MnSCU Capital request, online learning, financial aid discussed this week

Legislative Update
January 23, 2009

State Update
System proposes $117 million in capital projects
The Minnesota State Colleges and Universities system and the University of Minnesota discussed the progress of capital projects from the 2008 bonding bill, as well as potential capital projects for a 2009 bill with the House Capital Investment committee this week. There has been no word yet whether a bonding bill is certain this session, but committee members are looking for "shovel-ready" projects to fund quickly to help put people back to work. Included in the Minnesota State Colleges and Universities request of $117 million is $50 million in HEAPR, which includes roof replacements, systems improvements, life and fire safety upgrades, elevator code compliance projects and infrastructure renewal projects all across the system. Chancellor James McCormick told committee members that every college and university in the system will benefit from these projects.

Also part of the request are the five capital projects vetoed in 2008 that total $40 million, and four capital projects partially funded in 2008 for $27 million. The vetoed projects are North Hennepin Community College’s business and technology addition and renovation; Lake Superior College’s health science center addition; Metropolitan State University’s classroom center addition and Mesabi Range Community and Technical College’s shop space addition and renovation, all of which can be bid in 30 days. Biddable in seven months are the classroom renovations on seven campuses; they are at Brainerd, Wadena, Moorhead, Pipestone, Thief River Falls, Pine City and Rochester. The four partially funded projects are the learning resource center renovation at Hennepin Technical College; field house renovation at Minnesota West Community and Technical College in Worthington; science lab renovations at Southwest Minnesota State University; and the allied health center renovation at St. Cloud Technical College. These four projects can be bid in three to eight months.

Associate Vice Chancellor for Facilities Al Johnson told lawmakers the projects would put 1,500 people to work in construction and related jobs. Committee members expressed interest in projects that can be bid as soon as possible with fast execution.

The University of Minnesota’s capital budget request for 2009 includes $35 million for asset preservation and $39.5 million for the Bell Museum of Natural History on the St. Paul campus. The Bell Museum was also a casualty of Gov. Pawlenty’s vetoes last year.

Senators receive an education in online learning
The Senate Higher Education Budget and Policy Division heard more about online learning this week from the Minnesota State Colleges and Universities system, Capella University, the University of Minnesota and the Minnesota Office of Higher Education. Susan Heegaard, director of the Office of Higher Education, said online learning offers increased access and opportunities for students, and students are demanding more online course offerings. In addition, Heegaard spoke about the governor’s proposal to have 25 percent of the courses at Minnesota State Colleges and Universities and the University of Minnesota online by 2015.

Linda Baer, senior vice chancellor of academic and student affairs at the Minnesota State Colleges and Universities, said credits earned through online courses have nearly tripled in the past five years and the number of students participating in online education has increased 160 percent in that same period. Baer said other areas of Web-enabled course delivery are growing as fast as online learning. In the future, Baer said, there will be greater integration of services for students, more program development in high-demand fields, more flexible scheduling options, additional resources for faculty teaching online and increases in access and affordability. She said some of the advantages of online learning include easy access to learning, the opportunity for learning at any time, convenience, flexibility and efficiency. However, Baer also cited some disadvantages to online, such as the predominance of independent work over class attendance and participation, the dependence on text-based learning materials, and more sporadic interaction with other students and instructors.

Bemidji State University Professor Barbara Bridges and students Brendan Babcock and Jill Hentges spoke about their experience with Bemidji’s K-8 elementary teacher licensure program. Bridges said the program is a combination of classes conducted in a classroom and online learning. Both Babcock and Hentges said the online program is exceeding their expectations and allowing them to attend school while still working and caring for family.

Chris Cassirer, president of Capella University, outlined Capella’s focus on the ways online delivery and academic model produces competency-based, assessment-driven, performance-measured results. Tom Sullivan, vice president and provost at the University of Minnesota, also spoke on the development of online learning at the university.

A more in-depth look at financial aid
The House Higher Education and Workforce Development Finance and Policy Division learned more about how financial aid works this week. The Minnesota Office of Higher Education explained the different financial aid sources and how much aid was awarded for each source. In fiscal year 2007, $864 million was awarded to students attending Minnesota institutions. Of this amount, $205 million was awarded in federal need-based Pell grants and other federal grants, and $158 million was awarded in Minnesota state grants. The largest amount awarded to students, $416 million, was through institution grants and scholarships.

Lending expertise to the discussion were financial aid experts from each higher education system: Peter Zetterburg with the University of Minnesota, Kathy Ruby with St. Olaf College and Mike Lopez with the Minnesota State Colleges and Universities. Each panel member was asked to discuss the role and importance of the state grant program at their institution or system. Lopez told committee members that student debt has increased dramatically over the years, and all three panelists agreed that without the state grant program, students would be borrowing even more than they are currently.

Chair Tom Rukavina, DFL-Virginia, said the committee will form a smaller subcommittee to look at the issue of financial aid in more depth. You may learn more about the Minnesota state grant program by visiting the Office of Higher Education Web site here.

Governor proposes budget next week
Gov. Pawlenty will announce his budget recommendation Tuesday to solve the $4.8 billion deficit. When the next economic forecast is released the end of February, many expect the deficit number to grow to as much as $7 billion. If this happens, the governor will propose a supplemental budget addressing the larger deficit. DFL leaders are hoping for federal aid to help with the deficit, but the federal stimulus package is still in the early stages of formation. Once the governor releases his budget recommendation, the House and Senate will work on crafting their respective bills. Stay tuned.

Susan Heegaard to lead Bush Foundation Education Achievement Team
The Bush Foundation reports that Susan Heegaard, the current director of the Minnesota Office of Higher Education, will join the Bush Foundation in March to lead its efforts to increase educational achievement in Minnesota, North Dakota and South Dakota. As vice president and educational achievement team leader, Heegaard will pursue the foundation’s goal that by 2018, 50 percent more students, from prekindergarten through college, are on track to earn a degree after high school and disparities among diverse student groups are eliminated. The foundation’s key strategy for achieving this goal will be to create 25,000 new and effective teachers over the next decade. Director of Fiscal Policy and Research Mark Misukanis will serve as the acting director of the Office of Higher Education until a permanent replacement is announced.

Federal Update
Changes for higher education
With the swearing-in of a new president this week also comes change. During his inaugural address, President Barack Obama said there are transformations on the horizon for higher education. He emphasized green technology and jobs. "We will harness the sun and the winds and the soil to fuel our cars and run our factories," he said. "And we will transform our schools and colleges and universities to meet the demands of a new age." You may find the text of the president’s speech here.

U.S. House seeks to stimulate the economy
The U.S. House of Representatives’ stimulus package proposes funding to states to address shortfalls in critical education programs at all levels: elementary, secondary and postsecondary. The proposed legislation calls on governors to "provide the amount of funds to public institutions in the state that is needed to restore state support for postsecondary education to the fiscal year 2008 level." The bill calls for investments in higher education renovation and modernization, including technology upgrades and energy efficiency improvements, to be distributed to states in proportion to their share of full-time undergraduates. The funds are to be designated for health and safety repairs, facility modifications to provide access for disabled students and educational technology infrastructure upgrades as well as energy efficiency projects, along with grants for the construction of science and research buildings at colleges and other research organizations.

The proposal also includes Pell grant increases, more funding for federal work study and an increase lending in student loans. Under the House plan, funding also would be provided for science and technology initiatives with a strong focus on alternative and renewable energy development and energy efficiency. There are also provisions to increase broadband in rural areas and to provide funding for the National Science Foundation and National Institutes of Health.

The House bill will be debated in the coming weeks. The full text of the "American Recovery and Reinvestment Act of 2009" can be viewed here.

Minnesota represented on federal House Committee on the Budget
Congresswoman Betty McCollum from St. Paul recently was appointed to the U.S. House Committee on the Budget. The committee will work with the Senate and President Barack Obama to reconcile a budget to guide the nation. Upon her appointment, McCollum said, "The financial crisis facing Washington threatens our country’s security and our children’s future. It is time for responsible action and disciplined decision making to return Washington to fiscal health." Congresswoman McCollum is also a member of the Appropriations Committee.

Lumina Foundation provides recommendations to Obama
In a recent memo to the Obama presidential transition team, the Lumina Foundation for Education outlined four broad policy strategies: 1) Make human capital development a cornerstone of U.S. economic policy: with postsecondary education the nation's workforce development system and expansion of adult learning opportunities; 2) Assure every child is prepared for success in postsecondary education: alignment of standards between K-12 and postsecondary education every state and by 8th grade, providing all children and families with information needed to plan for college success; 3) Define student outcomes for postsecondary education, including expectations for both completion and learning: foster the development of the Collegiate Learning Assessment, Voluntary System of Accountability, and other assessments of higher education learning, explore the lessons of the Bologna Process and other international efforts to improve higher education and include data on outcomes in national postsecondary data systems; and 4) Approach affordability in new ways: dramatically simplify financial aid, apply tax policy to benefit low-income students, such as progressive 529 plans, and improve higher education productivity, particularly by improving data on costs and results. You may read the entire memo here.

Here's What's Happening at the Capitol:
This schedule shows all meetings that we are aware of at the time of publication that MAY have an impact on the system. This schedule may change. Please watch the House and Senate schedules posted on the Legislature web site (www.leg.state.mn.us).

Monday, January 26
11:00 AM (televised live)
Senate in Session

12:30 PM
Senate Committee on Business, Industry and Jobs
Room: 123 Capitol
Chair: Sen. James P. Metzen
Agenda: Governor's Workforce Development Council reports.

1:00 PM (televised live)
House in Session

2:45 PM
Joint Committee: House Taxes and K-12 Education Finance
Room: 10 State Office Building
Chairs: Rep. Ann Lenczewski, Rep. Mindy Greiling
Agenda:
Other Post Employment Benefits (OPEB)
(1) Presentation by the Office of the Legislative Auditor
(2) Presentation by Department of Education
(3) Testimony of public school officials

Tuesday, January 27
8:30 AM
House K-12 Education Policy Committee
Room: Basement State Office Building
Chair: Rep. Carlos Mariani
Agenda: Presentation on college and career readiness with Mike Cohen, president of Achieve, Inc.

11:15 AM
Senate Higher Education Budget and Policy Division
Room: University of Minnesota State Colleges and Universities
Chair: Sen. Sandra L. Pappas
Agenda: Site visit to University Of Minnesota

11:30 AM
Gov. Pawlenty announces budget recommendations

1:00 PM
House Higher Education and Workforce Development Finance and Policy Division
Room: 5 State Office Building
Chair: Representative Tom Rukavina
Agenda: University of Minnesota student and faculty testimony

2:45 PM
House K-12 Education Finance Division
Room: 10 State Office Building
Chair: Rep. Mindy Greiling
Agenda: Presentation of Governor's education budget proposal

2:45 PM
House State Government Finance
Room: 5 State Office Building
Chair: Rep. Phyllis Kahn
Agenda: MnSCU’s experience with internal controls and internal auditing
Additional testimony TBA

Wednesday, January 28
8:30 AM
House K-12 Education Policy Committee
Room: Basement State Office Building
Chair: Rep. Carlos Mariani
Agenda: TBD

8:30 AM
Senate E-12 Education Budget and Policy Division
Room: 112 Capitol
Chair: Sen. LeRoy A. Stumpf
Agenda: College and Career Readiness Presentation

10:30 AM
House Bioscience and Workforce Development Policy and Oversight Division
Room: 200 State Office Building
Chair: Rep. Tim Mahoney
Agenda: Presentation by Governor's Workforce Development Council on its 2008 Policy Advisory: Preparing Minnesota's Workforce for Tomorrow's Economy

6:00 PM
Joint Committee: House Finance & Ways and Means Committees
Room: 200 State Office Building
Chairs: Rep. Lyndon Carlson, Rep. Loren Solberg
Agenda: Presentation of Governor Pawlenty's FY10-11 budget recommendations

Thursday, January 29
8:30 AM
House K-12 Education Policy Committee
Room: Basement State Office Building
Chair: Rep. Carlos Mariani
Agenda: TBD

12:30 PM
Senate Higher Education Budget and Policy Division
Room: 123 Capitol
Chair: Sen. Sandra L. Pappas
Agenda: To be announced.

1:00 PM
House Higher Education and Workforce Development Finance and Policy Division
Room: 5 State Office Building
Chair: Representative Tom Rukavina
Agenda: Minnesota State Colleges and Universities fiscal profile

2:45 PM
House Capital Investment Finance Division
Room: Basement Hearing Room
Chair: Rep. Alice Hausman
Agenda: Legislative Auditor's Report on General Obligation Bond Expenditures,
Internal Control and Compliance Audit

Tuesday, February 3
11:15 AM
Senate Higher Education Budget and Policy Division
Room: 123 Capitol
Chair: Sen. Sandra L. Pappas
Agenda: Site Visit to St. Thomas University

1:00 PM
House Higher Education and Workforce Development Finance and Policy Division
Room: 5 State Office Building
Chair: Representative Tom Rukavina
Agenda: Minnesota State Colleges and Universities student and faculty testimony

Thursday, February 5
12:30 PM
Senate Higher Education Budget and Policy Division
Room: 123 Capitol
Chair: Sen. Sandra L. Pappas
Agenda: To be announced.