1.1                          A bill for an act 
  1.2             relating to state government; authorizing the 
  1.3             commissioner of finance to obtain savings from early 
  1.4             retirements and voluntary terminations; proposing 
  1.5             coding for new law in Minnesota Statutes, chapter 16A. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [16A.51] [SAVINGS FROM RETIREMENTS AND OTHER 
  1.8   VOLUNTARY EMPLOYEE TURNOVER.] 
  1.9      Subdivision 1.  [APPLICATION.] This section applies to all 
  1.10  state agencies. 
  1.11     Subd. 2.  [ADJUSTMENT ACCOUNTS.] Each state agency and each 
  1.12  other office or body listed in subdivision 1 that receives a 
  1.13  direct appropriation from the state's general fund shall 
  1.14  establish two budget adjustment accounts: 
  1.15     (1) a compensation savings account associated with 
  1.16  retirements; and 
  1.17     (2) a compensation savings account associated with other 
  1.18  voluntary terminations. 
  1.19     Subd. 3.  [PROCEDURES.] The commissioner of finance in 
  1.20  consultation with the commissioner of employee relations shall 
  1.21  establish specific procedures to determine the amount and timing 
  1.22  of appropriated general fund money allocated to and held in 
  1.23  these accounts or canceled to the general fund. 
  1.24     The procedures shall require that whenever a retirement or 
  1.25  a voluntary termination occurs in an agency from a position 
  2.1   funded wholly or partially with money appropriated from the 
  2.2   general fund, the agency will move an amount equal to the 
  2.3   estimated compensation associated with that position into the 
  2.4   appropriate budget adjustment account.  Unless authorized by the 
  2.5   commissioner of finance under the provisions in subdivision 4 to 
  2.6   do otherwise, each agency with appropriations allocated to the 
  2.7   compensation savings account for retirements or the compensation 
  2.8   savings account associated with other voluntary terminations 
  2.9   shall at the end of the biennium cancel those amounts to the 
  2.10  state's general fund, and shall reduce its annual base budget 
  2.11  accordingly.  No appropriations allocated to the compensation 
  2.12  savings account associated with retirements or the compensation 
  2.13  savings account associated with other voluntary terminations may 
  2.14  be spent or obligated unless approved by the commissioner of 
  2.15  finance. 
  2.16     Subd. 4.  [RELEASE OF APPROPRIATIONS.] An agency may 
  2.17  request authorization from the commissioner of finance to 
  2.18  release appropriations allocated to the compensation savings 
  2.19  account associated with retirements or the compensation savings 
  2.20  account associated with other voluntary terminations.  The 
  2.21  commissioner of finance in consultation with the commissioner of 
  2.22  employee relations shall periodically evaluate the requests from 
  2.23  the agencies and determine whether some portion of the 
  2.24  appropriations in these accounts should be released for 
  2.25  expenditure or obligation.  Criteria that may be used in making 
  2.26  this determination include: 
  2.27     (1) the probability of meeting the budget reduction target 
  2.28  established in subdivision 5 if the request for release of money 
  2.29  from the accounts is granted; 
  2.30     (2) agency flexibility in adjusting to the budget reduction 
  2.31  without layoffs; 
  2.32     (3) the type of service provided by the vacated position; 
  2.33     (4) opportunities for performing the service or function by 
  2.34  improving interagency cooperation or coordination; 
  2.35     (5) opportunities for performing the service or function 
  2.36  more efficiently through reorganization; 
  3.1      (6) the availability of other options for providing or 
  3.2   delivering the service; or 
  3.3      (7) other criteria that objectively compare the costs and 
  3.4   benefits of the function or service. 
  3.5      By August 30, 1995, the commissioner of finance shall 
  3.6   report to the legislative advisory commission on the criteria 
  3.7   and how they will be applied.  Thereafter, the commissioner of 
  3.8   finance shall annually report to the legislative advisory 
  3.9   commission on the amounts in the accounts and the amounts 
  3.10  released. 
  3.11     If the commissioner of finance authorizes release of 
  3.12  appropriations related to a retired position in an agency, the 
  3.13  commissioner may, if necessary to meet the subdivision 5 
  3.14  spending reduction target, require that agency or other agencies 
  3.15  to maintain appropriations for cancellation in their 
  3.16  compensation savings account associated with other voluntary 
  3.17  terminations. 
  3.18     The legislature, constitutional officers, and judicial 
  3.19  branch are encouraged to develop a process similar to that 
  3.20  identified in subdivisions 3 and 4 for state agencies. 
  3.21     Subd. 5.  [REDUCTION.] Implementation of this section shall 
  3.22  reduce general fund spending for the biennium ending June 30, 
  3.23  1997, by $20,000,000. 
  3.24     Sec. 2.  [EFFECTIVE DATE.] 
  3.25     Section 1 is effective the day following final enactment.