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SF 2432

as introduced - 90th Legislature (2017 - 2018) Posted on 10/27/2017 12:15pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to higher education; establishing a higher education account automatically
funded by a general fund balance if the legislature does not fulfill its postsecondary
funding policy; amending Minnesota Statutes 2016, section 16A.152, subdivisions
1b, 2, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2016, section 16A.152, subdivision 1b, is amended to read:


Subd. 1b.

Budget reserve level.

(a) The commissioner of management and budget shall
calculate the budget reserve level by multiplying the current biennium's general fund
nondedicated revenues and the most recent budget reserve percentage under subdivision 8.

(b) If, on the basis of a November 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), (4), new text beginand new text end(5), deleted text beginand (6)deleted text end are satisfied, the commissioner shall
transfer to the budget reserve account in the general fund the amount necessary to increase
the budget reserve to the budget reserve level determined under paragraph (a). The amount
of the transfer authorized in this paragraph shall not exceed 33 percent of the positive
unrestricted general fund balance determined in the forecast.

Sec. 2.

Minnesota Statutes 2016, 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
$1,596,522,000;

(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; deleted text beginand
deleted 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.deleted text endnew text begin; and
new text end

new text begin (5) if, in the last biennium, the legislature did not provide at least 67 percent of the
instructional costs to public postsecondary institutions, in compliance with the funding
policy in section 135A.01, subdivision 1, the commissioner must transfer up to 25 percent
of the unrestricted budgetary general fund balance to the higher education reserve fund
created in subdivision 9. The commissioner must not transfer money to the higher education
reserve fund if the fund has met the funding target specified in subdivision 9, paragraph (c).
new 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) deleted text beginanddeleted text endnew text begin,new text end (4)new text begin, and (5)new text end, 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.

Sec. 3.

Minnesota Statutes 2016, section 16A.152, is amended by adding a subdivision to
read:


new text begin Subd. 9. new text end

new text begin Higher education reserve account. new text end

new text begin (a) A higher education reserve account is
created in the general fund in the state treasury.
new text end

new text begin (b) The higher education reserve account may be used when a negative budgetary balance
is projected. Funds in the account may only be appropriated to the Board of Trustees of the
Minnesota State Colleges and Universities or the Board of Regents of the University of
Minnesota.
new text end

new text begin (c) The funding target for this account is 15 percent of the combined appropriations to
the Board of Trustees of the Minnesota State Colleges and Universities and the Board of
Regents of the University of Minnesota in the previous biennium.
new text end