Purpose of the Bill

The purpose of this bill is to amend the reporting date for the budget reserve percentage in Minnesota. The bill revises the timeline for when the commissioner of management and budget must submit their report regarding the state's budget reserve percentage to specific legislative committees.

Main Provisions

• Methodology Review: The commissioner of management and budget will continue to develop and annually review a methodology used to evaluate the adequacy of Minnesota's budget reserve, taking into account the volatility of the state’s general fund tax structure.

• Reporting Deadlines: The deadline for submitting the annual report on the recommended percentage of the general fund revenue that should be reserved has been changed. The report, which includes recommendations for the current biennium’s budget reserve, must now be submitted by October 30 each year instead of a prior earlier date in September.

• Report Recipients and Contents: The report must be submitted to key legislative figures, including the chairs and ranking minority members of the Senate Committee on Finance, the House of Representatives Committee on Ways and Means, and other relevant tax committees. It must specify if significant changes in general fund taxes or adjustments to the methodology prompted revisions to the recommendations.

Significant Changes to Existing Law

• Change in Reporting Date: The bill changes the reporting deadline from September to October 30 each year, granting additional time for the analysis and preparation of the budget reserve percentage report.

Relevant Terms

• Budget reserve
• Commissioner of management and budget
• General fund
• Methodology
• Reporting deadline
• Biennium