S.F. No. 455 Summary

• Amends Minnesota Statutes section 16A.103 to require state budget forecasts to include estimates for expenditures projected to occur as a result of inflation and variables outside the legislature's control.

• Removes the prohibition against including an allowance for inflation in expenditure estimates, thereby permitting inflation adjustments in budget forecasts.

• Requires the commissioner to determine the rate of inflation, application of inflation, state bonding effects on debt service, investment income calculations, and other forecast variables in consultation with legislative leadership and fiscal staff.

• Mandates the commissioner consult with chairs and lead minority members of the Senate State Government Finance Committee and House Ways and Means Committee at least three weeks before forecast release.

• Requires the commissioner to inform legislative leadership and fiscal staff of any changes to forecast variables from the previous forecast no later than two weeks before the new forecast is released.