What is "unallotment"?

We’ve all heard that the Governor plans to use the unprecedented unallotment process to balance a $2.7 billion budget deficit that remains for fiscal years 2010-2011.  But, what exactly does that mean?  Unallotment means the Governor can cut or delay spending of general fund money.  The cuts or delays may be done in part or in whole, but he may not transfer money from other accounts to the general fund, he may not raise revenues, he may not increase fees, and he may not decrease other funds that are not facing a deficit.

 

If the Commissioner of Minnesota Management and Budget determines that receipts for the general fund will be less than forecasted and the amount available for the remainder of the biennium will be less than required, unallotment may be the tool used to balance the state’s budget.  The statute specifically deals with “prior” appropriations and transfers requiring the Governor to unallot from a budget already put in place.  Therefore, the Governor will await the July 1 biennium start date to begin the FY 2010-11 unallotment process.

CLICK HERE TO READ MORE ABOUT HOW THIS PROCESS WILL PLAY OUT