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.. ,. Mate GwUQr3zn~.ent` The State Government budget includes the constitutional officers and the Legislature, the five major staff agencies (Administration, Employee Relations, Finance, Planning and Revenue) as well as Military Affairs, Veterans Affairs, and a number of other smaller agencies. Collectively, these offices and agencies provide the basic infrastructure for state policy development and business operations. This area of the budget is financed largely through the general fund, internal service fund charges to agencies for business operations, and other fees and charges. State Government i=unding (~ in mit~on5) .- Percent FY 2002-03 FY 2004-05 Chance General Fund 678 561 (17)% All Operating Funds 963 872 (9)°~6 The Governor's FY 04-05 general fund budget for these agencies totals $561 million - a 17 percent decrease from the current biennium. Key Elements of the Budget Recommendations • Funding for most agencies in this budget area, including the constitutional officers and the legislature, is reduced by 15 percent from the forecast funding level. When viewed on a biennial basis, the reduction percentages vary widely, with some agencies showing much larger reductions from FY 02-03 reflecting the removal of one-time appropriations from their budget in FY 04-05. • Reductions to Military Affairs and Veterans Affairs emphasize one-time and administrative decreases, reflecting the Governor's. commitment to avoiding cuts that might impair military readiness. • .The Governor asked the departments of Administration, Employee Relations and Finance to decrease the amount they bill to other agencies for computer and telecommunication services, building maintenance, state employee insurance administration and financial systems. These reductions help all state agencies by allowing them to better focus their resources on core functions rather than support activities. • The Governor's budget expands tax compliance activities in the Department of Revenue, even as other activities are pared back in that budget. The investment of $5.4 million into new compliance efforts is expected to yield $32.4 million in additional revenues. These activities will be similar to those funded in the past two years, which were confirmed to be effective by a recent Legislative Auditor report. • Funding is reduced overall by 24 percent for Public Broadcasting in the Governor's budget. Within that total, some entities are reduced by greater or lesser proportions, depending on their. reliance on state funds. Legislative Television and college-based public radio CAMPERS) are reduced by 15 percent, Public Television is reduced by 25 percent and Minnesota Public Radio is reduced by 35 percent. Governor's 2004-05 Budget 22