HF2720

Purpose of the Bill

The purpose of this bill is to change the reporting date for the annual budget reserve percentage report in Minnesota. This report assesses the adequacy of the state's financial reserves by analyzing current revenue structures and is crucial for understanding the fiscal health of the state.

Main Provisions

• Methodology Review: The commissioner of management and budget is tasked with developing and annually reviewing a methodology that assesses if the budget reserve is adequate, based on the volatility of Minnesota's general fund tax structure.
• Annual Reporting: The commissioner must annually estimate the recommended percentage of general fund nondedicated revenues to be kept as a reserve, using the developed methodology.
• Change in Reporting Date: The report, which used to be due by September 30 each year, is now due by October 30. This report is submitted to key legislative committee members who oversee finance and taxation.

Significant Changes to Existing Law

• The primary change in the legislation is the adjustment of the deadline for submitting the budget reserve percentage report from September 30 to October 30 each year.

Relevant Terms

• Budget reserve
• General fund
• Nondedicated revenues
• Tax structure
• Commissioner of management and budget