Budget reductions begin; Dayton expected to release bonding next week; President gives State of the Union address

Legislative Update
January 28, 2011

Round one of budget cutting passes House floor

The first major piece of legislation passed the House this week, when lawmakers adopted HF 130 by a vote of 68-63 Thursday evening. Legislative leaders say the bill, which cuts almost $1 billion, is the first step in balancing the $6.2 billion budget deficit. The proposal includes a cut of $23 million to the Minnesota State Colleges and Universities system's base each year, bringing the annual base down to $582 million. Opponents of the bill argued the reductions would lead to higher property taxes and increased tuition at colleges and universities. Rep. Tom Rukavina, DFL-Virginia, criticized Republicans for cutting funding to the University of Minnesota and the Minnesota State Colleges and Universities system and said the bill would force them to raise tuition.

Sponsor of the bill, Rep. Mary Liz Holberg, R-Lakeville, said the bill would give lawmakers a head start on addressing the deficit. "The only way to eat a hippo is a piece at a time," Holberg said. The Senate is expected to take up its version of the bill next Thursday, and then a conference committee will be formed to work through the differences in the bill. One of the major differences is the amount Minnesota Management and Budget is required to cut from state agency budgets. The House bill requires cuts of $200 million to be made from state agencies, but the Senate amended its version earlier this week in committee to a required cut of $125 million. Both the University of Minnesota and the Minnesota State Colleges and Universities system are exempt from those cuts; however, the Office of Higher Education is not exempt.

Another difference between the House and Senate bills is that the House bill includes language regarding freezing state workers’ salaries. According to the measure, effective July 1, 2011, a state employee may not receive a salary or wage increase, with the exception of an employee who is promoted or transferred to a position with greater responsibilities and with a higher salary or wage rate.

Gov. Mark Dayton has said he does not support either bill and wants a budget deal that addresses the entire $6.2 billion budget deficit. Senate Majority Leader Amy Koch, R-Buffalo, said lawmakers are working to put together a package that addresses the full budget deficit and indicated the public should see something soon after the state budget forecast comes out the end of February. Koch also said they would be releasing committee budget targets around the same time.

Assistant DFL Caucus Leader, Sen. Terri Bonoff, DFL-Minnetonka, said most of the senators voted for the cuts in the bill last year, but there are parts of the bill that have not been fully vetted through the committee process. Bonoff said the governor has not weighed in on the cuts as they were unallotments made by then Gov. Tim Pawlenty. She said lawmakers need to be thoughtful and understand the implications of every cut.

Dayton expected to play first bonding card Monday

Gov. Mark Dayton is expected to release the details of his bonding package Monday, and spokeswoman Katherine Tinucci said Dayton’s plan is to offer half of the $1 billion in his own preferred projects and let the Legislature propose the second half. Other than a Capital Investment overview hearing in the House last week, legislative leaders have not shown a great interest in funding bonding projects this year. House Majority Leader Rep. Matt Dean, R-Dellwood, said today, “It’s the wrong time to take out the credit card.” Dean did indicate that the door needs to remain open for emergencies, such as anticipated flooding throughout the state. He did say they are looking at how to recoup and redirect dollars from last year’s bill for projects that have not yet begun.


New senators get to know the system

Members of the Senate Higher Education committee heard about the Minnesota State Colleges and Universities system this week from Board of Trustees Chair Scott Thiss, Chancellor Jim McCormick, President Kevin Kopischke of Alexandria Technical and Community College and President Richard Davenport of Minnesota State University, Mankato. Thiss said one of the biggest issues legislators face is how Minnesota will best prepare for a return to economic prosperity. He said the colleges and universities play an important role with campuses located throughout the state. Each year, the system produces nearly 35,000 graduates, of which more than 80 percent stay in Minnesota to work or continue their education.

Sen. Claire Robling, R-Jordan, asked how the colleges and universities are responsive to the needs of employers with ever-changing technology and knowledge. President Kopischke replied that the real heroes are the faculty. He said faculty members are the key to making programs work in this fast-changing world. Senators were also interested in the open access mission at the two-year colleges, with discussion turning to the alignment of a high school diploma with the expectations of college. Committee members will continue discussion of developmental and remedial education Monday.

President Obama talks education in State of the Union

In this week’s State of the Union address, President Obama proposed a five-year freeze in discretionary domestic spending and vowed to veto any bill containing earmarks. He said this would reduce the deficit by more than $400 billion over the next decade. Obama did say however, that education and research are vital to the nation’s long-term growth and competitiveness and said he would spare them from the spending freeze. Currently, the government is operating at last year’s 2010 spending levels under a continuing resolution that expires March 4.

Obama also called for passage of the Dream Act, which would provide a path to citizenship and student aid for undocumented students. He said, “Today, there are hundreds of thousands of students excelling in our schools who are not American citizens. Some are the children of undocumented workers, who had nothing to do with the actions of their parents. They grew up as Americans and pledge allegiance to our flag, and yet they live every day with the threat of deportation. Others come here from abroad to study in our colleges and universities. But as soon as they obtain advanced degrees, we send them back home to compete against us. It makes no sense.”

Obama reiterated his goal to once again have the highest proportion of college graduates in the world by 2020 and said in order to compete, higher education must be within the reach of every American. “Over the next 10 years, nearly half of all new jobs will require education that goes beyond a high school education. And yet, as many as a quarter of our students aren't even finishing high school. The quality of our math and science education lags behind many other nations. America has fallen to ninth in the proportion of young people with a college degree,” Obama said.

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's web site.

Monday, January 31

11:00 AM
Senate in Session

1:00 PM
Senate State Government Innovation and Veterans
Room: 123 Capitol
Chair: Sen. Mike Parry
Agenda: Department of Military Affairs Overview and Department of Veteran Affairs Overview

3:00 PM
Senate Higher Education
Room: 107 Capitol
Chair: Sen. Michelle L. Fischbach
Agenda:Getting Prepared: A 2010 Report on Recent High School Graduates Who Took Developmental/Remedial Courses

3:00 PM
House in Session

3:00 PM
Senate Education
Room: 15 Capitol
Chair: Sen. Gen Olson
Agenda: Commissioner Brenda Cassellius, Ed.D
Minnesota Board of School Administrator appointee confirmations

Tuesday, February 1

8:15 AM
House Education Reform
Room: Basement State Office Building
Chair: Rep. Sondra Erickson
Agenda: Minnesota Department of Education Data Systems
Aimee Rogstad Guidera, Executive Director, Data Quality Campaign

8:30 AM
Senate Finance
Room: 123 Capitol
Chair: Sen. Claire A. Robling
Agenda:
S.F. 56-Thompson: School district and charter school salary freeze imposition; safe schools levy set aside requirement removal; staff development reserved revenue and school district contract deadline and penalty repeal.
S.F. 40-Olson, G.: Teacher licensure provisions modifications; alternative teacher preparation program and limited-term teacher license establishment.
S.F. 69-Olson, G.: Home schools mandates and reporting requirements reduction.

12:30 PM
House Higher Education Policy and Finance
Room: Basement Hearing Room, State Office Building
Chair: Rep. Bud Nornes
Agenda: Getting Prepared: A 2010 Report on Recent High School Graduates Who Took Developmental/Remedial Courses

3:00 PM
Senate Education
Room: 15 Capitol
Chair: Sen. Gen Olson
Agenda: Minnesota Dept. of Education Data Systems
Aimee Rogstad Guidera, Executive Director, Data Quality Campaign

4:30 PM
House Ways and Means
Room: 200 State Office Building
Chair: Rep. Mary Liz Holberg
Agenda: HF55 (Hackbarth) Stream easement acquisition provisions modified; state park, state forest, and land exchange provisions modified; state parks and state forests added to and deleted from; and public and private sales, conveyances, and exchanges of state land authorized.
HF1 (Fabian) Environmental permitting efficiency provided, and environmental review requirements modified.
HF79 (Davids) Dependent health care coverage to adult children through age 26 for tax year 2010 federal extension conformed.
HF63 (Garofalo) Teacher licensure provisions amended, alternative teacher preparation program and limited-term teacher license established, and report required.

Wednesday, February 2

10:15 AM
House Government Operations and Election
Room: 5 State Office Building
Chair: Rep. Joyce Peppin
Agenda: HF212 (Beard) Public employee definition modified.
HF62 (Ward) Workers Memorial Garden on the State Capitol grounds updated to include a reference to the Milford Mine Disaster in Crosby that occurred on February 5, 1924.
Overview presentation by the Metropolitan Sports Facilities Commission

3:00 PM
Senate Higher Education
Room: 107 Capitol
Chair: Sen. Michelle L. Fischbach
Agenda:Higher Education budget and funding overview. Presented by Maja Weidmann Senate Fiscal Analyst

Call of the Chair
Senate in Session

Thursday, February 3

8:15 AM
House State Government Finance
Room: 200 State Office Building
Chair: Rep. Morrie Lanning
Agenda: Finish up Public Pension fund overview from January 18th:
Mary Vanek, Executive Director of Public Employees Retirement Association (PERA); Laurie Hacking, Executive Director of Teachers Retirement Association (TRA); and Dave Bergstrom, Executive Director, or another representative of Minnesota State Retirement System (MSRS)
HF110 (Kahn) Legislative Commission on Pensions and Retirement membership increased.

8:30 AM
Joint Meeting: Senate Finance and Taxes
Room: 15 Capitol
Chairs: Sen. Claire Robling and Sen. Julianne
Agenda: State Budget Trends Study Commission Report presentation - Kevin Goodno, Co-Chair
State Rankings presentation - Mark Haveman, Executive Director Minnesota Taxpayer Association

11:00 AM
Senate in Session