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