~ Governor announced plan to streamline agencies in December 2006, Employee Relations functions transferred to Departments of Finance, Administration, Health~

Saint Paul – Governor Tim Pawlenty announced today that his proposal to eliminate the Minnesota Department of Employee Relations (DOER) and transfer its functions to three other state agencies has been completed on schedule. The move to increase efficiency and streamline human resource management of state employees was announced by Governor Pawlenty in December 2006 and is now complete. The target date for completion was June 1, 2008.

“Part of holding government accountable is ensuring that we continually work to streamline operations and improve service,” Governor Pawlenty said. “This transition was achieved through the hard work of a number of state government partners, led by Commissioner Pat Anderson. I want to thank her for ‘working herself out of a job’ while doing a great service for the taxpayers of Minnesota.”

When Governor Pawlenty appointed Pat Anderson as DOER Commissioner in January 2007 he asked her to oversee an effort to transfer its functions to other agencies and eliminate DOER as a standalone entity. Commissioner Anderson and her leadership team met with state agency commissioners, legislative leaders, union leadership and DOER employees to determine the best fit for DOER’s important functions at other agencies.

“I’m very pleased to have been entrusted by Governor Pawlenty to oversee this substantial and important government restructuring and equally proud to have been the final commissioner of the Minnesota Department of Employee Relations,” Pat Anderson said.

DOER’s main functions include human resource management and the state employee insurance division. It administers eleven labor agreements covering 37,200 state employees and a health insurance plan that serves 129,000 state employees and their dependents.

DOER’s functions were transferred to the Minnesota departments of Finance, Health, and Administration:

--Center for Health Care Purchasing Improvement was transferred to Minnesota Department of Health in July 2007.

--Workers’ Compensation was transferred to the Department of Administration in December 2007.

--Labor Relations and Compensation, Human Resources Management, Employee Insurance Division, Information Systems and Administrative Staff join the Department of Finance effective June 1, 2008

“State government faces significant demographic and financial challenges,” Finance Commissioner Tom Hanson said. “The merger of these departments will help to align our financial and human resources strategies to take advantage of the opportunities ahead, and I am excited to lead this effort.”

The merger was proposed by Governor Pawlenty and passed by the Legislature with the support of unions and other stakeholders. The year and a half process provided ample time to complete the transfer of functions properly and with no disruption of DOER services or operations.

This is the fourth standalone agency or office that has been eliminated during the Pawlenty Administration. In 2003, the Pawlenty Administration merged the Minnesota Department of Economic Security (MDES) and the Department of Trade and Economic Development (DTED) to create the new Department of Employment and Economic Development (DEED).

Also in 2003, the agency known as Minnesota Planning was eliminated and its functions were incorporated into the Department of Administration.

In 2005, the Office of Environmental Assistance merged with the Minnesota Pollution Control Agency to become a combined agency.