HF 1274

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/06/2023 11:00am

A bill for an act
relating to transportation; allocating certain forecasted general fund balances for
transportation purposes; amending Minnesota Statutes 2022, section 16A.152,
subdivisions 1b, 2.

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

Section 1.

Minnesota Statutes 2022, section 16A.152, subdivision 1b, is amended to read:

Subd. 1b.

Budget reserve level.

(a) The commissioner of management and budget shall
calculate the budget reserve level by multiplying the current biennium's general fund
nondedicated revenues and the most recent budget reserve percentage under subdivision 8.

(b) If, on the basis of a November forecast of general fund revenues and expenditures,
the commissioner of management and budget determines that there will be a positive
unrestricted general fund balance at the close of the biennium deleted text begin and that the provisions of deleted text end new text begin ,
subject to new text end subdivision 2, deleted text begin paragraph (a), clauses (1), (2), (3), and (4), are satisfied, deleted text end the
commissioner shall transfer to the budget reserve account in the general fund the amount
necessary to increase the budget reserve to the budget reserve level determined under
paragraph (a). The amount of the transfer authorized in this paragraph shall not exceed 33
percent of the positive unrestricted general fund balance determined in the forecast.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023.
new text end

Sec. 2.

Minnesota Statutes 2022, section 16A.152, subdivision 2, is amended to read:

Subd. 2.

Additional revenues; priority.

(a) If on the basis of a forecast of general fund
revenues and expenditures, the commissioner of management and budget determines that
there will be a positive unrestricted budgetary general fund balance at the close of the
biennium, the commissioner of management and budget must allocate money to the following
accounts and purposes in priority order:

(1) the cash flow account established in subdivision 1 until that account reaches
$350,000,000;

(2) the budget reserve account established in subdivision 1a until that account reaches
$2,377,399,000;

(3) the amount necessary to increase the aid payment schedule for school district aids
and credits payments in section 127A.45 to not more than 90 percent rounded to the nearest
tenth of a percent without exceeding the amount available and with any remaining funds
deposited in the budget reserve;

(4) the amount necessary to restore all or a portion of the net aid reductions under section
127A.441 and to reduce the property tax revenue recognition shift under section 123B.75,
subdivision 5, by the same amount;

deleted text begin (5) the amount necessary to increase the Minnesota 21st century fund by not more than
the difference between $5,000,000 and the sum of the amounts credited and canceled to it
in the previous 12 months under Laws 2020, chapter 71, article 1, section 11, until the sum
of all transfers under this section and all amounts credited or canceled under Laws 2020,
chapter 71, article 1, section 11, equals $20,000,000; and
deleted text end

deleted text begin (6) for a forecast in November only, the amount remaining after the transfer under clause
(5) must be used to reduce the percentage of accelerated June liability sales tax payments
required under section 289A.20, subdivision 4, paragraph (b), until the percentage equals
zero, rounded to the nearest tenth of a percent. By March 15 following the November
forecast, the commissioner must provide the commissioner of revenue with the percentage
of accelerated June liability owed based on the reduction required by this clause. By April
15 each year, the commissioner of revenue must certify the percentage of June liability
owed by vendors based on the reduction required by this clause.
deleted text end

new text begin (5) the amount necessary to provide for the transfer under subdivision 1b, paragraph
(b); and
new text end

new text begin (6) in each February forecast, any remaining unrestricted general fund balance, transferred
as follows:
new text end

new text begin (i) 95 percent to the highway user tax distribution fund;
new text end

new text begin (ii) 4.5 percent to the metropolitan area transit account under section 16A.88; and
new text end

new text begin (iii) 0.5 percent to the greater Minnesota transit account under section 16A.88.
new text end

(b) The amounts necessary to meet the requirements of this section are appropriated
from the general fund within two weeks after the forecast is released or, in the case of
transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations
schedules otherwise established in statute.

(c) The commissioner of management and budget shall certify the total dollar amount
of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of education.
The commissioner of education shall increase the aid payment percentage and reduce the
property tax shift percentage by these amounts and apply those reductions to the current
fiscal year and thereafter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023.
new text end