Bill Text: MN HF980 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Executive branch authority to reduce unexpended allotments modified.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2011-03-09 - Introduction and first reading, referred to State Government Finance [HF980 Detail]
Download: Minnesota-2011-HF980-Introduced.html
1.2relating to state government; modifying authority of the executive branch to
1.3reduce unexpended allotments;amending Minnesota Statutes 2010, section
1.416A.152, subdivision 4; proposing coding for new law in Minnesota Statutes,
1.5chapter 16A.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. [16A.112] GENERAL FUND BALANCE ANALYSIS.
1.8After each legislative session that modifies general fund revenues or expenditures,
1.9the commissioner shall prepare a fund balance analysis showing forecast general fund
1.10revenues and expenditures for the current and next following bienniums, as modified by the
1.11laws enacted at that session. The fund balance analysis must be prepared in consultation
1.12with the chairs of the Senate Finance Committee and House of Representatives Ways and
1.13Means Committee and legislative staff designated by the chairs.
1.14 Sec. 2. Minnesota Statutes 2010, section 16A.152, subdivision 4, is amended to read:
1.15 Subd. 4. Reduction. (a) If the commissioner determines that probable receipts
1.16for the general fundwill be less than anticipated, and that the amount available for the
1.17remainder of the biennium will be less than needed, the commissioner shall, with the
1.18approval of the governor, and after consulting the LegislativeAdvisory Commission on
1.19Planning and Fiscal Policy, reduce the amount in the budget reserve account as needed to
1.20balance expenditures with revenue.
1.21(b) An additional deficit shall, with the approval of the governor, and after consulting
1.22the legislativeadvisory commission, be made up by reducing unexpended allotments of
1.23any prior appropriation or transfer. The amount of the deficit that may be reduced in this
1.24way is limited to the difference between the general fund balance predicted after reducing
2.1the budget reserve under paragraph (a) and the balance predicted in the most recent fund
2.2balance analysis prepared under section 16A.112.
2.3(c) Notwithstanding any other law to the contrary, the commissioner is empowered
2.4to defer or suspend prior statutorily created obligationswhich that would prevent effecting
2.5such the reductions. In reducing allotments for statutorily created obligations, the
2.6commissioner may reduce payments to all recipients in proportion to their payments or in
2.7proportion to the sum of their payments plus their other revenue, but must not otherwise
2.8modify formulas, eligibility standards, or similar statutory criteria.
2.9(c) (d) The sum of reductions to general fund allotments during a biennium must not
2.10exceed two percent of the total general fund appropriations for the biennium. The sum of
2.11reductions to allotments of a single general fund appropriation must not exceed ten percent
2.12of the appropriation, and no program may be eliminated. Reductions to allotments include
2.13deferrals or suspensions of payments beyond the biennium.
2.14(e) If the commissioner determines that probable receipts for any other fund,
2.15appropriation, or item will be less than anticipated, and that the amount available for the
2.16remainder of the term of the appropriation or for any allotment period will be less than
2.17needed, the commissioner shall notify the agency concerned and then reduce the amount
2.18allotted or to be allotted so as to prevent a deficit.
2.19(d) (f) In reducing allotments, the commissioner may consider other sources of
2.20revenue available to recipients of state appropriations and may apply allotment reductions
2.21based on all sources of revenue available.
2.22(e) (g) In like manner, the commissioner shall reduce allotments to an agency by the
2.23amount of any saving that can be made over previous spending plans through a reduction
2.24in prices or other cause.
2.25 Sec. 3. TRANSITION.
2.26Until the preparation of a fund balance analysis after the 2011 regular session, the
2.27limit on allotment reductions under Minnesota Statutes, section 16A.152, subdivision 4,
2.28paragraph (b), is the amount of the deficit shown in the most recent general fund balance
2.29analysis published by the Department of Management and Budget in connection with a
2.30forecast under Minnesota Statutes, section 16A.103.
2.31 Sec. 4. EFFECTIVE DATE.
2.32This act is effective the day following final enactment and applies to reductions
2.33made on or after that date. It is not intended to affect the validity or invalidity of actions
2.34taken before its effective date.
1.3reduce unexpended allotments;amending Minnesota Statutes 2010, section
1.416A.152, subdivision 4; proposing coding for new law in Minnesota Statutes,
1.5chapter 16A.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. [16A.112] GENERAL FUND BALANCE ANALYSIS.
1.8After each legislative session that modifies general fund revenues or expenditures,
1.9the commissioner shall prepare a fund balance analysis showing forecast general fund
1.10revenues and expenditures for the current and next following bienniums, as modified by the
1.11laws enacted at that session. The fund balance analysis must be prepared in consultation
1.12with the chairs of the Senate Finance Committee and House of Representatives Ways and
1.13Means Committee and legislative staff designated by the chairs.
1.14 Sec. 2. Minnesota Statutes 2010, section 16A.152, subdivision 4, is amended to read:
1.15 Subd. 4. Reduction. (a) If the commissioner determines that probable receipts
1.16for the general fund
1.17remainder of the biennium will be less than needed, the commissioner shall, with the
1.18approval of the governor, and after consulting the Legislative
1.19Planning and Fiscal Policy, reduce the amount in the budget reserve account as needed to
1.20balance expenditures with revenue.
1.21(b) An additional deficit shall, with the approval of the governor, and after consulting
1.22the legislative
1.23any prior appropriation or transfer. The amount of the deficit that may be reduced in this
1.24way is limited to the difference between the general fund balance predicted after reducing
2.1the budget reserve under paragraph (a) and the balance predicted in the most recent fund
2.2balance analysis prepared under section 16A.112.
2.3(c) Notwithstanding any other law to the contrary, the commissioner is empowered
2.4to defer or suspend prior statutorily created obligations
2.5
2.6commissioner may reduce payments to all recipients in proportion to their payments or in
2.7proportion to the sum of their payments plus their other revenue, but must not otherwise
2.8modify formulas, eligibility standards, or similar statutory criteria.
2.9
2.10exceed two percent of the total general fund appropriations for the biennium. The sum of
2.11reductions to allotments of a single general fund appropriation must not exceed ten percent
2.12of the appropriation, and no program may be eliminated. Reductions to allotments include
2.13deferrals or suspensions of payments beyond the biennium.
2.14(e) If the commissioner determines that probable receipts for any other fund,
2.15appropriation, or item will be less than anticipated, and that the amount available for the
2.16remainder of the term of the appropriation or for any allotment period will be less than
2.17needed, the commissioner shall notify the agency concerned and then reduce the amount
2.18allotted or to be allotted so as to prevent a deficit.
2.19
2.20revenue available to recipients of state appropriations and may apply allotment reductions
2.21based on all sources of revenue available.
2.22
2.23amount of any saving that can be made over previous spending plans through a reduction
2.24in prices or other cause.
2.25 Sec. 3. TRANSITION.
2.26Until the preparation of a fund balance analysis after the 2011 regular session, the
2.27limit on allotment reductions under Minnesota Statutes, section 16A.152, subdivision 4,
2.28paragraph (b), is the amount of the deficit shown in the most recent general fund balance
2.29analysis published by the Department of Management and Budget in connection with a
2.30forecast under Minnesota Statutes, section 16A.103.
2.31 Sec. 4. EFFECTIVE DATE.
2.32This act is effective the day following final enactment and applies to reductions
2.33made on or after that date. It is not intended to affect the validity or invalidity of actions
2.34taken before its effective date.
