Minnesota Legislature
HF 3170
as introduced - 88th Legislature (2013 - 2014) Posted on 03/17/2014 02:23pm
Current Version - as introduced
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A bill for an act
relating to state government; establishing a policy for the general fund budget
reserve level; increasing the budget reserve; authorizing a transfer of funds;
amending Minnesota Statutes 2012, section 16A.152, subdivisions 1b, 2, 8.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2012, section 16A.152, subdivision 1b, is amended to
read:
Subd. 1b.
Budget reserve deleted text begin increasedeleted text end new text begin levelnew text end .
deleted text begin On July 1, 2003,deleted text end new text begin (a)new text end The commissioner
of management and budget shall deleted text begin transfer $300,000,000 to the budget reserve account in
the general fund. On July 1, 2004, the commissioner of management and budget shall
transfer $296,000,000 to the budget reserve account in the general fund. The amounts
necessary for this purpose are appropriated from the general funddeleted text end new text begin calculate the budget
reserve level by multiplying the current biennium's general fund nondedicated revenues
and the most recent budget reserve percentage under subdivision 8new text end .
new text begin
(b) 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 general fund balance at the close of the biennium and that the provisions of
subdivision 2, clauses (1), (2), (3), and (4), are satisfied, the commissioner shall transfer
to the budget reserve the amount necessary to increase the budget reserve to the budget
reserve level in paragraph (a). The amount of the transfer authorized in this paragraph
shall not exceed the positive unrestricted general fund balance determined in the forecast.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for forecasts issued following final
enactment.
new text end
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 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 $653,000,000deleted text end new text begin $1,923,000,000new 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;new text begin and
new text end
(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 amountdeleted text begin ; anddeleted text end new text begin .
new text end
deleted text begin
(5) to the 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
(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 for forecasts issued following final
enactment.
new text end
Sec. 3.
Minnesota Statutes 2012, section 16A.152, subdivision 8, is amended to read:
Subd. 8.
Report on budget reserve percentage.
(a) The commissioner of
management and budget must periodically review the formula developed as part of the
Budget Trends Study Commission authorized by Laws 2007, chapter 148, article 2,
section 81, to estimate the percentage of the deleted text begin precedingdeleted text end new text begin currentnew text end biennium's general fund
deleted text begin expenditures and transfersdeleted text end new text begin nondedicated revenuesnew text end recommended as a budget reserve.
(b) The commissioner must annually review the variables and coefficients in the
formula used to model the base of the general fund taxes and the mix of taxes that
provide revenues to the general fund. If the commissioner determines that the variables
and coefficients have changed enough to result in a change in the percentage of the
deleted text begin precedingdeleted text end new text begin currentnew text end biennium's general fund deleted text begin expenditures and transfersdeleted text end new text begin nondedicated
revenuenew text end recommended as a budget reserve, the commissioner must update the variables
and coefficients in the formula to reflect the current base and mix of general fund taxes.
(c) Every ten years, the commissioner must review the methodology underlying the
formula, taking into consideration relevant economic literature from the past ten years,
and determine if the formula remains adequate as a tool for estimating the percentage of
the deleted text begin precedingdeleted text end new text begin currentnew text end biennium's general fund deleted text begin expenditures and transfersdeleted text end new text begin nondedicated
revenuesnew text end recommended as a budget reserve. If the commissioner determines that the
methodology underlying the formula is outdated, the commissioner must revise the
formula.
(d) By January 15 of each year, the commissioner must report to the chairs and
ranking minority members of the house of representatives Committee on Ways and Means
and the senate Committee on Finance, in compliance with sections 3.195 and 3.197, on the
percentage of the deleted text begin precedingdeleted text end new text begin currentnew text end biennium's general fund deleted text begin expenditures and transfers
deleted text end new text begin nondedicated revenuesnew text end recommended as a budget reserve. The report must specify:
(1) if the commissioner updated the variables and coefficients in the formula to
reflect significant changes to either the base of one or more general fund taxes or to the
mix of taxes that provide revenues to the general fund as provided in paragraph (b);
(2) if the commissioner revised the formula after determining the methodology was
outdated as provided in paragraph (c); and
(3) if the percentage of the deleted text begin precedingdeleted text end new text begin currentnew text end biennium's general fund deleted text begin expenditures
and transfersdeleted text end new text begin nondedicated revenuesnew text end recommended as a budget reserve has changed as a
result of an update of or a revision to the formula.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 4. new text begin BUDGET RESERVE INCREASE.
new text end
new text begin
On July 1, 2014, the commissioner of management and budget shall transfer
$1,262,008,000 to the budget reserve in the general fund.
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