1. State Government Special Revenue Fund Update
Paul Moore, Executive Budget Officer
January 24, 2017
Minnesota Management and Budget | mn.gov/mmb

2. Overview of State Government Special Revenue Fund (SGSR)
Comprised of four accounts:
911 Emergency Fund
Construction Code Fund
State Government Special Revenue (1200) Fund
Health Related Boards (1201) Fund
Expenditures from these accounts are supported by fee revenue.
Minnesota Management and Budget | mn.gov/mmb

3. Health and Human Services programs funded by the SGSR
HHS agencies and boards license, regulate, and inspect business/public entities and occupations to protect public health and safety.
SGSR Account (1200 Fund)
Health Related Boards Account (1201 Fund)
• Health Department: Hospitals, nursing homes, restaurants, pools, hotels, several health occupations, and wells/public drinking water
• Dozens of occupations and educational programs across 15 health-related licensing boards
• Human Services Department: Child care and home & community-based services providers
Minnesota Management and Budget | mn.gov/mmb

4. Fee levels and agency spending are determined by the legislature
Statute dictates fee levels
Fee revenue is deposited and contributes to the fund’s bottom line
Session law appropriates money to agencies and boards, dictating annual spending limits.
Minnesota Management and Budget | mn.gov/mmb

5. 1200 Fund is facing a deficit starting this fiscal year
SGSR (1200 fund)
($ in millions)
FY 2016
FY 2017
Actual
Nov Forecast
Beginning Balance
$4,227
$4,277
Revenues
$54,109
$55,259
DHS expenditures
$4,450
$4,339
MDH expenditures
$49,431
$57,090
All other expenditures
$178
$984
Budgetary Balance
($2,877)
Minnesota Management and Budget | mn.gov/mmb

6. The deficit is projected to grow through the next biennium and beyond
SGSR (1200 fund)
($ in millions) FY FY
Nov Forecast
Nov Forecast
Beginning Balance
($2,877)
($7,084)
Revenues
$110,973
$110,653
DHS expenditures
$8,548
MDH expenditures
$105,469
$105,476
All other expenditures
$1,164
Budgetary Balance
($11,618)
Minnesota Management and Budget | mn.gov/mmb

7. Next steps toward resolving deficit
MMB has informed commissioners and the legislature of projected deficit.
MMB continues to work with agencies to identify solutions.
Proposals will be communicated to legislature and legislative input is invited.
Minnesota Management and Budget | mn.gov/mmb

8. Questions?
mn.gov/mmb