Last reviewed January 2010
Resources on Minnesota Issues
Unallotment
This guide is compiled by staff at the Minnesota Legislative Reference Library on a topic of interest to Minnesota legislators. It is designed to provide an introduction to the topic, directing the user to a variety of sources, and is not intended to be exhaustive. In particular, it is focused on items available in the Legislative Reference Library.
The executive branch's ability to utilize emergency budget reduction powers goes back to at least 1939 in Minnesota. Governor Harold Stassen proposed the ability to reduce or unallot the budget under certain circumstances in his 1939 budget address. That same year the Minnesota Legislature made the provision law with the passage of Laws of Minnesota, 1939, Chapter 431, article 2, section 16.
Although the ability to unallot existed this far back, no evidence exists to suggest that unallotment was utilized prior to Governor Quie. Over the past thirty years, the unallotment procedure has been used by three governors: Al Quie in 1980 ($195 million) and in 1981 (local government aid payments were unallotted in November and December 1981 and were reallotted and paid by February 26, 1982), Rudy Perpich in 1986 ($109 million), and Tim Pawlenty in 2003 ($281 million), 2008 ($269 million), and 2009 ($2.68 billion, proposed).
Governor Tim Pawlenty's 2009 plan to balance Minnesota’s fiscal year 2010-11 budget was unique in that it was implemented at the beginning of a budget cycle. A lawsuit challenging this use of unallotment was filed in Ramsey County District Court in July 2009. A second lawsuit was filed in late October 2009. On November 16, 2009, the House Rules Committee voted to file an Amicus Curiae Brief in support of the second legal challenge.
On December 30, 2009, Judge Kathleen Gearin of the Ramsey County District Court filed a temporary restraining order (see other related court documents) prohibiting the state from reducing allotments to a dietary program. (The final ruling will be issued in March 2010.) Although the ruling relates to just one of the lawsuits and represents a small portion of the unalloted funds, it raises the possibility that there will be further legal challenges. Less than two weeks later, on January 11, Judge Gearin dismissed the other lawsuit.
LEGISLATIVE HISTORY:
Laws of Minnesota, 1939, Chapter 431, article 2, section 16
Minnesota Statute 16A.152 (subd. 4)
SIGNIFICANT BOOKS AND REPORTS:
Approved Unallotments & Administrative Actions 2009. St. Paul: Minnesota Management & Budget, 2009.
Budget Message of Governor Harold E. Stassen (February 1, 1939). St. Paul: Governor, 1939. (HJ11 .M6425b 1939/41)
FY 2003 Reductions Under M.S. 16A.152, Subdivision 4: General Fund. St. Paul: Minnesota Dept. of Finance, 2003. (HJ11 .M6425a 2002/2003)
Hanson, Tom. Third Notice of Allotment Reductions Pursuant to M.S. 16A.152, subd. 4. St. Paul: Minnesota Management & Budget, August 14, 2009.
Kiedrowski, Jay. [Letter] October 30, 1986, to Gaylin Den Ouden. St. Paul: Minnesota Dept. of Finance, 1986. (HJ2053.M6 G694 1986)
LaFleur, Robbie. Historical Use of Unallotment. St. Paul: Minnesota Legislative Reference Library, 2009.
Letter to Governor Pawlenty Regarding Unallotment. St. Paul: Minnesota Management & Budget, June 16, 2009.
Marx, Bill. Fiscal Year 2003 Budget Reductions: Legislative Proposals and Governor's Final Unallotments. St. Paul: Minnesota House of Representatives, Fiscal Analysis Department, 2003.
Massman, Matt. Governor’s Unallotments FY 2008-2009 General Fund Budget. (Fiscal Issue Brief) St. Paul: Minnesota Senate, Office of Counsel, Research, and Fiscal Analysis, 2009.
Michael, Joel, and Mark Shepard. Unallotment: Executive Branch Power to Reduce Spending to Avoid a Deficit. St. Paul: Minnesota House of Representatives, House Research Department, 2008. (KFM5825.Z9 M53 2008)
Miles, Mike. [Letter] April 15, 1981, to Wayne S. Burggraaff.. St. Paul: Office of the Attorney General, 1981. (HJ2053.M6 G693 1981)
Notice of Reductions Under M.S. 16A.152, Subd. 4. St. Paul: Minnesota Dept. of Finance, 2003. (HJ11 .M6425a 2002/2003)
Proposed Unallotments & Administrative Actions 2009. St. Paul: Minnesota Management & Budget, 2009.
Quie, Albert H. Opening Statement. St. Paul: Office of the Governor, 1980. (J87 .M62 1980 Ag. 20)
Unallotment in Minnesota: Selected Background Materials Notebook. Table of Contents (includes links to documents with specific unallotment amounts). St. Paul: Minnesota Legislative Reference Library, 2009.
Wattson, Peter. Legislative History of Unallotment. St. Paul: Senate Counsel, Research, and Fiscal Analysis, 2009.
SIGNIFICANT ARTICLES:
Black, Eric. "Court Hears 'Unallotment' Case: How Much Power Does the Governor Have?" Politics in Minnesota, November 16, 2009.
"Governor's FY 2010-11 Unallotment and Other Administrative Actions." Money Matters, September, 2009.
Perry, Steve. "Joel Michael: Q&A: A Brief History of Item Veto and Unallotment Powers in Minnesota." Politics in Minnesota, May 27, 2009.
van Dyck, Brenda. "A Little-Used Tool in the Toolbox." Session Weekly, May 2, 2008.
ARTICLES FROM 1939:
Folwick, Orlin. "Senate Seeks Bigger Cut in State Budget." Minneapolis Tribune, February 2, 1939.
Ball, Joseph H. "Legislature Hears Budget Message." St. Paul Pioneer Press, February 1, 1939.
SIGNIFICANT INTERNET RESOURCES:
ADDITIONAL LIBRARY RESOURCES:
Check the following codes in the Newspaper Clipping File and the Vertical File: B30.4
For additional articles, check the following Inside Issues headings:
Government Finance-State Budget & Finance
For additional reports at the Legislative Reference Library, use these
Library catalog searches:
unallotment
