Minnesota Legislature
HF 1236
as introduced - 89th Legislature (2015 - 2016) Posted on 02/25/2015 01:00pm
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A bill for an act
relating to budget reserve; finance; conforming buyback level for the budget
reserve with the most recent forecast; changing date of the revenue reserve
report; changing the members who receive the report; amending Minnesota
Statutes 2014, section 16A.152, subdivisions 2, 8.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2014, section 16A.152, subdivision 2, is amended to read:
Subd. 2.
Additional revenues; priority.
(a) If on the basis of a forecast of general
fund revenues and expenditures, the commissioner of management and budget determines
that there will be a positive unrestricted budgetary general fund balance at the close of
the biennium, the commissioner of management and budget must allocate money to the
following accounts and purposes in priority order:
(1) the cash flow account established in subdivision 1 until that account reaches
$350,000,000;
(2) the budget reserve account established in subdivision 1a until that account
reaches deleted text begin $810,992,000deleted text end new text begin $994,339,000new text end ;
(3) the amount necessary to increase the aid payment schedule for school district
aids and credits payments in section 127A.45 to not more than 90 percent rounded to the
nearest tenth of a percent without exceeding the amount available and with any remaining
funds deposited in the budget reserve; and
(4) the amount necessary to restore all or a portion of the net aid reductions under
section 127A.441 and to reduce the property tax revenue recognition shift under section
123B.75, subdivision 5, by the same amount.
(b) The amounts necessary to meet the requirements of this section are appropriated
from the general fund within two weeks after the forecast is released or, in the case of
transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations
schedules otherwise established in statute.
(c) The commissioner of management and budget shall certify the total dollar
amount of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of
education. The commissioner of education shall increase the aid payment percentage and
reduce the property tax shift percentage by these amounts and apply those reductions to
the current fiscal year and thereafter.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2015.
new text end
Sec. 2.
Minnesota Statutes 2014, section 16A.152, subdivision 8, is amended to read:
Subd. 8.
Report on budget reserve percentage.
(a) The commissioner of
management and budget shall develop and annually review a methodology for evaluating
the adequacy of the budget reserve based on the volatility of Minnesota's general fund
tax structure. The review must take into consideration relevant statistical and economic
literature. After completing the review, the commissioner may revise the methodology
if necessary. The commissioner must use the methodology to annually estimate the
percentage of the current biennium's general fund nondedicated revenues recommended
as a budget reserve.
(b) By deleted text begin January 15deleted text end new text begin August 31new text end of each year, the commissioner shall report the
percentage of the current biennium's general fund nondedicated revenue that is
recommended as a budget reserve to the chairs and ranking minority members of the
deleted text begin legislative committees with jurisdiction over the Department of Management and Budgetdeleted text end new text begin
senate Finance Committee, the house of representatives Ways and Means Committee, and
the senate and house of representatives committees on taxesnew text end . The report must also specify:
(1) whether the commissioner revised the recommendation as a result of significant
changes in the mix of general fund taxes or the base of one or more general fund taxes;
(2) whether the commissioner revised the recommendation as a result of a revision
to the methodology; and
(3) any additional appropriate information.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2015.
new text end