Bill Text: MN SF401 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Zero-based budgeting requirement
Spectrum: Partisan Bill (Republican 5-0)
Status: (Introduced - Dead) 2013-02-13 - Referred to Finance [SF401 Detail]
Download: Minnesota-2013-SF401-Introduced.html
1.2relating to state government; providing for zero-based budgeting;proposing
1.3coding for new law in Minnesota Statutes, chapter 16A.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. [16A.107] ZERO-BASED BUDGETING.
1.6 Subdivision 1. Zero-based budget. (a) For each biennium to be covered by a
1.7proposed state budget, the governor shall require the proposed budgets of each state
1.8department, institution, and agency of the executive department to prepare a budget using
1.9zero-based budgeting. The commissioner of management and budget shall provide any
1.10technical assistance necessary to enable each department, institution, or agency to complete
1.11its budgetary requests as specified by the commissioner of management and budget.
1.12(b) The commissioner of management and budget shall adopt rules necessary to
1.13provide instruction and guidance to each department, institution, and agency to facilitate
1.14the provisions of this section.
1.15(c) As used in this section, "zero-based budgeting" means a method of determining
1.16the budget of a department, institution, or agency for which the budget of the department,
1.17institution, or agency for the biennium immediately preceding the biennium covered by
1.18the budget is:
1.19(1) deemed to have been zero; and
1.20(2) each proposed expenditure for the biennium covered by the budget must be
1.21justified as if it were a new expenditure.
1.22 Subd. 2. Zero-based budget plan. Each department, institution, and agency shall
1.23provide the following information:
2.1(1) a description of activities that comprise the agency, and a justification for the
2.2existence of each activity by reference to statute or other legal authority;
2.3(2) for each activity, a quantitative estimate of any adverse impacts that could
2.4reasonably be expected should the activity be discontinued, together with a full description
2.5of the methods by which the adverse impact is estimated;
2.6(3) a list of quantifiable program outcomes that measure the efficiency and
2.7effectiveness of each program;
2.8(4) for each activity, an itemized account of expenditures that would be required to
2.9maintain the activity at the minimum level of service required by the statutory authority,
2.10together with a concise statement of the quantity and quality of services required at that
2.11minimum level;
2.12(5) for each activity, an itemized account of expenditures required to maintain the
2.13quantity and quality of services being provided and the number of personnel required to
2.14accomplish each program; and
2.15(6) a ranking of all activities that shows the relative contribution of each activity to
2.16the overall goals and purposes of the agency at current service levels.
2.17 Subd. 3. Legislature, judicial branch, and public employees' retirement system.
2.18The legislature, judicial branch, and public employees' retirement system shall each
2.19submit a budget to the legislature in the same format as the proposed executive budget
2.20under this section. All projections of revenue and any other information concerning future
2.21state revenue contained in those budgets must be based upon projections and estimates
2.22prepared by Minnesota Management and Budget.
2.23EFFECTIVE DATE.This section is effective July 1, 2013, and must be
2.24implemented for the biennium beginning in fiscal year 2016.
1.3coding for new law in Minnesota Statutes, chapter 16A.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. [16A.107] ZERO-BASED BUDGETING.
1.6 Subdivision 1. Zero-based budget. (a) For each biennium to be covered by a
1.7proposed state budget, the governor shall require the proposed budgets of each state
1.8department, institution, and agency of the executive department to prepare a budget using
1.9zero-based budgeting. The commissioner of management and budget shall provide any
1.10technical assistance necessary to enable each department, institution, or agency to complete
1.11its budgetary requests as specified by the commissioner of management and budget.
1.12(b) The commissioner of management and budget shall adopt rules necessary to
1.13provide instruction and guidance to each department, institution, and agency to facilitate
1.14the provisions of this section.
1.15(c) As used in this section, "zero-based budgeting" means a method of determining
1.16the budget of a department, institution, or agency for which the budget of the department,
1.17institution, or agency for the biennium immediately preceding the biennium covered by
1.18the budget is:
1.19(1) deemed to have been zero; and
1.20(2) each proposed expenditure for the biennium covered by the budget must be
1.21justified as if it were a new expenditure.
1.22 Subd. 2. Zero-based budget plan. Each department, institution, and agency shall
1.23provide the following information:
2.1(1) a description of activities that comprise the agency, and a justification for the
2.2existence of each activity by reference to statute or other legal authority;
2.3(2) for each activity, a quantitative estimate of any adverse impacts that could
2.4reasonably be expected should the activity be discontinued, together with a full description
2.5of the methods by which the adverse impact is estimated;
2.6(3) a list of quantifiable program outcomes that measure the efficiency and
2.7effectiveness of each program;
2.8(4) for each activity, an itemized account of expenditures that would be required to
2.9maintain the activity at the minimum level of service required by the statutory authority,
2.10together with a concise statement of the quantity and quality of services required at that
2.11minimum level;
2.12(5) for each activity, an itemized account of expenditures required to maintain the
2.13quantity and quality of services being provided and the number of personnel required to
2.14accomplish each program; and
2.15(6) a ranking of all activities that shows the relative contribution of each activity to
2.16the overall goals and purposes of the agency at current service levels.
2.17 Subd. 3. Legislature, judicial branch, and public employees' retirement system.
2.18The legislature, judicial branch, and public employees' retirement system shall each
2.19submit a budget to the legislature in the same format as the proposed executive budget
2.20under this section. All projections of revenue and any other information concerning future
2.21state revenue contained in those budgets must be based upon projections and estimates
2.22prepared by Minnesota Management and Budget.
2.23EFFECTIVE DATE.This section is effective July 1, 2013, and must be
2.24implemented for the biennium beginning in fiscal year 2016.
