HF 150

as introduced - 87th Legislature (2011 - 2012) Posted on 01/20/2011 10:49am

A bill for an act
relating to state finance; requiring the commissioner of management and budget
to adjust for projected inflation in forecasting state expenditures; amending
Minnesota Statutes 2010, section 16A.103, subdivisions 1a, 1b.

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

Section 1.

Minnesota Statutes 2010, 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 new text begin A
general inflation estimate must not include inflation on debt service or on programs for
which a statutory growth factor is already included in the forecast.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2010, section 16A.103, subdivision 1b, is amended to read:

Subd. 1b.

Forecast variable.

In determining new text begin the rate of inflation, the application
of inflation, new text end 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 commissioner must consult with the chairs and lead minority members of the
senate deleted text begin State Government deleted text end 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 commissioner must inform the chairs and lead minority members of the
senate deleted text begin State Government deleted text end 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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end