A. A "vacancy saving" is any monies saved or generated in personal services and employee related expenditures by:

1. 1. Not filling a position which has become vacant by termination of an employee.
2. 2. Not filling a newly authorized position.
3. 3. Filling an authorized position at a grade or step lower than is authorized by the legislature.
4. 4. A downward reclassification of an authorized position.

B. A vacancy saving shall not be expended by the budget unit, except upon approval of the director of the department of administration, for any of the following purposes:

1. 1. Awarding merit increases to state employees.
2. 2. Funding reclassified positions.
3. 3. Creating new positions that exceed the total number of full-time equivalent positions as approved by the joint appropriations committees and reported annually in the appropriations report.