1.1 	A bill for an act
1.2 	relating to state government; requiring a limitation on state fiscal year spending;
1.3 	proposing coding for new law in Minnesota Statutes, chapter 16A.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. [16A.104] LIMITATION ON STATE FISCAL YEAR SPENDING.
1.6 		Subdivision 1.Limitation on spending. For fiscal year 2018 and each fiscal 
1.7 	year thereafter, state general fund appropriations shall be limited to an amount equal to 
1.8 	five percent of Minnesota personal income. "Minnesota personal income" means the 
1.9 	projected personal income data for Minnesota for the calendar year in which the fiscal year 
1.10 	begins as specified in the state budget and economic forecast as reported by Minnesota 
1.11 	Management and Budget.
1.12 		Subd. 2.Exceptions. The limitation on the level of state general fund appropriations 
1.13 	in subdivision 1 shall not apply to:
1.14 	(1) any state general fund appropriation which, as a result of a requirement of federal 
1.15 	law, is made for any new program or service or for any increase in the level of service for 
1.16 	an existing program beyond the existing level of service;
1.17 	(2) any state general fund appropriation which, as a result of a requirement of a final 
1.18 	state or federal court order, is made for any new program or service or for any increase in 
1.19 	the level of service for an existing program beyond the existing level of service;
1.20 	(3) funds earmarked for debt service;
1.21 	(4) transfers of unappropriated surplus at the end of a fiscal year to the budget 
1.22 	reserve fund, state employees retirement fund, or used to reduce state indebtedness; or
1.23 	(5) the governor's declaration of a specific emergency.
2.1 		Subd. 3.Surplus. Any unappropriated surplus at the end of a fiscal year may be 
2.2 	transferred to the budget reserve fund, state employees retirement fund, or may be used to 
2.3 	reduce state indebtedness.