SF2675 (Legislative Session 94 (2025-2026))
State forecast to account for the rate of inflation requirement elimination
Related bill: HF2790
AI Generated Summary
Purpose of the Bill
- This bill aims to change how the state of Minnesota prepares its financial forecasts by eliminating the requirement to include an account for the rate of inflation.
Main Provisions
- The current practice of including inflation forecasts in the state's financial projections will be stopped.
- The financial forecast must still be based on current laws and reasonably predicted growth in both the national and state economies, as well as changes in affected populations.
- Revenue predictions will continue to be made based on existing legal sources.
- Expenditure estimates will account for legal obligations and changes anticipated from variables beyond legislative control, but will no longer factor in inflationary adjustments.
Significant Changes to Existing Law
- The change primarily affects Minnesota Statutes 2024 section 16A.103, subdivisions 1a and 1b, by removing the requirement to include inflation in the forecasted state expenditure estimates. Previously, some allowance for inflation was required in these estimates.
Relevant Terms
- Inflation
- Financial forecasts
- State expenditures
- Revenue estimates
- Legal obligations
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 16, 2025 | Senate | Floor | Action | Introduction and first reading | |
| March 16, 2025 | Senate | Floor | Action | Referred to | Finance |
| March 19, 2025 | Senate | Floor | Action | Author added |
Citations
[
{
"analysis": {
"added": [],
"removed": [
"Eliminates requirement for revenue and expenditure forecasts to account for inflation."
],
"summary": "This bill modifies the parameters for state economic forecasting under section 16A.103, subdivision 1a.",
"modified": [
"Clarifies the use of assumptions in forecasting."
]
},
"citation": "16A.103",
"subdivision": "subdivision 1a"
}
]