<a id="pl.1.3"></a><var>1.3</var>appropriations include proportionate reductions in expenditures on contracts; <br/>
<a id="pl.1.4"></a><var>1.4</var>providing requirements during periods of projected deficits; eliminating certain <br/>
<a id="pl.1.5"></a><var>1.5</var>executive branch positions;amending Minnesota Statutes 2008, section 16A.152, <br/>
<a id="pl.1.6"></a><var>1.6</var>subdivision 4; proposing coding for new law in Minnesota Statutes, chapter 16A.<br/>
<a id="pl.1.7"></a><var>1.7</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.0.1.0"></a><a id="pl.1.8"></a><var>1.8</var>    Section 1. Minnesota Statutes 2008, section 16A.152, subdivision 4, is amended to <br/>
<a id="pl.1.9"></a><var>1.9</var>read:<br/>
<a id="pl.1.10"></a><var>1.10</var>    Subd. 4. <b>Reduction.</b> (a) If the commissioner determines that probable receipts <br/>
<a id="pl.1.11"></a><var>1.11</var>for the general fund will be less than anticipated, and that the amount available for the <br/>
<a id="pl.1.12"></a><var>1.12</var>remainder of the biennium will be less than needed, the commissioner shall, with the <br/>
<a id="pl.1.13"></a><var>1.13</var>approval of the governor, and after consulting the Legislative Advisory Commission, <br/>
<a id="pl.1.14"></a><var>1.14</var>reduce the amount in the budget reserve account as needed to balance expenditures with <br/>
<a id="pl.1.15"></a><var>1.15</var>revenue.<br/>
<a id="pl.1.16"></a><var>1.16</var>(b) An additional deficit shall, with the approval of the governor, and after consulting <br/>
<a id="pl.1.17"></a><var>1.17</var>the legislative advisory commission, be made up by reducing unexpended allotments of <br/>
<a id="pl.1.18"></a><var>1.18</var>any prior appropriation or transfer. Notwithstanding any other law to the contrary, the <br/>
<a id="pl.1.19"></a><var>1.19</var>commissioner is empowered to defer or suspend prior statutorily created obligations <br/>
<a id="pl.1.20"></a><var>1.20</var>which would prevent effecting such reductions. If the commissioner reduces unexpended <br/>
<a id="pl.1.21"></a><var>1.21</var>allotments of general fund appropriations to an executive branch state agency, the agency <br/>
<a id="pl.1.22"></a><var>1.22</var>head must determine the amount of this reduction in allotments as a percentage of the <br/>
<a id="pl.1.23"></a><var>1.23</var>original general fund appropriation to the agency, and in implementing the reduction in <br/>
<a id="pl.1.24"></a><var>1.24</var>allotments the agency must reduce its general fund expenditures on contracts with outside <br/>
<a id="pl.1.25"></a><var>1.25</var>vendors by at least that percentage. To the extent possible, the reduction in expenditures <br/>
<a id="pl.2.1"></a><var>2.1</var>on contracts required by this section must be applied to contracts for which the work <br/>
<a id="pl.2.2"></a><var>2.2</var>would be performed outside of Minnesota.<br/>
<a id="pl.2.3"></a><var>2.3</var>(c) If the commissioner determines that probable receipts for any other fund, <br/>
<a id="pl.2.4"></a><var>2.4</var>appropriation, or item will be less than anticipated, and that the amount available for the <br/>
<a id="pl.2.5"></a><var>2.5</var>remainder of the term of the appropriation or for any allotment period will be less than <br/>
<a id="pl.2.6"></a><var>2.6</var>needed, the commissioner shall notify the agency concerned and then reduce the amount <br/>
<a id="pl.2.7"></a><var>2.7</var>allotted or to be allotted so as to prevent a deficit.<br/>
<a id="pl.2.8"></a><var>2.8</var>(d) In reducing allotments, the commissioner may consider other sources of revenue <br/>
<a id="pl.2.9"></a><var>2.9</var>available to recipients of state appropriations and may apply allotment reductions based <br/>
<a id="pl.2.10"></a><var>2.10</var>on all sources of revenue available.<br/>
<a id="pl.2.11"></a><var>2.11</var>(e) In like manner, the commissioner shall reduce allotments to an agency by the <br/>
<a id="pl.2.12"></a><var>2.12</var>amount of any saving that can be made over previous spending plans through a reduction <br/>
<a id="pl.2.13"></a><var>2.13</var>in prices or other cause.<br/>
<a id="pl.2.14"></a><var>2.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.2.15"></a><var>2.15</var>and applies to reductions in allotments made on or after that date.<br/>
<br/>
<a id="bill.0.2.0"></a><a id="pl.2.16"></a><var>2.16</var>    Sec. 2. <b>[16A.1524] PROPORTIONAL REDUCTIONS IN CONTRACTS.</b><br/>
<a id="pl.2.17"></a><var>2.17</var>If a law reduces the amount of a general fund appropriation to an executive agency, <br/>
<a id="pl.2.18"></a><var>2.18</var>the agency head must determine the amount of this reduction as a percentage of the <br/>
<a id="pl.2.19"></a><var>2.19</var>original general fund appropriation to the agency, and the agency must reduce its general <br/>
<a id="pl.2.20"></a><var>2.20</var>fund expenditures on contracts with outside vendors by at least that percentage, unless <br/>
<a id="pl.2.21"></a><var>2.21</var>otherwise provided by the law making the reduction in the general fund appropriation. <br/>
<a id="pl.2.22"></a><var>2.22</var>To the extent possible, the reduction in expenditures on contracts required by this section <br/>
<a id="pl.2.23"></a><var>2.23</var>must be applied to contracts for which the work would be performed outside of Minnesota.<br/>
<a id="pl.2.24"></a><var>2.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.2.25"></a><var>2.25</var>and applies to reductions in allotments made on or after that date.<br/>
<br/>
<a id="bill.0.3.0"></a><a id="pl.2.26"></a><var>2.26</var>    Sec. 3. <b>[16A.1525] REQUIREMENTS DURING PROJECTED DEFICITS.</b><br/>
<a id="pl.2.27"></a><var>2.27</var>This section applies when the commissioner determines that general fund revenue <br/>
<a id="pl.2.28"></a><var>2.28</var>will be less than needed to meet general fund expenditures for the remainder of the <br/>
<a id="pl.2.29"></a><var>2.29</var>biennium and that the amount in the budget reserve account is not sufficient to meet the <br/>
<a id="pl.2.30"></a><var>2.30</var>projected deficit. When this section applies:<br/>
<a id="pl.2.31"></a><var>2.31</var>(1) an executive agency appointing authority may not authorize state-paid employee <br/>
<a id="pl.2.32"></a><var>2.32</var>travel unless the travel is essential to carry out the agency's statutory mission or is <br/>
<a id="pl.2.33"></a><var>2.33</var>necessary for state emergency preparedness or response; and<br/>
<a id="pl.3.1"></a><var>3.1</var>(2) the governor must ensure that the aggregate number of full-time equivalent <br/>
<a id="pl.3.2"></a><var>3.2</var>positions designated as managerial in all executive branch state agencies is not increased <br/>
<a id="pl.3.3"></a><var>3.3</var>during the period of the projected deficit, unless authorized by law enacted after the <br/>
<a id="pl.3.4"></a><var>3.4</var>deficit is projected.<br/>
<a id="pl.3.5"></a><var>3.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.4.0"></a><a id="pl.3.6"></a><var>3.6</var>    Sec. 4. <b>PROFESSIONAL AND TECHNICAL CONTRACTS.</b><br/>
<a id="pl.3.7"></a><var>3.7</var>    Subdivision 1. <b>Reduction.</b> By July 1, 2010, the commissioner of management and <br/>
<a id="pl.3.8"></a><var>3.8</var>budget shall allocate a reduction of $4,000,000 among the general fund appropriations <br/>
<a id="pl.3.9"></a><var>3.9</var>for fiscal year 2011 to executive branch state agencies, as defined in Minnesota Statutes, <br/>
<a id="pl.3.10"></a><var>3.10</var>section 16A.011, subdivision 12a. To the extent possible, without hiring permanent staff <br/>
<a id="pl.3.11"></a><var>3.11</var>replacements, this reduction must be achieved through reductions in expenditures for <br/>
<a id="pl.3.12"></a><var>3.12</var>professional and technical contracts, as defined in Minnesota Statutes, section 16C.08, <br/>
<a id="pl.3.13"></a><var>3.13</var>subdivision 1, and in particular on contracts for which work would be performed outside <br/>
<a id="pl.3.14"></a><var>3.14</var>of Minnesota. Executive branch state agencies shall cooperate with the commissioner in <br/>
<a id="pl.3.15"></a><var>3.15</var>developing and implementing the reductions. Any reductions that cannot be achieved <br/>
<a id="pl.3.16"></a><var>3.16</var>through savings in professional and technical contracts must be allocated proportionally <br/>
<a id="pl.3.17"></a><var>3.17</var>across executive branch state agency operating budgets. For purposes of defining the base <br/>
<a id="pl.3.18"></a><var>3.18</var>under Minnesota Statutes, section 16A.11, subdivision 3, paragraph (b), $4,000,000 each <br/>
<a id="pl.3.19"></a><var>3.19</var>year must be allocated as a permanent reduction to state agency base appropriations for <br/>
<a id="pl.3.20"></a><var>3.20</var>fiscal years 2012 and 2013. The reductions must be allocated in proportion to the fiscal <br/>
<a id="pl.3.21"></a><var>3.21</var>year 2011 reduction. For purposes of this subdivision, "executive branch state agency" <br/>
<a id="pl.3.22"></a><var>3.22</var>does not include the Minnesota State Colleges and Universities. By January 15, 2011, the <br/>
<a id="pl.3.23"></a><var>3.23</var>commissioner of management and budget shall report to the chairs and ranking minority <br/>
<a id="pl.3.24"></a><var>3.24</var>members of the legislative committees with jurisdiction over finance regarding the amount <br/>
<a id="pl.3.25"></a><var>3.25</var>of the reductions in professional and technical contract spending by each agency.<br/>
<a id="pl.3.26"></a><var>3.26</var>    Subd. 2. <b>Exception.</b> If subdivision 1 is enacted into law, Minnesota Statutes, <br/>
<a id="pl.3.27"></a><var>3.27</var>section 16A.1524, does not apply to appropriations reductions enacted during the 2010 <br/>
<a id="pl.3.28"></a><var>3.28</var>regular legislative session.<br/>
<a id="pl.3.29"></a><var>3.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.5.0"></a><a id="pl.3.30"></a><var>3.30</var>    Sec. 5. <b>ELIMINATION OF POSITIONS.</b><br/>
<a id="pl.3.31"></a><var>3.31</var>    Subdivision 1. <b>Deputy and assistant commissioners.</b> The governor must eliminate <br/>
<a id="pl.3.32"></a><var>3.32</var>25 percent of the positions titled "deputy commissioner" or "assistant commissioner" in <br/>
<a id="pl.3.33"></a><var>3.33</var>executive branch state agencies.<br/>
<a id="pl.4.1"></a><var>4.1</var>    Subd. 2. <b>Positions eliminated.</b> The following positions are eliminated: one deputy <br/>
<a id="pl.4.2"></a><var>4.2</var>chief of staff to the governor; director of government relations, governor's office; director <br/>
<a id="pl.4.3"></a><var>4.3</var>of legislative and cabinet affairs, governor's office; one position of senior policy advisor <br/>
<a id="pl.4.4"></a><var>4.4</var>to the governor, governor's office; two positions of policy advisor to the governor, <br/>
<a id="pl.4.5"></a><var>4.5</var>governor's office; charter school liaison, Department of Education; communications <br/>
<a id="pl.4.6"></a><var>4.6</var>director, Department of Education; director of legislative affairs and strategic planning, <br/>
<a id="pl.4.7"></a><var>4.7</var>Department of Public Safety.<br/>