HF 145

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 deleted text begin State
Government deleted text end 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