1.1 	A bill for an act
1.2 	relating to finance; improving access to budget information by members of the 
1.3 	legislature; requiring a forecast of cash flow for the general fund; providing 
1.4 	deadline for modifying budget after February forecast; specifying format for 
1.5 	detailed budget estimates of expenditures; imposing deadline for notice of 
1.6 	deficiency requests; providing for an increase in the budget reserve; eliminating 
1.7 	obsolete requirements;amending Minnesota Statutes 2006, sections 3.885, 
1.8 	subdivisions 4, 5, by adding a subdivision; 13.605, subdivision 1; 16A.10, 
1.9 	subdivision 1, by adding a subdivision; 16A.11, subdivisions 1, 3, by adding a 
1.10 	subdivision; Minnesota Statutes 2007 Supplement, section 16A.152, subdivision 
1.11 	2; proposing coding for new law in Minnesota Statutes, chapter 16A; repealing 
1.12 	Minnesota Statutes 2006, sections 16A.152, subdivision 1b; 16A.1522, 
1.13 	subdivision 4.
1.14 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.15 	Section 1. Minnesota Statutes 2006, section 3.885, is amended by adding a subdivision 
1.16 	to read:
1.17 		Subd. 3a.Findings. The legislature finds that direct legislative access to the 
1.18 	programmatic and human resource capacity of state agencies is necessary for effective 
1.19 	planning and fiscal policy. In addition to the governor's budget recommendations and 
1.20 	other required reports, direct access includes explicit responses to requests for agency 
1.21 	budget recommendations and state agency assistance with the development of legislative 
1.22 	budget proposals.

1.23 	Sec. 2. Minnesota Statutes 2006, section 3.885, subdivision 4, is amended to read:
1.24 		Subd. 4.Agencies to cooperate. All departments, agencies, and education 
1.25 	institutions of the executive and judicial branches must comply with a request of the 
1.26 	commission for information, data, estimates, and statistics on the funding revenue 
1.27 	operations, and other affairs of the department, agency, or education institution. The 
2.1 	commissioner of finance and the commissioner of revenue shall provide the commission 
2.2 	with full and free access to information, data, estimates, and statistics in the possession of 
2.3 	the Finance and Revenue Departments on the state budget, revenue, expenditures, and 
2.4 	tax expenditures. The agency response to a commission request must be in the format 
2.5 	specified by the commission in the request, if any.

2.6 	Sec. 3. Minnesota Statutes 2006, section 3.885, subdivision 5, is amended to read:
2.7 		Subd. 5.Duties. (a) The commission shall:
2.8 	(1) provide the legislature with research and analysis of current and projected state 
2.9 	revenue, state expenditures, and state tax expenditures;
2.10 	(2) provide the legislature with a report analyzing the governor's proposed levels of 
2.11 	revenue and expenditures for biennial budgets submitted under section 16A.11 as well as 
2.12 	other supplemental budget submittals to the legislature by the governor; 
2.13 	(3) provide an analysis of the impact of the governor's proposed revenue and 
2.14 	expenditure plans for the next biennium;
2.15 	(4) conduct research on matters of economic and fiscal policy and report to the 
2.16 	legislature on the result of the research;
2.17 	(5) provide economic reports and studies on the state of the state's economy, 
2.18 	including trends and forecasts for consideration by the legislature;
2.19 	(6) conduct budget and tax studies and provide general fiscal and budgetary 
2.20 	information;
2.21 	(7) review and make recommendations on the operation of state programs in order 
2.22 	to appraise the implementation of state laws regarding the expenditure of funds and to 
2.23 	recommend means of improving their efficiency;
2.24 	(8) recommend to the legislature changes in the mix of revenue sources for programs, 
2.25 	in the percentage of state expenditures devoted to major programs, and in the role of the 
2.26 	legislature in overseeing state government expenditures and revenue projections;
2.27 	(9) make a continuing study and investigation of the building needs of the 
2.28 	government of the state of Minnesota, including, but not limited to the following: the 
2.29 	current and future requirements of new buildings, the maintenance of existing buildings, 
2.30 	rehabilitating and remodeling of old buildings, the planning for administrative offices, and 
2.31 	the exploring of methods of financing building and related costs; and
2.32 	(10) develop and make requests to state agencies for budget information and 
2.33 	recommendations; and
2.34 	(11) conduct a continuing study of state-local finance, analyzing and making 
2.35 	recommendations to the legislature on issues including levels of state support for 
3.1 	political subdivisions, basic levels of local need, balances of local revenues and options, 
3.2 	relationship of local taxes to individuals' ability to pay, and financial reporting by political 
3.3 	subdivisions. In conducting this study, the commission shall consult with the governor, 
3.4 	the staff of executive branch agencies, and the governor's Advisory Commission on 
3.5 	State-Local Relations.
3.6 	(b) In performing its duties under paragraph (a), the commission shall consider, 
3.7 	among other things:
3.8 	(1) the relative dependence on state tax revenues, federal funds, and user fees 
3.9 	to support state-funded programs, and whether the existing mix of revenue sources is 
3.10 	appropriate, given the purposes of the programs;
3.11 	(2) the relative percentages of state expenditures that are devoted to major programs 
3.12 	such as education, assistance to local government, aid to individuals, state agencies and 
3.13 	institutions, and debt service; and
3.14 	(3) the role of the legislature in overseeing state government expenditures, including 
3.15 	legislative appropriation of money from the general fund, legislative appropriation of 
3.16 	money from funds other than the general fund, state agency receipt of money into 
3.17 	revolving and other dedicated funds and expenditure of money from these funds, and 
3.18 	state agency expenditure of federal funds.
3.19 	(c) The commission's recommendations must consider the long-term needs of the 
3.20 	state. The recommendations must not duplicate work done by standing committees of 
3.21 	the senate and house of representatives.
3.22 	The commission shall report to the legislature on its activities and recommendations 
3.23 	by January 15 of each odd-numbered year.
3.24 	The commission shall provide the public with printed and electronic copies of 
3.25 	reports and information for the legislature. Copies must be provided at the actual cost 
3.26 	of furnishing each copy.

3.27 	Sec. 4. Minnesota Statutes 2006, section 13.605, subdivision 1, is amended to read:
3.28 		Subdivision 1.Legislative and budget proposal data. (a) Definition. As used 
3.29 	in this section, "state administration" means the governor's office, the Department of 
3.30 	Finance, and any state agency that is under the direct control of the governor. 
3.31 	(b)  Classifications.Except for requests from the legislature, legislative and budget 
3.32 	proposals, including preliminary drafts, that are created, collected, or maintained by the 
3.33 	state administration are protected nonpublic data. After until the budget is presented to the 
3.34 	legislature by the state administration, supporting data, including agency requests, and are 
3.35 	public data after the budget is presented to the legislature. Supporting data do not include 
4.1 	preliminary drafts. The state administration may disclose any of the data within the state 
4.2 	administration and to the public at any time if disclosure would aid the administration in 
4.3 	considering and preparing its proposals. 

4.4 	Sec. 5. Minnesota Statutes 2006, section 16A.10, subdivision 1, is amended to read:
4.5 		Subdivision 1.Budget format. In each even-numbered calendar year the 
4.6 	commissioner shall prepare budget forms and instructions for all agencies, including 
4.7 	guidelines for reporting agency performance measures, subject to the approval of the 
4.8 	governor. The commissioner shall request and receive advisory recommendations from 
4.9 	the chairs of the senate Finance Committee and house of representatives Ways and 
4.10 	Means Committee before adopting a format for the biennial budget document. By June 
4.11 	15, the commissioner shall send the proposed budget forms to the appropriations and 
4.12 	finance committees. The committees have until July 15 to give the commissioner their 
4.13 	advisory recommendations on possible improvements. To facilitate this consultation, the 
4.14 	commissioner shall establish a working group consisting of executive branch staff and 
4.15 	designees of the chairs of the senate Finance and house of representatives Ways and Means 
4.16 	Committees. The commissioner must involve this group in all stages of development of 
4.17 	budget forms and instructions. The budget format must show actual expenditures and 
4.18 	receipts for the three most recent fiscal year years, estimated expenditures and receipts for 
4.19 	the current fiscal year, and estimates for each fiscal year of the next biennium. Estimated 
4.20 	expenditures must be classified by funds and character of expenditures and may be 
4.21 	subclassified by programs and activities. Agency revenue estimates must show how the 
4.22 	estimates were made and what factors were used. Receipts must be classified by funds, 
4.23 	programs, and activities. Expenditure and revenue estimates must be based on the law in 
4.24 	existence at the time the estimates are prepared.

4.25 	Sec. 6. Minnesota Statutes 2006, section 16A.10, is amended by adding a subdivision 
4.26 	to read:
4.27 		Subd. 2a.Agency budget requests. Whenever a general solicitation for budget 
4.28 	recommendations is communicated to state agencies by the state administration, a copy of 
4.29 	that communication and the agency responses to that request must also be provided to 
4.30 	the chair of the senate Finance Committee and the chair of the house Ways and Means 
4.31 	Committee. All agency budget requests, whether or not included in the governor's budget 
4.32 	recommendations, must be documented in a form developed by the commissioner under 
4.33 	subdivision 1 and submitted as part of the detailed budget estimates under section 16A.11, 
4.34 	subdivision 3.

5.1 	Sec. 7. [16A.107] CASH FLOW FORECAST.
5.2 	Within three weeks after the November forecast of state revenue and expenditures 
5.3 	under section 16A.103, the commissioner shall deliver to the governor and the legislature 
5.4 	a forecast of cash flow for the general fund, showing the expected maximum and minimum 
5.5 	cash balance in the fund for each month of the forecast period.

5.6 	Sec. 8. Minnesota Statutes 2006, section 16A.11, subdivision 1, is amended to read:
5.7 		Subdivision 1.When. The governor shall submit a three-part budget to the 
5.8 	legislature. Parts one and two, the budget message and detailed operating budget, must 
5.9 	be submitted by the fourth Tuesday in January in each odd-numbered year. However, 
5.10 	in a year following the election of a governor who had not been governor the previous 
5.11 	year, parts one and two must be submitted by the third Tuesday in February. Part three, 
5.12 	the detailed recommendations as to capital expenditure, must be submitted as follows: 
5.13 	agency capital budget requests by July  15 of each odd-numbered year, and governor's 
5.14 	recommendations by January 15 of each even-numbered year. Detailed recommendations 
5.15 	as to information technology expenditure must be submitted as part of the detailed 
5.16 	operating budget. Information technology recommendations must include projects to be 
5.17 	funded during the next biennium and planning estimates for an additional two bienniums. 
5.18 	Information technology recommendations must specify purposes of the funding such as 
5.19 	infrastructure, hardware, software, or training. Any modifications to the operating budget 
5.20 	made necessary by the forecast in February of an odd-numbered year must be submitted 
5.21 	within two weeks after the forecast.

5.22 	Sec. 9. Minnesota Statutes 2006, section 16A.11, subdivision 3, is amended to read:
5.23 		Subd. 3.Part two: detailed budget. (a) Part two of the budget, the detailed budget 
5.24 	estimates both of expenditures and revenues, must contain any statements on the financial 
5.25 	plan which the governor believes desirable or which may be required by the legislature. 
5.26 	The detailed estimates shall include the governor's budget arranged in tabular form.
5.27 	(b) Tables listing expenditures for the next biennium must show the appropriation 
5.28 	base for each year in column form broken down by appropriation allotments at budget 
5.29 	activity level relative to proposed appropriation and appropriation allotment levels by 
5.30 	budget activity. The appropriation base is the amount appropriated for the second year 
5.31 	of the current biennium. The tables must separately show any adjustments to the base 
5.32 	required by current law or policies of the commissioner of finance. For forecasted 
5.33 	programs, the tables must also show the amount of the forecast adjustments, based on the 
5.34 	most recent forecast prepared by the commissioner of finance under section 16A.103. For 
6.1 	all programs, the tables must show the agency requests, the amount of appropriation 
6.2 	changes recommended by the governor, after adjustments to the base and forecast 
6.3 	adjustments, and the total recommendation of the governor for that year. 
6.4 	(c) The detailed estimates must include a separate line listing the total cost of 
6.5 	professional and technical service contracts for the prior biennium and the projected costs 
6.6 	of those contracts for the current and upcoming biennium. They must also include a 
6.7 	summary of the personnel employed by the agency, reflected as full-time equivalent 
6.8 	positions.
6.9 	(d) The detailed estimates for internal service funds must include the number of 
6.10 	full-time equivalents by program; detail on any loans from the general fund, including 
6.11 	dollar amounts by program; proposed investments in technology or equipment of $100,000 
6.12 	or more; an explanation of any operating losses or increases in retained earnings; and a 
6.13 	history of the rates that have been charged, with an explanation of any rate changes and 
6.14 	the impact of the rate changes on affected agencies.
6.15 	(e) The detailed estimates must provide a spending trend analysis by program 
6.16 	showing at least the three most recent years of actual spending, or as many years of actual 
6.17 	spending as are available for new programs.

6.18 	Sec. 10. Minnesota Statutes 2006, section 16A.11, is amended by adding a subdivision 
6.19 	to read:
6.20 		Subd. 8.Deficiency requests. By January 15 of each year, the commissioner of 
6.21 	finance must notify the chair of the senate Finance Committee and the chair of the house 
6.22 	Ways and Means Committee of any state agency requests to eliminate budget shortfalls 
6.23 	likely to occur before the end of the legislative session.

6.24 	Sec. 11. Minnesota Statutes 2007 Supplement, section 16A.152, subdivision 2, is 
6.25 	amended to read:
6.26 		Subd. 2.Additional revenues; priority. (a) If on the basis of a forecast of general 
6.27 	fund revenues and expenditures, the commissioner of finance determines that there will be 
6.28 	a positive unrestricted budgetary general fund balance at the close of the biennium, the 
6.29 	commissioner of finance must allocate money to the following accounts and purposes in 
6.30 	priority order:
6.31 	(1) the cash flow account established in subdivision 1 until that account reaches 
6.32 	$350,000,000;
7.1 	(2) the budget reserve account established in subdivision 1a until that account 
7.2 	reaches $653,000,000 an amount equal to five percent of biennial general fund 
7.3 	expenditures and transfers for the current biennium;
7.4 	(3) the amount necessary to increase the aid payment schedule for school district 
7.5 	aids and credits payments in section 127A.45 to not more than 90 percent rounded to the 
7.6 	nearest tenth of a percent without exceeding the amount available and with any remaining 
7.7 	funds deposited in the budget reserve; and
7.8 	(4) the amount necessary to restore all or a portion of the net aid reductions under 
7.9 	section 127A.441 and to reduce the property tax revenue recognition shift under section 
7.10 	123B.75, subdivision 5, paragraph (b), and Laws 2003, First Special Session chapter 9, 
7.11 	article 5, section 34, as amended by Laws 2003, First Special Session chapter 23, section 
7.12 	20, by the same amount.
7.13 	(b) The amounts necessary to meet the requirements of this section are appropriated 
7.14 	from the general fund within two weeks after the forecast is released or, in the case of 
7.15 	transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations 
7.16 	schedules otherwise established in statute.
7.17 	(c) To the extent that a positive unrestricted budgetary general fund balance is 
7.18 	projected, appropriations under this section must be made before section 16A.1522 takes 
7.19 	effect.
7.20 	(d) The commissioner of finance shall certify the total dollar amount of the 
7.21 	reductions under paragraph (a), clauses (3) and (4), to the commissioner of education. The 
7.22 	commissioner of education shall increase the aid payment percentage and reduce the 
7.23 	property tax shift percentage by these amounts and apply those reductions to the current 
7.24 	fiscal year and thereafter.

7.25 	Sec. 12.  REPEALER.
 7.26 	Minnesota Statutes 2006, sections 16A.152, subdivision 1b; and 16A.1522, 
7.27 	subdivision 4, are repealed.