Friday, March 12, 2010

Bonding bill final movement; Higher education budgets set; Credit transfer bill heard; U.S. Congress may act on SAFRA; McCollum hears jobs ideas

Legislative Update
March 12, 2010


Bonding - almost wrapped up?

After weeks of negotiations, the House and Senate passed a revised $1 billion bonding bill this week. The new legislation contains $239 million (including user financing) in projects and repair and replacement for the Minnesota State Colleges and Universities system.

The bonding bill passed the House Thursday by a vote of 89-44. House Majority Leader Rep. Tony Sertich, DFL-Chisholm, said the bill is about getting Minnesotans back to work. Proponents of the bill have said the legislation is expected to create 21,000 to 27,000 jobs.

Shortly after the House passed the bill, the Senate took it up and passed it by a vote of 49-17. The legislation now heads to the governor. Gov. Tim Pawlenty said he can work with the bill but will use his line-item veto authority to trim the large size. He has not publicly stated how much he will cut; however, in the past he has mentioned he would like the bill to be near $725 million.


Flurry of activity on budget bills this week


The House Higher Education and Workforce Development Finance and Policy Division passed the committee’s budget bill this week. The legislation reduces the Minnesota State Colleges and Universities system by $10.5 million to help address the state’s almost $1 billion budget deficit. The bill directs $3 million of the system cut to be taken from the Office of the Chancellor. The remaining $7.5 million is to be cut from campus budgets. The overall cut brings the system back to the 2006 budget level, which was a federal stipulation of receiving the American Reinvestment and Recovery Act, or ARRA, funds last year. The bill passed by a vote of 13-4. A spreadsheet of the bill is available here.

In addition to addressing the budget, the higher education bill contained some policy. The legislation increases the revenue fund authority for the Minnesota State Colleges and Universities system from $200 million to $275 million, and for 2010 and 2011, limits the revenue fund to only state university projects. The revenue fund allows campuses to upgrade dorms, build parking lots or construct wellness centers, among other projects. The Senate bill increases the revenue fund authority to $300 million and does not specify in language which campuses are eligible for use.

In attempts to improve local economies, the House bill calls for eight pilot projects of transferring reserves for Minnesota State Colleges and Universities campuses to local banks. The legislation also calls for the Board of Trustees and the Minnesota Management and Budget office to report independently on the effectiveness of the pilot projects. The evaluation is to include recommendations on the future implementation of the pilot project.

To reduce the state grant shortfall, committee members adopted an amendment to eliminate the ninth semester of eligibility, remove the high school-to-college developmental summer transition program and reduce the tuition maximums to $5,364 for fiscal year 2012 for students in two-year programs and for students in private, for-profit four-year programs. The House reductions do not completely address the $42 million state grant shortfall, so more work may be needed in this area. Rep. Mike Obermueller, DFL-Eagan, said cutting the state grant program is doing a disservice to the state and its students. Committee Chair Tom Rukavina, DFL-Virginia, 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. Rukavina said higher education has taken a heavy hit over the years and government should be investing in people, not cutting.

The bill, HF 1835, was heard this afternoon in the full Finance committee, where it was incorporated with other supplemental budget bills into HF 1671. There were no amendments related to higher education. The bill was recommended to pass and was referred to the Ways and Means committee.

In the Senate, the Finance committee passed the higher education supplemental budget bill Wednesday. The bill was first heard in the Senate Finance committee Monday; however, no action was taken as the Office of Higher Education and lawmakers worked through a tuition reciprocity issue with North Dakota. Chair Sandy Pappas, DFL-St. Paul, came back to the Finance committee on Wednesday and applied the savings from the reciprocity agreement to reduce cuts to the state grant program, the American Indian Scholarship and work study. The legislation was rolled into a larger supplemental budget bill, SF 3223.

After both the Senate and House pass the supplemental budget bills, differences between the two versions will be worked out in conference committee.

Credit transfer a hot topic at the Legislature

Both the House and Senate higher education committees heard legislation on transfer this week. Sen. Tarryl Clark, DFL-St. Cloud, presented SF 2822 before the Senate Higher Education Budget and Policy Division Tuesday. The legislation requires the Board of Trustees to create a mechanism for seamless student transfer between system institutions. The legislation also states that the Degree Audit and Reporting System and u.select database (or successor databases) housed in the Office of the Chancellor shall be the official repository of course equivalencies between system colleges and universities. Senior Vice Chancellor Linda Baer told committee members that the system has been working extensively on transfer. Baer said that while the system is doing pretty well and that 91 percent of credits transfer, “We know we can and must do better.” The bill was passed by the committee and laid on the table for possible inclusion in the higher education policy bill, and was sent to the Senate floor as an individual bill.

The House Higher Education and Workforce Development Finance and Policy Division also heard transfer legislation this week and included it in its omnibus bill. The language, similar to the Senate, requires the Board of Trustees to develop a system that minimizes the loss of credit transfer for students and develops a mechanism for seamless student transfer between institutions. The House bill also includes a provision regarding a report on credit transfer activities to be submitted to lawmakers annually on the system’s activities to achieve the credit transfer goals spelled out in statute.

U.S. Congress to possibly merge student loans with health care overhaul

Congress may be merging the health care overhaul bill with the Student Aid and Fiscal Responsibility Act in a process called budget reconciliation. The purpose is two-fold. One hope is that the health care - student loan package will have broader support. Another benefit is that a reconciliation bill speeds up the process. By definition, a reconciliation bill is a single piece of legislation that combines multiple legislative provisions that affect the federal budget that cannot be filibustered, which means there cannot be any attempt to block or delay Senate action on a bill by debating it at length or by offering numerous procedural motions. A reconciliation bill also can be passed with 51 votes in the Senate. In the case of a 50-50 vote, the vice president is called on to break the tie.

The federal student loan changes, requiring all campuses to move to Direct Lending, would save the federal government an estimated $78 billion over the next 10 years. (This number previously was reported at $87 million, but new projections from the Congressional Budget Office have shown that the $78 billion estimate is more accurate.) Some in the higher education community said they fear that a budget reconciliation merger of health care and higher education may apply the savings to health care initiatives instead of providing higher Pell Grants for low-income students, which is where the savings was pegged to go. Some say that the merger of these two bills will speed up the process and get money to campuses quicker. Recall that the Student Aid Fiscal Responsibility Act passed in the House last September; however, the legislation has not yet been heard in the Senate.

Student loan reform was the topic of a press conference Thursday featuring Sen. Al Franken, D-Minn. Minnesota’s junior senator joined with Senate Health, Education, Labor and Pensions Chair Tom Harkin, D-Iowa, and House Education Chairman George Miller, D-Calif., in the announcement. The senators called for action on the student aid reform, noting that the changes could save billions. Specifically, the Student Aid and Fiscal Responsibility Act would eliminate the Federal Family Education Loan program and require college campuses to use Direct Lending, making the federal government provide the funding for college loans. “In this tough economy, when so many students are struggling to afford college, it just doesn’t make sense to me that we would choose banks over students,” Franken said.

Congresswoman McCollum hosts listening session on jobs for Minnesotans

Minnesotans going back to school rely on federal Pell Grants. This was the message that Senior Vice Chancellor Linda Baer shared at Congresswoman Betty McCollum’s federal hearing on workforce Monday. Enrollment at the Minnesota State Colleges and Universities has increased nearly 8 percent, but the number of Pell Grant recipients has grown by 32 percent. “In other words, the number of our students whose financial situation puts them at risk has grown four times faster than our enrollment,” Baer said. She credited McCollum and leaders in Washington, D.C., for providing assistance to states with the American Recovery and Reinvestment Act funding. This has “directly contributed to supporting our institutions to keeping tuition affordable,” Baer said. Federal workforce funding also has allowed campuses to be innovative to design accelerated programs with multiple start dates. These programs help get Minnesotans back into the workforce faster. Congresswoman McCollum held Monday’s forum in St. Paul to get opinions on what the federal government can do improve workforce services. Being a member of the Labor, Health and Human Services and Education Appropriations subcommittee, the congresswoman plans to bring the ideas back with her to Washington.

Here's What's Happening at the Capitol:

This schedule shows all meetings that we are aware of at the time of publication that may have an impact on the system. This schedule may change. Please watch the House and Senate schedules posted on the Legislature web site.

Monday, March 15

9:00 AM *Meeting Canceled*
Senate Taxes
Room: 15 Capitol
Chair: Sen. Tom Bakk
Agenda: 2010 Supplemental Budget

11:00 AM
Senate in Session

12:30 PM
Senate State Government Budget Division
Room: 112 Capitol
Chair: Sen. Don Betzold
Agenda:
S.F. 2629-Sieben: County assistive voting, vote-counting and optical scan equipment grants appropriation.
S.F. 2870-Rest: Legislative auditor audit costs payment authorization from heritage funds appropriations.
S.F. 2915-Dahle: Fiscal note requirements modification.
S.F. 3134-Betzold: State government appropriations, appropriation reductions and one-time transfers.

1:00 PM
House in Session

Tuesday, March 16

8:30 AM
Senate Education
Room: 112 Capitol
Chair: Sen. LeRoy A. Stumpf
Agenda:
S.F. 2757-Bonoff: Teaching board teacher preparation and licensure programs authorization.
S.F. 3104-Saltzman: School and parent conciliation conference requirements clarification.
S.F. 2698-Koch: Graduation required assessment for diploma (GRAD) retake requirement modification.
S.F. 3002-Bonoff: School desegregation and integration advisory task force establishment.

8:30 AM
House K-12 Education Policy and Oversight
Room: Basement State Office Building
Chair: Rep. Carlos Mariani
Agenda: HF2867 (Newton) Child with a disability definition clarified and obligations to children with disabilities specified.
Presentation by Margaret Bird, the director of Utah's Children's Land Alliance Supporting Schools (CLASS) and Kevin Carter, director of the Utah School and Institutional Trust Lands Administration on Utah school trust land governance and land management practices

8:30 AM
House State and Local Government Operations Reform, Technology and Elections
Room: 200 State Office Building
Chair: Rep. Gene Pelowski
Agenda: HF3389 (Mahoney) Minnesota Science and Technology authority created, and money appropriated.
HF3106 (Bigham) Implied consent, driving while impaired, and ignition interlock provisions modified.
HF3124 (Dill) Aquaculture provisions modified, provisions for taking, possessing, and transporting wild animals modified, fish and wildlife management plans requirements modified, and game and fish license provisions modified.
HF3475 (Dittrich) Independent agency created to oversee management of Minnesota's permanent school fund lands.
HF1828 (Hornstein) Municipal comprehensive plan for affordable housing amendments authorized to be approved by a simple majority.
HF2660 (Thissen) Minnesota Coalition for Innovation and Collaboration created, rule and law waivers provided, and money appropriated.
HF3055 (Thissen) State-County Results, Accountability, and Service Delivery Redesign Act changes made, and public employee status specified for service delivery units.
HF2510 (Gardner) Threats of reprisal against a person who is or is considering being a candidate prohibited.

9:00 AM
Joint Senate Finance and Taxes
Room: 15 Capitol
Chairs: Sen. Richard Cohen and Sen. Tom Bakk
Agenda: Discussion with David Walker, President and CEO of the Peter G. Peterson Foundation, Former Comptroller General of the United States, Former head of the Government Accountability Office (GAO)

12:30 PM
Senate Higher Education Budget and Policy Division
Room: 123 Capitol
Chair: Sen. Sandra L. Pappas
Agenda:
MHEC: Discussion of purchasing and CREST agreements
Discussion of MnSCU purchasing agreement
Discussion on salary freezes and furloughs at MnSCU and U of M
S.F. 2941-Saltzman: 4-H funding procedure modification; county and state fair surcharges authorization; University of Minnesota extension service policy modification for 4-H programs support.
Budget Plan Report (March 15th Report)

2:45 PM
House Capital Investment Finance Division
Room: Basement State Office Building
Chair: Rep. Alice Hausman
Agenda: Discussion on bonding policy issues

Wednesday, March 17

8:30 AM
House K-12 Education Policy and Oversight
Room: Basement State Office Building
Chair: Rep. Carlos Mariani
Agenda: HF3421 (Mariani) High school assessments established to determine college and career readiness.

12:30 PM
House in Session

Thursday, March 18

8:30 AM
House State and Local Government Operations Reform, Technology and Elections
Room: 200 State Office Building
Chair: Rep. Gene Pelowski
Agenda: HF2952 (Murphy) State employees retirement plan contribution rates increased,
interest rates on refunds and certain benefit accrual rates reduced, vesting requirements and early retirement reduction rates increased, and certain amortization periods extended.
HF3281 (Murphy) Volunteer fire relief associations technical corrections made, break-in-service return revised, Minnesota deferred compensation plan service pension transfers authorized, payout defaults revised in survivor benefits, and corrections of certain special fund deposits authorized.
Recommendations from the Legislative Commission on Pensions and Retirement.

10:30 AM
House in Session

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

2:45 PM
House Education K-12 Finance
Room: 10 State Office Building
Agenda:
HF3043 (Kalin) Computer-adaptive assessments provided for general education students.
HF3267 (Newton) Advisory task force established on school desegregation and integration.
HF3163 (Mariani) Prekindergarten through grade 12 funding provided, including general education, education excellence, special programs, and early childhood education.

Wednesday, April 7

8:00 AM
Trustee Candidate Advisory Council
Room: 300N State Office Building
Chairs: Kent Eklund
Agenda: Candidates interviewed for Minnesota State Colleges and Universities Board of Trustees

Thursday, April 8

8:00 AM
Trustee Candidate Advisory Council
Room: 300N State Office Building
Chairs: Kent Eklund
Agenda: Candidates interviewed for Minnesota State Colleges and Universities Board of Trustees

Friday, April 9

8:00 AM
Trustee Candidate Advisory Council
Room: 300N State Office Building
Chairs: Kent Eklund
Agenda: Candidates interviewed for Minnesota State Colleges and Universities Board of Trustees