1.1 	A bill for an act
1.2 	relating to finance; providing an appropriation for emergencies; requiring reports 
1.3 	and recommendations to bring the state budget into compliance with generally 
1.4 	accepted governmental accounting principles; requiring disclosure of the impact 
1.5 	of inflation on state expenditures; requiring consultation on expenditure data; 
1.6 	requiring a report of cash flow for the general fund; providing continuing 
1.7 	appropriations for the operation of state government under certain conditions; 
1.8 	providing for an increase in the budget reserve to five percent of forecast net 
1.9 	general fund revenue; appropriating money;amending Minnesota Statutes 2004, 
1.10 	sections 9.061, subdivision 5; 16A.055, subdivision 1; 16A.103, subdivisions 1a, 
1.11 	1b, 1c, 1e; 16A.11, subdivision 2, by adding a subdivision; Minnesota Statutes 
1.12 	2005 Supplement, section 16A.152, subdivision 2; proposing coding for new law 
1.13 	in Minnesota Statutes, chapter 16A.
1.14 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.15 	Section 1. Minnesota Statutes 2004, section 9.061, subdivision 5, is amended to read:
1.16 		Subd. 5.Spending power. Where an emergency exists the Executive Council 
1.17 	may expend money as necessary therefor within the limit of appropriations made to the 
1.18 	council for this purpose, but not to exceed $3,000,000 in any fiscal year, and that amount 
1.19 	is annually appropriated from the general fund for this purpose.

1.20 	Sec. 2. Minnesota Statutes 2004, section 16A.055, subdivision 1, is amended to read:
1.21 		Subdivision 1.List. (a) The commissioner shall:
1.22 	(1) receive and record all money paid into the state treasury and safely keep it until 
1.23 	lawfully paid out;
1.24 	(2) manage the state's financial affairs;
1.25 	(3) keep the state's general account books according to generally accepted 
1.26 	government accounting principles;
2.1 	(4) keep expenditure and revenue accounts according to generally accepted 
2.2 	government accounting principles;
2.3 	(5) develop, provide instructions for, prescribe, and manage a state uniform 
2.4 	accounting system;
2.5 	(6) provide to the state the expertise to ensure that all state funds are accounted for 
2.6 	under generally accepted government accounting principles; and
2.7 	(7) coordinate the development of, and maintain standards for, internal auditing in 
2.8 	state agencies and, in cooperation with the commissioner of administration, report to the 
2.9 	legislature and the governor by January 31 of odd-numbered years, on progress made.
2.10 	(b) The commissioner shall report to the legislature by January 15 each year any 
2.11 	laws that require the state's general fund budget not to be reported according to generally 
2.12 	accepted government accounting principles.

2.13 	Sec. 3. Minnesota Statutes 2004, section 16A.103, subdivision 1a, is amended to read:
2.14 		Subd. 1a.Forecast parameters.  The forecast must assume the continuation of 
2.15 	current laws and reasonable estimates of projected growth in the national and state 
2.16 	economies and affected populations.  Revenue must be estimated for all sources provided 
2.17 	for in current law.  Expenditures must be estimated for all obligations imposed by law and 
2.18 	those projected to occur as a result of inflation and variables outside the control of the 
2.19 	legislature. Expenditure estimates must not include an allowance for inflation.

2.20 	Sec. 4. Minnesota Statutes 2004, section 16A.103, subdivision 1b, is amended to read:
2.21 		Subd. 1b.Forecast variable.  In determining the rate of inflation, the application 
2.22 	of inflation, the amount of state bonding as it affects debt service, the calculation of 
2.23 	investment income, and the other variables to be included in the expenditure part of the 
2.24 	forecast, the commissioner must consult with the chairs and lead minority members of the 
2.25 	senate State Government Finance Committee and the house Ways and Means Committee, 
2.26 	and legislative fiscal staff.  This consultation must occur at least three weeks before the 
2.27 	forecast is to be released.  No later than two weeks prior to the release of the forecast, 
2.28 	the commissioner must inform the chairs and lead minority members of the senate 
2.29 	State Government Finance Committee and the house Ways and Means Committee, and 
2.30 	legislative fiscal staff of any changes in these variables from the previous forecast.

2.31 	Sec. 5. Minnesota Statutes 2004, section 16A.103, subdivision 1c, is amended to read:
2.32 		Subd. 1c.Expenditure data. State agencies must submit any revisions in 
2.33 	expenditure data the commissioner determines necessary for the forecast to the 
3.1 	commissioner at least four weeks prior to the release of the forecast. The commissioner 
3.2 	shall make the information submitted by state agencies and any modifications to that 
3.3 	information made by the commissioner must be made available to legislative fiscal staff, 
3.4 	and shall consult with legislative staff about the meaning of the information,  no later than 
3.5 	three weeks prior to the release of the forecast.

3.6 	Sec. 6. Minnesota Statutes 2004, section 16A.103, subdivision 1e, is amended to read:
3.7 		Subd. 1e.Economic information. The commissioner must review economic 
3.8 	information including economic forecasts with legislative fiscal staff no later than two 
3.9 	weeks before the forecast is released. The commissioner must invite the chairs and lead 
3.10 	minority members of the senate State Government Finance Committee and the house 
3.11 	Ways and Means Committee, and legislative fiscal staff to attend any meetings held with 
3.12 	outside economic advisors. The commissioner must provide legislative fiscal staff with 
3.13 	monthly economic forecast information received from outside sources.

3.14 	Sec. 7. [16A.107] CASH FLOW FORECAST.
3.15 	Within two weeks after the November forecast of state revenue and expenditures 
3.16 	under section 16A.103, the commissioner shall deliver to the governor and the legislature 
3.17 	a forecast of cash flow for the general fund, showing the expected maximum and minimum 
3.18 	cash balance in the fund for each month of the forecast period.

3.19 	Sec. 8. Minnesota Statutes 2004, section 16A.11, subdivision 2, is amended to read:
3.20 		Subd. 2.Part one:  message.  Part one of the budget, the governor's message, 
3.21 	shall include the governor's recommendations on the financial policy of the state for the 
3.22 	coming biennium, describing the important features of the budget plan, embracing a 
3.23 	general budget summary setting forth the aggregate figures of the budget so as to show 
3.24 	the balanced relation between the total proposed expenditures and the total anticipated 
3.25 	income, with the basis and factors on which the estimates are made, the amount to be 
3.26 	borrowed, and other means of financing the budget for the coming biennium, compared 
3.27 	with the corresponding figures for at least the last two completed fiscal years and the 
3.28 	current year. The budget plan must include recommendations on how to bring the budget 
3.29 	into compliance with generally accepted governmental accounting principles. The 
3.30 	budget plan shall be supported by explanatory schedules or statements, classifying its 
3.31 	expenditures by agencies and funds, and the income by agencies, sources, funds, and the 
3.32 	proposed amount of new borrowing, as well as proposed new tax or revenue sources.  The 
3.33 	budget plan shall be submitted for all special and dedicated funds, as well as the general 
4.1 	fund, and shall include the estimated amounts of federal aids, for whatever purpose 
4.2 	provided, together with estimated expenditures from them.

4.3 	Sec. 9. Minnesota Statutes 2004, section 16A.11, is amended by adding a subdivision 
4.4 	to read:
4.5 		Subd. 3d.Budget bills. The necessary bills to implement the governor's operating 
4.6 	budget must be submitted to the legislature within two weeks after the operating budget 
4.7 	was submitted. The necessary bills to implement the governor's capital budget must be 
4.8 	submitted to the legislature within two weeks after the capital budget was submitted.

4.9 	Sec. 10. [16A.117] CONTINUING APPROPRIATIONS.
4.10 	If no biennial direct appropriations for a given state agency are enacted before 
4.11 	July 1 of an odd-numbered year, amounts sufficient to continue operation of that agency 
4.12 	through the  fiscal year ending June 30 of the next even-numbered year at the base level 
4.13 	for that next fiscal year, as determined according to section 16A.11, subdivision 3, and 
4.14 	previous appropriation acts, are appropriated to the agency from the appropriate funds and 
4.15 	accounts in the state treasury. The base level for an appropriation that was designated as 
4.16 	onetime or was onetime in nature is zero.

4.17 	Sec. 11. Minnesota Statutes 2005 Supplement, section 16A.152, subdivision 2, is 
4.18 	amended to read:
4.19 		Subd. 2.Additional revenues; priority. (a) If on the basis of a forecast of general 
4.20 	fund revenues and expenditures, the commissioner of finance determines that there will be 
4.21 	a positive unrestricted budgetary general fund balance at the close of the biennium, the 
4.22 	commissioner of finance must allocate money to the following accounts and purposes in 
4.23 	priority order:
4.24 	(1) the cash flow account established in subdivision 1 until that account reaches 
4.25 	$350,000,000;
4.26 	(2) the budget reserve account established in subdivision 1a until that account 
4.27 	reaches $653,000,000 five percent of forecast net general fund revenue for the biennium;
4.28 	(3) the amount necessary to increase the aid payment schedule for school district 
4.29 	aids and credits payments in section 127A.45 to not more than 90 percent rounded to the 
4.30 	nearest tenth of a percent without exceeding the amount available and with any remaining 
4.31 	funds deposited in the budget reserve; and
4.32 	(4) the amount necessary to restore all or a portion of the net aid reductions under 
4.33 	section 127A.441 and to reduce the property tax revenue recognition shift under section 
5.1 	123B.75, subdivision 5, paragraph (c), and Laws 2003, First Special Session chapter 9, 
5.2 	article 5, section 34, as amended by Laws 2003, First Special Session chapter 23, section 
5.3 	20, by the same amount.
5.4 	(b) The amounts necessary to meet the requirements of this section are appropriated 
5.5 	from the general fund within two weeks after the forecast is released or, in the case of 
5.6 	transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations 
5.7 	schedules otherwise established in statute.
5.8 	(c) To the extent that a positive unrestricted budgetary general fund balance is 
5.9 	projected, appropriations under this section must be made before section 16A.1522 takes 
5.10 	effect.
5.11 	(d) The commissioner of finance shall certify the total dollar amount of the 
5.12 	reductions under paragraph (a), clauses (3) and (4), to the commissioner of education. The 
5.13 	commissioner of education shall increase the aid payment percentage and reduce the 
5.14 	property tax shift percentage by these amounts and apply those reductions to the current 
5.15 	fiscal year and thereafter.