Bill Text: MN HF2833 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Legislative Commission on Planning and Fiscal Policy roadmap for reform provided.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2012-03-13 - Introduction and first reading, referred to Government Operations and Elections [HF2833 Detail]
Download: Minnesota-2011-HF2833-Introduced.html
1.2relating to state government; providing a reform roadmap;proposing coding for
1.3new law as Minnesota Statutes, chapter 1A.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. [1A.01] COORDINATION.
1.6(a) The Legislative Commission on Planning and Fiscal Policy must coordinate the
1.7legislative role in designing, piloting, implementing, refining, and extending the reform
1.8roadmap. In its coordination role, the commission may defer to standing committees of
1.9the legislature to develop proposals for specific initiatives.
1.10(b) Departments, agencies, and officials in the executive and judicial branches
1.11must comply with a request of the commission for information and analysis to assist the
1.12commission in its duties under this chapter.
1.13(c) As used in this chapter, "commission" means the Legislative Commission on
1.14Planning and Fiscal Policy, unless the context indicates otherwise.
1.15 Sec. 2. [1A.02] TOP INITIATIVES.
1.16(a) As initial initiatives, the Legislative Commission on Planning and Fiscal Policy,
1.17in coordination with standing committees of the legislature, must conduct hearings as
1.18necessary to monitor initiatives specified in this section and to develop the legislation
1.19required to support the initiatives as necessary.
1.20(b) The commissioner of the Department of Management and Budget shall conduct
1.21an evaluation of all bonding projects previously approved by the legislature and not yet
1.22started and must prepare and deliver an evaluation report to the commission by December
1.2331, 2012. The evaluation report must cite the explicit constitutional authority for each
2.1bonding project where the authority exists, and must identify those projects for which no
2.2such explicit authority exists. The evaluation report must force rank the projects that are
2.3deemed to have constitutional authority and must also recommend a sequential schedule
2.4for the projects. Projects lacking constitutional authority must be canceled. The effect of
2.5implementing these changes must result in net savings to the state of at least $40,000,000
2.6for fiscal years 2014 and 2015.
2.7(c) The commissioner of human services must convert state medical assistance
2.8programs to a tiered quality and cost system similar to the system used by the state
2.9employee group insurance program. $1,000,000 is appropriated to the Department of
2.10Human Services in fiscal year 2013 to begin conversion toward tiered medical assistance
2.11yielding at least $50,000,000 in savings to the state in fiscal year 2013. The Department
2.12of Human Services must report to the commission before December 31, 2012, outlining
2.13actions already taken to achieve the 2013 savings requirement and future actions planned
2.14to achieve the 2014 and 2015 savings requirement. The report must identify and
2.15substantiate projected savings. The effect of implementing these changes must result in
2.16net savings to the state of at least $290,000,000 for fiscal years 2014 and 2015.
2.17(d) The commissioner of administration must implement a shared service center that
2.18will provide technology, accounting, procurement, payroll, and human resources services
2.19to all executive branch state agencies, and will outsource those functions where possible.
2.20$10,000,000 in fiscal year 2013 is appropriated to the Department of Administration to
2.21begin implementation of the shared service center in a manner that will result in at least
2.22$20,000,000 in savings to the state in fiscal year 2013. The Department of Administration
2.23shall report to the commission before December 31, 2012, outlining actions already taken
2.24to achieve the 2013 savings requirement and future actions planned to achieve the savings
2.25requirement. The report must identify and substantiate projected savings associated with
2.26each action. Implementing these changes must result in net savings to the state of at least
2.27$100,000,000 for fiscal years 2014 and 2015.
2.28(e) $1,000,000 is appropriated to the Department of Human Services to convert
2.29MinnesotaCare to a sliding-scale voucher program allowing recipients to purchase
2.30insurance in the private market, across state lines, and with selective bundling of at least
2.3133 percent of state-mandated coverage items. The converted program must result in at
2.32least $50,000,000 in savings to the state in fiscal year 2013. The Department of Human
2.33Services must report to the commission before December 31, 2012, outlining actions
2.34already taken to achieve the 2013 savings requirement and future actions planned to
2.35achieve the savings requirement. The report must identify and substantiate projected
3.1savings associated with each action. Implementing these changes will result in decreased
3.2costs to the state of at least $200,000,000 for fiscal years 2014 and 2015.
3.3(f) $10,000,000 in fiscal year 2013 is appropriated to the Department of Human
3.4Services to consolidate human services delivery agencies from 87 counties to ten regional
3.5service delivery authorities. The effect of implementing these changes must result in
3.6decreased costs to the state of at least $50,000,000 for fiscal years 2014 and 2015. The
3.7Department of Human Services shall report to the commission before December 31, 2012,
3.8outlining actions already taken to achieve savings and future actions planned to achieve
3.9future savings. The report must identify and substantiate projected savings associated
3.10with each action.
3.11(g) The commissioner of administration must consolidate all state executive agency
3.12functions into the following cabinet level agencies: Management and Budget, Education,
3.13Health and Human Services, Military Affairs, Agriculture, Transportation, Veterans,
3.14Natural Resources, Commerce, and Public Safety. The consolidation must result in at
3.15least $5,000,000 in savings to the state in fiscal year 2013. $5,000,000 is appropriated
3.16to the Department of Administration, which will be responsible for overseeing and
3.17executing the consolidation. The Department of Administration shall report to the
3.18commission before December 31, 2012, outlining actions already taken to achieve the
3.192013 savings requirement and future actions planned to achieve the savings requirement.
3.20The report must identify and substantiate projected savings associated with each action.
3.21Implementing these changes must result in decreased costs to the state of at least
3.22$10,000,000 for fiscal years 2014 and 2015.
3.23(h) The commissioner of management and budget must develop a plan for state
3.24workers allowing them to compete to perform state operations unhindered by state
3.25administrative and bureaucratic overhead. The new model must result in a minimum of
3.26$1,000,000 in savings to the state in fiscal year 2013. The Department of Management
3.27and Budget shall report to the commission before December 31, 2012, outlining actions
3.28already taken to achieve the 2013 savings requirement and future actions planned to
3.29achieve the savings requirement. The report must identify and substantiate projected
3.30savings associated with each action. Implementing these changes must result in decreased
3.31costs to the state of at least $10,000,000 for fiscal years 2014 and 2015.
3.32(i) The commissioner of management and budget shall provide pay and benefits for
3.33state employees at the same level as the private sector. $2,000,000 is appropriated to the
3.34Department of Management and Budget to study and implement these modifications. It
3.35is estimated that the effect of implementing these changes will result in decreased costs
3.36to the state of at least $150,000,000 for fiscal years 2014 and 2015. The Department of
4.1Management and Budget shall report to the commission before December 31, 2012,
4.2outlining actions already taken to achieve savings and future actions planned to achieve
4.3future savings. The report must identify and substantiate projected savings associated
4.4with each action.
4.5(j) Public employee pension reforms beginning in fiscal year 2014 must stack on the
4.6defined-benefit program's defined contribution benefits at private sector market levels. The
4.7new model must result in a minimum of at least $50,000,000 in savings to the state in fiscal
4.8year 2013. The Department of Management and Budget must report to the commission
4.9before December 31, 2012, outlining actions already taken to achieve the 2013 savings
4.10requirement and future actions planned to achieve the savings requirement. Implementing
4.11these changes must result in decreased costs to the state of at least $200,000,000 for
4.12fiscal years 2014 and 2015.
4.13(k) The Department of Education must offer school districts a package of a four-year
4.14holiday from state mandates, in combination with new achievement-based funding and the
4.15option for the district to establish a two-year base wage and benefits freeze for all school
4.16district employees. Districts will return to the state 35 percent of the savings realized
4.17under the mandate holiday and optional wage and benefits freeze. The effect of the funds
4.18returned from the districts to the state will result in decreased costs to the state of at least
4.19$500,000,000 for fiscal years 2014 and 2015. The Department of Education must report to
4.20the commission before December 31, 2012, outlining actions already taken to achieve
4.21savings and future actions planned to achieve future savings. The report must identify and
4.22substantiate projected savings associated with each action.
4.23(l) The University of Minnesota and the Minnesota state colleges and universities
4.24must reduce overlap through facility and program consolidation across the two systems
4.25and with K-12 school districts. Higher education funding shall be restructured to 50
4.26percent direct, 25 percent student grants, and 25 percent student loans. $20,000,000
4.27is appropriated to the Office of Higher Education to begin the reduction of overlap.
4.28Implementing these changes will result in decreased costs to the state of at least
4.29$100,000,000 for fiscal years 2014 and 2015. The Office of Higher Education shall deliver
4.30a report to the commission before December 31, 2012, outlining actions already taken to
4.31achieve savings and future actions planned to achieve future savings. The report must
4.32identify and substantiate projected savings associated with each action.
4.33(m) The Department of Revenue must reform the local government aid program,
4.34restricting it to public safety and water purposes, with aid to be issued through grants
4.35that are needs-based and means-tested, and that give priority to shared services. The
4.36new model must result in a minimum of at least $50,000,000 in savings to the state in
5.1fiscal year 2013. The Department of Revenue shall deliver a report to the commission
5.2before December 31, 2012, outlining actions already taken to achieve the 2013 savings
5.3requirement and future actions planned to achieve the savings requirement. The
5.4report must identify and substantiate projected savings associated with each action.
5.5Implementing these changes must result in decreased costs to the state of at least
5.6$500,000,000 for fiscal years 2014 and 2015.
5.7(n) $500,000 is appropriated to the Legislative Coordinating Commission for the
5.8Sunset Advisory Commission to carry out the annual process of sunset review. The Sunset
5.9Advisory Commission shall report to the commission before December 31, 2012, outlining
5.10actions already taken and future actions planned to achieve the savings requirement. It is
5.11estimated that the effect of implementing these changes will result in decreased costs to
5.12the state of at least $10,000,000 for fiscal years 2014 and 2015.
5.13(o) The Department of Education must convert special education funding to a
5.14response to intervention prevention model, rather than waiting for students to fail. The
5.15proposals must provide $1,000,000 to the Department of Education to begin execution
5.16of the conversion through the piloting of multiple cost reduction strategies and tactics.
5.17It is estimated that the effect of piloting and implementing these changes will result in
5.18decreased costs to the state of at least $100,000,000 for fiscal years 2014 and 2015. The
5.19Department of Education shall report to the commission before December 31, 2012,
5.20outlining actions already taken to achieve savings and future actions planned to achieve
5.21future savings. The report must identify and substantiate projected savings associated
5.22with each action.
5.23(p) The Department of Management and Budget must expand pay-for-performance
5.24and human capital pilot projects to attract voluntary private investment in programs that
5.25work, rather than paying for programs with taxes. Implementing these changes will result
5.26in decreased costs to the state of at least $60,000,000 for fiscal years 2014 and 2015.
5.27The Department of Management and Budget shall deliver a report to the Legislative
5.28Commission on Planning and Fiscal Policy before December 31, 2012, outlining actions
5.29already taken to achieve savings and future actions planned to achieve future savings. The
5.30report must identify and substantiate projected savings associated with each action.
5.31 Sec. 3. [1A.03] TIMELINES.
5.32(a) This section establishes the timeline for implementation of the reforms and
5.33initiatives in section 1A.02.
5.34(b) The legislature anticipates this act will be enacted in 2012, and that before July
5.351, 2013:
6.1(1) certain reforms that can be implemented quickly will be completed;
6.2(2) pilot projects for other reforms will be commenced and evaluated;
6.3(3) detailed designs and plans will be completed for fiscal years 2014 and 2015; and
6.4(4) legislation needed to implement the detailed designs and plans for fiscal years
6.52014 and 2015 will be enacted in 2013.
6.6(c) The legislature anticipates that before July 1, 2015:
6.7(1) reform designs and plans will be implemented;
6.8(2) reform designs and plans will be evaluated and refined;
6.9(3) extended designs and plans for fiscal years 2016 and 2017 will be developed; and
6.10(4) legislation needed to implement the extended designs and plans for fiscal years
6.112016 and 2017 will be enacted in 2015.
6.12(d) The legislature anticipates that after July 1, 2015, further extended designs and
6.13plans will be implemented, evaluated, and refined.
1.3new law as Minnesota Statutes, chapter 1A.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. [1A.01] COORDINATION.
1.6(a) The Legislative Commission on Planning and Fiscal Policy must coordinate the
1.7legislative role in designing, piloting, implementing, refining, and extending the reform
1.8roadmap. In its coordination role, the commission may defer to standing committees of
1.9the legislature to develop proposals for specific initiatives.
1.10(b) Departments, agencies, and officials in the executive and judicial branches
1.11must comply with a request of the commission for information and analysis to assist the
1.12commission in its duties under this chapter.
1.13(c) As used in this chapter, "commission" means the Legislative Commission on
1.14Planning and Fiscal Policy, unless the context indicates otherwise.
1.15 Sec. 2. [1A.02] TOP INITIATIVES.
1.16(a) As initial initiatives, the Legislative Commission on Planning and Fiscal Policy,
1.17in coordination with standing committees of the legislature, must conduct hearings as
1.18necessary to monitor initiatives specified in this section and to develop the legislation
1.19required to support the initiatives as necessary.
1.20(b) The commissioner of the Department of Management and Budget shall conduct
1.21an evaluation of all bonding projects previously approved by the legislature and not yet
1.22started and must prepare and deliver an evaluation report to the commission by December
1.2331, 2012. The evaluation report must cite the explicit constitutional authority for each
2.1bonding project where the authority exists, and must identify those projects for which no
2.2such explicit authority exists. The evaluation report must force rank the projects that are
2.3deemed to have constitutional authority and must also recommend a sequential schedule
2.4for the projects. Projects lacking constitutional authority must be canceled. The effect of
2.5implementing these changes must result in net savings to the state of at least $40,000,000
2.6for fiscal years 2014 and 2015.
2.7(c) The commissioner of human services must convert state medical assistance
2.8programs to a tiered quality and cost system similar to the system used by the state
2.9employee group insurance program. $1,000,000 is appropriated to the Department of
2.10Human Services in fiscal year 2013 to begin conversion toward tiered medical assistance
2.11yielding at least $50,000,000 in savings to the state in fiscal year 2013. The Department
2.12of Human Services must report to the commission before December 31, 2012, outlining
2.13actions already taken to achieve the 2013 savings requirement and future actions planned
2.14to achieve the 2014 and 2015 savings requirement. The report must identify and
2.15substantiate projected savings. The effect of implementing these changes must result in
2.16net savings to the state of at least $290,000,000 for fiscal years 2014 and 2015.
2.17(d) The commissioner of administration must implement a shared service center that
2.18will provide technology, accounting, procurement, payroll, and human resources services
2.19to all executive branch state agencies, and will outsource those functions where possible.
2.20$10,000,000 in fiscal year 2013 is appropriated to the Department of Administration to
2.21begin implementation of the shared service center in a manner that will result in at least
2.22$20,000,000 in savings to the state in fiscal year 2013. The Department of Administration
2.23shall report to the commission before December 31, 2012, outlining actions already taken
2.24to achieve the 2013 savings requirement and future actions planned to achieve the savings
2.25requirement. The report must identify and substantiate projected savings associated with
2.26each action. Implementing these changes must result in net savings to the state of at least
2.27$100,000,000 for fiscal years 2014 and 2015.
2.28(e) $1,000,000 is appropriated to the Department of Human Services to convert
2.29MinnesotaCare to a sliding-scale voucher program allowing recipients to purchase
2.30insurance in the private market, across state lines, and with selective bundling of at least
2.3133 percent of state-mandated coverage items. The converted program must result in at
2.32least $50,000,000 in savings to the state in fiscal year 2013. The Department of Human
2.33Services must report to the commission before December 31, 2012, outlining actions
2.34already taken to achieve the 2013 savings requirement and future actions planned to
2.35achieve the savings requirement. The report must identify and substantiate projected
3.1savings associated with each action. Implementing these changes will result in decreased
3.2costs to the state of at least $200,000,000 for fiscal years 2014 and 2015.
3.3(f) $10,000,000 in fiscal year 2013 is appropriated to the Department of Human
3.4Services to consolidate human services delivery agencies from 87 counties to ten regional
3.5service delivery authorities. The effect of implementing these changes must result in
3.6decreased costs to the state of at least $50,000,000 for fiscal years 2014 and 2015. The
3.7Department of Human Services shall report to the commission before December 31, 2012,
3.8outlining actions already taken to achieve savings and future actions planned to achieve
3.9future savings. The report must identify and substantiate projected savings associated
3.10with each action.
3.11(g) The commissioner of administration must consolidate all state executive agency
3.12functions into the following cabinet level agencies: Management and Budget, Education,
3.13Health and Human Services, Military Affairs, Agriculture, Transportation, Veterans,
3.14Natural Resources, Commerce, and Public Safety. The consolidation must result in at
3.15least $5,000,000 in savings to the state in fiscal year 2013. $5,000,000 is appropriated
3.16to the Department of Administration, which will be responsible for overseeing and
3.17executing the consolidation. The Department of Administration shall report to the
3.18commission before December 31, 2012, outlining actions already taken to achieve the
3.192013 savings requirement and future actions planned to achieve the savings requirement.
3.20The report must identify and substantiate projected savings associated with each action.
3.21Implementing these changes must result in decreased costs to the state of at least
3.22$10,000,000 for fiscal years 2014 and 2015.
3.23(h) The commissioner of management and budget must develop a plan for state
3.24workers allowing them to compete to perform state operations unhindered by state
3.25administrative and bureaucratic overhead. The new model must result in a minimum of
3.26$1,000,000 in savings to the state in fiscal year 2013. The Department of Management
3.27and Budget shall report to the commission before December 31, 2012, outlining actions
3.28already taken to achieve the 2013 savings requirement and future actions planned to
3.29achieve the savings requirement. The report must identify and substantiate projected
3.30savings associated with each action. Implementing these changes must result in decreased
3.31costs to the state of at least $10,000,000 for fiscal years 2014 and 2015.
3.32(i) The commissioner of management and budget shall provide pay and benefits for
3.33state employees at the same level as the private sector. $2,000,000 is appropriated to the
3.34Department of Management and Budget to study and implement these modifications. It
3.35is estimated that the effect of implementing these changes will result in decreased costs
3.36to the state of at least $150,000,000 for fiscal years 2014 and 2015. The Department of
4.1Management and Budget shall report to the commission before December 31, 2012,
4.2outlining actions already taken to achieve savings and future actions planned to achieve
4.3future savings. The report must identify and substantiate projected savings associated
4.4with each action.
4.5(j) Public employee pension reforms beginning in fiscal year 2014 must stack on the
4.6defined-benefit program's defined contribution benefits at private sector market levels. The
4.7new model must result in a minimum of at least $50,000,000 in savings to the state in fiscal
4.8year 2013. The Department of Management and Budget must report to the commission
4.9before December 31, 2012, outlining actions already taken to achieve the 2013 savings
4.10requirement and future actions planned to achieve the savings requirement. Implementing
4.11these changes must result in decreased costs to the state of at least $200,000,000 for
4.12fiscal years 2014 and 2015.
4.13(k) The Department of Education must offer school districts a package of a four-year
4.14holiday from state mandates, in combination with new achievement-based funding and the
4.15option for the district to establish a two-year base wage and benefits freeze for all school
4.16district employees. Districts will return to the state 35 percent of the savings realized
4.17under the mandate holiday and optional wage and benefits freeze. The effect of the funds
4.18returned from the districts to the state will result in decreased costs to the state of at least
4.19$500,000,000 for fiscal years 2014 and 2015. The Department of Education must report to
4.20the commission before December 31, 2012, outlining actions already taken to achieve
4.21savings and future actions planned to achieve future savings. The report must identify and
4.22substantiate projected savings associated with each action.
4.23(l) The University of Minnesota and the Minnesota state colleges and universities
4.24must reduce overlap through facility and program consolidation across the two systems
4.25and with K-12 school districts. Higher education funding shall be restructured to 50
4.26percent direct, 25 percent student grants, and 25 percent student loans. $20,000,000
4.27is appropriated to the Office of Higher Education to begin the reduction of overlap.
4.28Implementing these changes will result in decreased costs to the state of at least
4.29$100,000,000 for fiscal years 2014 and 2015. The Office of Higher Education shall deliver
4.30a report to the commission before December 31, 2012, outlining actions already taken to
4.31achieve savings and future actions planned to achieve future savings. The report must
4.32identify and substantiate projected savings associated with each action.
4.33(m) The Department of Revenue must reform the local government aid program,
4.34restricting it to public safety and water purposes, with aid to be issued through grants
4.35that are needs-based and means-tested, and that give priority to shared services. The
4.36new model must result in a minimum of at least $50,000,000 in savings to the state in
5.1fiscal year 2013. The Department of Revenue shall deliver a report to the commission
5.2before December 31, 2012, outlining actions already taken to achieve the 2013 savings
5.3requirement and future actions planned to achieve the savings requirement. The
5.4report must identify and substantiate projected savings associated with each action.
5.5Implementing these changes must result in decreased costs to the state of at least
5.6$500,000,000 for fiscal years 2014 and 2015.
5.7(n) $500,000 is appropriated to the Legislative Coordinating Commission for the
5.8Sunset Advisory Commission to carry out the annual process of sunset review. The Sunset
5.9Advisory Commission shall report to the commission before December 31, 2012, outlining
5.10actions already taken and future actions planned to achieve the savings requirement. It is
5.11estimated that the effect of implementing these changes will result in decreased costs to
5.12the state of at least $10,000,000 for fiscal years 2014 and 2015.
5.13(o) The Department of Education must convert special education funding to a
5.14response to intervention prevention model, rather than waiting for students to fail. The
5.15proposals must provide $1,000,000 to the Department of Education to begin execution
5.16of the conversion through the piloting of multiple cost reduction strategies and tactics.
5.17It is estimated that the effect of piloting and implementing these changes will result in
5.18decreased costs to the state of at least $100,000,000 for fiscal years 2014 and 2015. The
5.19Department of Education shall report to the commission before December 31, 2012,
5.20outlining actions already taken to achieve savings and future actions planned to achieve
5.21future savings. The report must identify and substantiate projected savings associated
5.22with each action.
5.23(p) The Department of Management and Budget must expand pay-for-performance
5.24and human capital pilot projects to attract voluntary private investment in programs that
5.25work, rather than paying for programs with taxes. Implementing these changes will result
5.26in decreased costs to the state of at least $60,000,000 for fiscal years 2014 and 2015.
5.27The Department of Management and Budget shall deliver a report to the Legislative
5.28Commission on Planning and Fiscal Policy before December 31, 2012, outlining actions
5.29already taken to achieve savings and future actions planned to achieve future savings. The
5.30report must identify and substantiate projected savings associated with each action.
5.31 Sec. 3. [1A.03] TIMELINES.
5.32(a) This section establishes the timeline for implementation of the reforms and
5.33initiatives in section 1A.02.
5.34(b) The legislature anticipates this act will be enacted in 2012, and that before July
5.351, 2013:
6.1(1) certain reforms that can be implemented quickly will be completed;
6.2(2) pilot projects for other reforms will be commenced and evaluated;
6.3(3) detailed designs and plans will be completed for fiscal years 2014 and 2015; and
6.4(4) legislation needed to implement the detailed designs and plans for fiscal years
6.52014 and 2015 will be enacted in 2013.
6.6(c) The legislature anticipates that before July 1, 2015:
6.7(1) reform designs and plans will be implemented;
6.8(2) reform designs and plans will be evaluated and refined;
6.9(3) extended designs and plans for fiscal years 2016 and 2017 will be developed; and
6.10(4) legislation needed to implement the extended designs and plans for fiscal years
6.112016 and 2017 will be enacted in 2015.
6.12(d) The legislature anticipates that after July 1, 2015, further extended designs and
6.13plans will be implemented, evaluated, and refined.
