HF 2690

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 11:32pm

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; 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 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 expenditures on contracts with outside vendors by at least
that percentage.
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.
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