State forecast to account for the rate of inflation requirement elimination

This bill eliminates a requirement that Minnesota's state budget forecast must account for inflation when estimating expenditures. Specifically, it amends state law to state that expenditure estimates must not include an allowance for inflation, shifting how the state projects future costs. The bill also adds a consultation process requiring the budget commissioner to consult with legislative finance committee leaders and fiscal staff at least three weeks before releasing the forecast, and to notify them of any changes to forecast variables two weeks prior. This directly affects state budget forecasters, finance committees, and legislative fiscal staff in preparing the annual state budget. The change simplifies the forecast process by removing inflation adjustments from expenditure calculations.