Omnibus bills move

Legislative Update
April 17, 2009

Higher education omnibus appropriation bills make their way through the process

It was a busy week in the Senate and House of Representatives as finance committees assembled omnibus bills and moved them to the full Finance Committees prior to the April 16 deadline. The higher education omnibus bill in both bodies was no exception as each made its way through the process.

Members of the House Finance Committee split up several of the major spending bills in the House and realigned them to match up with the Senate’s spending bills. HF 869 now only includes the omnibus higher education finance provisions. The committee removed the workforce development-related portions of the bill and amended them into HF 1169.

While the House bill has one more stop in Ways and Means, the Senate bill made it to the floor today. Sen. Sandy Pappas, DFL-St. Paul, introduced the bill on the floor by outlining four goals she hopes to achieve: meet the Senate directive of seven percent cuts across-the-board; protect financial aid for students; use federal stimulus funding wisely; and provide for research based reform, such as the summer bridge program and refocusing the Achieve scholarship program to meet both merit and need. The bill passed by a vote of 41-23.

The Ways and Means Committee is scheduled to meet early next week to take up omnibus appropriation bills, and then the higher education omnibus bill will go to the floor. Once the House passes the bill, a conference committee will be formed to work through the differences between the two bills.

The House bill, HF 869, includes:

• Cuts to the Minnesota State Colleges and Universities system of $160 million in base funding over the 2010-11 biennium, with an allocation of one-time federal stabilization funds of $130 million.

• Financial aid: the tuition maximum in the state grant program is set at $9,938 for students in four-year programs; the tuition and fee maximum for a student at a two-year college is the maximum tuition and fee amount charged at a two-year college; the living and miscellaneous expense is set at $6,900 each year; the assigned student responsibility is reduced from 46 percent to 45 percent of the cost of attending the institution; the number of semesters a student is eligible for a state grant is increased from 8 semesters to 10 semesters; and as a condition of enrollment, each entering Minnesota resident student must complete the FAFSA.

• $2 million each year of the biennium for the existing Power of You program and for pilot rural and suburban sites.

• $100,000 each year total for financial aid offices at the colleges in the system to provide emergency aid grants to technical and community college students who are experiencing extraordinary economic circumstances.

• The appropriation to the Minnesota State Colleges and Universities is for operation and maintenance for direct support of instruction and related functions necessary to protect the core mission of educating students.

• The Board may only fill essential administrative and managerial vacancies during the 2010-11 biennium in the central office or on a campus.

• The Board must not expend appropriations for competitive salaries, awards of excellence, campus and technology initiatives outside the allocation model or other Board or Chancellor initiatives.

• During the 2010-11 biennium, expenditures for technology must not exceed $40 million and expenditures for underrepresented students must not exceed $5 million.

• Tuition increases for an undergraduate student must not exceed five percent each year of the 2010-11 biennium. Federal stimulus money must be used to buy down the tuition increase to no more than two percent per year.

• Exempts the AAS degree from the 60-semester credit length until July 2, 2012. By Jan. 2, 2012, MSCF and MSCSA must present a joint report to higher education committees on a process for reviewing the credit requirements for an AAS degree.

• Encourages the Board to place a priority on identifying and implementing measures to improve the human resources system used by the Minnesota State Colleges and Universities to provide seamless information on faculty and employees to facilitate transfers between institutions.

• Requires the Office of Higher Education to report on the implementation of textbook information requirements under U.S. Code.

• Directs the system to maintain course equivalency guides that include information on the course equivalency and awarding of credit for learning acquired as a result of the successful completion of formal military courses and occupational training. (The Minnesota State Colleges and Universities system already does this).

• Requires a bookstore located on a public college or university campus to only offer clothing manufactured in the U.S.

• Changes the selection process for the Board of Trustees to an election by the Legislature.

• Provides for an undergraduate tuition guarantee - guarantees a stable tuition rate for up to four consecutive academic years.

The Senate bill, SF 2083, includes:

• Cuts to the Minnesota State Colleges and Universities system of $103.8 million in base funding over the 2010-11 biennium, with an allocation of one-time federal stabilization funds of $75.6 million.

• Financial aid: the tuition and fee maximum for four-year programs in the state grant program is set at $11,038 in each year, and the tuition and fee maximum for the two-year programs is set at $6,908 each year; the living and miscellaneous expense is set at $6,447 each year; reduces the assigned family responsibility for dependent students from 96 to 93 percent of the parental contribution, for independent students with dependents, it is reduced to 83 percent from 86 percent, and for independent students without dependents, the assigned family responsibility is reduced to 65 percent of the student contribution from 68 percent.

• System priority allocations must be reviewed by the Board to determine whether they are critical to advancing the educational mission and priorities of the system. Those programs include centers of excellence, competitive salaries, community energy pilots and economic development e-folio. If the board determines any programs to not be essential, they may discontinue the programs and reallocate the funding.

• Federal stimulus funding must first be allocated to mitigate the need to raise tuition and fees for Minnesota resident students. The board must consult with the chairs of the higher education committees and then submit a plan to MOHE that has to be approved.

• Repeals the 60-120 credit cap program language from the 2007 legislative session.

• Encourages the Board to place a priority on identifying and implementing measures to improve the human resources system used by the Minnesota State Colleges and Universities to provide seamless information on faculty and employees to facilitate transfers between institutions.

• Allows institutions to provide information about PSEO, including the potential financial and educational benefits of its programs, to secondary students.

• Includes language related to relationships with K-12, including establishing a P-20 Education Partnership, postsecondary education planning and other college readiness efforts.

• Directs the system to maintain course equivalency guides that include information on the course equivalency and awarding of credit for learning acquired as a result of the successful completion of formal military courses and occupational training. (The Minnesota State Colleges and Universities system already does this).

• Institutions must provide notice regarding the possible impact of criminal records to prospective students about the chances of employment in the field of study and chances to obtain financial aid. Language was included on the floor that states institutions are not liable for failing to provide the notice required.

• Encourages higher education systems and institutions to offer a research-based high school-to-college development transition program (bridge program for the summer after high school graduation) to prepare students for college-level academic coursework and provides for a one-time grant to help pay expenses.

• Amends Board of Trustee membership language so that a commissioner of a state agency may not serve as a member of the Board. The bill includes language that allows for a commissioner currently serving on the Board to continue serving the remainder of the term.

• Amends the Power of You program language to be permissive rather than required at Metropolitan State University, Minneapolis Community and Technical College and Saint Paul College.

• Amends the Centers of Excellence language to be permissive rather than required, and requires an annual report to the Legislature, rather than in odd-numbered years.

• Includes the language from the bill carried by Sen. Ann Lynch, DFL-Rochester, that puts into place two different types of mid-level practitioners that will provide dental services to patients in rural and underserved communities. The first practitioner in this section of the bill is an Oral Health Practitioner (OHP) designed by the Minnesota State Colleges and Universities, and the other model, the dental therapist, was designed by the University of Minnesota.

• Requires Minnesota State Colleges and Universities to assess labor market data when conducting college program reviews. Colleges will be required to enroll no more than the approximate number of students in a technical or occupational program that the labor market data indicates have a reasonable likelihood of obtaining a job in the field of study. Colleges are also to provide prospective students job placement rate information.

Bonding conference committee holds first meeting

The Capital Investment Conference Committee met for the first time this week, and House and Senate conferees compared the differences in the respective bills. HF 855, sponsored by Rep. Alice Hausman, DFL-St. Paul, and SF 781, sponsored by Sen. Keith Langseth, DFL-Glyndon, differ by $129.2 million. For the Minnesota State Colleges and Universities system, the two bills differ by approximately $20 million. The Senate is recommending $90 million for the system and the House is recommending $67.9 million. “We are encouraged there will be a bill this year,” Rep. Hausman said, adding that she and Sen. Langseth have spoken with the governor’s office.

A side-by-side comparison of the House and Senate bills is available here.

A summary comparison of the two bills can be found here.

The second conference committee has yet to be called. Stay tuned.

Senate Higher Education Committee forwards trustee confirmations to full Senate

The Senate Higher Education Budget and Policy Division forwarded the names of Cheryl Dickson, Jacob Englund, Clarence Hightower, Allyson Lueneburg, Louise Sundin and Terri Thomas to the full Senate for confirmation of their appointment to the Minnesota State Colleges and Universities Board of Trustees. After introductions and background comments, trustees in attendance responded to a variety of questions related to access, affordability, tuition, campus locations and the current budget situation. Committee members also recommended David Metzen to be confirmed as the director of the Minnesota Office of Higher Education.

One month to go before adjournment

Legislators have arrived at the point in session when committee hearings start to wind down, and conference committees and floor session pick up. The higher education committees will likely not meet again now that the bills have been put together, unless there is some other business that comes before the committee. The question on everyone’s mind is can legislative leaders and Gov. Tim Pawlenty agree on how to solve the $6.4 billion budget deficit by the constitutionally required deadline of May 18.

House Speaker Margaret Anderson Kelliher, DFL-Minneapolis, said she is still hopeful a special session will not be needed, however she has indicated that the Legislature may be back after May 18. Speaker Anderson Kelliher said that this year has some unprecedented issues; the stimulus package presents complications and delays. The delay may be due to the level of staffing needed to process the information, she said. Kelliher however, stressed the importance of legislators having the needed information to develop “a complete understanding before making their decisions.”

House Minority Leader Marty Seifert, R-Marshall, said there is a need to strip proposed tax increases from House and Senate omnibus bills, or they can expect Gov. Pawlenty to veto them. Rep. Seifert said that bipartisan cooperation is necessary if the majority party does not want to end up in a special session.

Many of the omnibus appropriation bills in both bodies are expected to be acted on next week. As omnibus appropriation bills take shape, Speaker Anderson Kelliher stressed the need for transparency in the process and public involvement from the governor as they work toward resolving the budget.

The next committee deadline is April 22. This is the deadline that requires the Finance, Ways and Means and Tax committees to act on the omnibus appropriation bills. Stay tuned as conference committee members try to assemble bills most everyone can agree on.

Middle Class Task Force looks at college affordability

Vice President Joe Biden said today at a meeting of his Middle Class Task Force, that the administration will seek new ways of helping American families afford to send their children to college. Vice President Biden said he would like to make further progress in the area of college affordability, such as extending a tax credit for families paying for college and making government-backed student loans more cost-efficient. You can find a full staff report of the Middle Class Task Force, “Financing the Dream: Securing College Affordability for the Middle Class.”

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.

Monday, April 20

8:30 AM
Senate Finance
Room: 123 Capitol
Chair: Sen. Richard Cohen
Agenda:
S.F. 1198-Tomassoni: Economic Development and Housing Omnibus Budget Bill.
S.F. 1627-Foley: Judiciary Omnibus Budget Bill.

11:00 AM
Senate in Session

1:00 PM
House in Session

3:00 PM or immediately following session
House Ways and Means
Room: TBA
Chair: Rep. Loren Solberg
Agenda: Omnibus finance bills coming out of the House Finance Committee

Tuesday, April 21

8:30 AM
Senate Finance
Room: 123 Capitol
Chair: Sen. Richard Cohen
Agenda: S.F. XXXX-Anderson, E. R.: Environment and Natural Resources Omnibus Budget Bill.

8:30 AM
Joint Meeting: E-12 Education Budget and Policy Division and K-12 Education Finance Division
Room: Basement Hearing Room State Office Building
Chair: Sen. LeRoy A. Stumpf
Agenda:
Presentation by Education Commission of the States (ECS):
Overview of ECS
Aligning Education and Workforce Development
Update on the American Recovery and Reinvestment Act
High School Exit Exams and End of Course Exams
Community Schools: Locating Government Services in Schools

Wednesday, April 22

8:30 AM
Senate Finance
Room: 123 Capitol
Chair: Sen. Richard Cohen
Agenda: TBA

11:00 AM
House in Session

12:00 PM or immediately following session
House Ways and Means
Room: TBA
Chair: Rep. Loren Solberg
Agenda: Omnibus finance bills coming out of the House Finance Committee

Thursday, April 23

9:30 AM
House in Session

Friday, April 24

9:30 AM
House in Session

Saturday, April 25

9:30 AM (If needed to continue to process omnibus budget bills)
House in Session