SF 129

as introduced - 87th Legislature (2011 - 2012) Posted on 02/23/2012 08:24am

A bill for an act
relating to the state budget; limiting general fund expenditures in the 2012-2013
biennium to forecasted revenues; specifying the use of any forecasted increases
in revenues above the level of revenues forecasted for the 2010-2011 biennium.

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

Section 1. new text begin LIVE WITHIN OUR MEANS BUDGET.
new text end

new text begin Notwithstanding any law to the contrary, a budget proposed by the governor under
Minnesota Statutes, section 16A.11, and any budget enacted for the biennium ending
June 30, 2013, must limit general fund expenditures to the amount of general fund
revenue projected in the November 2010 forecast for that biennium. Sixty percent of the
forecasted growth in general fund revenues for the biennium ending June 30, 2013, over
the forecasted revenues for the biennium ending June 30, 2011, may be used for general
fund expenditures. Any distribution of the remaining 40 percent of the forecasted growth
in revenues must be limited to the following amounts and purposes:
new text end

new text begin (1) ten percent may be used to increase the Angel Investment Credit under Minnesota
Statutes, sections 116J.8737 and 290.0692;
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new text begin (2) 45 percent may be used to reduce the corporate tax rate under Minnesota
Statutes, section 290.06, subdivision 1; and
new text end

new text begin (3) 45 percent may be used to allow a subtraction for a percentage of the net income
derived from the conduct of an active business operated as an S corporation, partnership,
or limited liability company taxed on a pass-through basis.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This act is effective the day following final enactment.
new text end