1.1                          A bill for an act 
  1.2             relating to taxation; authorizing a study of the state 
  1.3             and local fiscal system; appropriating money. 
  1.4   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.5      Section 1.  [STUDY OF STATE AND LOCAL FISCAL SYSTEM.] 
  1.6      Subdivision 1.  [HUMPHREY INSTITUTE; CONTRACT.] The 
  1.7   commissioner of administration shall enter into a contract with 
  1.8   the Humphrey Institute of Public Affairs at the University of 
  1.9   Minnesota under which the institute will conduct a study of the 
  1.10  state and local fiscal system in Minnesota. 
  1.11     Subd. 2.  [RESEARCH AND EDUCATIONAL OBJECTIVES.] The 
  1.12  objectives of the research and education program include: 
  1.13     (1) to identify and evaluate alternative strategies for 
  1.14  reforming Minnesota's state and local fiscal system; 
  1.15     (2) to analyze the factors that determine state and local 
  1.16  spending, including K-12 education, health care, aids to local 
  1.17  government, higher education, and transportation, and to propose 
  1.18  policy options; 
  1.19     (3) to analyze the state and local tax and revenue system, 
  1.20  including tax incidence, tax increment financing, tax 
  1.21  expenditures, and nontax revenue sources; 
  1.22     (4) to evaluate the effectiveness of alternative approaches 
  1.23  to managing spending, such as spending caps, "truth in taxation,"
  1.24  and "price of government" legislation; and 
  2.1      (5) to evaluate the effectiveness of government redesign 
  2.2   efforts in managing the state and local fiscal system, including 
  2.3   reinventing government, reengineering, quality improvement, 
  2.4   privatization, and market-based approaches. 
  2.5      Subd. 3.  [EDUCATIONAL PROGRAM.] The Humphrey Institute 
  2.6   shall conduct a series of forums at various locations in the 
  2.7   state at which it will meet with local elected officials in 
  2.8   order to discuss their analysis and assessment of the issues 
  2.9   described in subdivision 2, policy alternatives, and legislative 
  2.10  proposals. 
  2.11     The Humphrey Institute shall present a conference for 
  2.12  legislators in January 1996.  The conference will present its 
  2.13  findings from the research it has conducted, including the 
  2.14  information gathered at the local forums, and seek legislators' 
  2.15  assessment of the issues and proposals. 
  2.16     The initial report under this section must be presented to 
  2.17  the legislature by February 15, 1996. 
  2.18     Subd. 4.  [APPROPRIATION.] $....... is appropriated from 
  2.19  the general fund to the department of administration for the 
  2.20  purpose of a contract with the Humphrey Institute of Public 
  2.21  Affairs at the University of Minnesota to pay for the research 
  2.22  project described in this section for the biennium ending June 
  2.23  30, 1997.