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)

Friday, April 9, 2010

Budget on hold, House advances policy bill- again, Budget planning for FY2012-13, Congressional TRiO reception held

Legislative Update
April 9, 2010

Lawmakers return from break to a holding pattern on the budget

Legislators returned to St. Paul this week after a weeklong recess in their home districts and met almost daily to process bills and send them to Gov. Tim Pawlenty. House Majority Leader Tony Sertich, DFL-Chisholm, said the week was productive, with the House passing about 30 bills off the floor. Sertich said he anticipates more bill work on the floor next week. One of the bills passed by the House was SF 2425. The bill clarifies that under Minnesota law, mental health information can be disclosed in health and safety emergencies consistent with requirements of the federal Family Educational Rights and Privacy Act, or FERPA. FERPA authorizes colleges and universities to determine that a health and safety emergency exists and to disclose health information to appropriate parties, including parents. The Senate passed the bill March 29, so it now heads to the governor.

Over the legislative break, Pawlenty signed the supplemental budget bill into law. Chapter 215 can be found here. The bill is the first of three budget-balancing measures lawmakers is considering to resolve the almost $1 billion budget deficit this biennium. The next two budget bills will cover health and human services and K-12 education. However, lawmakers are in a holding pattern while closely monitoring Minnesota’s share of the federal Patient Protection and Affordable Care Act. Majority Leader Sertich said it would be “unwise” for legislators to move forward on the health and human services budget without a clear understanding of the federal law. Sertich also said that if there has been no action in Washington, D.C., by May, lawmakers will need to start “discussing other options.”

When asked about recessing until the state budget picture becomes clearer, Sertich said both the DFL and Republicans have agreed to take a recess for each party’s convention in late April. House Minority Leader Kurt Zellers, R-Maple Grove, said he had hoped to be done with the budget by April 15 or at the latest May 1 but characterized this week as a “do nothing” week. Zellers said lawmakers should be addressing health and human services and K-12 education together now so lawmakers can see where they are instead of waiting and then rushing in May.

When asked how long the Legislature can stay in a holding pattern, Senate Majority Leader Larry Pogemiller, DFL-Minneapolis, responded that something will need to be done in the next two to three weeks. Pogemiller said he would not want to go into May without having processed a health and human services bill with or without the $400 million in federal funds. Pogemiller said he personally is not interested in recessing but that there is no reason for people to sit around the Capitol if they are not productive.

Second higher education policy bill adopted in House committee

Members of the House Higher Education and Workforce Development Finance and Policy Division adopted a second omnibus policy bill this week. HF 3448 includes provisions from the first committee policy bill and provisions from other bills. The bill includes language that raises the age of a senior citizen in statute from 62 to 66 to receive a tuition discount; caps the one-time grant for the 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 for colleges and universities to construct projects such as parking lots, wellness centers and dormitories. HF 3448 brings that authority increase down to $275 million. The bill also clarifies the system's base budget for fiscal years 2012-13 for operations and maintenance at the colleges and universities to be $580.8 million each year.

Language in the bill requires the system, the Chamber of Commerce and representatives of industry groups and labor unions to study program requirements for certificates and diplomas to determine the feasibility of designing technical education programs so students could have more opportunities to earn credentials with lower credit requirements that could be combined into higher-level certificates or diplomas. A provision 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 services provided at the institution level.

Additional language in the bill is taken from the first policy bill, HF 3495, on credit transfer, postretirement health insurance premium reimbursements, a pilot project on the local deposit of reserves and a provision stating the system office cannot pass any reductions through to the institutions. The bill, as amended, was passed and referred to the Finance committee, where it will be heard Wednesday.

Budget planning begins for next biennium

With a $5.8 billion budget deficit projected for the 2012-13 biennium, the House Higher Education and Workforce Development Finance and Policy Division heard from the higher education systems this week how colleges and universities are preparing for a likely budget reduction next biennium. St. Cloud State University President Earl Potter said his university is considering retrenchment and faculty layoffs. Potter testified about the open communication process the university has undertaken with the entire St. Cloud community. North Hennepin Community College President Ann Wynia told committee members she is concerned about the 2012-13 biennium, especially since the one-time federal American Recovery and Reinvestment Act funds will no longer be available. Wynia said the college's enrollment is at an all-time high, but the worst thing would be to turn away students due to budget reductions. Laura King, vice chancellor and chief financial officer for the Minnesota State Colleges and Universities system, said the system’s institutions are being asked to plan for a $100 million to $150 million cut to the system for the next biennium. King said the number is based on the system’s possible share of the projected $5.8 billion deficit. “That would be a spectacularly damaging number,” King said. The committee discussion was centered around 2012-2013 budget planning reports prepared by the Minnesota State Colleges and Universities system and the University of Minnesota. The system report can be found here.

Congressional reception highlights Minnesota TRiO programs

Minnesota TRiO, Minnesota State Colleges and Universities, the University of Minnesota College of Education and Human Development, the Minnesota Private College Council and the Council for Opportunity in Education hosted a congressional reception this week at Metropolitan State University to learn more about Minnesota TRiO programs.

TRiO programs were established during the 1960s as a national initiative to increase the availability of and success in postsecondary education for low-income, first-generation and traditionally underrepresented students. Two alumni of Minnesota TRiO programs and two Minnesota TRiO scholarship recipients spoke about the impact that the programs have had on their lives. Congressional staff and state legislators learned about the mission and the benefits that TRiO programs provide to the state of Minnesota.

Although Minnesota TRiO is one of the largest and longest running college access programs, the programs currently are funded to serve only 7 percent of eligible participants in the state. Lawmakers learned what level funding of the program has meant: a reduction of approximately 40,000 students over the last five years. TRiO advocates informed participants at the reception that the cost effectiveness of the TRiO programs is proven through measurable outcomes that demonstrate increased access to higher education and educational success for its participants.

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 12

9:00 AM
Joint Committee: LCPFP Subcommittee on a Balanced Budget
Room: 15 Capitol
Chairs: Rep. Lyndon Carlson, Sen. Lawrence J. Pogemiller
Agenda: Update on cash flow

11:00 AM
House in Session

12:00 PM
Senate in Session

Tuesday, April 13

9:30 AM
House Finance
Room: 200 State Office Building
Chair: Rep. Lyndon Carlson
Agenda:
HF2690 (Sertich) Executive agency appropriations required to include proportionate reductions in expenditures on contracts, and requirements provided during periods of projected deficits.
HF2116 (Hansen) Vehicle transaction fees increased, acceptable methods of payment provided, and surcharge imposed.
HF605 (Hortman) Transportation Department management, priorities, research, and planning provisions modified.
HF2613 (Hilstrom) Mediation provided prior to commencement of mortgage foreclosure proceedings on homestead property, and homestead-lender mediation account created.
HF2600 (Mullery) Licensing and regulation provided for an individual engaged in the business of a mortgage loan originator or the mortgage loan business.
HF3122 (Juhnke) Licensing and regulation provided for appraisal management companies, and real estate appraiser advisory board regulated.
HF2562 (Thissen) COBRA premium state subsidy eligibility extended, and unexpected funds carry forward authorized for COBRA grants.
HF2405 (Reinert) Temporary successors provided to members of the legislature called into active military service, implementation of statutory language provided, and constitutional amendment proposed.
HF2577 (Carlson) Legislators allowed to call a special session, and constitutional amendment proposed.
HF3458 (Shimanski) Minnesota Department of Transportation consultation required on roundabout design.

10:30 AM
Housing Finance and Policy and Public Health Finance Division
Room: Basement State Office Building
Chair: Rep. Karen Clark
Agenda: SF2996 (Urdahl) School concession stands established as a specific category of food and beverage service establishments.
Discussion on Nanotechnology

12:30 PM
Senate Higher Education Budget and Policy Division
Room: 123 Capitol
Chair: Sen. Sandra Pappas
Agenda: S.F. 3014-Saltzman: Minnesota Science and Technology Authority Act

12:30 PM
House in Session

Wednesday, April 14

8:30 AM
House Finance
Room: 200 State Office Building
Chair: Rep. Lyndon Carlson
Agenda:
SF2758 (Bunn) Minnesota entrepreneur virtual assistance network authorized, and money appropriated.
HF3739 (Carlson) Bond allocation limits modified, and transfer authorized.
HF3757 (Hilty) Security transaction security exemptions modified, and money appropriated for the state grant program.
HF3448 (Rukavina) Minnesota State Colleges and Universities; pilot project established for the local deposit of certain reserves.
HF3046 (Ruud) Birthing centers licensure established

Thursday, April 15

9:00 AM
House State and Local Government Operations Reform, Technology and Elections
Room: 200 State Office Building
Chair: Rep. Gene Pelowski
Agenda: HF2227 (Hilty) Board of Innovation reestablished, powers and duties imposed, and money appropriated.

12:30 PM
House in Session

Friday, April 16

8:30 AM
Senate Finance
Room: 123 Capitol
Chair: Sen. Richard J. Cohen
Agenda:
S.F. 2682-Erickson Ropes: Fillmore county veterans cemetery funding.
S.F. 3079-Sheran: Postsecondary enrollment options program modifications.
S.F. 560-Latz: Criminal records expungement law provisions expansion and modifications.
S.F. 2493-Moua: Crime of identity theft expansion to include scanning and reencoder use to acquire information from payment cards.
S.F. 2725-Moua: Gang and drug oversight council name change to violent crime oversight council; multijurisdictional gang and drug task forces certification process; criminal gang investigative data systems; intrastate data classification; cell phone tracking devices.
S.F. 2620-Bonoff: Service innovation commission establishment.
S.F. 214-Betzold: Notaries public regulations and fees modifications.
S.F. 2364-Pappas: Higher education facilities authority revenue bond limit increase.
S.F. 2940-Fischbach: Zero-based budgeting requirement for state government.