SF 2179

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

A bill for an act
relating to the budget reserve; modifying priorities for additional revenues in
general fund forecasts; appropriating money; amending Minnesota Statutes 2006,
section 16A.152, subdivision 2.

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

Section 1.

Minnesota Statutes 2006, 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 finance determines that there will be
a positive unrestricted budgetary general fund balance at the close of the biennium, the
commissioner of finance 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; new text begin and
new text end

(2) new text begin 25 percent to new text end the budget reserve account established in subdivision 1a until
that account reaches deleted text begin $653,000,000; deleted text end new text begin an amount equal to five percent of general fund
expenditures and transfers for the preceding biennium.
new text end

deleted text begin (3) the amount necessary to increase the aid payment schedule for school district
aids and credits payments in section 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; and
deleted text end

deleted text begin (4) the amount necessary to restore all or a portion of the net aid reductions under
section and to reduce the property tax revenue recognition shift under section
deleted text begin 123B.75, subdivision 5 deleted text end , paragraph (c), and Laws 2003, First Special Session chapter 9,
article 5, section 34, as amended by Laws 2003, First Special Session chapter 23, section
20, by the same amount.
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 deleted text begin or, in the case of
transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations
schedules otherwise established in statute deleted text end .

(c) To the extent that a positive unrestricted budgetary general fund balance is
projected, appropriations under this section must be made before section 16A.1522 takes
effect.

deleted text begin (d) The commissioner of finance 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.
deleted 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

Sec. 2. new text begin BUDGET RESERVE INCREASE.
new text end

new text begin On July 1, 2007, the commissioner of finance shall transfer $150,000,000 to the
budget reserve account in the general fund. The amount necessary for this purpose is
appropriated from the general fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end