HF 10

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to public finance; providing for inflation in
the revenue forecast; amending Minnesota Statutes
2004, section 16A.103, subdivisions 1a, 1b.

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

Section 1.

Minnesota Statutes 2004, section 16A.103,
subdivision 1a, is amended to read:

Subd. 1a.

Forecast parameters.

The forecast must assume
the continuation of current laws and reasonable estimates of
projected growth in the national and state economies and
affected populations. Revenue must be estimated for all sources
provided for in current law. Expenditures must be estimated for
all obligations imposed by law and those projected to occur as a
result of new text begin inflation and other new text end variables outside the control of
the legislature. deleted text begin Expenditure estimates must not include an
allowance for inflation.
deleted text end

Sec. 2.

Minnesota Statutes 2004, section 16A.103,
subdivision 1b, is amended to read:

Subd. 1b.

Forecast variable.

In determining the new text begin rate of
inflation, the new text end amount of state bonding as it affects debt
service, the calculation of investment income, and the other
variables to be included in the expenditure part of the
forecast, the commissioner must consult with the chairs and lead
minority members of the senate State Government Finance
Committee and the house Ways and Means Committee, and
legislative fiscal staff. This consultation must occur at least
three weeks before the forecast is to be released. No later
than two weeks prior to the release of the forecast, the
commissioner must inform the chairs and lead minority members of
the senate State Government Finance Committee and the house Ways
and Means Committee, and legislative fiscal staff of any changes
in these variables from the previous forecast. new text begin The rate of
inflation determined under this subdivision must be applied
consistently in all categories of obligations included in the
forecast.
new text end