SF 1969

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to finance; establishing the State Budget Trends Study Commission;
requiring a study; appropriating money.

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

Section 1. new text begin STATE BUDGET TRENDS STUDY COMMISSION.
new text end

new text begin (a) The State Budget Trends Study Commission is established for the purpose
of completing a study of the implications of state demographic trends for future state
budget conditions, including both expected revenue collections and spending for state
government services and local services supported by state revenues. The commission shall
consist of 15 members, including five members appointed by the governor, three members
appointed by the senate majority leader, two members appointed by the senate minority
leader, three members appointed by the speaker of the house of representatives, and two
members appointed by the minority leader of the house of representatives. Members must
be appointed by the respective appointing authority within 30 days of the effective date of
this section. The commission must meet within 30 days of its members being appointed.
new text end

new text begin (b) The commissioners of finance and revenue must provide data, analysis, and staff
support required by the commission to complete the study, including, but not limited to,
the effect of expected demographic changes over the next 25 years on state tax bases and
on existing state programs and appropriations. In preparing the study, the commission
shall consult with and use the state demographer to estimate the changing profile of the
Minnesota population by age and other factors relevant to the study. The commission may
also contract with appropriate consultants and experts as needed to complete the study.
new text end

new text begin (c) In completing the study, the commission must consider:
new text end

new text begin (1) the effect of expected demographic changes over the next 25 years on the tax
base and revenue collections for state income and sales tax, or other state taxes;
new text end

new text begin (2) estimates of tax revenue collections for the years 2012, 2017, 2022, 2027, and
2032, the sensitivity of the results for changes in estimated migration rates, labor force
participation by older individuals, and other shares of capital versus labor;
new text end

new text begin (3) the effect of demographic trends on entitlement programs and other large state
appropriations relative to current budget commitments;
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new text begin (4) relative trends in spending for state programs including trends identified in the
fast growing expenditures report completed under Minnesota Statutes, section 16A.103,
subdivision 4; and
new text end

new text begin (5) the structure of the state budget with regard to budget stability and flexibility.
new text end

new text begin (d) The commissioners of finance and revenue may make recommendations for state
tax or budget policy changes, including recommendations for changes in tax base, mix
of tax types, state and local finance relationships, entitlements, or budget structure. The
commission shall present preliminary results to the legislature by February 1, 2008, and a
final written report to the legislature by January 15, 2009, in compliance with Minnesota
Statutes, sections 3.195 and 3.197. The Budget Trends Study Commission expires on
June 30, 2009.
new text end

Sec. 2. new text begin APPROPRIATION; BUDGET TRENDS STUDY.
new text end

new text begin $250,000 in fiscal year 2008 and $250,000 in fiscal year 2009 are appropriated from
the general fund to the Legislative Coordinating Commission for purposes of completing a
study of state budget trends. This is a onetime appropriation.
new text end