On June 16, 2009, Governor Pawlenty used the unallotment process in order to balance the state’s budget.
Money to support the political contribution refund (PCR) program was among the amounts unalloted.

By statute, the political contribution refund program is available to political party units and
candidates who agree to limit their spending by signing a Public Subsidy Agreement.
The contribution refund program is administered by the Department of Revenue. Money is
appropriated to the Department of Revenue to fund the program and the Department processes
refund applications much as it processes tax refunds. The Department of Revenue issued this memo
explaining how the unallotment will effect the agencey's administration of the PCR program.

At the present time, all Public Subsidy Agreements signed by candidates remain in place and in
full effect with regard to spending limits and other conditions to which signers agreed. The
Governor’s unallotments do not include unallotment of the income and property tax
checkoff component or the direct appropriation component of the public subsidy program. At
this time the part of the public subsidy program that provides direct payments to
qualified candidates is still in place.

The Board will review with legislative leaders and legal counsel the possible effects of the PCR
program unallotment on existing public subsidy agreements.