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HF2790 (Legislative Session 94 (2025-2026))

Requirement for state forecast to account for rate of inflation eliminated.

Related bill: SF2675

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to change how the state of Minnesota makes financial forecasts. Specifically, it aims to eliminate the requirement that these forecasts account for the rate of inflation.

Main Provisions

  • The bill amends the current law by removing the necessity to include inflation in expenditure estimates for state financial forecasts.
  • Under this new rule, state financial forecasts will focus on obligations imposed by the law and any other projected expenses, but without adjusting these figures for inflation.

Significant Changes to Existing Law

  • The current law requires that when the state government forecasts its budget, it includes an allowance for inflation. This bill removes that requirement, meaning forecasts will now exclude adjustments for expected inflationary increases.

Relevant Terms

state forecast, rate of inflation, expenditure estimates, financial forecasts, state budget, inflation adjustment, economic projections

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 25, 2025HouseFloorActionIntroduction and first reading, referred toState Government Finance and Policy

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [
        "Eliminates requirement to include an allowance for inflation in expenditure estimates."
      ],
      "summary": "This bill amends forecast parameters for state budgeting under Minnesota Statutes section 16A.103, subdivision 1a.",
      "modified": [
        "Clarifies forecast assumptions to include obligations imposed by law, excluding inflation."
      ]
    },
    "citation": "16A.103",
    "subdivision": "subdivision 1a"
  }
]

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