Unallotment talk is back

The dreaded word “unallotment” has reappeared again.

Gov. Tim Pawlenty, a Republican in his second term, reportedly said Tuesday in a conference call from Philadelphia that he might use his power of unallotment, in which he would cut spending from the state’s current budget, because he expects state revenues will fall short of expenses by the end of the budget year.

State lawmakers tomorrow will learn exactly how much red ink they are facing when they receive the state’s twice-yearly economic forecast.The current budget for 2008 and 2009 was set by state lawmakers in 2007. The two-year budget period ends June 30. Earlier this year lawmakers had to revisit their budget when state Department of Finance officials forecast a $935 million shortfall that materialized amid worsening economic conditions. As the economy’s slide has worsened since May, Pawlenty said he expects to contend with another shortfall before the 08-09 budget is closed for good.

He told reporters that he would move forward with unallotment plans if he can’t reach a deal with legislators.

Pawlenty has gone down this road before. And he wouldn’t be the only governor in the last couple decades to unallot when the economy goes south. Pawlenty unalloted $281 million in 2003, during his first year in office, when the Department of Finance determined that revenues wouldn’t be sufficient to pay the rest of the state’s bills before the end of the budget period. According to the nonpartisan House Fiscal Analysis Department, two other governors have used unallotment in the last 30 years: GOP Gov. Al Quie cut out $195.1 million in 1980 and DFL Gov. Rudy Perpich removed $109.8 million in 1986.