of the legislature with jurisdiction over 
  2.1   debt obligations issued by the state and capital projects. 
  2.2      (b) Each house of the legislature or a committee of the 
  2.3   legislature, as specified in paragraph (a), shall consider the 
  2.4   effects of the resolution or the capital budget on the ratings 
  2.5   of state bonds.  As part of this consideration, it must solicit 
  2.6   public testimony or written comments from representatives of the 
  2.7   executive branch and from qualified, independent experts in 
  2.8   state and local government finance and debt issuance, if the 
  2.9   proposed budgetary changes would: 
  2.10     (1) provide for general fund expenditures to exceed general 
  2.11  fund revenues for the biennium by one percent or more; 
  2.12     (2) if applied to the following biennium, result in 
  2.13  projected general fund expenditures exceeding revenues.  In 
  2.14  making this calculation, the commissioner's forecast of general 
  2.15  fund revenues must be compared with the sum of (i) general fund 
  2.16  expenditures required by law, and (ii) the current biennium's 
  2.17  general fund appropriations for recurring, discretionary 
  2.18  spending increased for the projected growth in the consumer 
  2.19  price index under the commissioner's forecast; or 
  2.20     (3) result in debt service appropriations exceeding three 
  2.21  percent of general fund revenues.