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.
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 variables outside the control of the legislature. Expenditure estimates must not include an
allowance for inflation.
Subd. 1b. Forecast variable.
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 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 Ways and Means Committee, and legislative fiscal staff of any
changes in these variables from the previous forecast.
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 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 State Government 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.
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
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.
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. As part of the February
forecast, the commissioner of revenue shall report to the governor and legislature on which
groups of local government units exceeded the revenue targets of the governor and legislature in
the most recent biennium.
Subd. 3.[Repealed, 1999 c 250 art 1 s 115
Subd. 4. Report on expenditure increases.
By January 10 of an odd-numbered year, the
commissioner of finance must report on those programs or components of programs for which
expenditures for the next biennium according to the forecast issued the previous November
are projected to increase more than 15 percent over the expenditures for that program in the
current biennium. The report must include an analysis of the factors that are causing the increases
History: 1994 c 587 art 7 s 2; 1997 c 202 art 2 s 13; 1998 c 366 s 22; 1999 c 250 art 1 s 46;
2000 c 488 art 12 s 9; 2002 c 220 art 13 s 1,2; 2005 c 156 art 2 s 13