HF 2690

1st Committee Engrossment - 86th Legislature (2009 - 2010)

Posted on 03/19/2013 07:29 p.m.

1.1A bill for an act 1.2relating to state government; requiring reductions in executive agency 1.3appropriations include proportionate reductions in expenditures on contracts; 1.4providing requirements during periods of projected deficits; eliminating certain 1.5executive branch positions;amending Minnesota Statutes 2008, section 16A.152, 1.6subdivision 4; proposing coding for new law in Minnesota Statutes, chapter 16A. 1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.8    Section 1. Minnesota Statutes 2008, section 16A.152, subdivision 4, is amended to 1.9read: 1.10    Subd. 4. Reduction. (a) If the commissioner determines that probable receipts 1.11for the general fund will be less than anticipated, and that the amount available for the 1.12remainder of the biennium will be less than needed, the commissioner shall, with the 1.13approval of the governor, and after consulting the Legislative Advisory Commission, 1.14reduce the amount in the budget reserve account as needed to balance expenditures with 1.15revenue. 1.16(b) An additional deficit shall, with the approval of the governor, and after consulting 1.17the legislative advisory commission, be made up by reducing unexpended allotments of 1.18any prior appropriation or transfer. Notwithstanding any other law to the contrary, the 1.19commissioner is empowered to defer or suspend prior statutorily created obligations 1.20which would prevent effecting such reductions. new text begin If the commissioner reduces unexpended new text end 1.21 new text begin allotments of general fund appropriations to an executive branch state agency, the agency new text end 1.22 new text begin head must determine the amount of this reduction in allotments as a percentage of the new text end 1.23 new text begin original general fund appropriation to the agency, and in implementing the reduction in new text end 1.24 new text begin allotments the agency must reduce its general fund expenditures on contracts with outside new text end 1.25 new text begin vendors by at least that percentage. To the extent possible, the reduction in expenditures new text end 2.1 new text begin on contracts required by this section must be applied to contracts for which the work new text end 2.2 new text begin would be performed outside of Minnesota. new text end 2.3(c) If the commissioner determines that probable receipts for any other fund, 2.4appropriation, or item will be less than anticipated, and that the amount available for the 2.5remainder of the term of the appropriation or for any allotment period will be less than 2.6needed, the commissioner shall notify the agency concerned and then reduce the amount 2.7allotted or to be allotted so as to prevent a deficit. 2.8(d) In reducing allotments, the commissioner may consider other sources of revenue 2.9available to recipients of state appropriations and may apply allotment reductions based 2.10on all sources of revenue available. 2.11(e) In like manner, the commissioner shall reduce allotments to an agency by the 2.12amount of any saving that can be made over previous spending plans through a reduction 2.13in prices or other cause. 2.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 2.15 new text begin and applies to reductions in allotments made on or after that date. new text end 2.16    Sec. 2. new text begin [16A.1524] PROPORTIONAL REDUCTIONS IN CONTRACTS. new text end 2.17 new text begin If a law reduces the amount of a general fund appropriation to an executive agency, new text end 2.18 new text begin the agency head must determine the amount of this reduction as a percentage of the new text end 2.19 new text begin original general fund appropriation to the agency, and the agency must reduce its general new text end 2.20 new text begin fund expenditures on contracts with outside vendors by at least that percentage, unless new text end 2.21 new text begin otherwise provided by the law making the reduction in the general fund appropriation. new text end 2.22 new text begin To the extent possible, the reduction in expenditures on contracts required by this section new text end 2.23 new text begin must be applied to contracts for which the work would be performed outside of Minnesota. new text end 2.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 2.25 new text begin and applies to reductions in allotments made on or after that date. new text end 2.26    Sec. 3. new text begin [16A.1525] REQUIREMENTS DURING PROJECTED DEFICITS. new text end 2.27 new text begin This section applies when the commissioner determines that general fund revenue new text end 2.28 new text begin will be less than needed to meet general fund expenditures for the remainder of the new text end 2.29 new text begin biennium and that the amount in the budget reserve account is not sufficient to meet the new text end 2.30 new text begin projected deficit. When this section applies: new text end 2.31 new text begin (1) an executive agency appointing authority may not authorize state-paid employee new text end 2.32 new text begin travel unless the travel is essential to carry out the agency's statutory mission or is new text end 2.33 new text begin necessary for state emergency preparedness or response; and new text end 3.1 new text begin (2) the governor must ensure that the aggregate number of full-time equivalent new text end 3.2 new text begin positions designated as managerial in all executive branch state agencies is not increased new text end 3.3 new text begin during the period of the projected deficit, unless authorized by law enacted after the new text end 3.4 new text begin deficit is projected. new text end 3.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 3.6    Sec. 4. new text begin PROFESSIONAL AND TECHNICAL CONTRACTS. new text end 3.7     new text begin Subdivision 1. new text end new text begin Reduction. new text end new text begin By July 1, 2010, the commissioner of management and new text end 3.8 new text begin budget shall allocate a reduction of $4,000,000 among the general fund appropriations new text end 3.9 new text begin for fiscal year 2011 to executive branch state agencies, as defined in Minnesota Statutes, new text end 3.10 new text begin section 16A.011, subdivision 12a. To the extent possible, without hiring permanent staff new text end 3.11 new text begin replacements, this reduction must be achieved through reductions in expenditures for new text end 3.12 new text begin professional and technical contracts, as defined in Minnesota Statutes, section 16C.08, new text end 3.13 new text begin subdivision 1, and in particular on contracts for which work would be performed outside new text end 3.14 new text begin of Minnesota. Executive branch state agencies shall cooperate with the commissioner in new text end 3.15 new text begin developing and implementing the reductions. Any reductions that cannot be achieved new text end 3.16 new text begin through savings in professional and technical contracts must be allocated proportionally new text end 3.17 new text begin across executive branch state agency operating budgets. For purposes of defining the base new text end 3.18 new text begin under Minnesota Statutes, section 16A.11, subdivision 3, paragraph (b), $4,000,000 each new text end 3.19 new text begin year must be allocated as a permanent reduction to state agency base appropriations for new text end 3.20 new text begin fiscal years 2012 and 2013. The reductions must be allocated in proportion to the fiscal new text end 3.21 new text begin year 2011 reduction. For purposes of this subdivision, "executive branch state agency" new text end 3.22 new text begin does not include the Minnesota State Colleges and Universities. By January 15, 2011, the new text end 3.23 new text begin commissioner of management and budget shall report to the chairs and ranking minority new text end 3.24 new text begin members of the legislative committees with jurisdiction over finance regarding the amount new text end 3.25 new text begin of the reductions in professional and technical contract spending by each agency. new text end 3.26     new text begin Subd. 2. new text end new text begin Exception. new text end new text begin If subdivision 1 is enacted into law, Minnesota Statutes, new text end 3.27 new text begin section 16A.1524, does not apply to appropriations reductions enacted during the 2010 new text end 3.28 new text begin regular legislative session. new text end 3.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 3.30    Sec. 5. new text begin ELIMINATION OF POSITIONS. new text end 3.31     new text begin Subdivision 1. new text end new text begin Deputy and assistant commissioners. new text end new text begin The governor must eliminate new text end 3.32 new text begin 25 percent of the positions titled "deputy commissioner" or "assistant commissioner" in new text end 3.33 new text begin executive branch state agencies. new text end 4.1     new text begin Subd. 2. new text end new text begin Positions eliminated. new text end new text begin The following positions are eliminated: one deputy new text end 4.2 new text begin chief of staff to the governor; director of government relations, governor's office; director new text end 4.3 new text begin of legislative and cabinet affairs, governor's office; one position of senior policy advisor new text end 4.4 new text begin to the governor, governor's office; two positions of policy advisor to the governor, new text end 4.5 new text begin governor's office; charter school liaison, Department of Education; communications new text end 4.6 new text begin director, Department of Education; director of legislative affairs and strategic planning, new text end 4.7 new text begin Department of Public Safety. new text end