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SF 939

as introduced - 90th Legislature (2017 - 2018) Posted on 02/15/2017 10:49am

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

Current Version - as introduced

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A bill for an act
relating to state government; providing for performance-based budgeting; amending
Minnesota Statutes 2016, section 16A.103; 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 2016, section 16A.103, is amended to read:


16A.103 FORECASTS OF REVENUE AND EXPENDITURES.

Subdivision 1.

State revenue and expenditures.

In February and November each year,
the commissioner shall prepare a forecast of state revenue and expenditures. The November
forecast must be delivered to the legislature and governor no later than the end of the first
week of December. The February forecast must be delivered to the legislature and governor
by the end of February. Forecasts must be delivered to the legislature and governor on the
same day. If requested by the Legislative Commission on Planning and Fiscal Policy,
delivery to the legislature must include a presentation to the commission.new text begin The portion of
each forecast dealing with state expenditures must forecast these expenditures only for the
remainder of the current biennium.
new text end

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.
Expendituresnew text begin for the remainder of the current bienniumnew text end must be estimated for all obligations
imposed by law and those projected to occur as a result of variables outside the control of
the legislature. Expenditure estimates must not include an allowance for inflation.

deleted text begin Subd. 1b. deleted text end

deleted text begin Forecast variable. deleted text end

deleted text begin In determining 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 State Government Finance Committee and the house
of representatives 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 State Government Finance Committee and the house of representatives
Ways and Means Committee, and legislative fiscal staff of any changes in these variables
from the previous forecast.
deleted text end

Subd. 1c.

Expenditure data.

State agencies must submit any revisions in expenditure
datanew text begin for the remainder of the current biennium new text end the commissioner determines necessary for
the forecast to the commissioner at least four weeks prior to the release of the forecast. The
information submitted by state agencies and any modifications to that information made by
the commissioner must be made available to legislative fiscal staff no later than three weeks
prior to the release of the forecast.

Subd. 1d.

Revenue data.

On a monthly basis, the commissioner must provide legislative
fiscal staff with an update of the previous month's state revenues no later than 12 days after
the end of that month.

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 Finance Committee and the house of representatives 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.

Subd. 1f.

Personal income.

In addition, the commissioner shall forecast Minnesota
personal income for each of the years covered by the forecast and include these estimates
in the forecast documents.

Subd. 1g.

Period to be forecast.

A forecast prepared during the first fiscal year of a
biennium must cover that biennium and the next biennium. A forecast prepared during the
second fiscal year of a biennium must cover that biennium and the next two bienniums.new text begin
However, each forecast must cover expenditures only for the remainder of the current
biennium.
new text end

Subd. 1h.

Revenue uncertainty information.

The commissioner shall report to the
legislature within 14 days of a forecast under subdivision 1 on uncertainty in Minnesota's
general fund revenue projections. The report shall present information on: (1) the estimated
range of forecast error for revenues; and (2) the data and methods used to construct those
measurements.

Subd. 2.

Local revenue.

In February and November of each year, the commissioner of
revenue shall prepare and deliver to the governor and the legislature forecasts of revenue
to be received by school districts as a group, counties as a group, and the group of cities
and towns that have a population of more than 2,500. The forecasts must assume the
continuation of current laws, projections of valuation changes in real property, and reasonable
estimates of projected growth in the national and state economies and affected populations.
Revenue must be estimated for property taxes, state and federal aids, local sales taxes, if
any, and a single projection for all other revenue for each group of affected local
governmental units.

Sec. 2.

new text begin [16A.107] PERFORMANCE-BASED BUDGETING.
new text end

new text begin Subdivision 1. new text end

new text begin Performance-based budget. new text end

new text begin (a) For each biennium to be covered by a
proposed state budget, the governor shall require the proposed budgets of each state
department, institution, and agency of the executive department to prepare a budget using
performance-based budgeting. The commissioner of management and budget shall provide
any technical assistance necessary to enable each department, institution, or agency to
complete its budgetary requests as specified by the commissioner of management and budget.
new text end

new text begin (b) The commissioner shall adopt rules necessary to provide instruction and guidance
to each department, institution, and agency to facilitate the provisions of this section.
new text end

new text begin (c) As used in this section, "performance-based budgeting" means a method of budgeting
in which all expenses of a department, institution, or agency is justified and every function
is analyzed for its needs and costs. Each proposed expenditure for a biennium is justified
as if it is a new expenditure.
new text end

new text begin Subd. 2. new text end

new text begin Performance-based budget plan. new text end

new text begin Each department, institution, and agency
shall provide the following information:
new text end

new text begin (1) for each program, describe the key activities and explain why the activities are critical
and necessary;
new text end

new text begin (2) describe activities that comprise the agency, and justify the existence of each activity
by reference to statute or other legal authority;
new text end

new text begin (3) for each activity, document a quantitative estimate of any adverse impacts that could
reasonably be expected should the activity be discontinued, together with a full description
of the methods by which the adverse impact is estimated;
new text end

new text begin (4) identify performance metrics for each program and its activities;
new text end

new text begin (5) list quantifiable program outcomes that measures the workload, efficiency, and
effectiveness of each program and its activities;
new text end

new text begin (6) explain trends over time in outcomes as well as how those outcomes reflect a
program's overall effectiveness;
new text end

new text begin (7) for each activity, itemize expenditures that are needed to maintain the activity at the
minimum level of service required by the statutory authority, together with a concise
statement of the quantity and quality of services required at that minimum level;
new text end

new text begin (8) for each activity, itemize expenditures required to maintain the quantity and quality
of services being provided and the number of personnel required to accomplish each program;
new text end

new text begin (9) specify what percentage of program expenditure is dedicated to personnel; and
new text end

new text begin (10) include a ranking of all activities that shows the relative contribution of each activity
to the overall goals and purposes of the agency at current service levels.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
must be implemented for the biennium beginning in fiscal year 2022.
new text end