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| Date: | March 30, 2011 | | Contact Name: | Susan Closmore | | Contact Phone: | 651-296-5712 | | Contact Email: | susan.closmore@senate.mn | | For Immediate Release | |
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| MINNESOTA SENATE PASSES STATE GOVERNMENT INNOVATION & VETERANS OMNIBUS BUDGET BILL |
(St. Paul) – The Minnesota Senate took a reformative step forward in solving Minnesota’s budget deficit today by passing the State Government Innovation and Veterans omnibus budget bill. The committee’s bill meets the general fund budget target of $500 million, primarily through methods of consolidation, agency reform and budget reductions. State Government Innovation and Veterans Committee member Senator Paul Gazelka (R-Brainerd) gave the following statement regarding the bill’s passage.
“I am proud of our work on the State Government Innovation and Veterans Committee budget and I am thrilled that my colleagues in the Senate voted today in support of our bill. Our goal is to slow the growth of state government. Some people are not aware that we will have $4 billion more in revenue next biennium than the last. With current projected spending, we will spend $5 billion above that number if we don't reduce the growth of government. We shouldn’t spend more than we have,” said Senator Gazelka. “It’s bold reform and strategic reductions that are going to help slow the growth of state government and get Minnesota on the path to economic prosperity.”
The proposal makes reductions in several areas of state spending. The Legislature, the Office of the Legislative Auditor and the Legislative Coordinating Commission all see reductions of five percent. Constitutional officers see reductions in their operating budgets ranging from 15-20 percent. A wide variety of state agencies have targeted reductions from as low as five percent, up to 20 percent.
A key provision of this comprehensive package requires the executive branch to reduce the number of state agency employees by 15 percent by June 15, 2015. An appointing authority may use attrition, a hiring freeze, early retirement incentives authorized in the bill, furloughs, and layoffs to accomplish this reduction. Over the next biennium, this reduction of the state’s workforce is estimated to save over $70 million in General Fund money. In session, the Senate voted to amend the bill to hold harmless the State Patrol, Peace Officers, the Department of Military Affairs, the Department of Veterans Affairs, and the Department of Corrections from this provision.
“We cannot afford business as usual. Government needs to reevaluate the way it operates and our bill is a bold step in the right direction. Minnesota families and businesses have made difficult decisions and adjusted their budgets to weather these economic times, government needs to follow suit,” added Senator Gazelka.
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