SF2851

Purpose of the Bill

The bill aims to amend the timing for reporting the budget reserve percentage in Minnesota. It specifically adjusts the date by which the commissioner of management and budget must submit a report detailing recommendations for the state's budget reserve.

Main Provisions

• The commissioner of management and budget is tasked with developing and reviewing a methodology for assessing the adequacy of Minnesota's budget reserve. This assessment is based on the volatility of the general fund's tax structure.
• The commissioner must annually estimate and report the recommended percentage of nondedicated revenues from the general fund to be set aside as a budget reserve.
• The report is required to be submitted to the chairs and ranking minority members of the Senate Committee on Finance, the House of Representatives Committee on Ways and Means, and the Senate and House Committees on Taxes.

Significant Changes

• The reporting deadline for the budget reserve percentage has been changed from September 30 to October 30 each year.
• The report must include any revisions to the recommendation due to significant changes in tax structures or revisions to the assessment methodology, as well as any other relevant information.

Relevant Terms

• Budget Reserve
• General Fund
• Nondedicated Revenues
• Methodology Revision
• Tax Structure Volatility