Minnesota Legislature
HF 2866
3rd Engrossment - 86th Legislature (2009 - 2010) Posted on 05/13/2010 07:28pm
Current Version - 3rd Engrossment
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A bill for an act
relating to state government; modifying authority of the executive branch to
reduce unexpended allotments; amending Minnesota Statutes 2008, section
16A.152, subdivision 4; proposing coding for new law in Minnesota Statutes,
chapter 16A.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
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[16A.112] GENERAL FUND BALANCE ANALYSIS.
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After each legislative session that modifies general fund revenues or expenditures,
the commissioner shall prepare a fund balance analysis showing forecast general fund
revenues and expenditures for the current and next following bienniums, as modified by the
laws enacted at that session. The fund balance analysis must be prepared in consultation
with the chairs of the Senate Finance Committee and House of Representatives Finance
Committee and Ways and Means Committee and legislative staff designated by the chairs.
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Sec. 2.
Minnesota Statutes 2008, section 16A.152, subdivision 4, is amended to read:
Subd. 4.
Reduction.
(a) If the commissioner determines that probable receipts
for the general fund will be less than anticipated, and that the amount available for the
remainder of the biennium will be less than needed, the commissioner shall, with the
approval of the governor, and after consulting the Legislative deleted text begin Advisorydeleted text end Commissionnew text begin on
Planning and Fiscal Policynew text end , reduce the amount in the budget reserve account as needed to
balance expenditures with revenue.
(b) An additional deficit shall, with the approval of the governor, and after consulting
the legislative deleted text begin advisorydeleted text end commission, be made up by reducing unexpended allotments of
any prior appropriation or transfer.
new text begin (c)new text end Notwithstanding any other law to the contrary, the commissioner is empowered
to defer or suspend prior statutorily created obligations deleted text begin whichdeleted text end new text begin thatnew text end would prevent effecting
deleted text begin suchdeleted text end new text begin thenew text end reductions.new text begin In reducing allotments for statutorily created obligations, the
commissioner may reduce payments to all recipients in proportion to their payments or in
proportion to the sum of their payments plus their other revenue, but must not otherwise
modify formulas, eligibility standards, or similar statutory criteria.
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deleted text begin (c)deleted text end new text begin (d) The sum of reductions to general fund allotments during a biennium must not
exceed two percent of the total general fund appropriations for the biennium. The sum of
reductions to allotments of a single general fund appropriation must not exceed ten percent
of the appropriation, and no program may be eliminated. Reductions to allotments include
deferrals or suspensions of payments beyond the biennium.
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new text begin (e) new text end If the commissioner determines that probable receipts for any other fund,
appropriation, or item will be less than anticipated, and that the amount available for the
remainder of the term of the appropriation or for any allotment period will be less than
needed, the commissioner shall notify the agency concerned and then reduce the amount
allotted or to be allotted so as to prevent a deficit.
deleted text begin (d)deleted text end new text begin (f)new text end In reducing allotments, the commissioner may consider other sources of
revenue available to recipients of state appropriations and may apply allotment reductions
based on all sources of revenue available.
deleted text begin (e)deleted text end new text begin (g)new text end In like manner, the commissioner shall reduce allotments to an agency by the
amount of any saving that can be made over previous spending plans through a reduction
in prices or other cause.
Sec. 3. new text begin EFFECTIVE DATE.
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This act is effective the day following final enactment and applies to reductions
made on or after that date. It is not intended to affect the validity or invalidity of actions
taken before its effective date.
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