Minnesota Legislature
SF 2722
as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am
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A bill for an act
relating to finance; providing an appropriation for emergencies; requiring reports
and recommendations to bring the state budget into compliance with generally
accepted governmental accounting principles; requiring disclosure of the impact
of inflation on state expenditures; requiring consultation on expenditure data;
requiring a report of cash flow for the general fund; providing continuing
appropriations for the operation of state government under certain conditions;
providing for an increase in the budget reserve to five percent of forecast net
general fund revenue; appropriating money; amending Minnesota Statutes 2004,
sections 9.061, subdivision 5; 16A.055, subdivision 1; 16A.103, subdivisions 1a,
1b, 1c, 1e; 16A.11, subdivision 2, by adding a subdivision; Minnesota Statutes
2005 Supplement, section 16A.152, 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 2004, section 9.061, subdivision 5, is amended to read:
Subd. 5.
Spending power.
Where an emergency exists the Executive Council
may expend money as necessary therefor deleted text begin within the limit of appropriations made to the
council for this purposedeleted text end new text begin , but not to exceed $3,000,000 in any fiscal year, and that amount
is annually appropriated from the general fund for this purposenew text end .
Sec. 2.
Minnesota Statutes 2004, section 16A.055, subdivision 1, is amended to read:
Subdivision 1.
List.
new text begin (a) new text end The commissioner shall:
(1) receive and record all money paid into the state treasury and safely keep it until
lawfully paid out;
(2) manage the state's financial affairs;
(3) keep the state's general account books according to generally accepted
government accounting principles;
(4) keep expenditure and revenue accounts according to generally accepted
government accounting principles;
(5) develop, provide instructions for, prescribe, and manage a state uniform
accounting system;
(6) provide to the state the expertise to ensure that all state funds are accounted for
under generally accepted government accounting principles; and
(7) coordinate the development of, and maintain standards for, internal auditing in
state agencies and, in cooperation with the commissioner of administration, report to the
legislature and the governor by January 31 of odd-numbered years, on progress made.
new text begin
(b) The commissioner shall report to the legislature by January 15 each year any
laws that require the state's general fund budget not to be reported according to generally
accepted government accounting principles.
new text end
Sec. 3.
Minnesota Statutes 2004, section 16A.103, subdivision 1a, is amended to read:
Subd. 1a.
Forecast parameters.
The forecast must assume the continuation of
current laws and reasonable estimates of projected growth in the national and state
economies and affected populations. Revenue must be estimated for all sources provided
for in current law. Expenditures must be estimated for all obligations imposed by law and
those projected to occur as a result of new text begin inflation and new text end variables outside the control of the
legislature. deleted text begin Expenditure estimates must not include an allowance for inflation.
deleted text end
Sec. 4.
Minnesota Statutes 2004, section 16A.103, subdivision 1b, is amended to read:
Subd. 1b.
Forecast variable.
In determining new text begin the rate of inflation, the application
of inflation, new text end the amount of state bonding as it affects debt service, the calculation of
investment income, and the other variables to be included in the expenditure part of the
forecast, the commissioner must consult with the chairs and lead minority members of the
senate deleted text begin State Governmentdeleted text end Finance Committee and the house Ways and Means Committee,
and legislative fiscal staff. This consultation must occur at least three weeks before the
forecast is to be released. No later than two weeks prior to the release of the forecast,
the commissioner must inform the chairs and lead minority members of the senate
deleted text begin State Governmentdeleted text end Finance Committee and the house Ways and Means Committee, and
legislative fiscal staff of any changes in these variables from the previous forecast.
Sec. 5.
Minnesota Statutes 2004, section 16A.103, subdivision 1c, is amended to read:
Subd. 1c.
Expenditure data.
State agencies must submit any revisions in
expenditure data the commissioner determines necessary for the forecast to the
commissioner at least four weeks prior to the release of the forecast. The new text begin commissioner
shall make the new text end information submitted by state agencies and any modifications to that
information made by the commissioner deleted text begin must be madedeleted text end available to legislative fiscal staffnew text begin ,
and shall consult with legislative staff about the meaning of the information, new text end no later than
three weeks prior to the release of the forecast.
Sec. 6.
Minnesota Statutes 2004, section 16A.103, subdivision 1e, is amended to read:
Subd. 1e.
Economic information.
The commissioner must review economic
information including economic forecasts with legislative fiscal staff no later than two
weeks before the forecast is released. The commissioner must invite the chairs and lead
minority members of the senate deleted text begin State Governmentdeleted text end Finance Committee and the house
Ways and Means Committee, and legislative fiscal staff to attend any meetings held with
outside economic advisors. The commissioner must provide legislative fiscal staff with
monthly economic forecast information received from outside sources.
Sec. 7.
new text begin
[16A.107] CASH FLOW FORECAST.
new text end
new text begin
Within two weeks after the November forecast of state revenue and expenditures
under section 16A.103, the commissioner shall deliver to the governor and the legislature
a forecast of cash flow for the general fund, showing the expected maximum and minimum
cash balance in the fund for each month of the forecast period.
new text end
Sec. 8.
Minnesota Statutes 2004, section 16A.11, subdivision 2, is amended to read:
Subd. 2.
Part one: message.
Part one of the budget, the governor's message,
shall include the governor's recommendations on the financial policy of the state for the
coming biennium, describing the important features of the budget plan, embracing a
general budget summary setting forth the aggregate figures of the budget so as to show
the balanced relation between the total proposed expenditures and the total anticipated
income, with the basis and factors on which the estimates are made, the amount to be
borrowed, and other means of financing the budget for the coming biennium, compared
with the corresponding figures for at least the last two completed fiscal years and the
current year. new text begin The budget plan must include recommendations on how to bring the budget
into compliance with generally accepted governmental accounting principles. new text end The
budget plan shall be supported by explanatory schedules or statements, classifying its
expenditures by agencies and funds, and the income by agencies, sources, funds, and the
proposed amount of new borrowing, as well as proposed new tax or revenue sources. The
budget plan shall be submitted for all special and dedicated funds, as well as the general
fund, and shall include the estimated amounts of federal aids, for whatever purpose
provided, together with estimated expenditures from them.
Sec. 9.
Minnesota Statutes 2004, section 16A.11, is amended by adding a subdivision
to read:
new text begin Subd. 3d. new text end
new text begin Budget bills. new text end
new text begin
The necessary bills to implement the governor's operating
budget must be submitted to the legislature within two weeks after the operating budget
was submitted. The necessary bills to implement the governor's capital budget must be
submitted to the legislature within two weeks after the capital budget was submitted.
new text end
Sec. 10.
new text begin
[16A.117] CONTINUING APPROPRIATIONS.
new text end
new text begin
If no biennial direct appropriations for a given state agency are enacted before
July 1 of an odd-numbered year, amounts sufficient to continue operation of that agency
through the fiscal year ending June 30 of the next even-numbered year at the base level
for that next fiscal year, as determined according to section 16A.11, subdivision 3, and
previous appropriation acts, are appropriated to the agency from the appropriate funds and
accounts in the state treasury. The base level for an appropriation that was designated as
onetime or was onetime in nature is zero.
new text end
Sec. 11.
Minnesota Statutes 2005 Supplement, 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;
(2) the budget reserve account established in subdivision 1a until that account
reaches deleted text begin $653,000,000deleted text end new text begin five percent of forecast net general fund revenue for the bienniumnew text end ;
(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; and
(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, 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.
(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) and (4), as necessary to meet the appropriations
schedules otherwise established in statute.
(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.
(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.