1.1 	A bill for an act
1.2 	relating to public finance; providing for inflation in
1.3 	the revenue forecast; amending Minnesota Statutes
1.4 	2004, section 16A.103, subdivisions 1a, 1b.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2004, section 16A.103,
1.7 	subdivision 1a, is amended to read:
1.8 		Subd. 1a.Forecast parameters.  The forecast must assume
1.9 	the continuation of current laws and reasonable estimates of
1.10 	projected growth in the national and state economies and
1.11 	affected populations.  Revenue must be estimated for all sources
1.12 	provided for in current law.  Expenditures must be estimated for
1.13 	all obligations imposed by law and those projected to occur as a
1.14 	result of inflation and other variables outside the control of
1.15 	the legislature. Expenditure estimates must not include an
1.16 	allowance for inflation.

1.17 	Sec. 2. Minnesota Statutes 2004, section 16A.103,
1.18 	subdivision 1b, is amended to read:
1.19 		Subd. 1b.Forecast variable.  In determining the rate of
1.20 	inflation, the amount of state bonding as it affects debt
1.21 	service, the calculation of investment income, and the other
1.22 	variables to be included in the expenditure part of the
1.23 	forecast, the commissioner must consult with the chairs and lead
1.24 	minority members of the senate State Government Finance
1.25 	Committee and the house Ways and Means Committee, and
2.1 	legislative fiscal staff.  This consultation must occur at least
2.2 	three weeks before the forecast is to be released.  No later
2.3 	than two weeks prior to the release of the forecast, the
2.4 	commissioner must inform the chairs and lead minority members of
2.5 	the senate State Government Finance Committee and the house Ways
2.6 	and Means Committee, and legislative fiscal staff of any changes
2.7 	in these variables from the previous forecast. The rate of
2.8 	inflation determined under this subdivision must be applied
2.9 	consistently in all categories of obligations included in the
2.10 	forecast.