Minnesota 2023-2024 Regular Session

Minnesota Senate Bill SF570 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to state government; providing for zero-based budgeting; amending
3	3	1.3 Minnesota Statutes 2022, sections 16A.103, subdivision 1a; 16A.11, subdivision
4	4	1.4 3; proposing coding for new law in Minnesota Statutes, chapter 16A.
5	5	1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
6	6	1.6 Section 1. Minnesota Statutes 2022, section 16A.103, subdivision 1a, is amended to read:
7	7	1.7 Subd. 1a.Forecast parameters.(a) Except as provided in paragraph (b), the forecast
8	8	1.8must assume the continuation of current laws and reasonable estimates of projected growth
9	9	1.9in the national and state economies and affected populations. Revenue must be estimated
10	10	1.10for all sources provided for in current law. Expenditures must be estimated for all obligations
11	11	1.11imposed by law and those projected to occur as a result of variables outside the control of
12	12	1.12the legislature. Expenditure estimates must not include an allowance for inflation.
13	13	1.13 (b) Notwithstanding paragraph (a) and any appropriations established in law, all
14	14	1.14expenditures for a department, institution, or agency of the executive branch estimated for
15	15	1.15the November forecast must be zero if the scheduled year under section 16A.111, subdivision
16	16	1.163, for the department, institution, or agency coincides with the calendar year of the November
17	17	1.17forecast. The forecasted expenditures in the February forecast must be zero for a department,
18	18	1.18institution, or agency of the executive branch if they were zero in the preceding November
19	19	1.19forecast as a result of the requirements of this paragraph. The commissioner shall not apply
20	20	1.20this paragraph to forecasted expenditures for the current biennium, but shall apply the
21	21	1.21requirements of this paragraph to the forecasted expenditures for the next two biennia.
22	22	1Section 1.
23	23	23-00957 as introduced01/12/23 REVISOR SGS/EH
24	24	SENATE
25	25	STATE OF MINNESOTA
26	26	S.F. No. 570NINETY-THIRD SESSION
27	27	(SENATE AUTHORS: DRAHEIM)
28	28	OFFICIAL STATUSD-PGDATE
29	29	Introduction and first reading01/23/2023
30	30	Referred to State and Local Government and Veterans 2.1 Sec. 2. Minnesota Statutes 2022, section 16A.11, subdivision 3, is amended to read:
31	31	2.2 Subd. 3.Part two: detailed budget.(a) Part two of the budget, the detailed budget
32	32	2.3estimates both of expenditures and revenues, must contain any statements on the financial
33	33	2.4plan which the governor believes desirable or which may be required by the legislature.
34	34	2.5The detailed estimates shall include the governor's budget arranged in tabular form.
35	35	2.6 (b) Tables listing expenditures for the next biennium must show the appropriation base
36	36	2.7for each year. The appropriation base is the amount appropriated for the second year of the
37	37	2.8current biennium. The tables must separately show any adjustments to the base required by
38	38	2.9current law or policies of the commissioner of management and budget. For forecasted
39	39	2.10programs, the tables must also show the amount of the forecast adjustments, based on the
40	40	2.11most recent forecast prepared by the commissioner of management and budget under section
41	41	2.1216A.103. For all programs, the tables must show the amount of appropriation changes
42	42	2.13recommended by the governor, after adjustments to the base and forecast adjustments, and
43	43	2.14the total recommendation of the governor for that year.
44	44	2.15 (c) The detailed estimates must include a separate line listing the total cost of professional
45	45	2.16and technical service contracts for the prior biennium and the projected costs of those
46	46	2.17contracts for the current and upcoming biennium. They must also include a summary of the
47	47	2.18personnel employed by the agency, reflected as full-time equivalent positions.
48	48	2.19 (d) The detailed estimates for internal service funds must include the number of full-time
49	49	2.20equivalents by program; detail on any loans from the general fund, including dollar amounts
50	50	2.21by program; proposed investments in technology or equipment of $100,000 or more; an
51	51	2.22explanation of any operating losses or increases in retained earnings; and a history of the
52	52	2.23rates that have been charged, with an explanation of any rate changes and the impact of the
53	53	2.24rate changes on affected agencies.
54	54	2.25 (e) Notwithstanding paragraph (b) and any appropriation established in law, for any
55	55	2.26department, institution, or agency in the executive branch that is in a scheduled year under
56	56	2.27section 16A.111, subdivision 3, in the year prior to the year in which part two of the budget
57	57	2.28must be submitted, the appropriation base for any appropriation made to that department,
58	58	2.29institution, or agency for the next two biennia must be zero. The commissioner must display
59	59	2.30the appropriation base established under this paragraph in the tables and narrative of part
60	60	2.31two of the budget.
61	61	2Sec. 2.
62	62	23-00957 as introduced01/12/23 REVISOR SGS/EH 3.1 Sec. 3. [16A.111] ZERO-BASED BUDGETING.
63	63	3.2 Subdivision 1.Zero-based budget.(a) By November 30, each department, institution,
64	64	3.3and agency of the executive branch within a scheduled year must submit to the commissioner
65	65	3.4a proposed detailed operating budget for the biennium beginning July 1 of the following
66	66	3.5year using zero-based budgeting, including a zero-based budget plan. The commissioner
67	67	3.6of management and budget shall provide technical assistance to enable each department,
68	68	3.7institution, or agency to complete its proposed detailed operating budget as specified by the
69	69	3.8commissioner of management and budget.
70	70	3.9 (b) The commissioner of management and budget shall adopt policies and procedures
71	71	3.10for each department, institution, and agency to implement the provisions of this section.
72	72	3.11 (c) As used in this section, "zero-based budgeting" means a method of determining the
73	73	3.12budget of a department, institution, or agency for which the budget of the department,
74	74	3.13institution, or agency:
75	75	3.14 (1) is deemed to be zero in the November forecast, the February forecast, and the
76	76	3.15governor's budget recommendations that precede the establishment of a biennial budget;
77	77	3.16and
78	78	3.17 (2) has justified each proposed expenditure for the biennium covered by the budget as
79	79	3.18if it were a new expenditure.
80	80	3.19 (d) Each department, institution, and agency of the executive branch that is required to
81	81	3.20prepare a detailed operating budget and a zero-based budget plan under this subdivision
82	82	3.21must submit the detailed operating budget and zero-based budget plan to the legislature.
83	83	3.22This information must be submitted to the legislature at the same time that part two of the
84	84	3.23governor's budget is required to be submitted under section 16A.11, subdivision 1.
85	85	3.24 Subd. 2.Zero-based budget plan.A zero-based budget plan includes the following
86	86	3.25information:
87	87	3.26 (1) a description of activities that comprise the agency and a justification for the existence
88	88	3.27of each activity by reference to statute or other legal authority;
89	89	3.28 (2) for each activity, a quantitative estimate of any adverse impacts that could reasonably
90	90	3.29be expected should the activity be discontinued, together with a full description of the
91	91	3.30methods by which the adverse impact is estimated;
92	92	3.31 (3) a list of quantifiable program outcomes that measure the efficiency and effectiveness
93	93	3.32of each program;
94	94	3Sec. 3.
95	95	23-00957 as introduced01/12/23 REVISOR SGS/EH 4.1 (4) for each activity, an itemized account of expenditures required to maintain the activity
96	96	4.2at the minimum level of service required by statutory authority, together with a concise
97	97	4.3statement of the quantity and quality of services required at that minimum level;
98	98	4.4 (5) for each activity, an itemized account of expenditures required to maintain the quantity
99	99	4.5and quality of services being provided and the number of personnel required to accomplish
100	100	4.6each program; and
101	101	4.7 (6) a ranking of all activities that shows the relative contribution of each activity to the
102	102	4.8overall goals and purposes of the agency at current service levels.
103	103	4.9 Subd. 3.Scheduled year.(a) The scheduled year is 2024 and every ten years thereafter
104	104	4.10for the following agencies: Department of Administration; Department of Agriculture;
105	105	4.11Department of Commerce; Department of Corrections; Department of Education; Department
106	106	4.12of Human Rights; Department of Human Services; Department of Military Affairs;
107	107	4.13Department of Natural Resources; Department of Transportation; Minnesota Racing
108	108	4.14Commission; Office of Higher Education; and all advisory groups associated with these
109	109	4.15agencies.
110	110	4.16 (b) The scheduled year is 2026 and every ten years thereafter for the following agencies:
111	111	4.17Council for Minnesotans of African Heritage; Department of Employment and Economic
112	112	4.18Development; Department of Health; Department of Management and Budget; Department
113	113	4.19of Public Safety; Gambling Control Board; Metropolitan Council; Minnesota Council on
114	114	4.20Latino Affairs; Pollution Control Agency; Science Museum; Minnesota State Academies;
115	115	4.21University of Minnesota; and all advisory groups associated with these agencies.
116	116	4.22 (c) The scheduled year is 2028 and every ten years thereafter for the following agencies:
117	117	4.23Agriculture Utilization Research Institute; all health-related boards listed in section 214.01,
118	118	4.24subdivision 2; Council on Asian-Pacific Minnesotans; Department of Labor and Industry;
119	119	4.25Department of Revenue; Explore Minnesota Tourism; Minnesota State Colleges and
120	120	4.26Universities; Minnesota Indian Affairs Council; Board of Peace Officer Standards and
121	121	4.27Training; Professional Educator Licensing and Standards Board; Minnesota Historical
122	122	4.28Society; Perpich Center for Arts Education; and all advisory groups associated with these
123	123	4.29agencies.
124	124	4.30 (d) The scheduled year is 2030 and every ten years thereafter for the following agencies:
125	125	4.31all non-health-related boards listed in section 214.01, subdivision 3, except as otherwise
126	126	4.32provided in this section; Board of the Arts; Board of Animal Health; Board of School
127	127	4.33Administrators; Board of Water and Soil Resources; Department of Veterans Affairs;
128	128	4.34Emergency Medical Services Regulatory Board; Mayo Medical School; Office of
129	129	4Sec. 3.
130	130	23-00957 as introduced01/12/23 REVISOR SGS/EH 5.1Administrative Hearings; Public Utilities Commission; Uniform Laws Commission; Workers'
131	131	5.2Compensation Board; and all advisory groups associated with these agencies.
132	132	5.3 (e) The scheduled year is 2032 and every ten years thereafter for the following agencies:
133	133	5.4Amateur Sports Commission; Capitol Area Architectural and Planning Board; Bureau of
134	134	5.5Mediation Services; Campaign Finance and Public Disclosure Board; Destination Medical
135	135	5.6Center; Higher Education Facilities Authority; Department of Iron Range Resources and
136	136	5.7Rehabilitation; Friends of the Minnesota Conservation Corps; Minnesota Zoological Garden;
137	137	5.8Board of Private Detectives and Protective Agent Services; and all advisory groups associated
138	138	5.9with these agencies.
139	139	5.10 EFFECTIVE DATE.This section is effective July 1, 2023.
140	140	5Sec. 3.
141	141	23-00957 as introduced01/12/23 REVISOR SGS/EH