1.1                          A bill for an act 
  1.2             relating to public finance; providing for legislative 
  1.3             advisory commission review of certain fund purpose 
  1.4             changes; changing and coordinating dates for 
  1.5             submission of certain budget, target, and forecast 
  1.6             information; adding a component to the variables in 
  1.7             expenditure forecasts for which legislative 
  1.8             consultation is required; deleting an obsolete 
  1.9             requirement; amending Minnesota Statutes 1998, 
  1.10            sections 3.3005, by adding a subdivision; 16A.102, 
  1.11            subdivision 1; and 16A.103, subdivision 1; repealing 
  1.12            Minnesota Statutes 1998, section 16A.103, subdivision 
  1.13            3. 
  1.14  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.15     Section 1.  Minnesota Statutes, section 3.3005, is amended 
  1.16  by adding a subdivision to read: 
  1.17     Subd. 3a.  [CHANGE IN PURPOSE.] If a request to spend 
  1.18  federal money is included in a governor's budget request and 
  1.19  approved according to subdivision 2a, but the purpose for which 
  1.20  the money is to be used changes from the time of the request and 
  1.21  approval, the amount may be allotted for expenditure after a 
  1.22  revised request is submitted according to subdivision 2 or the 
  1.23  requirements of subdivision 5 are met. 
  1.24     Sec. 2.  Minnesota Statutes 1998, section 16A.102, 
  1.25  subdivision 1, is amended to read: 
  1.26     Subdivision 1.  [GOVERNOR'S RECOMMENDATION.] By the fourth 
  1.27  Monday in January of each odd-numbered year At the same time as 
  1.28  the detailed operating budget specified in section 16A.11, 
  1.29  subdivision 1, must be submitted to the legislature, the 
  2.1   governor shall also submit to the legislature a recommended 
  2.2   revenue target for the next two bienniums.  The recommended 
  2.3   revenue target must specify: 
  2.4      (1) the maximum share of Minnesota personal income to be 
  2.5   collected in taxes and other revenues to pay for state and local 
  2.6   government services; 
  2.7      (2) the division of the share between state and local 
  2.8   government revenues; and 
  2.9      (3) the mix and rates of income, sales, and other state and 
  2.10  local taxes including property taxes and other revenues.  
  2.11  The recommendations must be based on the November forecast 
  2.12  prepared under section 16A.103. 
  2.13     Sec. 3.  Minnesota Statutes 1998, section 16A.103, 
  2.14  subdivision 1, is amended to read: 
  2.15     Subdivision 1.  [STATE REVENUE AND EXPENDITURES.] In 
  2.16  February and November each year, the commissioner shall prepare 
  2.17  a forecast of state revenue and expenditures.  The November 
  2.18  forecast must be delivered to the legislature and governor no 
  2.19  later than the end of the first week of December.  The February 
  2.20  forecast must be delivered to the legislature and governor by 
  2.21  the end of February.  Forecasts must be delivered to the 
  2.22  legislature and governor on the same day.  The forecast must 
  2.23  assume the continuation of current laws and reasonable estimates 
  2.24  of projected growth in the national and state economies and 
  2.25  affected populations.  Revenue must be estimated for all sources 
  2.26  provided for in current law.  Expenditures must be estimated for 
  2.27  all obligations imposed by law and those projected to occur as a 
  2.28  result of inflation and variables outside the control of the 
  2.29  legislature.  In determining the rate of inflation, the 
  2.30  application of inflation, the amount of state bonding as it 
  2.31  affects debt service, and the other variables to be included in 
  2.32  the expenditure part of the forecast, the commissioner must 
  2.33  consult with the chair of the senate state government finance 
  2.34  committee, the chair of the house committee on ways and means, 
  2.35  and house and senate fiscal staff.  In addition, the 
  2.36  commissioner shall forecast Minnesota personal income for each 
  3.1   of the years covered by the forecast and include these estimates 
  3.2   in the forecast documents.  A forecast prepared during the first 
  3.3   fiscal year of a biennium must cover that biennium and the next 
  3.4   biennium.  A forecast prepared during the second fiscal year of 
  3.5   a biennium must cover that biennium and the next two bienniums. 
  3.6      Sec. 4.  [REPEALER.] 
  3.7      Minnesota Statutes 1998, section 16A.103, subdivision 3, is 
  3.8   repealed.