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| Date: | May 18, 2011 | | Contact Name: | Peter D. Winiecki | | Contact Phone: | 651-297-8077 | | Contact Email: | peter.winiecki@senate.mn | | For Immediate Release | |
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| MINNESOTA SENATE APPROVES STATE GOVERNMENT FINANCE CONFERENCE COMMITTEE REPORT |
(St. Paul) -- Members of the Minnesota Senate continued to wrap up work on conference committee reports during the last week of the 2011 legislative session. On Wednesday, the Senate approved the State Government Finance Conference Committee Report. Overall, the conference report reduces Fiscal Year 2012-13 State Government General Fund spending by $312.6 million. Compared to the forecasted base of $912.9 million, this is a 34 percent reduction.
“This conference report takes a big step forward to right-size state government spending and to find efficiencies in state government wherever possible,” said Senator Mike Parry (R-Wascea). “Today’s economic circumstances are an indicator that government has to become more aligned with the private sector. We can no longer maintain the status quo of increased government growth and spending.”
Notable provisions in the conference report include:
• A 15 percent state workforce reductions by 2015 (excluding MnSCU, the Dept. of Military Affairs, and the Dept. of Veterans Affairs).
• Elimination of assistant commissioners and legislative liaisons, allowing only one deputy commissioner (excluding the Dept. of Military Affairs and the Dept. of Veterans Affairs).
• State employee salary freeze (excluding MnSCU).
• Minnesota Management and Budget is required to prepare budget documents using zero-based budgeting principles, showing the effect of increased and decreased funding levels.
• Elimination of a requirement that state agencies seek state employees to provide work that could be done privately through service and professional/technical contracts.
• State agencies are allowed to offer cash bonuses to state employees for cost-saving ideas.
The conference report also provides budget recommendations for the Department of Veterans Affairs and the Department of Military Affairs which match Governor Dayton’s request. In this budget, funding is provided for staffing of two new facilities within the veteran’s home system at Fergus Falls and Minneapolis. Funding is also provided for casework staff at MnSCU campuses through the Higher Education Veterans Assistance Program.
Parry added: “For too long, state government has resisted the structural reforms that we so desperately need today. In order to bring state government into the 21st Century and slow its exponential growth, the report recommended by the conference committee and passed by the Minnesota Senate includes several provisions that are important for the future financial stability of our state.”
After thorough debate in both conference committees and on the Senate floor, the committee report has been passed by the Minnesota Senate and now awaits approval from the Minnesota House of Representatives and Governor Dayton.
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