MN HF2866

Requires the commissioner to prepare a general fund balance analysis after each legislative session that modifies general fund revenues or expenditures, showing forecast revenues and expenditures for the current and next following bienniums, prepared in consultation with legislative finance committee chairs and designated staff.

Authorizes the commissioner to defer or suspend prior statutory obligations and reduce budget allotments with governor approval and consultation with the Legislative Advisory Commission on Planning and Fiscal Policy when general fund receipts fall below anticipated levels.

Limits reductions to allotments for statutorily created obligations by allowing proportional payment reductions to recipients but prohibiting changes to formulas, eligibility standards, or similar statutory criteria.

Caps total general fund allotment reductions during a biennium at two percent of total appropriations, with individual appropriation reductions not exceeding ten percent, and prohibits program elimination or deferrals extending beyond the biennium.

Takes effect the day following final enactment and applies to reductions made on or after that date without affecting the validity of prior actions.