Thursday, December 23, 2010

Congressional session ends; Dayton appoints cabinet; MN keeps 8 congressional seats; State Legislature meets Jan. 4

Lame duck session not so lame as 111th Congress comes to an end

Congress was on a fast-track this week completing its work before adjourning for the year. Congressional members were productive as they acted on a wide variety of legislation, including several items of importance to higher education.

You may recall that the House passed the DREAM Act legislation earlier this month and the Senate tabled consideration of the bill. The Senate took up the bill this past Saturday, however the legislation failed to get the 60 votes needed to end a filibuster, so the DREAM Act bill is dead for now. The vote was 55-41.

We last reported that the House had passed a full year funding resolution that freezes fiscal year 2011 discretionary appropriations at the fiscal year 2010 level; and within that ceiling, adjusts funding between programs. The Senate had yet to take action on fiscal year 2011 appropriations with the hope of potentially wrapping all 12 appropriation bills into one large omnibus bill.

The Senate did not have enough votes to pass a measure to provide funds through the entire fiscal year. So this week Congress passed a continuing funding resolution that will provide funds until March 4, 2011 at the fiscal year 2010 funding levels for most government programs. This will require the new Congress come January, to determine the funding levels for the remainder of fiscal year 2011.

For higher education, the continuing resolution funds the Pell Grant program for the entire year and covers the fiscal year 2010 shortfall. This funding level will ensure that the maximum Pell Grant award remains at $5,550 for academic year 2011-2012.

The 112th Congress will convene on January 5, 2011.

Governor-elect Dayton begins announcing his cabinet appointments

Governor-elect Mark Dayton has begun to build his administration, but many more announcements have yet to be made. Most recently Ken Peterson was appointed the Commissioner of Labor and Industry. Peterson was Minnesota's labor and industry commissioner during Gov. Rudy Perpich's administration. Heading up the Department of Agriculture will be former state Senator David Frederickson, and Dayton announced he will retain the current Department of Transportation Commissioner Tom Sorel.

Also part of Dayton's senior staff will be longtime Senate Counsel Peter Wattson. Wattson will be Dayton's General Counsel. Tina Flint Smith will be Dayton's Chief of Staff. Smith was most recently the Chief of Staff to Mayor RT Rybak and ran Rybak's bid for governor.

Dayton's campaign manager and long-time employee, Dana Anderson, will be the Deputy Chief of Staff, and Dayton's campaign communications director, Katie Tinucci, will be the Press Secretary for the new Administration.

The Deputy Chief of Staff for Legislative Affairs will be Michele Kelm-Helgen. Kelm-Helgen was most recently serving as the Chief of Staff for the Minnesota State Senate. Andrea Mokros, will become the Deputy Chief of Staff for Communications and Outreach. Mokros is currently Principal of Mokros Strategies, LLC, and served as Deputy Chief of Staff to U.S. Senator Amy Klobuchar.

A new director for the Minnesota Office of Higher Education, or MOHE, has not yet been announced. David Metzen, the current director of MOHE in the Pawlenty administration, is leaving to become provost for Globe University based in Woodbury.

Governor-elect Dayton will continue to fill out his administration as he prepares to take office January 3, 2011.

Minnesota retains 8 congressional seats

There has been an on-going concern that Minnesota might lose a congressional seat due to the slow population growth compared to other states. Earlier this week, the U.S. Census Bureau announced the 2012 reapportionment results from the 2010 census. While the race to keep our 8th seat was tight, Minnesota did prevail. The U.S. Census Bureau releases information every ten years that prompts states reapportion the number of congressional seats in the U.S. House of Representatives.

With redistricting coming up, a loss of a congressional seat would surely have been a political fight. The new Republican majorities in both the House and Senate have created redistricting committees. Rep. Sarah Anderson, R-Plymouth will lead the redistricting effort in the House, and Sen. Geoff Michel, R-Edina, will be the lead in the Senate.

Legislators prepare for January 4

New Republican leadership has been preparing for the 2011 legislative session. Electing leadership positions, creating a new committee structure, assigning committee chairs and appointing members to each committee, are among the many responsibilities leadership has been handling. We recently shared with you the newly announced committee rosters. I am re-attaching them here.

The House Higher Education Policy and Finance committee is scheduled to meet Tuesdays and Thursdays 12:30-2:15 p.m. In the Senate, the Higher Education committee will meet Mondays and Wednesdays 3:00-4:30 p.m. If you are interested in seeing the complete House committee schedule, you may find it here.

You may check the government relations Web site throughout the upcoming session for further information and resources.

House Higher Education Committee members named

The membership for the 2011-2012 House committees was recently announced. Members of the higher education committee are:

Rep. Bud Nornes, R-Fergus Falls, Chair
Rep. Bob Dettmer, R-Forest Lake, Vice Chair
Rep. Tom Rukavina, DFL-Virginia, DFL Lead
Rep. King Banaian, R-St. Cloud
Rep. Mike Benson, R-Rochester
Rep. Kurt Daudt, R-Crown
Rep. Connie Doepke, R-Orono
Rep. David Hancock, R-Bemidji
Rep. Pat Mazorol, R-Bloomington
Rep. Bruce Vogel, R-Willmar
Rep. Joe Atkins, DFL-Inver Grove Heights
Rep. Terry Morrow, DFL-St. Peter
Rep. Kim Norton, DFL-Rochester
Rep. Gene Pelowski, DFL-Winona
Rep. Jeanne Poppe, DFL-Austin

Wednesday, December 22, 2010

Senate Higher Education Committee members named

The Senate has released the committee membership for the 2011 legislative session. The make-up of the higher education committee is as follows:

Sen. Michelle Fischbach, R-Paynesville, Chair
Sen. Jeremy Miller, R-Winona, Vice Chair
Sen. Sandy Pappas, DFL-St. Paul, DFL Lead
Sen. David Brown, R-Becker
Sen. John Carlson, R-Bemidji
Sen. Joe Gimse, R-Willmar
Sen. John Pederson, R-St. Cloud
Sen. Clair Robling, R-Jordan
Sen. David Senjem, R-Rochester
Sen. Ron Latz, DFL-St. Louis Park
Sen. Tom Saxhaug, DFL-Grand Rapids
Sen. Kathy Sheran, DFL-Mankato
Sen. Rod Skoe, DFL-Clearbrook
Sen. David Tomassoni, DFL-Chisholm

Information about the House committee membership will be posted when known.

Thursday, December 9, 2010

Dream act passes, Dayton is governor, Higher education tax legislation, MN's Kline to take office

Dream Act passes House, tabled in Senate

By a vote of 216-198, the U.S. House of Representatives passed the Dream Act bill last night that would create a path to citizenship for undocumented college students and make such students eligible for federal financial aid. The Senate voted earlier this morning by a vote of 59-40 to table consideration of the bill.

Emmer concedes governor's race, Dayton to take office next month

At his home in Delano yesterday, Tom Emmer conceded the governor's race to Mark Dayton. At Emmer's news conference, he said the integrity of the election is of utmost importance, but at the same time it is imperative that "we" allow the next Legislature and governor to govern. He went on to say he doesn't believe we should delay the process. Emmer said that he was proud of his campaign, and as a conservative came within 8,700 votes in a race few thought would be that close. He congratulated Mark Dayton and offered to help him in anyway he could. "It is our job to make sure he can be the best possible governor he can be," Emmer said.

Less than two hours after Emmer’s announcement, the state canvassing board certified Dayton the winner. Governor-elect Dayton thanked Rep. Tom Emmer for his integrity and graciousness at his news conference, also yesterday. He also thanked all the workers and volunteers that helped on his campaign and promised he will work to the best of his ability on behalf of the people of Minnesota. Dayton said we face difficult decisions ahead with the $6.2 billion budget deficit, and asked for everyone's ideas, talents and help in making a better Minnesota for everyone. Dayton will now begin to build his administration as he prepares to take office Jan. 3, 2011. He did say he would name his Chief of Staff within 48 hours.

Federal tax legislation includes components for higher education

As Congress wraps up the year and the 111th Congress, President Obama and Republican Congressional members reached a deal Monday on tax legislation that extends for two years the Bush-era income tax cuts in exchange for an extension of unemployment benefits and a payroll tax holiday.

The measure includes benefits of importance to colleges and students. The legislation extends for two years the American Opportunity Tax Credit, or AOTC, which was created in the American Recovery and Reinvestment Act. The AOTC builds on the previous Hope Scholarship Tax Credit and provides a tuition tax credit worth up to $2,500, a student-loan interest deduction worth up to $2,500, and a benefit that allows companies to provide up to $5,250 in tax-free tuition assistance to their employees.

The House Democratic Caucus however voted today to not bring up the tax legislation in its current form. This non-binding vote held during a closed meeting of the caucus puts pressure on House leaders to push for changes to the legislation and raises questions about whether the deal will move to the House floor for a vote.

Kline to chair House Education and Labor Committee

It's official. Rep. John Kline of the second district in Minnesota will be the chair of the House Education and Labor Committee when the Republicans take control of the U.S. House of Representatives next month. The House GOP conference voted on the slate of committee chair recommendations yesterday.

Congressman Kline, who has served as the ranking Republican on the committee since 2009, says he hopes the committee's work will help improve the economic climate and lead to more jobs. He says he also hopes to simplify federal law.

Speaker designee John Boehner, R-Ohio, said of Kline’s election as chairman of the Education and Labor Committee, "He's a savvy legislator who knows how to lead and can bring together members on both sides of the aisle to do what's best for our country."

2011 full year funding resolution passes House

As Oct. 1, the start of a new fiscal year, came and went without Congress passing any of the 12 appropriation bills for fiscal year 2011, the U.S. House and Senate passed a funding measure late September to keep federal government programs operating at current fiscal year 2010 funding levels until Dec. 3. As Congress works through a lame duck session, a further continuing resolution was passed Dec. 1 providing for a 15 day extension until Dec. 18, 2010.

Yesterday the House passed a full year funding resolution by a vote of 212 to 206 that freezes fiscal year 2011 discretionary appropriations at the fiscal year 2010 level. Within that ceiling, the measure adjusts funding between programs and accounts to deal with current demands and workloads. Overall, the Act includes $513 billion for the Department of Defense, $4.9 billion above 2010; $75.2 billion for military construction and veterans, $1.4 billion below 2010; and $501.4 billion for all other appropriations, $3.5 billion below 2010.

For education specifically, the bill provides $5.7 billion more for Pell grants to meet the current funding shortfall that has arisen because more people are qualifying for the grant. The discretionary portion of the maximum Pell Grant award is maintained at $4,860 which, combined with a mandatory supplement of $690, will support a $5,550 maximum Pell Grant in fiscal year 2011, the same as the 2010 level.

The bill also adjusts funding to allow the office of Federal Student Aid to maintain services to students and families in implementing the transition to 100 percent direct student lending mandated by law, and provides $550 million for Race to the Top, which was not funded in 2010.
You may find a summary of the bill here.

The bill now awaits action by the Senate, which could take up the resolution as a stand-alone bill or handle 2011 spending by wrapping all the appropriations bills into one "omnibus" bill and send it back to the House for a final vote.

Higher education, 2010 elections and the economy

The American Association of State Colleges and Universities, or AASCU, prepared a policy brief that examines November's elections as it relates to public higher education. In addition to discussing policy implications at the state and federal level, the paper explores the changing political and policy dynamics in governors' offices, state legislatures and Congress, as well as future implications of redistricting. Also included are higher education policy issues that may be taken up by the 112th Congress. You may find the brief here.

AASCU has also released a brief entitled, State Outlook: Fiscal and State Policy Issues Affecting Postsecondary Education. This document is a compilation of key economic trends, fiscal conditions and state policy actions that can serve as a helpful resource in preparation for the 2011 legislative session and can be found here.

Thursday, October 14, 2010

Special session scheduled

Gov. Pawlenty has scheduled a special session for Monday, Oct. 18 at 1:00 p.m. to address flood relief in southern Minnesota. Pawlenty had earlier called a special session for this week; however, it was rescheduled to allow for a federal disaster to be declared, which President Obama did yesterday for 21 affected counties. Lawmakers will vote on a bill that includes approximately $74 million in flood relief.

The special session will also include help for areas damaged by tornadoes earlier this summer. $5.2 million is slated for 13 storm-damaged counties. It also includes $750,000 to update Wadena’s existing pre-design and design plans for public facilities and $693,000 for school districts that incurred uninsured losses to buildings and equipment. Students in grades 9 - 12 from the local Wadena high school have been taking classes at the Minnesota State Community and Technical College, Wadena since the start of school this fall, and are expected to attend classes there for the next two years.

The Senate Finance Committee is scheduled to meet Monday, Oct. 18 at 8:00 a.m. in room 123 of the State Capitol to review the 2010 Disaster and Emergency Assistance legislation prior to the special session convening at 1:00 p.m. Following the Finance Committee, the Capital Investment committee will meet to review the bill at 9:30, also in room 123 of the Capitol. The Senate Taxes Committee is scheduled to review the legislation at 10:30 in room 15 of the Capitol.

The House Finance Committee is scheduled to meet the morning of Oct. 18 at 9:00 a.m. in room 200 of the State Office Building.

Thursday, October 7, 2010

Three gubernatorial candidates explain views on higher education


Videotaped interviews of candidates are available online


The three major gubernatorial candidates offered their views about tuition, budget priorities, jobs for graduates, online learning and other higher education issues in videotaped interviews with Scott Thiss, chair of the Board of Trustees and a student leader, Caitlin Stene.

Their responses are available online here.

“We are pleased that the three candidates answered questions that are important to our students and system,” Thiss said. “The Minnesota State Colleges and Universities system is critical to helping the state ensure that it has a well-educated and competitive workforce and that it has active and engaged citizens.”

The candidates - Democrat Mark Dayton, Republican Tom Emmer and Independent Tom Horner - answered questions from Stene, who represented the Minnesota State University Student Association and the Minnesota State College Student Association, and Thiss.

The interviews were sponsored by the Board of Trustees in partnership with the two student associations. The three candidates were asked the same questions in individual sessions.

Travis Johnson, president of the state college student group, said: “We have been working hard to get our students registered and mobilized, and these videos go a long way to help voters make an informed decision about this very important issue. Quality, affordable and accessible higher education is not a luxury in today's economy. It is an indispensable part of creating jobs, providing security for working families and getting the economy back on track.”

Caitlin Stene, vice chair of the state university student association, said: "I believe it is important our members hear about the issues that matter to them from the gubernatorial candidates. This might be the only avenue to hear directly from these individuals about rising tuition costs, state funding for higher education, online courses, and other topics that directly affect our state university students. This effort fits into our goal of getting out the student vote this election."

Besides being posted online here, the videos will be shown at various campus events this fall.

The Minnesota State Colleges and Universities system comprises 32 state universities and community and technical colleges serving the higher education needs of Minnesota. The system also serves about 277,000 students per year in credit-based courses and an additional 157,000 students in non-credit courses.

Tuesday, October 5, 2010

Congress passes funding bill; White House holds community college summit; Dream bill fails; State election update

Congress Passes Funding Measure

With the start of a new fiscal year today, Oct. 1, the U.S. House of Representatives and Senate passed a funding measure earlier this week to keep federal government programs operating at current fiscal year 2010 funding levels. The approved continuing resolution is in effect until Dec. 3, 2010.

Congress is expected to come back into session after the November elections. Members are scheduled to return for a week, the week of Nov. 15, and then return the week of Nov. 29 to finish business. When Congress returns, they will address a funding measure that will provide funding for all or part of fiscal year 2011.

There are 12 appropriations bills Congress needs to act on, including the bill that addresses higher education, the Labor-HHS-Education bill. In the Senate, that bill was approved by the full Appropriations committee late July. In the House, the Labor-HHS-Education appropriations subcommittee approved a draft bill mid-July. The main difference between the two bills is largely attributable to Pell Grant funding. The House includes $5.7 billion toward the Pell Grant shortfall, while the Senate does not include any funding.

Community College Summit to meet next week

The White House is hosting a summit next week to discuss how community colleges can ensure that the U.S. has the best educated workforce in the world in order for businesses in the United States to compete in the global economy. Summit participants will also address President Obama’s goal to lead the world with the highest proportion of college graduates by 2020.

The opening and closing session of the White House Summit on Community Colleges will be streamed live Tuesday, Oct. 5. The opening session begins at 12:15 p.m. EDT and the closing session begins at 3:00 p.m. EDT. You can find a link here.

Summit participants include; Dr. Jill Biden, wife of Vice President Joe Biden and a community college English professor, who will lead the summit; U.S. Education Secretary Arne Duncan; U.S. Labor Secretary Hilda Solis; Admiral Mike Mullen, chair of the Joint Chiefs of Staff; Melinda Gates, co-chair of the Bill and Melinda Gates Foundation; William Green, chair and CEO of Accenture; Eduardo PadrĂ³n, president of Miami Dade College in Florida; Jim Jacobs, president of Macomb Community College in Michigan; Ted Carey, president of the American Student Association of Community Colleges; Albert Ojeda, graduate of Estrella Mountain Community College in Arizona; and an honors student at Arizona State University.

The White House has been accepting questions and topics for discussion here.

AASCU Policy Brief now available - Boosting Financial Literacy in America: A Role for State Colleges and Universities

The American Association of State Colleges and Universities, or AASCU, has released the latest installment from its Perspectives series entitled; Boosting Financial Literacy in America: A Role for State Colleges and Universities. The papers released by AASCU take a more in-depth look at current higher education issues. This most recent paper can be found here.

State colleges and universities have an opportunity to provide financial education programs and services that can elevate financial literacy. This paper discusses the implications financial literacy has on the collective economic and societal interests and sets forth arguments for why state colleges and universities are well-positioned to meet this challenge.

DREAM Act bill falls flat

Last week, U.S. Senate Democrats attempted to offer the DREAM Act bill as an amendment to the Defense Department bill. Democrats, who hold the majority in the Senate, only needed one Republican vote in order to get the 60 votes necessary to take up the Defense bill without threat of a filibuster. They did not get the 60 votes needed and instead the Senate proceeded to the debate on the full bill.

The DREAM Act would create a path to citizenship for undocumented students and make them eligible for some federal student aid. Supporters see the DREAM Act as the solution to many barriers facing illegal immigrants who want to enroll in college and go on to well-paying jobs and productive lives in the United States. Those who oppose the measure, say it would reward illegal behavior and encourage more immigration.

Supporters of the DREAM Act say this is only a setback and have vowed to find another legislative vehicle for the bill.

Gubernatorial candidates discuss higher education

The three major candidates running for governor in Minnesota: Independent candidate Tom Horner, Republican candidate Tom Emmer, and DFL candidate Mark Dayton, visited the Minnesota State Colleges and Universities Office of the Chancellor last week for a brief interview with Board of Trustees Chair Scott Thiss and Winona State University Student Caitlin Stene.

The candidates for governor forum was sponsored by the Minnesota State Colleges and Universities Board of Trustees, the Minnesota State College Student Association and the Minnesota State University Student Association. The taped interviews, which include each candidates thoughts on higher education, and specifically the Minnesota State Colleges and Universities system, will be available soon for viewing. We will notify you when the link is available.

As a reminder, election Day is Nov. 2, 2010. Offices up for election this year are state senators and representatives, state executive officers including the governor, and U.S. representatives. You may tune in to election activity and campus events on the government relations Web site.

Monday, May 17, 2010

Final legislative wrap-up

2010 Legislative Summary
Session review


The 2010 legislative session began with a flurry of activity Feb. 4 with the Senate Capital Investment committee rolling out their version of a bonding bill the first day of session. After spending the summer and fall traveling the state touring bonding projects, lawmakers were ready to get to work on a bill. Between the House, Senate and Minnesota Management and Budget, colleges and universities in the system hosted over 50 bonding visits. Traditionally, the bonding bill is not completed until the end of session; however, Rep. Alice Hasuman, DFL-St. Paul, and Sen. Keith Langseth, DFL-Glyndon, chairs of the House and Senate Capital Investment committees, said that the bill should stand alone and not be delayed until the end of session, because interest rates are low and bids are coming in low.

Lawmakers passed two different bills out of conference committee. When it appeared the governor would veto the first bill, legislative leaders pulled the bill back to re-work it and include projects the governor wanted. The final bill sent to the governor included $239 million (including user financing) in projects and repair and replacement for the Minnesota State Colleges and Universities system, which was a reduction of $66 million from the first bill. The governor line-item vetoed the bonding bill down to $680 million with cuts to the system projects over $130 million. In the final days of session, lawmakers attempted to make one last run at a bonding bill to include the vetoed projects, however the bill, HF 3492, ended up being only technical in nature.

Also competing for lawmakers attention in what is normally considered a bonding year, was an anticipated $1.2 billion budget shortfall for the current biennium, which was later adjusted in the February Forecast to $994 million for the biennium. For the upcoming FY2012-13 biennium, Minnesota Management and Budget projected a $5.8 billion shortfall.

A total reduction of $46.6 million was targeted for higher education. Under the 2009 American Recovery and Reinvestment Act, each state was required to follow a “maintenance of effort” spending proposal in education. If a state chose to receive federal education funding, it could not dip below the 2006 funding levels. This meant that Minnesota could only cut $46.6 million more out of the higher education budget in fiscal year 2011. If the cut was distributed in accordance with 2006 funding levels, the Minnesota State Colleges and Universities would receive a $10.467 million cut while the University of Minnesota would see a reduction of 36.1 million. The governor recommended a reduction to the Minnesota State Colleges and Universities system of $10.5 million and the House and Senate followed with the same recommendation for the system.

The Legislature approached the almost $1 billion budget deficit in three phases. The first phase resolved approximately one-third of the state’s budget deficit through a supplemental budget bill that made $313 million in reductions to state agencies and cuts to county and city aid. The reductions included $10.5 million to the Minnesota State Colleges and Universities system. The next two phases in the budget balancing process were slated to be the health and human services bill and the K-12 education bill. After passing the first budget bill, lawmakers went home to their districts for an Easter/Passover break and there were rumors around the Capitol that the Legislature would take an extended recess while waiting for Congress to pass legislation that would appropriate a little over $400 million to the state in federal funds.

However, legislators stayed in St. Paul and worked on other issues, such as K-12 education initiatives to help strengthen a potential second application for Race to the Top. As lawmakers worked to balance the remaining deficit, which included using the $408 million in federal funds to plug the majority of the remaining $536 million shortfall, two things happened; it became clear Congress would not pass legislation in time to rely on the $408 million in federal funding, and the Minnesota Supreme Court overturned Gov. Pawlenty’s unallotment from the 2009 session. While a nutritional program was the only plaintiff in the case and the court ruled on that program only, lawmakers and the governor were concerned about other cases being brought forward and sought to resolve what they considered to be a $3 billion deficit.

The last week of session, the Legislature passed a budget balancing bill that resolved the $3 billion deficit, and included $433 million in revenue through a fourth tier income tax bracket. As soon as the bill arrived on the governor’s desk he vetoed it claiming the tax increase would disproportionately harm small business owners and hamper job creation in the state. Gov. Pawlenty also said the bill does not do enough to address a projected nearly $5 billion deficit for the 2012-2013 biennium. Lawmakers got back to work on a bill.

Lawmakers worked around the clock the last remaining days of session to wrap-up outstanding bills and try to find an agreeable solution to balance the budget. The House and Senate passed another budget bill to solve the state’s shortfall but lawmakers did not have a firm agreement with Gov. Pawlenty. The bill was passed in the remaining hours and would resolve the deficit mostly through spending cuts. Negotiations over the bill fell apart however, over a provision dealing with health care funding.

The 2010 regular legislative session came to an end at approximately five minutes to midnight Sunday, May 16 when the House and then Senate adjourned sine die. House Majority Leader Tony Sertich, DFL-Chisholm, said the Legislature had an agreement with the governor, and at 12:01, Monday, May 17, the governor would call lawmakers back for a special session. Members reconvened for a special session at 12:01 a.m., May 17, and the agreed-upon budget balancing bill became HF 1 / SF 1.

The $50 million unallotment for the Minnesota State Colleges and Universities system was included in the bill. The cut was divided between the Office of the Chancellor and the campuses with a cut of $2.079 to the Office of the Chancellor and $47.9 million to the campuses. There is also rider language that states none of the reductions made in the Office of the Chancellor may be charged back or allocated to the campuses.

Members passed HF 1/SF 1 and the Senate adjourned the special session at 10:45 a.m. Monday, May 17 and the House adjourned shortly thereafter. The complete bill can be found here.

Bonding Bill

Early in the session, lawmakers passed a $1 billion bonding bill, which included $305.9 million in projects and repair and replacement for the Minnesota State Colleges and Universities system. Gov. Pawlenty indicated he would veto the bill due to the large size, so legislators held back the bonding bill in order to try and reach a compromise. The capital investment conference committee went back to work to revise the bill. Members brought the total down slightly from $999.9 million to $986.4 million, and included the core projects identified by the governor. The bill was revised once again to include an $11.5 million increase for the sex offender treatment facility in Moose Lake that the governor wanted, and was sent to the governor at $999.6 million. The new bill included $239 million (including user financing) in projects and repair and replacement for the system, which was a reduction of $66 million.

Gov. Tim Pawlenty line-item vetoed the bonding bill down to $680 million. In his veto letter to legislative leadership, the governor told lawmakers that “like any family or business, state government needs to live within its means and follow a budget,” and that he had said earlier he would not sign a bill as large as what was presented to him. The final bill the governor signed however; was smaller than his initial bonding recommendation. The governor cut 16 projects from the system, which totaled more than $130 million in line-item vetoes. Those vetoes include:

• Anoka Ramsey Community College fine arts building renovation - $5,357,000
• Anoka Ramsey Community College bioscience and allied health addition - $400,000
(original request was $16,484,000)
• Hennepin Technical College learning resource center - $10,566,000
• Minneapolis Community and Technical College workforce program renovation - $12,990,000
• Ridgewater College lab construction and renovation - $14,300,000
• South Central College, Faribault classroom renovation and addition - $13,360,000
• North Hennepin Community College bioscience and health careers center addition - $600,000
(original request was $26,581)
• Minnesota State University Moorhead Livingston Lord library and information technology renovation - $14,901
• Southwest Minnesota State University science lab renovation - $200,000
(original request was $5,666,000)
• St. Cloud State University integrated science and engineering laboratory facility - $42,334,000
• Dakota County Technical College transportation and emerging technologies lab renovation - $300,000
(original request was $7,230,000)
• Rochester Community and Technical College workforce center co-location - $3,238,000
• System wide initiative (nine campuses) for renovation of STEM classrooms - $4,835,000
• Minnesota State University, Mankato clinical science building design - $1,908,000
• Minnesota West Community and Technical College, Canby wind turbine training facility - $200,000
• Mesabi Range Community and Technical College engineering program - $3,000,000

Also included in the bill was an appropriation for $200,000 for a matching grant to Pine Technical college to design, construct, furnish and equip an entrepreneurship and technology business incubator. Lawmakers included $12 million to the City of Mankato to expand the Civic Center, including a performing arts theater and the Southern Minnesota Women’s Hockey Exposition Center for joint use by the city and Minnesota State University, Mankato; however, the governor vetoed this project.

The final bill includes lease revenue language for St. Cloud Technical College. The Minnesota State Colleges and Universities are to pay Minnesota Management and Budget one-third of the lease revenue received from the Allied Health Building property acquired for St. Cloud Technical College. The bill also includes language that allows a campus to use any unspent portion of an appropriation for a project that is completed for HEAPR purposes at the campus.

Budget Bill

The February economic forecast indicated that the state would be facing a $994 million state budget deficit for fiscal year 2011. The Legislature approached the almost $1 billion budget deficit in three phases. The first phase resolved approximately one-third of the state’s budget deficit through a supplemental budget bill that made $313 million in reductions, including a cut to the Minnesota State Colleges and Universities system.

Included in the higher education article of the bill is $10.467 million in reductions to the system in fiscal year 2011. Of the cut to the system, $500,000 is to be reduced from the central system office, along with an additional $500,000 internal obligation. The bill includes language that says the Board of Trustees must make a good-faith effort to make the reductions at campuses and the central office in a manner that minimizes reductions related to providing direct services to students and maximizes reductions for administrative services not providing direct services to students. The bill also increases the revenue fund authority in statute from $200 million to $300 million for college and university revenue fund projects.

In the area of financial aid, lawmakers had to fill a $42 million state grant shortfall. In committee testimony, Rep. Lyndon Carlson, DFL-Crystal, explained the circumstances behind the shortfall. Carlson said many more students are enrolling in higher education institutions and a larger number of these students have a greater financial need. The Office of Higher Education moved dollars from the second year of the biennium to the first year to cover the cost of this greater need, which has resulted in the shortfall in the second year, fiscal year 2011. Carlson also said that it is difficult to predict how much funds will be needed in the state grant program from year to year, but under law, the Office of Higher Education has to prorate students' awards if there is a shortfall. Due to the shortfall, an average loss students will see in their state grant awards is $300, but some students could see up to a reduction of $1,000 in their state grant. 7,000 students will lose their state grant award altogether and over 5,000 of those students are from lower cost two-year community and technical colleges.

The state grant shortfall was a topic of much debate among legislators. Rep. Tom Rukavina, DFL-Virginia, chairman of the House higher education committee expressed his regret at having to cut the state grant program and indicated he had hoped more could have been done for the students and higher education.

The bill reduces state work study $1.768 million in fiscal year 2011, and also reduces the summer transition grant funding by $1 million in fiscal year 2011. The bill reduces from nine to eight, the number of semesters that a student can attend while maintaining eligibility for the state grant program. A provision in the bill increases the assigned student responsibility and the assigned family responsibility. Both of these actions will help to resolve the shortfall. The bill also modifies the Achieve scholarship program and reduces the technical and community college emergency grants and makes clear that the emergency grant appropriation in fiscal year 2009 was a one-time appropriation. The bill also increases the borrowing limit for the SELF Loan program. The complete bill can be found here.


Higher Education Policy Bill


In addition to the budget bill, lawmakers passed a higher education policy bill. As of the time of this writing, the governor has not yet signed the bill. Included in the bill is:

• Language that increases the age of a senior citizen in statute from 62 to 66 to receive a tuition discount.

• Requirement of colleges and universities to make a reasonable attempt to identify and purchase locally grown food.

• The system, Minnesota Chamber of Commerce and representatives of industry groups and labor unions are to study program requirements for certificates and diplomas awarded by the system to determine the feasibility of designing technical education programs to allow students to have more opportunities to earn credentials with lower credit requirements that could be combined into higher level certificates or diplomas.

• Office of the Chancellor is required to streamline services provided through the office to reduce expenditures, better target the use of state resources and provide services at the most appropriate and efficient level so as not to duplicate any services provided at the institution level.

• Post-retirement health insurance premium reimbursement language.

• Board of Trustees is required to establish a pilot project to develop partnerships and training and employment opportunities for surgical technologists at institutions that offer a surgical technologist program.

• Minnesota State Colleges and Universities system and the University of Minnesota are required to study nanotechnology research and education and report to the Legislature on ways nanotechnology is used responsibly and safely.

• Pilot project language that would establish up to eight institutions in the Minnesota State Colleges and Universities system to invest some campus reserves in a local bank.

• The Office of Higher Education is required to monitor the implementation of the Higher Education Opportunity Act as it relates to disclosure of textbook pricing and other information to students.

• Credit transfer language that requires the Board of Trustees to develop and implement a plan to improve credit transfers within the system. The Board may convene working groups of affected faculty, staff, students and administrators in the system to work on issues and barriers to credit transfer. The language also states the Board must provide systemwide transfer information on campus Web sites necessary to determine the transferability of course credits, and the information must be easily accessible and kept current. The complete bill can be found here.



Contract Ratification Bill


Legislators passed the contract ratification bill the last couple weeks of session and the governor signed the bill May 13, 2010. An amendment was included in the bill that requires the Minnesota State Colleges and Universities system to submit a summary of the proposed agreements, awards or plans to Minnesota Management and Budget at a time and in a manner specified by the commissioner, so the commissioner can post information relating to these appointing authorities on the Web site. The bill includes the contracts and plans for Minnesota State College Faculty or MSCF; the Minnesota State University Association of Administrative and Service Faculty or MSUAASF; the American Federation of State, County and Municipal Employees or ASCFME, the Minnesota Association of Professional Employees or MAPE; the Middle Management Association or MMA; the Minnesota State Colleges and Universities Administrators; the Commissioner’s Plan; and the Managerial Plan.

State Employee Retirement Incentive Bill

The Legislature passed an early retirement incentive bill, Chapter 337, this session that was introduced in the 2009 session, however failed to make it to the governor’s desk last year. Lawmakers took up the bill again this session, passed it, and the governor signed the legislation into law May 13, 2010. The bill provides for employer discretion regarding who will be offered the incentive while taking into consideration equity, budgetary constraints and workforce planning concerns. Executive, legislative and judicial branch employees are eligible for the incentive, including Minnesota State Colleges and Universities employees. The employee has to have at least 15 years of service and is eligible for retirement. The incentive is an amount equal to the value of up to 24 months of employer paid medical and dental insurance programs to be paid into the employee’s pre-tax Health Care Savings Plan.

Omnibus Pension Bill

The omnibus pension bill worked its way through the Legislative Commission on Pensions and Retirement and the appropriate legislative committees, the differences between the House and Senate bills were worked out in conference committee, and the final bill passed both bodies prior to being sent to the governor. The last few days of session the governor’s spokesman, Brian McClung indicated the governor would veto the bill. The bill's Senate author, Don Betzold, DFL-Fridley, noted that the bill was the product of a year's worth of negotiations, and said the veto threat came as a surprise to him. Gov. Pawlenty did end up signing the bill in the final hour. The bill includes a provision that authorizes the Minnesota State Colleges and Universities system to contract out for investment selection and review services for the Individual Retirement Account Plan with providers other than just the State Board of Investment.

Omnibus Agriculture and Veterans Affairs Bill

The omnibus agriculture and veterans affairs bill includes a provision that extends the sunset on the veteran centers on higher education campuses from June 30, 2011 to June 30, 2012. Included in the bill is language that requires the commissioner of veterans affairs to report to the Legislature regarding alternative funding sources for the higher education veterans assistance program. Also included in the bill is language that requires the commissioner of agriculture to convene one or more meetings with milk producers, other industry stakeholders, and representatives of the University of Minnesota and the Minnesota State Colleges and Universities system whose work relates to the dairy industry, to consider the elements of a dairy research and education facility which would represent a partnership between higher education institutions and the dairy industry.

Omnibus Economic Development Bill

The employment and economic development policy bill was signed by the governor with the exception of two line-item vetoes; $2 million for a grant to the Mountain Iron Economic Development Authority for renewable energy projects, and an appropriation of 2.706 cents per ton to the Virginia Regional Medical Center for operating room equipment and renovations. Included in the bill that relates to the Minnesota State Colleges and Universities system includes language regarding the Minnesota Science and Technology Authority. Included in the duties of the Authority is working with the University of Minnesota, Minnesota State Colleges and Universities and the Mayo Clinic in promoting collaborative efforts to respond to federal funding opportunities. A Science and Technology Initiative Advisory Commission of 18 members is established in law and includes two representatives from the system, including a faculty member actively involved in science and technology research.

The bill also adds an additional duty of the Board of Trustees in statute. The Board must identify colleges offering flexible academic programs that accommodate the needs of laid-off workers and assist its other institutions in determining whether to offer similar programs. Language reads that colleges must increase the number of certificate programs available to meet the needs of unemployed Minnesotans.

Omnibus K-12 Education Bill

The K-12 education bill traveled a long road this session. The original bill in the House, HF 2431, which made its way through the committee process over the duration of the session, was tabled late in the session in the House Ways and Means committee, so it was replaced with HF 3833, another omnibus bill. That bill was fast-tracked and passed the House during the last week of session. The Senate did not have one omnibus K-12 education finance and policy bill, instead the Senate split proposals into smaller bills.

In the final hours of session, the House took up HF 2072, a third version of an omnibus K-12 education bill, sent it to conference committee, and then passed the final bill on the floor. However, the Senate rejected the bill. The House voted to give school boards the power to renew expiring property tax hikes without voter approval, but the Senate voted the bill down to send back to conference committee. Opponents said the proposal would deny voters the ability to renew a property tax increase previously approved by referendum. The bill also did not include the controversial provision regarding alternative teacher licensure or address job evaluation for existing teachers. Throughout session, the bill contained some contentious issues as lawmakers and the governor tried to put together a second-round application for federal Race to the Top funds. The governor, legislators and teacher unions could not agree on some of the key reforms that are part of the grant application criteria, including alternative teacher licensure.
During the special session Monday morning, legislators tried one more time to pass a bill, and took up the K-12 education bill in the form of SF 2 / HF 2. Members on the Senate floor said they were able to work out an agreement with the governor, and the Senate passed the bill. However, the House was unable to get enough votes needed (90) to suspend the rules and take up the bill. So the omnibus K-12 education bill once again did not pass.

Wrap-up

The bills summarized in this report do not include all bills passed during the 2010 session that relate to the Minnesota State Colleges and Universities system. Please watch for Mandates and Curiosities, the annual publication that highlights and summarizes new laws relating to higher education in Minnesota, to be posted to the government relations Web site in the coming weeks.

The 2011 legislative session is scheduled to begin January 4, 2011. When lawmakers return to St. Paul for the 2011 legislative session, the make-up of the Legislature will look different. 21 legislators have announced their retirement, including Representatives Dan Severson, R-Sauk Rapids, Larry Haws, DFL-St. Cloud, Rob Eastlund, R-Cambridge, Tom Emmer, R-Delano, Marty Seifert, R-Marshall, Laura Brod, R-New Prague, Jeremy Kalin, DFL-North Branch, Doug Magnus, R-Slayton, Randy Demmer, R-Hayfield, Paul Kohls, R-Victoria, Karla Bigham, DFL-Cottage Grove, Margaret Anderson Kelliher, DFL-Minneapolis, and Cy Thao, DFL-St. Paul.

Retiring senators include Senators Tarryl Clark, DFL-St. Cloud, Steve Dille, R-Dassel, Dennis Frederickson, R-New Ulm, Debbie Johnson, R-Ham Lake, Mee Moua, DFL-St. Paul, Jim Vickerman, DFL-Tracy, Steve Murphy, DFL-Red Wing, and Pat Pariseau, R-Farmington.

The primary election this year has been moved up to August 10, 2010 and Election Day is November 2, 2010. Offices up for election this year are state senators and state representatives, state executive officers including the governor, and U.S. representatives. You may tune in to election activity and campus events on the government relations Web site here.

Be sure to keep up on legislative news, both state and federal, at the Minnesota State Colleges and Universities blog, Facebook page and Twitter page. They can be located at:

Government Relations Blog

Government Relations Facebook

Government Relations Twitter

Friday, May 14, 2010

Countdown to session end; Federal updates on STEM, stimulus funds and credit cards

Legislative Update
May 14, 2010

Countdown to the end of session


With just a little over two days remaining until adjournment, legislative leaders and Gov. Pawlenty continue to negotiate a session-ending deal to balance the budget. According to the constitution, lawmakers must adjourn Monday, May 17, but note the Legislature is not allowed to pass bills the last day of session. So for all practical purposes, the Legislature will adjourn Sunday at midnight.

Senate Majority Leader Larry Pogemiller, DFL-Minneapolis, said today that the Senate has completed its work and is waiting to put the final touches on the budget balancing approach that will be acceptable to the governor. Pogemiller said if something comes out of conference committee that is good for the state, the Senate will pass it, but there is nothing left that needs to be passed other than a budget bill. Others are arguing there is still a K-12 education bill that should be passed.

The K-12 education bill has traveled a long road this session. The original bill, HF 2431, which made its way through the committee process this session, was tabled late last week in the House Ways and Means committee, so it has been replaced with HF 3833, the most recent omnibus K-12 education bill. That bill was fast-tracked and passed the House earlier this week by a vote of 86-47. The Senate does not have an omnibus K-12 education finance and policy bill, instead the Senate has split proposals into smaller bills. Lacking a Senate companion, the fate of the House K-12 education bill is unknown.

The higher education policy bill moved this week. After conferees met for the first and only time and passed the conference committee report Wednesday, the Senate passed the bill by a vote of 62-2, and the House passed it 113-17. The bill, SF 184, now heads to the governor. You may find the complete bill here.

A final summary of the 2010 Minnesota legislative session will be sent out Monday, May 17 after the Legislature adjourns sine die.

Please find the latest federal news below.

Science funding legislation stalls

The U.S. House was expected to vote on the America COMPETES law Thursday but the legislation was sent back to committee. This legislation would have doubled the budget of the National Science Foundation, continued funding for science and research programs for five years, and emphasized training in science, technology, engineering and math. The America Creating Opportunities to Meaningfully Promote Excellence in Technology, Education and Science (COMPETES) Act was originally enacted in 2007. It was sent back to committee after Republicans raised concern about the bill creating too many programs and spending too much money.

No stimulus funding for teachers?

Colleges and universities may not receive extra stimulus funding this year to prolong teaching contracts. The Senate Appropriations Committee approved a $58.8 billion supplemental appropriations bill Thursday that did not include the teacher funding provision. Senator Todd Harkin, D-Iowa, originally proposed the education legislation calling for $23.3 billion to be used to "starve off the coming wave of teacher layoffs," he wrote in a press release. Education Secretary Arne Duncan sent a letter to leadership including Senate Majority Leader Harry Reid, D-Nevada, and Speaker of the House Nancy Pelosi, D-California, asking them to reconsider and support this legislation.

Credit card swipe fees reduced under amendment

College bookstores received a victory this week in Congress. The U.S. Senate voted 64-33 Thursday to pass an amendment which would require that fees associated with paying for books on a credit card be "reasonable and proportional" to the cost of the transaction, which could lower the fees colleges pay when students use credit and debit cards to pay for tuition or books. The fees average 1 to 2 percent of the purchase. This amendment is likely to benefit students as costs are sometimes passed onto the consumer. The amendment was tacked onto S.3217, the Restoring American Financial Stability Act of 2010.

Friday, May 7, 2010

Budget negotiations continue; Trustees confirmed; Policy conferees appointed; Nursing supported; Lots of bill passage; Federal Pell grant legislation

Legislative Update
May 7, 2010


Minnesota Supreme Court overturned governor’s unallotment

The big news this week that is changing the legislative landscape for the remaining 10 days of the session is the Minnesota Supreme Court ruling concerning Gov. Tim Pawlenty's unallotment last year. The court ruled 4-3 that the governor overstepped his executive authority by unilaterally cutting $2.7 billion from the state budget through the unallotment process. In a majority opinion written by Supreme Court Chief Justice Eric Magnuson, the court said the governor used the unallotment in an unintended way by cutting a state nutrition program before the Legislature had adjourned with a balanced budget. Magnuson said the Legislature has the primary responsibility for establishing the state's spending priorities through the enactment of appropriation laws. You can find the complete Supreme Court ruling here.

It appears that the implications of the ruling are much broader than the relatively small provision pertaining to the nutrition program that was the plaintiff in this case, and lawmakers now have to deal with a budget deficit that goes beyond the current $536 million shortfall. With the $2.7 billion unallotment overturned, the shortfall is likely to grow substantially to more than $3 billion. The governor's cut of $2.7 billion included $50 million to the Minnesota State Colleges and Universities system. Chair of the Senate higher education committee Sen. Sandy Pappas, DFL-St. Paul, said in the MinnPost online newspaper that the University of Minnesota and the Minnesota State Colleges and Universities system should not expect restoration of $50 million each from the governor’s unallotments. “Frankly I think that’s pretty unlikely,” she said. “We still have holes in our budget to fill, and so to go back and spend money on something that’s already cut is going to be unlikely, not this year, with this governor.” Pappas also said that because of the federal maintenance-of-effort requirements there are very limited areas in the higher education budget that can be cut. “We’ve cut the maximum we can cut from MnSCU and the University of Minnesota,” Pappas said.

Legislative leaders have been meeting with the governor to discuss how to handle this new deficit. In a press conference late this week, the governor's Deputy Chief of Staff Brian McClung said the governor is looking at the deficit in three parts and looking for ways everyone can agree. The three parts include $1.8 billion in shifts in K-12 school aid payments and property tax recognition, $700 million in unallotment cuts and the remaining $536 million deficit. McClung said he is hopeful lawmakers will at least ratify the $1.8 billion shift; however, while the shift has majority support in the House, there is not widespread support in the Senate. Sen. Larry Pogemiller, DFL-Minneapolis, said in a media availability today that while the Senate does not support the shift, he does acknowledge that it might be necessary to “kick the can down the road,” to resolve part of the deficit. Pogemiller said the Senate DFL caucus would rather make the hard structural decisions. Gov. Pawlenty has asked lawmakers to ratify the $2.7 billion in unallotments. As of the time of this writing, members of the House are debating an amendment on the floor that would enact the unallotments. Pogemiller and House Speaker Margaret Anderson Kelliher, DFL-Minneapolis, said lawmakers will also consider a new round of spending cuts.

Lawmakers will have their work cut out for them this next week as they work to balance the budget before heading home May 17. Pogemiller said today he does not want to work up until the last minute of session resolving the deficit. He said they learned from last session when they attempted to pass a major piece of legislation at the final hour.

Board of Trustee members confirmed by Senate

The full Senate has confirmed Minnesota State Colleges and Universities Board of Trustees members David Paskach and Christopher Frederick. Trustee Paskach was confirmed by the Senate Higher Education Budget and Policy Division in January 2009 and the full Senate just took action on his confirmation Thursday. Trustee Frederick was confirmed by the committee earlier this session and also received confirmation Thursday by the full Senate.

Higher education policy bill passes House, conferees appointed

The full House passed the higher education policy bill earlier this week by a vote of 98-31. Discussion on the floor was mainly surrounding an amendment offered by Rep. Phyllis Kahn, DFL-Minneapolis, that would allow alcohol to be served in premier seating at the University of Minnesota sports arenas. The amendment did not pass; however, the Senate included this provision in their version of the higher education policy bill.

Also on the House floor, Rep. Sarah Anderson, R-Plymouth, offered an amendment regarding the pilot project language in the bill that would establish up to eight institutions in the Minnesota State Colleges and Universities system to invest some campus reserves in a local bank. Rep. Anderson said the amendment would ensure the interest rate paid on deposits in local banks would be at least equal to the rate paid on campus reserves deposited in the state treasury. The amendment did not pass by a vote of 45-83.

After the House passed the bill, Sen. Sandy Pappas, DFL-St. Paul, moved to not concur with the House higher education policy bill and requested that a conference committee be appointed to work through the differences in the two bills. Senate appointees include Sen. Pappas; Sen. Ron Latz, DFL-St. Louis Park; and Sen. Claire Robling, R-Jordan. The House appointed three conferees as well. They are Rep. Tom Rukavina, DFL-Viriginia; Rep. Roger Reinert, DFL-Duluth; and Rep. Carol McFarlane, R-White Bear Lake. As of the time of this writing, the conference committee has not publicly met. You may review the side-by-side comparison of the two bills here.

The House bill includes language that increases the age of a senior citizen in statute from 62 to 66 to receive a tuition discount, caps the for-profit institutions in the state grant program, caps the one-time grant for a high school-to-college developmental transition program at $1 million; and establishes the Minnesota State Colleges and Universities central system office and provides for general duties of the office.

The supplemental budget bill signed by the governor earlier this session raised the revenue fund authority in statute from $200 million to $300 million. The House bill brings that authority increase down to $275 million. There is language in the House bill that requires the system along with the Minnesota Chamber of Commerce and representatives of industry groups and labor unions to study program requirements for certificates and diplomas awarded by the system to determine the feasibility of designing technical education programs to allow students to have more opportunities to earn credentials with lower credit requirements that could be combined into higher level certificates or diplomas.

Another provision in the House bill requires the system office to streamline services provided through the office to reduce expenditures, better target the use of state resources and provide services at the most appropriate and efficient level so as not to duplicate any services provided at the institution level.

The House bill does include language on credit transfer, which is somewhat different than what the recent conference committee adopted and the governor vetoed late last week. The language requires the Board of Trustees to develop and implement a plan to improve credit transfers within the system. The House bill also includes language on post-retirement health insurance premium reimbursements and language that states the system office cannot pass through any reductions to campuses that were made to the system office.

Also included in the House bill is language that states the Minnesota State Colleges and Universities system and the University of Minnesota shall study nanotechnology research and education and report to the Legislature on ways nanotechnology is used responsibly and safely. And finally, language in the House bill requires the Board of Trustees to establish a pilot project to develop partnerships and training and employment opportunities for surgical technologists at institutions that offer a surgical technologist program.

The Senate bill includes a provision that requires colleges and universities to make a reasonable attempt to identify and purchase locally grown food, and includes language that requires the Office of Higher Education to monitor the implementation of the Higher Education Opportunity Act as it relates to disclosure of textbook pricing and other information to students.

Nursing programs receive coordinated support

In the Senate this week, the committees on Health, Housing and Family Security and Commerce and Consumer Protection met jointly and among other issues, took up SF 3397, which encourages the Minnesota State Colleges and Universities system to apply for federal grants available to further the development and expansion of the clinical coordination project. This bill was before the committee for discussion.

Elizabeth Biel with the Healthcare Education Industry Partnership located at Minnesota State University, Mankato testified to the success of the original pilot project and current program. The goal of the clinical coordination project is to coordinate work sites for nursing students to get the clinical experience they need to complete to graduate and to increase efficiency and utilization within the state's clinical experience environment. Biel said that without the necessary space for clinicals, nursing programs across the state will be unable to educate more nursing students. Minnesota's health care education programs report that securing these experiences is among the top three barriers to maintain and expand graduation rates. Sen. Kathy Sheran, DFL-Mankato, a former nursing professor at Minnesota State University, Mankato, said that competing for clinical space is a real problem. Sheran said a lot of time and frustration goes into negotiating and scheduling clinical lab space with hospitals and clinics.

Biel said there are 38 nursing programs in the state, and the program is designed to tear down the silos and work together. The program has the potential to decrease nursing and allied health education program waiting lists that currently exist and increase the numbers of Minnesota’s qualified health care workers. Author of the bill, Sen. Sharon Erickson Ropes, DFL-Winona, said the program can be used as a model across the health care spectrum, and that this program is a good example that will help Minnesota qualify for federal grants available through the Health Care and Education Reconciliation Act of 2010.

Lawmakers act on legislation with one week left to adjournment

With just a little over one week left before the Legislature must adjourn Mon., May 17, both the House and Senate are busy processing bills. On the House floor this week, members debated the health and human services bill for more than nine hours and passed it by a vote of 79-54. The Senate passed the bill 42-19, and it is now in conference committee to work through the differences. However, Gov. Pawlenty has said he will veto the bill because of costs in future years. While the House bill makes cuts of $164 million in the current biennium, it does designate an additional $38 million in fiscal year 2011 and $53 million in the 2012-2013 biennium for Minnesota’s participation in an early federal health care reform initiative, an expansion of the state’s Medicaid program. Sen. Linda Berglin, DFL-Minneapolis, author of the Senate bill, has urged the governor to back away from his threatened veto of the bill. The Senate bill makes cuts of $114 million.

Also this week, the Senate passed the omnibus retirement bill on the floor by a vote of 44-19, and the House is scheduled to take up the bill on the floor today. The bill includes a provision that authorizes the Minnesota State Colleges and Universities system to contract out for investment selection and review services for the Individual Retirement Account Plan with providers other than the State Board of Investment. The bill also extends the early retirement incentive program that expired on July 15, 2009, to October 1, 2012, and resets the incentive payment amount from $17,000 to the total of the maximum state regular unemployment compensation and employer-paid medical, dental and life insurance premiums payable to the incentive recipient in the event of a layoff.

On the House floor this week, members passed the contract ratification bill 118-5 after an amendment was adopted that requires a summary of the proposed contract agreement, award or plan to be posted on a state Web site prior to being submitted to the Legislative Coordinating Commission for review. The Senate had passed the bill earlier without this amendment, so the Senate will have to take up the revised bill. As a reminder, the bill ratifies the contracts and plans for Minnesota State College Faculty or MSCF; the Minnesota State University Association of Administrative and Service Faculty or MSUAASF; the American Federation of State, County and Municipal Employees or ASCFME, the Minnesota Association of Professional Employees or MAPE; the Middle Management Association or MMA; the Minnesota State Colleges and Universities Administrators; the Commissioner’s Plan; and the Managerial Plan.

Another bill passed by the Senate this week by a vote of 62-0 is SF 3079. It modifies the Post-Secondary Enrollment Options program. The bill eliminates the language from statute that says a post-secondary institution may not advertise or otherwise recruit or solicit secondary students to enroll in post-secondary programs on financial grounds. The bill also allows a post-secondary institution to bill students for any textbooks and equipment that are not returned by the student. The House companion is awaiting a hearing in House Finance. The House omnibus K-12 education bill also includes the textbook provision.

Bills will continue to make their way out of committee and onto the floor the remaining days of session, and lawmakers will continue to pass bills off the floor and send them to the governor for signature, all while negotiations continue on how best to balance the state’s budget.

Congressman Paulsen introduces legislation to show support for full funding for Pell Grants

Earlier this week, Congressman Erik Paulsen, D-Minn., introduced legislation in the U.S. House of Representatives that calls for full funding of Pell grants, federal grant aid for post-secondary education. The bill, H.R.5198, expresses the sense of Congress that the federal Pell grant program plays a unique role in promoting economic and social mobility in the United States, financial aid has a significant positive impact on the post-secondary enrollment and success rates of students from low income families, and should be a high funding priority. The bill was referred to the Committee on Education and Labor.

“Pell grants are one of the most important tools in helping students afford the growing costs of post-secondary education, especially as the economy continues to lag,” Paulsen said. “As Congress seeks to prioritize the federal budget, meeting the commitments we've made to students who depend on Pell grants will be critically important. I'm hopeful this bipartisan effort will bring greater attention to this need, while also building momentum to fully fund Pell grant awards as we go forward.” You may find the bill 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 legislative web site.

Monday, May 10

9:00 AM
House Finance
Room: 200 State Office Building
Chair: Rep. Lyndon Carlson
Agenda:
SF2891 (Mullery) Interstate Compact for Juveniles adopted.
SF3134 (Kahn) State government programs or activities money appropriated or reduced, and provisions changed relating to expenses of governor-elect, income earned by the permanent school fund, lease-purchase agreements, general services, resource recovery, payment of aids and credits to school districts, tax return preparers, and implied consent.
HF2866 (Carlson) Executive branch authority modified to reduce unexpended allotments.
HF2922 (Thissen) Minneapolis Employees Retirement Fund; administrative functions transferred to the Public Employees Retirement Association, consolidation account created within the Public Employees Retirement Association, and money appropriated.

Tuesday, May 11

12:30 PM
Senate Higher Education Budget and Policy Division
Room: 123 Capitol
Chair: Sen. Sandra L. Pappas
Agenda:
University District Alliance report
HEFA confirmations

Friday, April 30, 2010

Budget discussions prevalent; Transfer bill before governor; K-12 bill moving

Legislative Update
April 30, 2010

Lawmakers focus on finalizing budget with two weeks left to adjournment


It was another short week at the Capitol as the Republicans take their turn endorsing a candidate for governor and other offices. Starting midday today, balloting for the Republican gubernatorial endorsement began. Both candidates, State Representative Tom Emmer, R-Delano, and State Representative Mary Seifert, R-Marshall, have said they will abide by the endorsement, which means the candidate who does not receive the endorsement today will not run in the Aug. 10 primary. As a reminder, DFL delegates endorsed Speaker of the House Margaret Anderson Kelliher, DFL-Minneapolis, for governor at the DFL state party convention last week. Starting Monday, the focus at the Capitol will be on resolving the remaining budget deficit of $536 million with only two weeks left until adjournment May 17. Capitol watchers know that two weeks is plenty of time to wrap things up.

However, there is a slight hiccup in the plan. Legislators serving on the Legislative Commission on Planning and Fiscal Policy’s Subcommittee on a Balanced Budget heard from Minnesota Management and Budget Commissioner Tom Hanson this week that the $408 million federal funds lawmakers and the governor are counting on to help resolve much of the remaining budget deficit is unlikely to be appropriated before the Legislature adjourns. Hanson said the governor's office learned this week from the National Governors Association that it could be several weeks before Congress passes the Patient Protection and Affordable Care Act. Hanson also said while it is possible the legislation may be acted on prior to Congress recessing May 29, lawmakers should consider developing a backup plan. He suggested that lawmakers deal with $128 million of the deficit first assuming the state will eventually receive the $408 million in federal funding, and then develop a back-up plan in case that money does not come through.

One of the remaining bills still left to pass is the health and human services bill which has worked its way through the committee process in the House and has passed the House Finance committee. The House bill makes $164 million in reductions. Members are expected to vote on the bill early next week. The companion bill in the Senate reduces general fund spending by $114 million for the current biennium and over $130 million for the next two year budget cycle. The other major bill still remaining is the K-12 education bill, which is also working its way through the committee process.

Transfer bill awaits action by the governor

The House and Senate approved the credit transfer conference committee report this week, and it is now pending action by the governor. The House passed the bill, HF 3164, by a vote of 110-20, and the Senate passed the bill 55-0. The bill will require the system to develop and maintain a systemwide effective and efficient mechanism for seamless student transfer between system institutions that has a goal of minimal loss of credits for transferring students. The legislation requires the system to submit annual reports to the Legislature on progress made toward achieving that goal. The language also requires each system college and university to post information necessary to determine the transferability of course credits on their institutional Web sites. The Office of the Chancellor must develop, in consultation with faculty and students, a template to be used by the colleges and universities to ensure consistency in the information available to students. Here is a link to the language.

House K-12 education bill moves through committee

The House K-12 Education Finance committee passed the omnibus K-12 education bill out of committee this week after multiple amendments to the bill. HF 2431 now heads to the Finance committee where it is scheduled to be heard Monday morning. You may review the bill here.

Included in the bill is a provision regarding an early graduation achievement scholarship program. Under the provision, a student is eligible for a scholarship of $2,500 if he or she qualifies for graduation one semester early, $5,000 if the student qualifies for graduation two semesters early, or $7,500 if the student qualifies for graduation three or more semesters early. A scholarship may be used at any accredited institution of higher education. Also included in the bill is a provision on textbooks for PSEO students that reads a postsecondary institution may bill the pupil for any textbooks and equipment that are not promptly returned by the student.

Language in the bill relating to the Board of Teaching includes several provisions regarding teacher and principal performance assessments. The Board of Teaching is required to adopt rules to establish a statewide teacher performance assessment system aligned with K-12 academic standards. The Board of Teaching is also to enter into an agreement with the Department of Education to share educational data solely for approving and improving teacher education programs.

Also included in the bill is language regarding approaches to alternative teacher licensure pathways. An alternative teacher preparation program, taken from HF 3093, sponsored by Rep. Carlos Mariani, DFL-St. Paul, would allow candidates, such as Teach for America members, a limited two-year license if they have at least a bachelor’s degree, pass basic skills tests and complete at least 200 hours of instruction. A candidate could later apply for a continuing license. An amendment to the bill by Rep. Will Morgan, DFL-Burnsville, would define much more narrowly the conditions under which candidates for alternative licensure could be placed.

The Senate E-12 Education Budget and Policy Division has been working on its bill and is expected to take up its policy bill Tuesday.

Higher education veteran assistance programs may be able to continue on campuses with the passage of amendment

The full House of Representatives passed the omnibus agriculture and veterans affairs policy bill this week by a vote of 127-3. Prior to passage, multiple amendments passed the body, including an amendment by Rep. Dan Severson, R-Sauk Rapids, to extend the higher education veteran assistance programs on campus. Current legislation has the programs expiring June 30, 2011, but the amendment extends the sunset date to June 30, 2015. Rep. Severson said that the bill author, Rep. Al Juhnke, DFL-Willmar, had concerns with the amendment because of a potential cost. But Severson said that because of the effectiveness of the federal GI bill and funds not being accessed, there is money available. Juhnke said he would be happy to take it to conference committee and "try it on for size." The amendment was adopted and incorporated into the bill.


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 legislative web site.

Monday, May 3

9:00 AM
House Taxes
Room: 10 State Office Building
Chair: Rep. Ann Lenczewski
Agenda: HF3729 (Lenczewski) Omnibus tax bill (A delete-all amendment will be offered to this bill. Language will be available online April 30).

10:00 AM
House Finance
Room: 200 State Office Building
Chair: Rep. Lyndon Carlson
Agenda: HF2431 (Greiling) Omnibus K-12 education bill
SF1761 (Fritz) Health plans required to establish equal out-of-pocket requirements for oral and intravenously administered chemotherapy medications.

10:00 AM
House Ways and Means
Room: Basement State Office Building
Chair: Rep. Loren Solberg
Agenda:
Budget Resolution;
HF2614 (Huntley) Intensive care management program established for medical assistance enrollees, funding reduced for the medical assistance program, request for proposals required, report required, and money appropriated;
HF3281 (Murphy) Omnibus retirement bill;
HF3660 (Koenen) Department of corrections; settlement provided for certain claims against the state for injuries suffered, and money appropriated;
HF3571 (Koenen) Publicly owned nursing facilities rate increase authorized, and local share required for nonfederal medical assistance costs;
HF3702 (Wagenius) Omnibus environment and natural resources finance bill;
SF2505 (Slawik) Statewide child care provider training, coaching, consultation, and supports funding provided to prepare for the voluntary Minnesota quality rating system, and money appropriated.

2:00 PM
Senate in Session

3:00 PM
House in Session

Tuesday, May 4

8:30 AM
House K-12 Education Policy
Room: 10 State Office Building
Chair: Rep. Carlos Mariani
Agenda: Federal School Improvement Grants and Minnesota's list of "Persistently Lowest-Achieving Schools"

8:30 AM
Senate E-12 Education Budget and Policy Division
Room: 112 Capitol
Chair: Sen. LeRoy A. Stumpf
Agenda: S.F. 3189-Stumpf: High school students statewide testing open-ended items inclusion.

8:30 AM
House Capital Investment Finance Division
Room: Basement State Office Building
Chair: Rep. Alice Hausman
Agenda: HF3678 (Clark) Challenge program for affordable housing and permanent supportive housing purposes funding provided, and bonds issued.
HF3725 (Marquart) Mortgage registry tax and deed tax proceed portion appropriated to the Minnesota Housing Finance Agency to be used for creation of affordable housing units.
Second Order Amending Order of Commissioner of Finance
Relating to Use and Sale of State Bond Financed Property, MMB
Meeting Documents here.

3:00 PM (or after the Tuesday floor session whichever is later)
House Taxes
Room: 10 State Office Building
Chair: Rep. Ann Lenczewski
Agenda:
HF2431 (Greiling) Omnibus K-12 education bill

Tuesday, May 11

12:30 PM
Senate Higher Education Budget and Policy Division
Room: 123 Capitol
Chair: Sen. Sandra L. Pappas
Agenda:
University District Alliance report
HEFA confirmations

Friday, April 23, 2010

Short session weeks; Policy bill moves; State grant shortfall bill moves; Race for the Top discussed; Federal Student Loan Act heard

Legislative Update
April 23, 2010


Two short weeks at the Capitol while political parties endorse candidates

It was a short week in St. Paul as DFL state delegates headed north to Duluth for the 2010 DFL State Convention, which officially kicked off this morning. Convention delegates will hear today from U.S. Sen. Amy Klobuchar, D-Minn., but starting Saturday morning, the gubernatorial endorsement process begins. There is a lengthy list of DFL candidates. Five of them have said they will abide by the endorsement and won’t be on the primary ballot: Speaker of the House Margaret Anderson Kelliher, Minneapolis Mayor R.T. Rybak, state representatives Paul Thissen and Tom Rukavina, and state Sen. John Marty. Three other DFL gubernatorial candidates who have said they are not abiding by the endorsement and will run in the August 10 primary are former Sen. Mark Dayton, Ramsey County Attorney Susan Gaertner and former House Minority Leader Matt Entenza.

Next week, Republican state delegates will gather beginning Thurs., April 29, at the Minneapolis Convention Center, where state representatives Tom Emmer and Marty Seifert will battle it out for the endorsement for governor.


Higher education policy bill passes Senate


On the Senate floor this week, lawmakers took up SF 184, the Senate omnibus higher education policy bill, and passed it after successfully adding three amendments. The first amendment related to the Minnesota State Colleges and Universities system deletes the provision on credit transfer. Bill author Sen. Sandy Pappas, DFL-St. Paul, explained to senators that the transfer language is in a separate bill that is being worked out in conference committee. Since the Senate floor debate, a compromise on credit transfer was reached and can be found here. The rest of the amendment was technical in nature.

The other amendment related to the system, introduced by Sen. Chuck Wiger, DFL-Maplewood, regards monitoring of the federal postsecondary textbook disclosure law. The language requires the Office of Higher Education to monitor implementation of the Higher Education Opportunity Act as it relates to the disclosure of textbook pricing and other information to students.

The bill also includes a provision that asks public colleges and universities to make a reasonable attempt to identify and purchase food products that are grown within the state. You may find the latest version of the bill here.

The omnibus higher education policy bill in the House is awaiting action on the House floor.

Bill to fill state grant shortfall traveling through committee process

The House Finance committee heard HF 3757 this week. The bill, introduced by Rep. Bill Hilty, DFL-Finlayson, increases the fee to register a mutual fund from 1/20 of 1 percent to 1/10 of 1 percent. Rep. Hilty testified that this is consistent with most other states and said that for every $10,000 invested in a mutual fund, there would be a $5 fee increase to help fill $23 million of the now $35 million state grant shortfall. Rep. Mary Kiffmeyer, R-Big Lake, said in committee that while many other states charge a fee of 1/10 of 1 percent, the other states set a cap on the fee, while HF 3757 does not.

Chair Lyndon Carlson, DFL-Crystal, asked the Minnesota Office of Higher Education about the average loss students are seeing in their state grant awards because of the shortfall. Tricia Grimes of the office said the average student will see a $300 loss, but some students at a higher-cost institution could see up to a reduction of $1,000 in their state grants. Grimes also told committee members that 7,000 students will lose their state grant award altogether and more than 5,000 of these students are from community and technical colleges.

Chair Carlson explained to committee members that because of the economy, many more students are showing up at higher education institutions and a larger number of these students have a greater financial need. The Office of Higher Education moved dollars from the second year of the biennium to the first year to cover the cost of this greater need, which has resulted in the shortfall in the second year. Carlson also said it is difficult to predict how much money will be needed in the state grant program from year to year, but under law, the Office of Higher Education has to prorate students' awards if there is a shortfall.

Rep. Laura Brod, R-New Prague, said the state grant program is a great program and lawmakers should make it a priority, but should find a different way to fund it without creating a tax.

The bill is slated to be heard next in the Tax committee. If the Tax committee passes the bill on its own, it will travel to the Ways and Means committee and the next stop would be the House floor. The Tax committee also could roll the bill into its omnibus bill or not pass the bill at all. The Senate companion, SF 3355, sponsored by Sen. David Tomassoni, DFL-Chisholm, has not yet been heard.

Movement this week on a second Race to the Top proposal

Earlier this week a joint House and Senate education committee met to discuss a second Race to the Top proposal after Minnesota was not awarded a federal education grant in the first round, coming in 20th out of 41 states that applied. The grant is intended to stimulate education reforms and help states fix low-performing schools. As reported last week, a grant could be worth $60 million to $175 million to Minnesota. Rep. Mindy Greiling, DFL-Roseville, said, “I would say this is the most important education meeting we have had this session; the main way to win is if we come together and do what’s best for our students.” Meetings continued later in the week when Greiling, Sen. LeRoy Stumpf, DFL-Plummer, and other lawmakers met with the federal Department of Education about a second Race to the Top proposal. Greiling said they learned that the winners from the first round had in common was that their governors personally worked with union leaders on the proposal, because “it’s not done to them but rather with them.”

Gov. Tim Pawlenty has said he will not sign a second-round application unless the Legislature passes reforms that will satisfy grant criteria. These reforms include alternative teacher licensure; linking student achievement data to teacher effectiveness, tenure and pay; implementing statewide teacher and principal evaluation systems; and the ability to dismiss educators shown to be ineffective according to defined criteria. Bush Foundation Vice President and Educational Achievement Team Leader Susan Heegaard said research indicates that students who have effective teachers progress three times faster than those with less effective teachers. Heegaard said the Bush Foundation has committed $40 million over 10 years to strengthen teacher training and ongoing support for new teachers, in partnership with 14 higher education institutions in Minnesota, North Dakota and South Dakota that will guarantee their graduates are effective.

“Our goal is to improve student readiness for college and close the achievement gap,” Heegaard said. Rep. Carlos Mariani, DFL-St. Paul, said the original application did not adequately address Minnesota’s “disgraceful achievement gap,” which Greiling said is second-worst in the nation, above only the District of Columbia.

Current legislation at the Capitol may help increase the chances for a second round application. Rep. Mariani sponsored HF 3163 that would strengthen teacher preparation programs and use longitudinal data to track teacher performance. The bill awaits action by the House K-12 Education Finance Division. HF 3093, also sponsored by Rep. Mariani, would create pathways to licensure for nontraditional teacher candidates. This bill passed the House and awaits action by the Senate. In the Senate, SF 2757, which includes both House provisions and is being carried by Sen. Terri Bonoff, DFL-Minnetonka, awaits action by the Senate E-12 Education Budget and Policy Division.


Federal Private Student Loan Bankruptcy Fairness Act of 2010 heard in committee


The U.S. House of Representatives Subcommittee on Commercial and Administrative Law had a hearing this week on a bill introduced in both the Senate and House that would treat privately issued student loans in bankruptcy the same as other types of private debt. Sen. Al Franken, D-Minn, is a co-author of the Senate bill, S. 3217. The House bill, H.R. 5043, was introduced by Rep. Stephen Cohen , D-TN.

Language in the bill would restore the private student loan provision in bankruptcy law to the language that was in place before 2005, so that privately issued student loans will once again be dischargeable in bankruptcy. Under current law, private student loans cannot be discharged unless borrowers can prove that repaying the loans would be an “undue hardship.” By comparison, mortgages and credit-card balances can be excused without showing undue hardship. Supporters of the bill say the legislation would restore fairness to the bankruptcy system by treating private student loans like other types of private debt.

An opponent of the bill, Rep. Trent Franks, R-Ariz., said the legislation would “discourage private lending and encourage abuse of the bankruptcy system.” John A. Hupalo, managing director of a group specializing in student-loan finance at Samuel A. Ramirez and Co., warned that interest rates for all borrowers of private student loans would have to rise to compensate for the increased risk that borrowers would eliminate their private-student loan debt through bankruptcy. It is unclear at this point how far the bill will go in Congress.


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 legislative web site.

Monday, April 26

12:00 PM
House in Session

1:00 PM (or 30 minutes after session adjourns)
House K-12 Education Finance
Room: 5 State Office Building
Chair: Rep. Mindy Greiling
Agenda: Walk-through of the omnibus K-12 finance and policy bill.
NOTE: Copies of the articles will be posted online and be available to the public at approximately noon Monday.
HF243 (Greiling) School finance system modified, and new education funding framework created.

2:00 PM
Senate in Session

Tuesday, April 27

8:30 AM
House State and Local Government Operations Reform, Technology and Elections
Room: 10 State Office Building
Chair: Rep. Gene Pelowski
Agenda: HF2958 (Pelowski) Open Meeting Law changed.
HF2227 (Marquart) Board of Innovation reestablished, powers and duties imposed, and money appropriated.

9:30 AM
House Finance
Room: Basement State Office Building
Chair: Rep. Lyndon Carlson
Agenda:
HR 8 (Huntley) A house resolution expressing the sense of the Minnesota House of Representatives regarding an extension of the enhanced federal Medicaid match.
HF3281 (Murphy) Omnibus pension bill
HF3660 (Koenen) Department of corrections; settlement provided for certain claims against the state for injuries suffered.
HF3571 (Koenen) Publicly owned nursing facilities rate increase authorized, and local share required for nonfederal medical assistance costs.
HF3748 (Simon) Chairs and ranking minority members of the Committee on Finance and Ways and Means authorized to request local impact notes.
SF2505 (Slawik) Statewide child care provider training, coaching, consultation, and supports funding provided to prepare for the voluntary Minnesota quality rating system, and money appropriated.
HF1993 (Clark) Minneapolis; utility poles treated with or containing pentachlorophenol prohibited.
HF3490 (Holberg) Requirements established governing capital requests and legislative reporting for projects to establish fixed guideway transit and rail lines.

Wednesday, April 28

8:30 AM
Senate Finance
Room: 123 Capitol
Chair: Sen. Richard J. Cohen
Agenda:
S.F. 2918-Betzold: Omnibus retirement bill.
S.F. 2573-Betzold: State, local, legislator and hospital public employees retirement financial sustainability provisions modifications.
S.F. 2644-Betzold: Minneapolis employees retirement fund (MERF) administrative functions transfer to the public employees retirement association (PERA); MERF consolidation account in PERA establishment and operation provisions.

10:00 AM
House K-12 Education Finance
Room: 5 State Office Building
Chair: Rep. Mindy Greiling
Agenda: Mark-up and passage of HF2431, the omnibus K-12 finance and policy bill.

Monday, April 19, 2010

Lawmakers reassess budget; Confirmation of Trustee Frederick; Contract bill moves; Nanotech discussed; Race to the Top debated; U.S. Senate talks jobs

Legislative Update
April 16, 2010


Minnesota’s cash situation unknown while lawmakers address remaining deficit

Members of the Legislative Commission on Planning and Fiscal Policy’s Balanced Budget Subcommittee received an update this week from Minnesota Management and Budget, or MMB, about the state's cash situation. MMB Budget Deputy Commissioner Jim Schowalter told committee members that Minnesota will not have to borrow money to pay its bills this spring, but cash flow shortfalls are still a possibility for later this year. Schowalter said fiscal year 2011 has deep cash problems right now.

Schowalter said the state has averted a potential cash shortage in the general fund by borrowing more than $1 billion from other state accounts and by delaying $416 million in payments, mostly to school districts. Schowalter said MMB will not know for sure whether borrowing is necessary until they see the complete legislative solution to the budget deficit. The supplemental budget bill, which Gov. Tim Pawlenty signed into law April 1, includes a $10.5 million reduction to the Minnesota State Colleges and Universities and solves approximately $312 million of the $994 million shortfall. Lawmakers are waiting to address the next phase of the solution, the health and human services bill, until Congress passes the Patient Protection and Affordable Care Act, which could include about $400 million for Minnesota.

Confirmation of Trustee Frederick moves to Senate confirmation calendar

The Senate Higher Education Budget and Policy Division had been scheduled to meet this week and take up the confirmation of Minnesota State Colleges and Universities Board of Trustees member Christopher Frederick. Because of a long floor session, the committee did not officially meet; however, committee members had an opportunity to meet with Trustee Frederick and ask him about his appointment to the board. Following that, Sen. Sandy Pappas, DFL-St. Paul, moved to remove the confirmation of Frederick from the higher education committee and place it on the confirmation calendar. The Senate is authorized by statute to give its advice and consent on executive appointments starting in the appropriate committee. Once the committee gives its approval, each confirmation moves to the confirmation calendar for full Senate approval.

Contract ratification bill one step away from the governor’s desk

The full Senate approved SF 2386, the contract ratification bill, by a vote of 48-16 earlier this week. In the House, the Senate bill was referred for comparison and after determining that the Senate and House bills are identical, the Senate bill was substituted for the House bill. The House gave the Senate bill a second reading Thursday. A bill needs three readings before passage; the third reading occurs immediately preceding the final vote on the bill. The bill ratifies the contracts and plans for Minnesota State College Faculty, the Minnesota State University Association of Administrative and Service Faculty, the American Federation of State, County and Municipal Employees, the Minnesota Association of Professional Employees, the Middle Management Association, the Minnesota State Colleges and Universities Administrators, the Commissioner’s Plan and the Managerial Plan.

Safety standards for nanotechnology discussed at Capitol

The House Finance committee amended HF 3448, the higher education policy bill, this week to include a provision regarding a nanotechnology report. By Feb. 1, 2011, the University of Minnesota and the Minnesota State Colleges and Universities are required to report to the Legislature on ways nanotechnology is used responsibly through standards and guidelines that protect public health and the environment and provide for occupational health and safety. The House higher education policy bill passed as amended and was sent to the floor. The Senate companion bill, SF 184, sponsored by Sen. Sandy Pappas, DFL-St. Paul, awaits action by the full Senate.

The nanotechnology amendment also was discussed as an informational item this week in the House Housing Finance and Policy and Public Health Finance Division. Members of the committee were interested in learning more about the safety aspects in nanotechnology. Gail O'Kane, system director for education industry partnerships, told committee members about the programs within the Minnesota State Colleges and Universities system that are focused on nanotechnology and informed members that the programs operate under OSHA standards.

Deb Newberry with Dakota County Technical College testified in front of the committee both as a nanotechnology instructor and from the national perspective of developing safety and environmental guidelines for nanotechnology.

Newberry spoke about the approaches to safety and ethics issues in Dakota County Technical College's program and other programs. Newberry also told the committee that it would be difficult to report on how the system's practices compare with national guidelines on nanotechnology as there are none yet. Newberry said the scientific and regulatory communities are working hard to develop guidelines, but the challenge is enormous since there at least a dozen interactive variables that would determine whether a particular use of a nanoparticle is toxic or environmentally harmful.

Politics in Minnesota captured Professor Newberry in midtestimony here.

Race to the Top discussions continue

At a press conference this week House and Senate leaders indicated that lawmakers hope to build consensus with the governor and teacher unions to help meet the federal Race to the Top grant application criteria. A joint meeting of the House and Senate education committees is planned for 8:30 a.m. next Tuesday to discuss a package of education reforms that could serve as an outline for a round two application for Race to the Top. The application deadline for round two is June 1, 2010.

Rep. Mindy Greiling, DFL-Roseville, said Minnesota would be eligible for between $60 million and $175 million in federal grant money for four years. Some of the key reforms that are part of the grant application criteria and that the governor, teacher unions and lawmakers have disagreed on include alternative teacher licensure, how the Q Comp pay for performance plan could be expanded, and how much student test scores should count in teacher evaluation and tenure decisions. Gov. Pawlenty said in a press release: "There’s a growing consensus around what must be done to ensure our children receive a top-notch education. This is not a Republican issue or a Democrat issue. Now it’s time for the Legislature to come together in a bipartisan way to pass these reforms on behalf of our students and future students."

U.S. Senate introduces legislation to help preserve education jobs

Senator Tom Harkin, D-Iowa, chairman of the Labor, Health and Human Services, Education appropriations subcommittee and the Health, Education, Labor and Pensions committee, introduced legislation this week that would provide $23 billion for preserving education jobs. These funds would be distributed to states through the same formula used for education funds in last year's stimulus bill and would support preserving jobs in both elementary and secondary education and public higher education.

The legislation requires a governor to allocate federal funds among K-12 and higher education systems in proportion to the overall level of state budget cuts sustained by both sectors. However, the governor may adjust the allocation to K-12 and higher education by increasing or decreasing such amounts up to 10 percent of the larger of the two allocations. In addition, the measure includes a maintenance of effort provision requiring a state to maintain the fiscal year 2006 funding level or the same overall fiscal year 2006 percentage of funding for each sector, higher education and elementary and secondary education, in fiscal year 2010. The impact of this provision will vary from state to state. Of the $23 billion, the estimated state grant Minnesota would receive is $386.9 million. Congressman Harkin's legislation parallels, with some significant differences, the $23 billion provided for education in the Jobs for Main Street Act that was passed by the U.S. House in December.

Marc Herzog, chancellor of the Connecticut Community Colleges, testified before the Senate Subcommittee on Labor, Health and Human Services, Education appropriations subcommittee this week. Chancellor Herzog's testimony supported Chairman Harkin's legislation to provide funding for an Education Jobs Fund for Fiscal Year 2011. Herzog's statement said that passage of the legislation "is needed in order to avert major cuts on many of our campuses, which in turn will lead to a further denial of access to our programs." Herzog added that the community colleges in Connecticut are "stretched to the breaking point." In response to a question from Chairman Harkin, Herzog said that when positions on campuses are eliminated, "the very people we lose are the people who ensure success."

U.S. Secretary of Education Arne Duncan also testified in front of the committee. Duncan urged Congress to consider another round of emergency funding similar to that provided in last year's American Recovery and Reinvestment Act. Duncan said that additional support for education was the "right thing for our country, our economy, and our children."

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 legislative web site.

Monday, April 19
9:30 AM
House Finance
Room: 200 State Office Building
Chair: Rep. Lyndon Carlson
Agenda: SF1323 (Gardner) Infectious Waste Control Act modified.
HF3757 (Hilty) Security transaction security exemptions modified, and money appropriated for the state grant program.
HF3414 (Hilty) Public Utilities Commission supplemental funding authorized, and money appropriated.
HF3033 (Rukavina) Rebate program established for solar photovoltaic modules, and money appropriated.
HF3347 (Urdahl) School concession stands established as a specific category of food and beverage service establishments.

11:00 AM
Senate in Session

12:00 PM
House in Session

Tuesday, April 20

8:30 AM
Joint Meeting: E-12 Education Budget and Policy Division; House Committee on K-12 Education Finance Division
Room: 200 State Office Building
Chairs: Sen. LeRoy A. Stumpf, Rep. Mindy Greiling
Agenda: Race to the Top Discussion

9:00 AM
Senate Taxes
Room: 15 Capitol
Chair: Sen. Thomas M. Bakk
Agenda: S.F. 3327-Bakk: Omnibus Tax Bill (walk-through, no amendments)
Wednesday, April 21

9:00 AM
Senate Taxes
Room: 15 Capitol
Chair: Sen. Thomas M. Bakk
Agenda: S.F. 3327-Bakk: Omnibus tax bill (amendments and passage)