Bill Text: MN HF3170 | 2013-2014 | 88th Legislature | Introduced
Bill Title: General fund budget reserve level policy established, budget reserve increased, and fund transfer authorized.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-03-17 - Introduction and first reading, referred to Ways and Means [HF3170 Detail]
Download: Minnesota-2013-HF3170-Introduced.html
1.2relating to state government; establishing a policy for the general fund budget
1.3reserve level; increasing the budget reserve; authorizing a transfer of funds;
1.4amending Minnesota Statutes 2012, section 16A.152, subdivisions 1b, 2, 8.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 16A.152, subdivision 1b, is amended to
1.7read:
1.8 Subd. 1b. Budget reserveincrease level. On July 1, 2003, (a) The commissioner
1.9of management and budget shalltransfer $300,000,000 to the budget reserve account in
1.10the general fund. On July 1, 2004, the commissioner of management and budget shall
1.11transfer $296,000,000 to the budget reserve account in the general fund. The amounts
1.12necessary for this purpose are appropriated from the general fund calculate the budget
1.13reserve level by multiplying the current biennium's general fund nondedicated revenues
1.14and the most recent budget reserve percentage under subdivision 8.
1.15(b) If, on the basis of a forecast of general fund revenues and expenditures, the
1.16commissioner of management and budget determines that there will be a positive
1.17unrestricted general fund balance at the close of the biennium and that the provisions of
1.18subdivision 2, clauses (1), (2), (3), and (4), are satisfied, the commissioner shall transfer
1.19to the budget reserve the amount necessary to increase the budget reserve to the budget
1.20reserve level in paragraph (a). The amount of the transfer authorized in this paragraph
1.21shall not exceed the positive unrestricted general fund balance determined in the forecast.
1.22EFFECTIVE DATE.This section is effective for forecasts issued following final
1.23enactment.
2.1 Sec. 2. Minnesota Statutes 2012, section 16A.152, subdivision 2, is amended to read:
2.2 Subd. 2. Additional revenues; priority. (a) If on the basis of a forecast of general
2.3fund revenues and expenditures, the commissioner of management and budget determines
2.4that there will be a positive unrestricted budgetary general fund balance at the close of
2.5the biennium, the commissioner of management and budget must allocate money to the
2.6following accounts and purposes in priority order:
2.7 (1) the cash flow account established in subdivision 1 until that account reaches
2.8$350,000,000;
2.9 (2) the budget reserve account established in subdivision 1a until that account
2.10reaches$653,000,000 $1,923,000,000;
2.11 (3) the amount necessary to increase the aid payment schedule for school district
2.12aids and credits payments in section127A.45 to not more than 90 percent rounded to the
2.13nearest tenth of a percent without exceeding the amount available and with any remaining
2.14funds deposited in the budget reserve; and
2.15 (4) the amount necessary to restore all or a portion of the net aid reductions under
2.16section127A.441 and to reduce the property tax revenue recognition shift under section
2.17123B.75, subdivision 5
, by the same amount; and.
2.18(5) to the state airports fund, the amount necessary to restore the amount transferred
2.19from the state airports fund under Laws 2008, chapter 363, article 11, section 3,
2.20subdivision 5.
2.21 (b) The amounts necessary to meet the requirements of this section are appropriated
2.22from the general fund within two weeks after the forecast is released or, in the case of
2.23transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations
2.24schedules otherwise established in statute.
2.25 (c) The commissioner of management and budget shall certify the total dollar
2.26amount of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of
2.27education. The commissioner of education shall increase the aid payment percentage and
2.28reduce the property tax shift percentage by these amounts and apply those reductions to
2.29the current fiscal year and thereafter.
2.30EFFECTIVE DATE.This section is effective for forecasts issued following final
2.31enactment.
2.32 Sec. 3. Minnesota Statutes 2012, section 16A.152, subdivision 8, is amended to read:
2.33 Subd. 8. Report on budget reserve percentage. (a) The commissioner of
2.34management and budget must periodically review the formula developed as part of the
2.35Budget Trends Study Commission authorized by Laws 2007, chapter 148, article 2,
3.1section 81, to estimate the percentage of thepreceding current biennium's general fund
3.2expenditures and transfers nondedicated revenues recommended as a budget reserve.
3.3 (b) The commissioner must annually review the variables and coefficients in the
3.4formula used to model the base of the general fund taxes and the mix of taxes that
3.5provide revenues to the general fund. If the commissioner determines that the variables
3.6and coefficients have changed enough to result in a change in the percentage of the
3.7preceding current biennium's general fund expenditures and transfers nondedicated
3.8revenue recommended as a budget reserve, the commissioner must update the variables
3.9and coefficients in the formula to reflect the current base and mix of general fund taxes.
3.10 (c) Every ten years, the commissioner must review the methodology underlying the
3.11formula, taking into consideration relevant economic literature from the past ten years,
3.12and determine if the formula remains adequate as a tool for estimating the percentage of
3.13thepreceding current biennium's general fund expenditures and transfers nondedicated
3.14revenues recommended as a budget reserve. If the commissioner determines that the
3.15methodology underlying the formula is outdated, the commissioner must revise the
3.16formula.
3.17 (d) By January 15 of each year, the commissioner must report to the chairs and
3.18ranking minority members of the house of representatives Committee on Ways and Means
3.19and the senate Committee on Finance, in compliance with sections3.195 and
3.197 , on the
3.20percentage of thepreceding current biennium's general fund expenditures and transfers
3.21 nondedicated revenues recommended as a budget reserve. The report must specify:
3.22 (1) if the commissioner updated the variables and coefficients in the formula to
3.23reflect significant changes to either the base of one or more general fund taxes or to the
3.24mix of taxes that provide revenues to the general fund as provided in paragraph (b);
3.25 (2) if the commissioner revised the formula after determining the methodology was
3.26outdated as provided in paragraph (c); and
3.27 (3) if the percentage of thepreceding current biennium's general fund expenditures
3.28and transfers nondedicated revenues recommended as a budget reserve has changed as a
3.29result of an update of or a revision to the formula.
3.30EFFECTIVE DATE.This section is effective the day following final enactment.
3.31 Sec. 4. BUDGET RESERVE INCREASE.
3.32On July 1, 2014, the commissioner of management and budget shall transfer
3.33$1,262,008,000 to the budget reserve in the general fund.
3.34EFFECTIVE DATE.This section is effective the day following final enactment.
1.3reserve level; increasing the budget reserve; authorizing a transfer of funds;
1.4amending Minnesota Statutes 2012, section 16A.152, subdivisions 1b, 2, 8.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 16A.152, subdivision 1b, is amended to
1.7read:
1.8 Subd. 1b. Budget reserve
1.9of management and budget shall
1.10
1.11
1.12
1.13reserve level by multiplying the current biennium's general fund nondedicated revenues
1.14and the most recent budget reserve percentage under subdivision 8.
1.15(b) If, on the basis of a forecast of general fund revenues and expenditures, the
1.16commissioner of management and budget determines that there will be a positive
1.17unrestricted general fund balance at the close of the biennium and that the provisions of
1.18subdivision 2, clauses (1), (2), (3), and (4), are satisfied, the commissioner shall transfer
1.19to the budget reserve the amount necessary to increase the budget reserve to the budget
1.20reserve level in paragraph (a). The amount of the transfer authorized in this paragraph
1.21shall not exceed the positive unrestricted general fund balance determined in the forecast.
1.22EFFECTIVE DATE.This section is effective for forecasts issued following final
1.23enactment.
2.1 Sec. 2. Minnesota Statutes 2012, section 16A.152, subdivision 2, is amended to read:
2.2 Subd. 2. Additional revenues; priority. (a) If on the basis of a forecast of general
2.3fund revenues and expenditures, the commissioner of management and budget determines
2.4that there will be a positive unrestricted budgetary general fund balance at the close of
2.5the biennium, the commissioner of management and budget must allocate money to the
2.6following accounts and purposes in priority order:
2.7 (1) the cash flow account established in subdivision 1 until that account reaches
2.8$350,000,000;
2.9 (2) the budget reserve account established in subdivision 1a until that account
2.10reaches
2.11 (3) the amount necessary to increase the aid payment schedule for school district
2.12aids and credits payments in section
2.13nearest tenth of a percent without exceeding the amount available and with any remaining
2.14funds deposited in the budget reserve; and
2.15 (4) the amount necessary to restore all or a portion of the net aid reductions under
2.16section
2.18
2.19
2.20
2.21 (b) The amounts necessary to meet the requirements of this section are appropriated
2.22from the general fund within two weeks after the forecast is released or, in the case of
2.23transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations
2.24schedules otherwise established in statute.
2.25 (c) The commissioner of management and budget shall certify the total dollar
2.26amount of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of
2.27education. The commissioner of education shall increase the aid payment percentage and
2.28reduce the property tax shift percentage by these amounts and apply those reductions to
2.29the current fiscal year and thereafter.
2.30EFFECTIVE DATE.This section is effective for forecasts issued following final
2.31enactment.
2.32 Sec. 3. Minnesota Statutes 2012, section 16A.152, subdivision 8, is amended to read:
2.33 Subd. 8. Report on budget reserve percentage. (a) The commissioner of
2.34management and budget must periodically review the formula developed as part of the
2.35Budget Trends Study Commission authorized by Laws 2007, chapter 148, article 2,
3.1section 81, to estimate the percentage of the
3.2
3.3 (b) The commissioner must annually review the variables and coefficients in the
3.4formula used to model the base of the general fund taxes and the mix of taxes that
3.5provide revenues to the general fund. If the commissioner determines that the variables
3.6and coefficients have changed enough to result in a change in the percentage of the
3.7
3.8revenue recommended as a budget reserve, the commissioner must update the variables
3.9and coefficients in the formula to reflect the current base and mix of general fund taxes.
3.10 (c) Every ten years, the commissioner must review the methodology underlying the
3.11formula, taking into consideration relevant economic literature from the past ten years,
3.12and determine if the formula remains adequate as a tool for estimating the percentage of
3.13the
3.14revenues recommended as a budget reserve. If the commissioner determines that the
3.15methodology underlying the formula is outdated, the commissioner must revise the
3.16formula.
3.17 (d) By January 15 of each year, the commissioner must report to the chairs and
3.18ranking minority members of the house of representatives Committee on Ways and Means
3.19and the senate Committee on Finance, in compliance with sections
3.20percentage of the
3.21 nondedicated revenues recommended as a budget reserve. The report must specify:
3.22 (1) if the commissioner updated the variables and coefficients in the formula to
3.23reflect significant changes to either the base of one or more general fund taxes or to the
3.24mix of taxes that provide revenues to the general fund as provided in paragraph (b);
3.25 (2) if the commissioner revised the formula after determining the methodology was
3.26outdated as provided in paragraph (c); and
3.27 (3) if the percentage of the
3.28
3.29result of an update of or a revision to the formula.
3.30EFFECTIVE DATE.This section is effective the day following final enactment.
3.31 Sec. 4. BUDGET RESERVE INCREASE.
3.32On July 1, 2014, the commissioner of management and budget shall transfer
3.33$1,262,008,000 to the budget reserve in the general fund.
3.34EFFECTIVE DATE.This section is effective the day following final enactment.
