Department of Administration starts warning contractors about shutdown

Minnesota Department of Administration Commissioner Spencer Cronk issued a letter to business doing work for the state of Minnesota that a state government shutdown could delay payments for work.

“In the absence of legislation specifically appropriating funds for the continuing operations of the State of Minnesota for the next biennium, state authority to expend or release funds to pay for goods or services will be limited after June 30, 2011,” Cronk wrote in the letter. “Details of those critical services that may continue to operate on an emergency basis after July 1, 2011 have yet to be determined.”

The notice went out in the most recent edition of the State Register. The letter comes just one week after Democratic Gov. Mark Dayton and the GOP controlled Legislature failed to reach a budget agreement. The two sides are at odds over the best way to erase a $5 billion projected budget deficit. Republicans say they can balance the budget through spending cuts alone. Dayton wants a mix of spending cuts and an income tax hike on Minnesota’s top earners.

Dayton will have to call the Legislature back for a special session to avoid a state government shutdown on July 1.

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