HF 2690

1st Engrossment - 86th Legislature (2009 - 2010) Posted on 04/15/2010 01:12pm

A bill for an act
relating to state government; requiring reductions in executive agency
appropriations include proportionate reductions in expenditures on contracts;
providing requirements during periods of projected deficits; eliminating certain
executive branch positions; amending Minnesota Statutes 2008, section 16A.152,
subdivision 4; proposing coding for new law in Minnesota Statutes, chapter 16A.

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

Section 1.

Minnesota Statutes 2008, section 16A.152, subdivision 4, is amended to
read:

Subd. 4.

Reduction.

(a) If the commissioner determines that probable receipts
for the general fund will be less than anticipated, and that the amount available for the
remainder of the biennium will be less than needed, the commissioner shall, with the
approval of the governor, and after consulting the Legislative Advisory Commission,
reduce the amount in the budget reserve account as needed to balance expenditures with
revenue.

(b) An additional deficit shall, with the approval of the governor, and after consulting
the legislative advisory commission, be made up by reducing unexpended allotments of
any prior appropriation or transfer. Notwithstanding any other law to the contrary, the
commissioner is empowered to defer or suspend prior statutorily created obligations
which would prevent effecting such reductions. new text begin If the commissioner reduces unexpended
allotments of general fund appropriations to an executive branch state agency, the agency
head must determine the amount of this reduction in allotments as a percentage of the
original general fund appropriation to the agency, and in implementing the reduction in
allotments the agency must reduce its general fund expenditures on contracts with outside
vendors by at least that percentage. To the extent possible, the reduction in expenditures
on contracts required by this section must be applied to contracts for which the work
would be performed outside of Minnesota.
new text end

(c) If the commissioner determines that probable receipts for any other fund,
appropriation, or item will be less than anticipated, and that the amount available for the
remainder of the term of the appropriation or for any allotment period will be less than
needed, the commissioner shall notify the agency concerned and then reduce the amount
allotted or to be allotted so as to prevent a deficit.

(d) In reducing allotments, the commissioner may consider other sources of revenue
available to recipients of state appropriations and may apply allotment reductions based
on all sources of revenue available.

(e) In like manner, the commissioner shall reduce allotments to an agency by the
amount of any saving that can be made over previous spending plans through a reduction
in prices or other cause.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to reductions in allotments made on or after that date.
new text end

Sec. 2.

new text begin [16A.1524] PROPORTIONAL REDUCTIONS IN CONTRACTS.
new text end

new text begin If a law reduces the amount of a general fund appropriation to an executive agency,
the agency head must determine the amount of this reduction as a percentage of the
original general fund appropriation to the agency, and the agency must reduce its general
fund expenditures on contracts with outside vendors by at least that percentage, unless
otherwise provided by the law making the reduction in the general fund appropriation.
To the extent possible, the reduction in expenditures on contracts required by this section
must be applied to contracts for which the work would be performed outside of Minnesota.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to reductions in allotments made on or after that date.
new text end

Sec. 3.

new text begin [16A.1525] REQUIREMENTS DURING PROJECTED DEFICITS.
new text end

new text begin This section applies when the commissioner determines that general fund revenue
will be less than needed to meet general fund expenditures for the remainder of the
biennium and that the amount in the budget reserve account is not sufficient to meet the
projected deficit. When this section applies:
new text end

new text begin (1) an executive agency appointing authority may not authorize state-paid employee
travel unless the travel is essential to carry out the agency's statutory mission or is
necessary for state emergency preparedness or response; and
new text end

new text begin (2) the governor must ensure that the aggregate number of full-time equivalent
positions designated as managerial in all executive branch state agencies is not increased
during the period of the projected deficit, unless authorized by law enacted after the
deficit is projected.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4. new text begin PROFESSIONAL AND TECHNICAL CONTRACTS.
new text end

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
budget shall allocate a reduction of $4,000,000 among the general fund appropriations
for fiscal year 2011 to executive branch state agencies, as defined in Minnesota Statutes,
section 16A.011, subdivision 12a. To the extent possible, without hiring permanent staff
replacements, this reduction must be achieved through reductions in expenditures for
professional and technical contracts, as defined in Minnesota Statutes, section 16C.08,
subdivision 1, and in particular on contracts for which work would be performed outside
of Minnesota. Executive branch state agencies shall cooperate with the commissioner in
developing and implementing the reductions. Any reductions that cannot be achieved
through savings in professional and technical contracts must be allocated proportionally
across executive branch state agency operating budgets. For purposes of defining the base
under Minnesota Statutes, section 16A.11, subdivision 3, paragraph (b), $4,000,000 each
year must be allocated as a permanent reduction to state agency base appropriations for
fiscal years 2012 and 2013. The reductions must be allocated in proportion to the fiscal
year 2011 reduction. For purposes of this subdivision, "executive branch state agency"
does not include the Minnesota State Colleges and Universities. By January 15, 2011, the
commissioner of management and budget shall report to the chairs and ranking minority
members of the legislative committees with jurisdiction over finance regarding the amount
of the reductions in professional and technical contract spending by each agency.
new text end

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,
section 16A.1524, does not apply to appropriations reductions enacted during the 2010
regular legislative session.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5. new text begin ELIMINATION OF POSITIONS.
new text end

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
25 percent of the positions titled "deputy commissioner" or "assistant commissioner" in
executive branch state agencies.
new text end

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
chief of staff to the governor; director of government relations, governor's office; director
of legislative and cabinet affairs, governor's office; one position of senior policy advisor
to the governor, governor's office; two positions of policy advisor to the governor,
governor's office; charter school liaison, Department of Education; communications
director, Department of Education; director of legislative affairs and strategic planning,
Department of Public Safety.
new text end