Gov. Tim Pawlenty and legislators were unable to reach agreement on a plan to address the entire state budget deficit. A $2.7 billion shortfall remains for the two-year budget period that starts July 1 and runs through June 30, 2011. The governor has executive authority to cut already-authorized spending to balance the state budget when the Legislature is not in session. That process is called unallotment.
Has this happened before?
In the last 30 years, only three Minnesota governors have exercised their authority to unallot, according to House Research. Republican Gov. Al Quie cancelled $195 million in planned spending in 1980. In 1986, Gov. Rudy Perpich, DFL, eliminated $110 million in spending. And Pawlenty, a Republican, unallotted $281 million in 2003, and $271 million last December.
If revenues spring back and there is no longer a projected deficit, are the reduced allotments automatically restored?
The law is unclear on this point, according to House Research.
Are certain programs exempt from unallotment?
The governor (through the finance commissioner, who actually orders the reductions) appears to have broad authority. However, the legislative and judicial branches appear to be safe. So too are unemployment benefits.
