Downey Announces Plan To Restructure The State Government Workforce

ST. PAUL, March 10, 2010 – State Rep. Keith Downey (R – Edina) introduced a plan to restructure the state government workforce, reducing the size and cost 15% by 2015.  “This proposal is about more than balancing the budget.  It is about balancing government,” said Downey.

The announcement follows last month’s introduction of GOP government reform initiatives and the news of Minnesota’s continuing budget deficits.  The bill, a companion to the Sunset and Innovation commissions, authorizes furloughs, layoffs, wage freezes, pension benefit restructuring and an early retirement option to achieve the 15% goal.

“This bill brings short-term savings, long-term cost reduction and lasting structural change to Minnesota government.  It offers several tools to achieve the difficult but necessary task of reducing the state government workforce,” said Downey. 

Prior to implementing the early retirement program, the bill requires an actuarial analysis to determine the number of retirees and the amount of savings to be returned to the pension to cover the cost of the program.  The legislation also requires a hard hiring freeze to solidify the workforce reduction and maximize the savings impact.

“The early retirement option offers a fair alternative to cuts and layoffs, doing so in a way that seeks to balance the cost to the pension fund while continuing the discussion of pension reform,” said Downey.

With continued deficit projections, Downey emphasized the need to reform the structure of Minnesota government for reduced costs and improved efficiency. 

“The state government nickel-and-dimed itself into these budget problems, and now we have to nickel-and-dime our way out,” said Downey.  “There is no single cut.  Instead, we need to undertake a wide range of reforms to make Minnesota government leaner, more efficient and more cost-effective."

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