Legacy Committee takes action to prevent budget shortfalls

With two of the four Legacy funds facing projected budget deficits in Fiscal Year 2017, the House Legacy Funding Finance Committee approved a bill Monday to avoid those potential shortfalls.

Sponsored by committee chair Rep. Bob Gunther (R-Fairmont), HF706, which was referred to the House Ways and Means Committee, would require the four Legacy funds to each keep a reserve of at least 5 percent of their projected tax receipts each fiscal year.

Gunther shared two letters from Minnesota Management and Budget Commissioner Myron Frans, who wrote that the Parks and Trails and Arts and Cultural Heritage funds each face projected deficits in Fiscal Year 2017 based on slowing sales tax revenues predicted in the November 2016 Budget and Economic Forecast.

The Parks and Trails Fund faces a $1.05 million deficit, and the Arts and Cultural Heritage Fund faces a deficit of $252,000.

“The bill will help prevent deficits in the future; that’s what we’re trying to get accomplished,” Gunther said.

WATCH Discussion of the bill in the House Legacy Funding Finance Committee

HF706 was amended to make technical changes to its language. Its companion, SF565, is sponsored by Sen. Carrie Ruud (R-Breezy Point) and awaits action by the Senate Environment and Natural Resources Policy and Legacy Finance Committee.

Created by the Clean Water, Land and Legacy Amendment approved by voters in 2008, the Legacy Fund works to help preserve and enhance the state’s natural and cultural resources through a three-eighths of 1 percent increase in the state sales tax. That money is then deposited into four accounts:

• Clean Water Fund
• Outdoor Heritage Fund
• Arts and Cultural Heritage Fund
• Parks and Trails Fund

Funding started in July 2009 and will continue through June 2034.