Bill > SF2675

This bill eliminates the requirement for state budget forecasts to account for inflation. Specifically, the bill modifies two subdivisions of Minnesota Statutes section 16A.103, which governs how state financial forecasts are prepared. Under the proposed changes, when creating state budget forecasts, the commissioner of management and budget must no longer include inflation as a variable when estimating expenditures. Instead, expenditure estimates must be based solely on current laws and obligations, excluding any inflationary adjustments. The bill also maintains the existing requirement that the commissioner consult with legislative finance committee chairs and staff about forecast variables, but removes specific references to inflation. Both amendments will take effect the day after the bill is enacted, which means the new forecasting rules would apply to future budget projections. The practical impact of this change is that state budget forecasts will be created using a more static approach that does not automatically factor in potential cost increases due to inflation.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF2675&ssn=0&y=2025