Budget reserve limit conformation to the existing amount in the budget reserve account provision

A bill for an act

relating to state finances; conforming the budget reserve limit to the existing amount

in the budget reserve account; amending Minnesota Statutes 2024, section 16A.152,

subdivision 2.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 16A.152, subdivision 2, is amended to read:

Subd. 2.

Additional revenues; priority.

(a) If on the basis of a forecast of general fund

revenues and expenditures, the commissioner of management and budget determines that

there will be a positive unrestricted budgetary general fund balance at the close of the

biennium, the commissioner of management and budget must allocate money to the following

accounts and purposes in priority order:

(1) the cash flow account established in subdivision 1 until that account reaches

$350,000,000;

(2) the budget reserve account established in subdivision 1a until that account reaches
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$2,852,098,000
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$3,421,764,000
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;

(3) the amount necessary to increase the aid payment schedule for school district aids

and credits payments in section
127A.45
to not more than 90 percent rounded to the nearest

tenth of a percent without exceeding the amount available and with any remaining funds

deposited in the budget reserve; and

(4) the amount necessary to restore all or a portion of the net aid reductions under section

127A.441
and to reduce the property tax revenue recognition shift under section
123B.75,

subdivision 5
, by the same amount.

(b) The amounts necessary to meet the requirements of this section are appropriated

from the general fund within two weeks after the forecast is released or, in the case of

transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations

schedules otherwise established in statute.

(c) The commissioner of management and budget shall certify the total dollar amount

of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of education.

The commissioner of education shall increase the aid payment percentage and reduce the

property tax shift percentage by these amounts and apply those reductions to the current

fiscal year and thereafter.

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EFFECTIVE DATE.

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This section is effective the day following final enactment.

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