1.1A bill for an act1.2relating 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. If the commissioner reduces unexpended 1.21allotments of general fund appropriations to an executive branch state agency, the agency 1.22head must determine the amount of this reduction in allotments as a percentage of the 1.23original general fund appropriation to the agency, and in implementing the reduction in 1.24allotments the agency must reduce its general fund expenditures on contracts with outside 1.25vendors by at least that percentage. To the extent possible, the reduction in expenditures 2.1on contracts required by this section must be applied to contracts for which the work 2.2would be performed outside of Minnesota.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.2.14EFFECTIVE DATE.This section is effective the day following final enactment 2.15and applies to reductions in allotments made on or after that date.2.16    Sec. 2. [16A.1524] PROPORTIONAL REDUCTIONS IN CONTRACTS.2.17If a law reduces the amount of a general fund appropriation to an executive agency, 2.18the agency head must determine the amount of this reduction as a percentage of the 2.19original general fund appropriation to the agency, and the agency must reduce its general 2.20fund expenditures on contracts with outside vendors by at least that percentage, unless 2.21otherwise provided by the law making the reduction in the general fund appropriation. 2.22To the extent possible, the reduction in expenditures on contracts required by this section 2.23must be applied to contracts for which the work would be performed outside of Minnesota.2.24EFFECTIVE DATE.This section is effective the day following final enactment 2.25and applies to reductions in allotments made on or after that date.2.26    Sec. 3. [16A.1525] REQUIREMENTS DURING PROJECTED DEFICITS.2.27This section applies when the commissioner determines that general fund revenue 2.28will be less than needed to meet general fund expenditures for the remainder of the 2.29biennium and that the amount in the budget reserve account is not sufficient to meet the 2.30projected deficit. When this section applies:2.31(1) an executive agency appointing authority may not authorize state-paid employee 2.32travel unless the travel is essential to carry out the agency's statutory mission or is 2.33necessary for state emergency preparedness or response; and3.1(2) the governor must ensure that the aggregate number of full-time equivalent 3.2positions designated as managerial in all executive branch state agencies is not increased 3.3during the period of the projected deficit, unless authorized by law enacted after the 3.4deficit is projected.3.5EFFECTIVE DATE.This section is effective the day following final enactment.3.6    Sec. 4. PROFESSIONAL AND TECHNICAL CONTRACTS.3.7    Subdivision 1.Reduction.By July 1, 2010, the commissioner of management and 3.8budget shall allocate a reduction of $4,000,000 among the general fund appropriations 3.9for fiscal year 2011 to executive branch state agencies, as defined in Minnesota Statutes, 3.10section 16A.011, subdivision 12a. To the extent possible, without hiring permanent staff 3.11replacements, this reduction must be achieved through reductions in expenditures for 3.12professional and technical contracts, as defined in Minnesota Statutes, section 16C.08, 3.13subdivision 1, and in particular on contracts for which work would be performed outside 3.14of Minnesota. Executive branch state agencies shall cooperate with the commissioner in 3.15developing and implementing the reductions. Any reductions that cannot be achieved 3.16through savings in professional and technical contracts must be allocated proportionally 3.17across executive branch state agency operating budgets. For purposes of defining the base 3.18under Minnesota Statutes, section 16A.11, subdivision 3, paragraph (b), $4,000,000 each 3.19year must be allocated as a permanent reduction to state agency base appropriations for 3.20fiscal years 2012 and 2013. The reductions must be allocated in proportion to the fiscal 3.21year 2011 reduction. For purposes of this subdivision, "executive branch state agency" 3.22does not include the Minnesota State Colleges and Universities. By January 15, 2011, the 3.23commissioner of management and budget shall report to the chairs and ranking minority 3.24members of the legislative committees with jurisdiction over finance regarding the amount 3.25of the reductions in professional and technical contract spending by each agency.3.26    Subd. 2.Exception.If subdivision 1 is enacted into law, Minnesota Statutes, 3.27section 16A.1524, does not apply to appropriations reductions enacted during the 2010 3.28regular legislative session.3.29EFFECTIVE DATE.This section is effective the day following final enactment.3.30    Sec. 5. ELIMINATION OF POSITIONS.3.31    Subdivision 1.Deputy and assistant commissioners.The governor must eliminate 3.3225 percent of the positions titled "deputy commissioner" or "assistant commissioner" in 3.33executive branch state agencies.4.1    Subd. 2.Positions eliminated.The following positions are eliminated: one deputy 4.2chief of staff to the governor; director of government relations, governor's office; director 4.3of legislative and cabinet affairs, governor's office; one position of senior policy advisor 4.4to the governor, governor's office; two positions of policy advisor to the governor, 4.5governor's office; charter school liaison, Department of Education; communications 4.6director, Department of Education; director of legislative affairs and strategic planning, 4.7Department of Public Safety.