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HF 2833

as introduced - 87th Legislature (2011 - 2012) Posted on 03/13/2012 10:25am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to state government; providing a reform roadmap; proposing coding for
new law as Minnesota Statutes, chapter 1A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [1A.01] COORDINATION.
new text end

new text begin (a) The Legislative Commission on Planning and Fiscal Policy must coordinate the
legislative role in designing, piloting, implementing, refining, and extending the reform
roadmap. In its coordination role, the commission may defer to standing committees of
the legislature to develop proposals for specific initiatives.
new text end

new text begin (b) Departments, agencies, and officials in the executive and judicial branches
must comply with a request of the commission for information and analysis to assist the
commission in its duties under this chapter.
new text end

new text begin (c) As used in this chapter, "commission" means the Legislative Commission on
Planning and Fiscal Policy, unless the context indicates otherwise.
new text end

Sec. 2.

new text begin [1A.02] TOP INITIATIVES.
new text end

new text begin (a) As initial initiatives, the Legislative Commission on Planning and Fiscal Policy,
in coordination with standing committees of the legislature, must conduct hearings as
necessary to monitor initiatives specified in this section and to develop the legislation
required to support the initiatives as necessary.
new text end

new text begin (b) The commissioner of the Department of Management and Budget shall conduct
an evaluation of all bonding projects previously approved by the legislature and not yet
started and must prepare and deliver an evaluation report to the commission by December
31, 2012. The evaluation report must cite the explicit constitutional authority for each
bonding project where the authority exists, and must identify those projects for which no
such explicit authority exists. The evaluation report must force rank the projects that are
deemed to have constitutional authority and must also recommend a sequential schedule
for the projects. Projects lacking constitutional authority must be canceled. The effect of
implementing these changes must result in net savings to the state of at least $40,000,000
for fiscal years 2014 and 2015.
new text end

new text begin (c) The commissioner of human services must convert state medical assistance
programs to a tiered quality and cost system similar to the system used by the state
employee group insurance program. $1,000,000 is appropriated to the Department of
Human Services in fiscal year 2013 to begin conversion toward tiered medical assistance
yielding at least $50,000,000 in savings to the state in fiscal year 2013. The Department
of Human Services must report to the commission before December 31, 2012, outlining
actions already taken to achieve the 2013 savings requirement and future actions planned
to achieve the 2014 and 2015 savings requirement. The report must identify and
substantiate projected savings. The effect of implementing these changes must result in
net savings to the state of at least $290,000,000 for fiscal years 2014 and 2015.
new text end

new text begin (d) The commissioner of administration must implement a shared service center that
will provide technology, accounting, procurement, payroll, and human resources services
to all executive branch state agencies, and will outsource those functions where possible.
$10,000,000 in fiscal year 2013 is appropriated to the Department of Administration to
begin implementation of the shared service center in a manner that will result in at least
$20,000,000 in savings to the state in fiscal year 2013. The Department of Administration
shall report to the commission before December 31, 2012, outlining actions already taken
to achieve the 2013 savings requirement and future actions planned to achieve the savings
requirement. The report must identify and substantiate projected savings associated with
each action. Implementing these changes must result in net savings to the state of at least
$100,000,000 for fiscal years 2014 and 2015.
new text end

new text begin (e) $1,000,000 is appropriated to the Department of Human Services to convert
MinnesotaCare to a sliding-scale voucher program allowing recipients to purchase
insurance in the private market, across state lines, and with selective bundling of at least
33 percent of state-mandated coverage items. The converted program must result in at
least $50,000,000 in savings to the state in fiscal year 2013. The Department of Human
Services must report to the commission before December 31, 2012, outlining actions
already taken to achieve the 2013 savings requirement and future actions planned to
achieve the savings requirement. The report must identify and substantiate projected
savings associated with each action. Implementing these changes will result in decreased
costs to the state of at least $200,000,000 for fiscal years 2014 and 2015.
new text end

new text begin (f) $10,000,000 in fiscal year 2013 is appropriated to the Department of Human
Services to consolidate human services delivery agencies from 87 counties to ten regional
service delivery authorities. The effect of implementing these changes must result in
decreased costs to the state of at least $50,000,000 for fiscal years 2014 and 2015. The
Department of Human Services shall report to the commission before December 31, 2012,
outlining actions already taken to achieve savings and future actions planned to achieve
future savings. The report must identify and substantiate projected savings associated
with each action.
new text end

new text begin (g) The commissioner of administration must consolidate all state executive agency
functions into the following cabinet level agencies: Management and Budget, Education,
Health and Human Services, Military Affairs, Agriculture, Transportation, Veterans,
Natural Resources, Commerce, and Public Safety. The consolidation must result in at
least $5,000,000 in savings to the state in fiscal year 2013. $5,000,000 is appropriated
to the Department of Administration, which will be responsible for overseeing and
executing the consolidation. The Department of Administration shall report to the
commission before December 31, 2012, outlining actions already taken to achieve the
2013 savings requirement and future actions planned to achieve the savings requirement.
The report must identify and substantiate projected savings associated with each action.
Implementing these changes must result in decreased costs to the state of at least
$10,000,000 for fiscal years 2014 and 2015.
new text end

new text begin (h) The commissioner of management and budget must develop a plan for state
workers allowing them to compete to perform state operations unhindered by state
administrative and bureaucratic overhead. The new model must result in a minimum of
$1,000,000 in savings to the state in fiscal year 2013. The Department of Management
and Budget shall report to the commission before December 31, 2012, outlining actions
already taken to achieve the 2013 savings requirement and future actions planned to
achieve the savings requirement. The report must identify and substantiate projected
savings associated with each action. Implementing these changes must result in decreased
costs to the state of at least $10,000,000 for fiscal years 2014 and 2015.
new text end

new text begin (i) The commissioner of management and budget shall provide pay and benefits for
state employees at the same level as the private sector. $2,000,000 is appropriated to the
Department of Management and Budget to study and implement these modifications. It
is estimated that the effect of implementing these changes will result in decreased costs
to the state of at least $150,000,000 for fiscal years 2014 and 2015. The Department of
Management and Budget shall report to the commission before December 31, 2012,
outlining actions already taken to achieve savings and future actions planned to achieve
future savings. The report must identify and substantiate projected savings associated
with each action.
new text end

new text begin (j) Public employee pension reforms beginning in fiscal year 2014 must stack on the
defined-benefit program's defined contribution benefits at private sector market levels. The
new model must result in a minimum of at least $50,000,000 in savings to the state in fiscal
year 2013. The Department of Management and Budget must report to the commission
before December 31, 2012, outlining actions already taken to achieve the 2013 savings
requirement and future actions planned to achieve the savings requirement. Implementing
these changes must result in decreased costs to the state of at least $200,000,000 for
fiscal years 2014 and 2015.
new text end

new text begin (k) The Department of Education must offer school districts a package of a four-year
holiday from state mandates, in combination with new achievement-based funding and the
option for the district to establish a two-year base wage and benefits freeze for all school
district employees. Districts will return to the state 35 percent of the savings realized
under the mandate holiday and optional wage and benefits freeze. The effect of the funds
returned from the districts to the state will result in decreased costs to the state of at least
$500,000,000 for fiscal years 2014 and 2015. The Department of Education must report to
the commission before December 31, 2012, outlining actions already taken to achieve
savings and future actions planned to achieve future savings. The report must identify and
substantiate projected savings associated with each action.
new text end

new text begin (l) The University of Minnesota and the Minnesota state colleges and universities
must reduce overlap through facility and program consolidation across the two systems
and with K-12 school districts. Higher education funding shall be restructured to 50
percent direct, 25 percent student grants, and 25 percent student loans. $20,000,000
is appropriated to the Office of Higher Education to begin the reduction of overlap.
Implementing these changes will result in decreased costs to the state of at least
$100,000,000 for fiscal years 2014 and 2015. The Office of Higher Education shall deliver
a report to the commission before December 31, 2012, outlining actions already taken to
achieve savings and future actions planned to achieve future savings. The report must
identify and substantiate projected savings associated with each action.
new text end

new text begin (m) The Department of Revenue must reform the local government aid program,
restricting it to public safety and water purposes, with aid to be issued through grants
that are needs-based and means-tested, and that give priority to shared services. The
new model must result in a minimum of at least $50,000,000 in savings to the state in
fiscal year 2013. The Department of Revenue shall deliver a report to the commission
before December 31, 2012, outlining actions already taken to achieve the 2013 savings
requirement and future actions planned to achieve the savings requirement. The
report must identify and substantiate projected savings associated with each action.
Implementing these changes must result in decreased costs to the state of at least
$500,000,000 for fiscal years 2014 and 2015.
new text end

new text begin (n) $500,000 is appropriated to the Legislative Coordinating Commission for the
Sunset Advisory Commission to carry out the annual process of sunset review. The Sunset
Advisory Commission shall report to the commission before December 31, 2012, outlining
actions already taken and future actions planned to achieve the savings requirement. It is
estimated that the effect of implementing these changes will result in decreased costs to
the state of at least $10,000,000 for fiscal years 2014 and 2015.
new text end

new text begin (o) The Department of Education must convert special education funding to a
response to intervention prevention model, rather than waiting for students to fail. The
proposals must provide $1,000,000 to the Department of Education to begin execution
of the conversion through the piloting of multiple cost reduction strategies and tactics.
It is estimated that the effect of piloting and implementing these changes will result in
decreased costs to the state of at least $100,000,000 for fiscal years 2014 and 2015. The
Department of Education shall report to the commission before December 31, 2012,
outlining actions already taken to achieve savings and future actions planned to achieve
future savings. The report must identify and substantiate projected savings associated
with each action.
new text end

new text begin (p) The Department of Management and Budget must expand pay-for-performance
and human capital pilot projects to attract voluntary private investment in programs that
work, rather than paying for programs with taxes. Implementing these changes will result
in decreased costs to the state of at least $60,000,000 for fiscal years 2014 and 2015.
The Department of Management and Budget shall deliver a report to the Legislative
Commission on Planning and Fiscal Policy before December 31, 2012, outlining actions
already taken to achieve savings and future actions planned to achieve future savings. The
report must identify and substantiate projected savings associated with each action.
new text end

Sec. 3.

new text begin [1A.03] TIMELINES.
new text end

new text begin (a) This section establishes the timeline for implementation of the reforms and
initiatives in section 1A.02.
new text end

new text begin (b) The legislature anticipates this act will be enacted in 2012, and that before July
1, 2013:
new text end

new text begin (1) certain reforms that can be implemented quickly will be completed;
new text end

new text begin (2) pilot projects for other reforms will be commenced and evaluated;
new text end

new text begin (3) detailed designs and plans will be completed for fiscal years 2014 and 2015; and
new text end

new text begin (4) legislation needed to implement the detailed designs and plans for fiscal years
2014 and 2015 will be enacted in 2013.
new text end

new text begin (c) The legislature anticipates that before July 1, 2015:
new text end

new text begin (1) reform designs and plans will be implemented;
new text end

new text begin (2) reform designs and plans will be evaluated and refined;
new text end

new text begin (3) extended designs and plans for fiscal years 2016 and 2017 will be developed; and
new text end

new text begin (4) legislation needed to implement the extended designs and plans for fiscal years
2016 and 2017 will be enacted in 2015.
new text end

new text begin (d) The legislature anticipates that after July 1, 2015, further extended designs and
plans will be implemented, evaluated, and refined.
new text end