as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to state government finance; requiring the 1.3 legislative commission on planning and fiscal policy 1.4 to develop principles and standards relating to 1.5 forecasting and budgeting. 1.6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.7 Section 1. [BUDGET PRINCIPLES; BUDGET REVIEW.] 1.8 Subdivision 1. [PRINCIPLES.] The legislative commission on 1.9 planning and fiscal policy shall establish principles and 1.10 standards related to budgeting and forecasting that simplify the 1.11 process, minimize the number of state funds and special 1.12 accounts, and are consistent with generally accepted accounting 1.13 principles. The principles must define when it is appropriate 1.14 to create special or dedicated funds and accounts, when it is 1.15 appropriate to create open appropriations from the general fund 1.16 and open appropriations of dedicated receipts, and the 1.17 appropriate level of budgetary reserves. 1.18 Subd. 2. [REVIEW OF PAST BUDGET ACTIONS.] With the 1.19 assistance of the commissioner of finance and staff of the house 1.20 and senate, the commission shall: 1.21 (1) review the biennial budget instructions issued by the 1.22 commissioner of finance for the 2000-2001 biennial budget, 1.23 specifically instructions on how to establish the budget base, 1.24 the inflation factors used, how to calculate caseload 1.25 adjustments, and related program requirements; 2.1 (2) review all statutory open and standing appropriations 2.2 and identify any that are inconsistent with the commission's 2.3 principles; 2.4 (3) review all reserve accounts and the level of reserves 2.5 and identify any that are inconsistent with the commission's 2.6 principles; and 2.7 (4) review other related issues as deemed appropriate by 2.8 the commission. 2.9 Subd. 3. [PROCESS TO REVIEW FUTURE BUDGET ACTIONS.] The 2.10 commission, in consultation with the commissioner of finance, 2.11 shall develop and recommend to the legislature a process whereby 2.12 a bill that affects the budget may be reviewed to determine 2.13 whether the appropriations and accounts it creates are 2.14 consistent with the principles adopted by the commission. The 2.15 commission shall consider how this review should be coordinated 2.16 or integrated with the process for creating fiscal notes and 2.17 whether the review should be done by staff of the executive 2.18 branch or by staff of the legislative branch. 2.19 Subd. 4. [REPORT.] The commission shall report the 2.20 principles and standards it has established, the results of its 2.21 review of past budget actions, and its recommended process for 2.22 reviewing future budget actions to the legislature and the 2.23 governor by December 1, 1999. 2.24 Sec. 2. [EFFECTIVE DATE.] 2.25 This act is effective the day following final enactment.