Minnesota Legislature
HF 88
as introduced - 89th Legislature (2015 - 2016) Posted on 01/15/2015 04:57pm
Bill Text Versions
| Engrossments | ||
|---|---|---|
| Introduction | Posted on 01/12/2015 |
Current Version - as introduced
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A bill for an act
relating to state government; providing for a more open and transparent budgeting
process; establishing a budget committee; requiring reporting of budget forecasts
and documents; amending Minnesota Statutes 2014, sections 16A.10; 16A.103;
proposing coding for new law in Minnesota Statutes, chapter 16A.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
new text begin
[16A.096] BUDGET COMMITTEE.
new text end
new text begin Subdivision 1. new text end
new text begin Committee established. new text end
new text begin
A budget committee is established to
forecast revenue and expenditures for all obligations imposed by law and those projected
to occur from outside variables. The forecast of revenues and expenditures shall be used
to create the state budget for each biennium.
new text end
new text begin Subd. 2. new text end
new text begin Committee members. new text end
new text begin
(a) The budget committee shall consist of the
following members:
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new text begin
(1) the commissioner of revenue or the commissioner's designee;
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(2) the commissioner of management and budget or the commissioner's designee;
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new text begin
(3) two members of the house of representatives, of which one member shall be
appointed by the speaker of the house and one member shall be appointed by the minority
leader of the house of representatives; and
new text end
new text begin
(4) two members of the senate, of which one member shall be appointed by the
majority leader of the senate and one member shall be appointed by the minority leader
of the senate.
new text end
new text begin
(b) The appointed legislative members serve at the pleasure of the appointing
authority and shall continue to serve until their successors are appointed.
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new text begin
(c) The meetings of the committee shall be convened and chaired by the
commissioner of revenue.
new text end
new text begin Subd. 3. new text end
new text begin Committee duties. new text end
new text begin
The budget committee shall hold public hearings with
state agencies to review their budget requests. All documents that are requested and
reviewed by the committee and the committee's final report must be published online at
the Web sites for the legislature, the Department of Revenue, and the Office of Minnesota
Management and Budget for public review. The budget committee shall prepare a budget
forecast and an itemized report that outlines the appropriations that appear to be necessary
to carry on state government in the succeeding budget period. The report must show the
recommended operating and construction budget for each state agency, commission, and
council separately.
new text end
Sec. 2.
Minnesota Statutes 2014, section 16A.10, is amended to read:
16A.10 BUDGET PREPARATION.
Subdivision 1.
Budget format.
In each even-numbered calendar year the
commissioner shall prepare budget forms and instructions for all agencies, including
guidelines for reporting agency performance measures, subject to the approval of the
governor. The commissioner shall request and receive advisory recommendations from
new text begin the budget committee and new text end the chairs of the senate Finance Committee and house of
representatives Ways and Means Committee before adopting a format for the biennial
budget document. By June 15, the commissioner shall send the proposed budget forms to
the appropriations and finance committeesnew text begin and the budget committeenew text end . The committees
have until July 15 to give the commissioner their advisory recommendations on possible
improvements. To facilitate this consultation, the commissioner shall establish a working
group consisting of executive branch staff and designees of the chairs of the senate
Finance and house of representatives Ways and Means Committeesnew text begin and the budget
committeenew text end . The commissioner must involve this group in all stages of development of
budget forms and instructions. The budget format must show actual expenditures and
receipts for the most recent fiscal year, estimated expenditures and receipts for the current
fiscal year, and estimates for each fiscal year of the next biennium. Estimated expenditures
must be classified by funds and character of expenditures and subclassified by programs
and activities. Agency revenue estimates must have supporting documentation to show
how the estimates were made and what factors were used. Receipts must be classified
by funds, programs, and activities. Expenditure and revenue estimates must be based on
the law in existence at the time the estimates are prepared.
Subd. 1a.
Purpose of performance data.
Performance data shall be presented in
the budget proposal to:
(1) provide information so that the legislature can determine the extent to which state
programs are successful;
(2) encourage agencies to develop clear goals and objectives for their programs; and
(3) strengthen accountability to Minnesotans by providing a record of state
government's performance in providing effective and efficient services.
Subd. 1b.
Performance data format.
Agencies shall present performance data
that measures the performance of programs in meeting program goals and objectives.
Measures reported may include indicators of outputs, efficiency, outcomes, and other
measures relevant to understanding each program. Agencies shall present as much
historical information as needed to understand major trends and shall set targets for future
performance issues where feasible and appropriate. The information shall appropriately
highlight agency performance issues that would assist new text begin the budget committee and
new text end legislative review and decision making.
Subd. 1c.
Performance measures for change items.
For each change item in the
budget proposal requesting new or increased funding, the budget document must present
proposed performance measures that can be used to determine if the new or increased
funding is accomplishing its goals. To the extent possible, each budget change item must
identify relevant statewide goals and indicators related to the proposed initiative.
Subd. 2.
By October 15 and November 30.
By October 15 of each even-numbered
year, an agency must file the following with the deleted text begin commissionerdeleted text end new text begin budget committeenew text end :
(1) budget estimates for the most recent and current fiscal years;
(2) its upcoming biennial budget estimates;
(3) a comprehensive and integrated statement of agency missions and outcome
and performance measures; and
(4) a concise explanation of any planned changes in the level of services or new
activities.
The commissioner shall prepare and file the budget estimates for an agency failing
to file them. By November 30, the commissioner shall send the final budget format,
agency budget estimates for the next biennium, and copies of the filed material to the
new text begin budget committee, and the new text end Ways and Means and Finance Committees, except that the
commissioner shall not be required to transmit information that identifies executive
branch budget decision items.
Subd. 3.
Duties to governor-elect.
Immediately after the election of a new
governor, the commissioner shall report the budget estimates and make available to the
governor-elect all department information, staff, and facilities relating to the budget.
Sec. 3.
Minnesota Statutes 2014, section 16A.103, is amended to read:
16A.103 FORECASTS OF REVENUE AND EXPENDITURES.
Subdivision 1.
State revenue and expenditures.
In February and November each
year, the deleted text begin commissionerdeleted text end new text begin budget committeenew text end shall prepare a forecast of state revenue and
expenditures. The November forecast must be delivered to the legislature and governor no
later than the end of the first week of December. The February forecast must be delivered
to the legislature and governor by the end of February. Forecasts must be delivered to the
legislature and governor on the same day. If requested by the Legislative Commission
on Planning and Fiscal Policy, delivery to the legislature must include a presentation
to the commission.
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 variables outside the control of the legislature.
Expenditure estimates must not include an allowance for inflation.
Subd. 1b.
Forecast variable.
In determining the 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 deleted text begin commissionerdeleted text end new text begin budget committeenew text end must consult with
the chairs and lead minority members of the senate State Government Finance Committee
and the house of representatives 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 deleted text begin commissionerdeleted text end new text begin budget committeenew text end
must inform the chairs and lead minority members of the senate State Government
Finance Committee and the house of representatives Ways and Means Committee, and
legislative fiscal staff of any changes in these variables from the previous forecast.
Subd. 1c.
Expenditure data.
State agencies must submit any revisions in
expenditure data the deleted text begin commissionerdeleted text end new text begin budget committeenew text end determines necessary for the
forecast to the deleted text begin commissionerdeleted text end new text begin budget committeenew text end at least four weeks prior to the release of
the forecast. The information submitted by state agencies and any modifications to that
information made by the deleted text begin commissionerdeleted text end new text begin budget committeenew text end must be made available to
legislative fiscal staff no later than three weeks prior to the release of the forecast.
Subd. 1d.
Revenue data.
On a monthly basis, the commissioner must provide new text begin the
budget committee and new text end legislative fiscal staff with an update of the previous month's state
revenues no later than 12 days after the end of that month.
Subd. 1e.
Economic information.
The commissioner must review economic
information including economic forecasts with new text begin the budget committee and new text end legislative fiscal
staff no later than two weeks before the forecast is released. The commissioner must
invite new text begin the budget committee and new text end the chairs and lead minority members of the senate
Finance Committee and the house of representatives Ways and Means Committee, and
legislative fiscal staff to attend any meetings held with outside economic advisors. The
commissioner must provide new text begin the budget committee and new text end legislative fiscal staff with monthly
economic forecast information received from outside sources.
Subd. 1f.
Personal income.
In addition, the deleted text begin commissionerdeleted text end new text begin budget committeenew text end shall
forecast Minnesota personal income for each of the years covered by the forecast and
include these estimates in the forecast documents.
Subd. 1g.
Period to be forecast.
A forecast prepared during the first fiscal year of a
biennium must cover that biennium and the next biennium. A forecast prepared during the
second fiscal year of a biennium must cover that biennium and the next two bienniums.
Subd. 2.
Local revenue.
In February and November of each year, the commissioner
of revenue shall prepare and deliver to the new text begin budget committee, the new text end governornew text begin ,new text end and the
legislature forecasts of revenue to be received by school districts as a group, counties as a
group, and the group of cities and towns that have a population of more than 2,500. The
forecasts must assume the continuation of current laws, projections of valuation changes
in real property, and reasonable estimates of projected growth in the national and state
economies and affected populations. Revenue must be estimated for property taxes, state
and federal aids, local sales taxes, if any, and a single projection for all other revenue for
each group of affected local governmental units.