The bill H.F. No. 2204, introduced in the Minnesota House of Representatives, aims to consolidate and modify financial reporting requirements for transportation services managed by the Metropolitan Council. Key provisions include:

1. Budgeting Process Changes:

   • The Metropolitan Council must adopt a final budget by December 20 each year, detailing anticipated revenues, expenditures, capital projects, and tax levies for the upcoming year.
     
   • Every even-numbered year, the Council must prepare a three-year financial plan for transit programs, including user charges and state financial assistance requests.
     

2. Annual Transportation Financial Review:

   • By January 15 each year, the Council must submit a detailed financial review of revenues and expenditures for transportation programs.
     
   • By August 15 (or earlier when budget accounts close), an updated financial review must be submitted, comparing budgeted vs. actual revenue and expenditures from the most recent budget year.
     

3. Required Financial Details:

   • The financial review must include:
     
     • Actual and forecasted revenues, expenditures, transfers, reserves, and balances over the past four years and for future budget periods.
       
     • A breakdown of revenues (e.g., legislative appropriations, federal funds, fare collections, sales tax).
       
     • A breakdown of expenditures by transportation category (e.g., bus, light rail, commuter rail, special transportation services).
       
     • Projected expenditures and operating reserve balances for replacement service providers (local governments providing transit services under agreements with the Council).
       

4. Reporting Requirements:

   • The Council must provide sufficient details to align state fiscal years with budget years, summarize reserve policies, describe revenue assumptions, and explain cost allocations.
     
   • Reports must be submitted to legislative committees on transportation finance and policy and the commissioner of management and budget.
     

5. Repeal of an Existing Statute:

   • The bill repeals Minnesota Statutes 2024, Section 473.452, consolidating financial reporting into the new requirements.
     

Purpose:

This bill aims to streamline financial reporting, improve financial transparency, and offer a more structured approach to tracking funds used for transportation services under the Metropolitan Council’s jurisdiction.