SF 65

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 02/17/2017 08:30am

A bill for an act
relating to state government; providing for zero-based budgeting; amending
Minnesota Statutes 2016, section 16A.10, subdivision 2; proposing coding for new
law in Minnesota Statutes, chapter 16A.

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

Section 1.

Minnesota Statutes 2016, section 16A.10, subdivision 2, is amended to read:

Subd. 2.

By October 15 and November 30.

By October 15 of each even-numbered
year, an agency must file the following with the commissioner:

(1) budget estimates for the most recent and current fiscal years;

(2) its upcoming biennial budget estimates a proposed detailed operating budget prepared
according to zero-based budgeting as required under section 16A.107;

(3) a comprehensive and integrated statement of agency missions and outcome and
performance measures; and

(4) a concise explanation of any planned changes in the level of services or new activities.

The commissioner shall prepare and file the budget estimates for an agency failing to
file them. By November 30, the commissioner shall send the final budget format, agency
budget estimates for the next biennium, and copies of the filed material to the Ways and
Means and Finance Committees, except that the commissioner shall not be required to
transmit information that identifies executive branch budget decision items.

Sec. 2.

[16A.107] ZERO-BASED BUDGETING.

Subdivision 1.

Zero-based budget.

(a) By October 15 and November 30 in each
even-numbered year, each state department, institution, and agency of the executive branch
must submit to the commissioner a proposed detailed operating budget using zero-based
budgeting, including a zero-based budgeting plan. The commissioner of management and
budget shall provide technical assistance to enable each department, institution, or agency
to complete its proposed detailed operating budget as specified by the commissioner of
management and budget.

(b) The commissioner of management and budget shall adopt policies and procedures
for each department, institution, and agency to implement the provisions of this section.

(c) As used in this section, "zero-based budgeting" means a method of determining the
budget of a department, institution, or agency for which the budget of the department,
institution, or agency for the biennium immediately preceding the biennium covered by the
budget is:

(1) deemed to have been zero; and

(2) each proposed expenditure for the biennium covered by the budget must be justified
as if it were a new expenditure.

Subd. 2.

Zero-based budget plan.

A "zero-based budget plan" includes the following
information:

(1) a description of activities that comprise the agency, and a justification for the existence
of each activity by reference to statute or other legal authority;

(2) for each activity, a quantitative estimate of any adverse impacts that could reasonably
be expected should the activity be discontinued, together with a full description of the
methods by which the adverse impact is estimated;

(3) a list of quantifiable program outcomes that measure the efficiency and effectiveness
of each program;

(4) for each activity, an itemized account of expenditures that would be required to
maintain the activity at the minimum level of service required by the statutory authority,
together with a concise statement of the quantity and quality of services required at that
minimum level;

(5) for each activity, an itemized account of expenditures required to maintain the quantity
and quality of services being provided and the number of personnel required to accomplish
each program; and

(6) a ranking of all activities that shows the relative contribution of each activity to the
overall goals and purposes of the agency at current service levels.

EFFECTIVE DATE.

This section is effective July 1, 2017, and must be implemented
for the biennium beginning in fiscal year 2020.