HF 3167

as introduced - 88th Legislature (2013 - 2014) Posted on 03/17/2014 02:23pm

A bill for an act
relating to state financial management; modifying priorities for additional
revenues; providing for contingent transfers to the budget reserve; amending
Minnesota Statutes 2012, section 16A.152, subdivisions 1a, 2, by adding a
subdivision; repealing Minnesota Statutes 2012, section 16A.152, subdivision 1b.

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

Section 1.

Minnesota Statutes 2012, section 16A.152, subdivision 1a, is amended to
read:

Subd. 1a.

Budget reserve.

A budget reserve account is created in the general fund
in the state treasury. new text begin The target amount for the budget reserve account is five percent of
general fund expenditures and transfers for the current biennium. The commissioner
shall determine the target amount as part of each forecast of general fund revenues and
expenditures under section 16A.103 and as part of the general fund balance analysis
prepared after the end of each legislative session. new text end The commissioner deleted text begin of management and
budget deleted text end shall transfer to the budget reserve account on July 1 of each odd-numbered year
any amounts specifically appropriated by law to the budget reserve.

Sec. 2.

Minnesota Statutes 2012, 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 deleted text begin of management and budget deleted text end determines
that there will be a positive unrestricted budgetary general fund balance at the close of
the biennium, the commissioner deleted text begin of management and budget deleted text end 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 $653,000,000 deleted text end new text begin $....... new 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;

(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; and

(5) to the deleted text begin state airports fund, the amount necessary to restore the amount transferred
from the state airports fund under Laws 2008, chapter 363, article 11, section 3,
subdivision 5 deleted text end new text begin budget reserve account under subdivision 1a until the account reaches the
target amount for the current biennium, but no more than ....... percent of the amount
remaining after the requirement in clause (4) is satisfied new text end .

(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 deleted text begin of management and budget deleted text end 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.

Sec. 3.

Minnesota Statutes 2012, section 16A.152, is amended by adding a subdivision
to read:

new text begin Subd. 9. new text end

new text begin Additional budget reserve transfers; extraordinary revenue. new text end

new text begin (a)
Beginning with the November 2014 economic forecast and for each subsequent economic
forecast, the commissioner of management and budget, in consultation with the
commissioner of revenue, shall estimate:
new text end

new text begin (1) the percentage of individual income tax revenues resulting from taxation of
capital gains income for each fiscal year in the current biennium;
new text end

new text begin (2) the percentage of individual income tax revenues resulting from taxation of
capital gains income in each of the preceding five fiscal years; and
new text end

new text begin (3) the average percentage of individual income revenues resulting from taxation of
capital gains income over the preceding five fiscal years.
new text end

new text begin (b) If the commissioner estimates that the percentage of individual income tax
revenues resulting from taxation of capital gains income in any fiscal year in the current
biennium exceeds the average percentage over the preceding five fiscal years, then the
commissioner must estimate the amount of excess capital gains, if any, for each fiscal year
in the current biennium. Excess capital gains equals:
new text end

new text begin (1) the percentage of individual income tax revenues resulting from taxation of
capital gains income in the fiscal year; minus
new text end

new text begin (2) the average percentage of individual income revenues resulting from taxation of
capital gains income over the preceding five fiscal years; multiplied by
new text end

new text begin (3) individual income tax revenues in the fiscal year.
new text end

new text begin If the amount of excess capital gains for a fiscal year exceeds $5,000,000, the
commissioner must transfer the excess over $5,000,000 to the budget reserve account until
it reaches the target amount determined in subdivision 1a.
new text end

new text begin (c) On or before October 31 of each fiscal year, the commissioner shall determine
the following amounts:
new text end

new text begin (1) the amount of net corporate franchise tax revenues collected in the prior fiscal
year; and
new text end

new text begin (2) 125 percent of the average annual amount of net corporate franchise tax revenues
collected over the prior ten fiscal years.
new text end

new text begin (d) If the commissioner determines that the amount under paragraph (c), clause
(1), exceeds the amount under paragraph (c), clause (2), by more than $10,000,000, the
commissioner must transfer the excess over $10,000,000 to the budget reserve account
until it reaches the target amount determined in subdivision 1a. The commissioner must
make the determinations under this paragraph immediately following the determinations
under paragraph (c) and incorporate the transfers in preparation of the succeeding
November forecast.
new text end

Sec. 4. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2012, section 16A.152, subdivision 1b, new text end new text begin is repealed.
new text end