First week finished; House learns about system; Jobs and zero-based budget priorities set; Teacher preparation discussed; Sertich takes new post

Legislative Update
January 14, 2011

First full week at the Capitol wraps up

It was a productive week at the Capitol, House Majority Leader Matt Dean, R-Dellwood, told the media today. Committees held overview hearings throughout the week to bring freshmen legislators up to speed on the issues. The House Higher Education Policy and Finance committee received an overview on higher education from Legislative Analyst Kathy Novak and Fiscal Analyst Doug Berg. Novak explained to members there are two public systems - the University of Minnesota and the Minnesota State Colleges and Universities system - and provided information on private postsecondary education. Novak said Minnesota has approximately 180 private postsecondary institutions with a physical presence in the state, with undergraduate enrollments ranging from under 10 students to more than 10,000 students. Members also heard about the state grant program and how money is appropriated through the state.

Senate President Michelle Fischbach, R-Paynesville, characterized the week in the Senate as quiet, and recognized some of the highlights of the week as the introduction of the jobs bill, zero-based budgeting bill and the nuclear moratorium bill, and the legislator per-diem reduction of $10. Fischbach said while there have been a couple bumps in the road, things are going well and moving along.

Dean said legislators are looking forward to receiving Gov. Dayton’s budget plan Feb. 15. “But don’t look to us to wait until the fifteenth to start working on a budget,” Dean said. Legislative leadership will not wait to provide a reaction, but will deal with the budget immediately, he said, indicating that bills will be introduced in the near future that deal with the $6.2 billion deficit, including specific budget reduction items. When asked if leadership will sit down with the governor prior to acting on a bill, Dean said they will try to find areas of common ground, even before the bill goes to conference committee. Dean also echoed what other leaders have said the last couple weeks. They will not be talking about cuts, but rather funding priorities within the state’s means, he said.

DFL leaders also spoke to the media today, and Sen. Terri Bonoff, DFL-Minnetonka, characterized the week as good, with the highlight being the “One Minnesota” conference held at the Humphrey Institute at the University of Minnesota. All 201 legislators attended the conference with the emphasis on how to move Minnesota forward. Bonoff said, “We have to move beyond the elections, beyond the rhetoric, and do what’s best for all Minnesotans.”
When asked what the working relationship is like with the new leadership, House Minority Leader, Paul Thissen, DFL-Minneapolis, said there is mutual respect, but indicated there will be disagreements. Bonoff said that a lot depends on the chairs of the committees, and gave the example of Sen. Claire Robling, R-Jordan, chair of the Finance Committee, who reached out and met individually with each committee member. Bonoff also said the DFL caucus is making sure the DFL committee leads meet regularly with policy staff in the governor’s office to provide for a cohesive form of communication between the Legislature and governor’s office.

Lawmakers will not be holding meetings in St. Paul Monday in honor of Martin Luther King, Jr. Day, but Dean said they will jump in with both feet Tuesday.

House committee learns about system

House Higher Education Policy and Finance committee members, both new and veteran members, received an overview from the Minnesota State Colleges and Universities system this week. Chancellor Jim McCormick told committee members that the system is the largest provider of higher education in Minnesota, educating 63 percent of all Minnesota undergraduate students, and the 32 colleges and universities provide an immeasurable benefit to the people of Minnesota, contributing greatly to the quality of life and economic vitality of the state.

Board of Trustees Chair Scott Thiss explained the Board's strategic plan and how it has provided guidance to the colleges and universities. Thiss gave an example of how the system's colleges and universities continue to innovate, telling members that Northland Community and Technical College is helping to create a new industry by training technicians who can be certified in unmanned aviation maintenance. This is just one of the many examples on the college and university campuses.

President Kevin Kopischke, Alexandria Technical and Community College and President Edna Szymanski, Minnesota State University Moorhead, gave committee members a brief introduction to each college and university in the system and provided an example of how each institution plays a critical role in building the local and regional economies. Kopishke said that Alexandria recently signed an agreement with Rockwell Automation, the world’s largest industrial automation company, to expand worker training in central Minnesota. Committee members also learned that the Southern Minnesota Initiative Foundation named Riverland Community College as the 2010 Partner of the Year for capitalizing on the assets of new immigrants and minority populations to help increase community vitality in southern Minnesota.

Szymanski educated committee members on the seven universities in the system, and said her own university, Minnesota State University Moorhead, working with the Greater Fargo-Moorhead Economic Development Corporation and their Tri-College partners, have developed a concentration in vaccinology to fill a growing need in the regional workforce. Another example she provided was Winona State’s Composite Materials Engineering program. Szymanski said it is the only undergraduate engineering program of its kind in the United States.

System officials anticipate being back in front of the committee to talk about the budget in the near future. Committee members are scheduled to learn about the Minnesota Office of Higher Education on Tuesday next week.

First up, job creation and zero-based budgeting

Lawmakers introduced the first bills of the session this week with the focus on job creation and the budget. The Senate explained SF 1, a bill that provides businesses with regulatory relief and $200 million in tax cuts. Author of the bill, Senate Deputy Majority Leader Geoff Michel, R-Edina, said, “We want to make Minnesota the best place to start a business and expand a business.” The bill would phase in a 50 percent reduction of the business income tax rate, and gradually drop over the next six years. Business property taxes would be rolled back to 2009 levels. The estimated cost for both tax breaks is $200 million over the biennium. Michel said senators plan to roll up their sleeves and move the bill through the committee process.

Sen. Terri Bonoff, DFL-Minnetonka, said about the bill that she hopes lawmakers would do the tough work first. She said while legislators have to make sure we have a thriving business climate, the biggest issue facing the state is the budget deficit. Bonoff said the concern is the first bill creates more of a deficit, and doesn’t explain how it will address it.

HF 2 was also unveiled this week by chief author Rep. King Banaian, R-St. Cloud. Banaian said the bill is about priority-based budgeting and establishes a “sunset review” every 10 years to determine whether agencies should be abolished or reorganized. He said the goal is to examine how the state can best deliver its services rather than just growing agencies’ budgets. Banaian said that by the end of 10 years, the Legislature and the Office of the Legislative Auditor will have looked at every regulation within state government. “It's what we owe to the people of Minnesota,” he said.

Teachers remain top issue at Capitol

With just two weeks into the session, teacher issues - whether it’s licensing or improving teacher effectiveness - continue to dominate the policy scene at the Capitol. This week, House Education Reform committee members heard from Board of Teaching Executive Director Karen Balmer about a redesign of how Minnesota evaluates teacher preparation programs. Committee Chair Rep. Sondra Erickson, R-Princeton, and committee members have said that improving teacher effectiveness is a priority this session.

Balmer said the new initiative, Program Effectiveness Reports for Continuing Approval, or PERCA, will soon be field-tested and should launch in about a year. The initiative will use more data collection and performance measurement to assess the performance of first-year teachers who graduated from certain four-year education programs. Teachers’ results would be compared with their teacher training program to measure the program’s effectiveness.

The committee has also been discussing alternative paths to teacher licensure. Rep. Carlos Mariani, DFL-St. Paul, past K-12 education chair and sponsor of an alternative teacher licensure bill last session, is sponsoring HF 3, which would establish an alternative by allowing qualified candidates in programs approved by the Board of Teaching, such as Teach for America members, a two-year provisional license as a way to acquiring a standard teaching license. Candidates in such programs would be the teacher of record in a classroom and would have to meet other criteria, such as having a bachelor’s degree and a 3.0 grade point average, passing a basic skills tests and participating in at least 200 hours of instruction. Mariani said he is carrying the bill not as a criticism of teachers in general, but because it’s a way to meet teacher shortage in some subjects and districts.

Sen. Terri Bonoff, DFL-Minnetonka, co-author of an alternative teacher licensure bill in the Senate, said it’s time to tone down the rhetoric and sit down and talk about the issue. House Majority Leader Matt Dean, R-Dellwood, listed alternative paths to teacher licensure as a highlight for the coming week in the House.

Rep. Sertich resigns to lead the Iron Range Resources and Rehabilitation Board

After being appointed commissioner of the Iron Range Resources and Rehabilitation Board, or IRRRB, this week, Rep. Tony Sertich, DFL-Chisholm, gave his farewell speech on the House floor. “I love, love, love this building, and I love representing the people who elected me,” he said. “This is closing a chapter of my life, which is so sad, but I am so excited for the future.”

The IRRRB is an economic development agency with the mission to advance growth on the Iron Range. Sertich said he is a product of where he grew up, and expressed his excitement at returning to the Iron Range. In his farewell address, Sertich thanked the people of the Iron Range for the honor and privilege of serving as their state representative.

A special election has been called for Feb. 15 to fill Sertich’s seat. If a primary is needed, it will be held Feb. 1.

Gov. Dayton also appointed retired Major General Larry Shellito this week, who recently retired as the Adjutant General of the Minnesota National Guard, to lead the Minnesota Department of Veterans Affairs. Shellito has a close tie to the Minnesota State Colleges and Universities system as a past president of what is now Alexandria Technical and Community College.

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, January 17

Offices are closed to honor Martin Luther King Jr. Day

Tuesday, January 18

8:15 AM
House State Government Finance
Room: 200 State Office Building
Chairs: Rep. Morrie Lanning
Agenda: Public Sector Pension Informational Overview and Update
Testifying:
Lawrence Martin, Executive Director of Legislative Commission on Pensions and Retirement;
Edward Burek, Deputy Director of Legislative Commission on Pensions and Retirement; Mary Vanek, Executive Director of Public Employees Retirement Association (PERA); Dave Bergstrom, Executive Director of Minnesota State Retirement System (MSRS); Laurie Hacking, Executive Director of Teachers Retirement Association (TRA); and Howard Bicker, Executive Director of Minnesota State Board of Investment

8:15 AM
House Education Reform
Room: Basement State Office Building
Chair: Rep. Sondra Erickson
Agenda: HF3 (Mariani) Alternative teacher preparation program and limited term teacher license established.
HF63 (Garofalo) Teacher licensure provisions amended, alternative teacher preparation program and limited-term teacher license established, and report required.

10:15 AM
House Taxes
Room: 200 State Office Building
Chair: Rep. Greg Davids
Agenda: HF79 - Conforming to the federal extension of the exclusion of dependent health care coverage to adult children through age 26 for tax year 2010
HFXXXX (Mahoney) Establishing a Minnesota science and technology program

10:15 AM
House Government Operations and Elections
Room: 5 State Office Building
Chair: Rep. Joyce Peppin
Agenda: Public Sector Pension Informational Overview and Update:
Testifying:
Lawrence Martin, Executive Director of Legislative Commission on Pensions and Retirement;
Edward Burek, Deputy Director of Legislative Commission on Pensions and Retirement;
Mary Vanek, Executive Director of Public Employees Retirement Association (PERA);
Dave Bergstrom, Executive Director of Minnesota State Retirement System (MSRS);
Laurie Hacking, Executive Director of Teachers Retirement Association (TRA); and
Howard Bicker, Executive Director of Minnesota State Board of Investment

11:00 AM
Senate in Session

12:30 PM
House Higher Education Policy and Finance Committee
Room: Basement Hearing Room, State Office Building
Chair: Rep. Bud Nornes
Agenda: Minnesota Office of Higher Education overview

3:00 PM
Senate Education Committee
Room: 15 Capitol
Chair: Sen. Gen Olson
Agenda:
Teacher Licensure
Presentation by Katie Balmer, Executive Director of the Minnesota Board of Teaching;
John Melick, Director Educator Licensing Division of the Minnesota Dept. of Education
Public testimony about the teacher licensing process - as available

3:00 PM
House in Session

Wednesday, January 19

8:15 AM
House State Government Finance
Room: 200 State Office Building
Chairs: Rep. Morrie Lanning
Agenda: Overview of State Labor Negotiating Process and Contracts
Testifying:
Greg Hubinger, Director of Legislative Coordinating Commission;
Barb Holmes, Assistant Commissioner & State Labor Negotiator for Minnesota Management and Budget (MMB)

10:30 AM
Senate Jobs and Economic Growth
Room: 107 Capitol
Chair: Sen. Geoff Michel
Agenda: Overview from Minnesota Department of Labor/Introduction of Commissioner Ken Peterson
S.F. 1-Michel: Introduction and discussion of property tax provision of SF 1.

2:30 PM
House Capital Investment
Room: 10 State Office Building
Chair: Rep. Larry Howes
Agenda: Introductions
Committee guidelines
Gay Grieter, Capital Budget Coordinator for Minnesota Management & Budget
Meeting Documents: Capital Budget Process

Minnesota Debt Management


3:00 PM
Senate Education Committee
Room: 15 Capitol
Chair: Sen. Gen Olson
Agenda: Teach for America - Testimony by Daniel Sellers, Executive Director of Teach For America, Twin Cities

3:00 PM
Senate Higher Education Policy and Finance
Room: 107 Capitol
Chair: Sen. Michelle Fischbach
Agenda: Overview presentation from the University of Minnesota

Thursday, January 20

8:30 AM
Senate Finance
Room: 123 Capitol
Chair: Sen. Claire A. Robling
Agenda: Continuation of budget overview presentation by Senate Counsel, Research, and Fiscal Analysis Staff

8:30 AM
Senate Taxes
Room: 15 Capitol
Chair: Sen. Julianne E. Ortman
Agenda: SFXXX Federal conformity bill related to income tax treatment of dependent health care coverage for adult children 26 and under.
Overview on Tax Aids and Credits

11:00 AM
Senate in Session

12:30 PM
House Higher Education Policy and Finance Committee
Room: Basement Hearing Room, State Office Building
Chair: Rep. Bud Nornes
Agenda: University of Minnesota overview