1.1                          A bill for an act 
  1.2             relating to state government; providing for the 
  1.3             development of a long-range expenditure plan for state 
  1.4             expenditures; amending Minnesota Statutes 1994, 
  1.5             section 16A.152, subdivision 4; proposing coding for 
  1.6             new law in Minnesota Statutes, chapter 16A. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [16A.104] [LONG-TERM EXPENDITURE PLAN.] 
  1.9      Subdivision 1.  [PURPOSE, DEFINITION.] The long-term 
  1.10  expenditure plan is a statement of expenditure goals to provide 
  1.11  long-range policy and program direction to state programs and 
  1.12  recipients of state funds.  The plan shall be based on the most 
  1.13  recent forecasts under section 16A.103 and the governor's and 
  1.14  legislature's determination of state and local needs.  The plan 
  1.15  shall be for the period comprising two biennia, consistent with 
  1.16  provisions of section 16A.102. 
  1.17     Subd. 2.  [GOVERNOR'S RECOMMENDATION.] By the fourth 
  1.18  Tuesday in January in each odd-numbered year, the governor shall 
  1.19  submit to the legislature a recommended general fund expenditure 
  1.20  plan for the next two biennia. 
  1.21     (a) The plan must specify expenditure targets for all major 
  1.22  functional areas.  Expenditure targets must be identified by 
  1.23  year for, but not limited to, kindergarten through grade 12 
  1.24  education finance, post-secondary education, property tax aid 
  1.25  and credit and local government aid programs, health care and 
  1.26  family support, and all other general fund spending, including 
  2.1   debt service. 
  2.2      (b) The expenditure plan must not exceed the revenue 
  2.3   targets under section 16A.102 for the same biennium. 
  2.4      (c) In order to ensure a more stable financial environment 
  2.5   for the state, the plan must provide that for fiscal year 1999 
  2.6   and each year thereafter, each fiscal year must be structurally 
  2.7   balanced, except as provided in paragraph (d).  For the purposes 
  2.8   of this subdivision, "structurally balanced" means that, for 
  2.9   each year of a biennium, current revenues (excluding prior year 
  2.10  balances) will equal or exceed projected spending for the same 
  2.11  period. 
  2.12     (d) If a proposed expenditure plan is not structurally 
  2.13  balanced, because prior period balances are proposed to be used, 
  2.14  the plan must identify the one-time nature of any proposed use 
  2.15  of prior period balances and must exclude such balances from the 
  2.16  ongoing expenditure base. 
  2.17     (e) If proposed expenditure targets by functional area are 
  2.18  less than forecast current law expenditures prepared by the 
  2.19  department of finance under sections 16A.103 and 16A.11, the 
  2.20  expenditure plan must identify, by fiscal year, proposed 
  2.21  specific program and policy changes which would be implemented 
  2.22  to reduce expenditures to the target levels. 
  2.23     Subd. 3.  [LEGISLATIVE EXPENDITURE TARGET RESOLUTION.] By 
  2.24  April 15 of each odd-numbered year, the legislature shall, by 
  2.25  concurrent resolution, adopt general fund expenditure targets 
  2.26  for the next two biennia.  The resolution must conform with the 
  2.27  requirements of subdivision 2, paragraphs (a) to (e).  The 
  2.28  resolution must be based on the revenue targets recommended by 
  2.29  the legislature under section 16A.102, subdivision 2. 
  2.30     Subd. 4.  [EVEN-NUMBERED YEAR AND SPECIAL SESSIONS.] The 
  2.31  governor or the legislature may elect to modify their 
  2.32  expenditure targets in a special session or an even-numbered 
  2.33  year regular session.  The requirements of subdivisions 1 to 3 
  2.34  apply, except that within ten days of the start of the session 
  2.35  the dates provided in those subdivisions must be modified to be 
  2.36  consistent with the planned date of adjournment. 
  3.1      Sec. 2.  Minnesota Statutes 1994, section 16A.152, 
  3.2   subdivision 4, is amended to read: 
  3.3      Subd. 4.  [REDUCTION.] (a) If the commissioner determines 
  3.4   that probable forecast tax receipts for the general fund will be 
  3.5   less than anticipated, and that the amount available for the 
  3.6   remainder of forecast total general fund resources for the 
  3.7   biennium will be less than needed, the commissioner shall, with 
  3.8   the approval of the governor, and after consulting the 
  3.9   legislative advisory commission, reduce the amount in the budget 
  3.10  reserve and cash flow account as needed up to an amount equal to 
  3.11  the reduction in net forecast tax revenues, not to exceed the 
  3.12  amount necessary to balance expenditures with revenue.  
  3.13     (b) An additional deficit shall, with the approval of the 
  3.14  governor, and after consulting the legislative advisory 
  3.15  commission, be made up by reducing unexpended allotments of any 
  3.16  prior appropriation or transfer.  Notwithstanding any other law 
  3.17  to the contrary, the commissioner is empowered to defer or 
  3.18  suspend prior statutorily created obligations which would 
  3.19  prevent effecting such reductions.  
  3.20     (c) If the commissioner determines that probable receipts 
  3.21  for any other fund, appropriation, or item will be less than 
  3.22  anticipated, and that the amount available for the remainder of 
  3.23  the term of the appropriation or for any allotment period will 
  3.24  be less than needed, the commissioner shall notify the agency 
  3.25  concerned and then reduce the amount allotted or to be allotted 
  3.26  so as to prevent a deficit. 
  3.27     (d) In reducing allotments, the commissioner may consider 
  3.28  other sources of revenue available to recipients of state 
  3.29  appropriations and may apply allotment reductions based on all 
  3.30  sources of revenue available.  
  3.31     (e) In like manner, the commissioner shall reduce 
  3.32  allotments to an agency by the amount of any saving that can be 
  3.33  made over previous spending plans through a reduction in prices 
  3.34  or other cause. 
  3.35     Sec. 3.  [INITIAL EXPENDITURE PLAN.] 
  3.36     By February 15, 1996, the governor shall submit to the 
  4.1   legislature recommended expenditure targets for the 1996-1997 
  4.2   fiscal biennium and the 1998-1999 fiscal biennium, in accordance 
  4.3   with the provisions of section 1.  The legislature shall by 
  4.4   concurrent resolution adopt or amend the recommended expenditure 
  4.5   targets prior to passing any bill appropriating state funds in 
  4.6   the 1996 legislative session. 
  4.7      Sec. 4.  [EFFECTIVE DATE.] 
  4.8      This act is effective the day after final enactment.