Monday, February 28, 2011

February forecast shows $5.028 billion deficit

Minnesota Management and Budget Commissioner Jim Schowalter said the February budget forecast is showing more than a billion dollar improvement from a $6.2 billion budget deficit to a $5.028 billion deficit for the fiscal year 2012-2013 biennium.

The state will end the current 2011 fiscal year with a $663 million surplus, which is up from $400 million due to tapping into federal dollars to pay health care expenses for poor adults, and improved state tax collections.

Lawmakers and Gov. Dayton are still faced with a very large budget problem, and disagree on how to resolve it. Republican legislative leaders want to balance the budget through spending cuts, and Dayton is proposing raising approximately $4 billion in revenue through an income tax on the wealthy.

Gov. Dayton is in Washington D.C. today, but is expected to hold a news conference later this afternoon/evening when he returns.

Budget is top priority; Regents approved; U.S. Congress debates funding; Follow us on Facebook/ Twitter

Legislative Update
February 25, 2011

System discusses budget details with higher education committee members as Republican leaders begin to prepare budget

With lawmakers focused on passing finance bills out of committee before March 25, Rep. Bud Nornes, R-Fergus Falls, chair of the House Higher Education Policy and Finance committee , asked the University of Minnesota and the Minnesota State Colleges and Universities system to explain to the committee what reductions would be made if faced with a 15 percent or 20 percent cut.

To illustrate the magnitude of this type of reduction, Chancellor James McCormick and Chief Financial Officer and Vice Chancellor of Finance Laura King said if the system solved a 15 percent cut with just staff reductions, it would mean almost 1,000 full-time staff people. If solved with just faculty reductions, McCormick said it would mean 880 faculty, which means the reduction of 9,200 course sections, a reduction of 166,500 credit registrations and an enrollment decrease of more than 16,100 students. McCormick said if a 15 percent reduction to the system was solved with just tuition, it would mean a tuition increase of 12 percent. McCormick and King said a 15 percent reduction is the equivalent of closing two large universities, five of the largest colleges, or at least 10 of the smallest colleges in the system. Both McCormick and King said obviously none of these solutions alone would be acceptable, but they give committee members an idea of the impact a 15 percent reduction would have on the system.

Central Lakes College Chief Financial Officer Kari Christiansen said they have had an extensive consultation process on campus planning for $1.2 million to $2.4 million in cuts. She said they are looking at a variety of ways to solve the reduction, including layoffs, program suspensions, operating budget reductions and some tuition increase. President Richard Davenport of Minnesota State University, Mankato told committee members they are challenged to balance the budget for fiscal year 2012, and if cut 15 to 20 percent, they would be looking at spending reductions of $6 million to $10 million.

Davenport told committee members that Minnesota State University, Mankato also had extensive consultation on budget planning with monthly meet and confers; all-staff email messages and updates; town hall open forums; proposed reduction plans available via the intranet for all faculty, staff and students to react; and an online comment portal on the university’s budget Web site. Through this process, Davenport said they identified $5.7 million, or 6 percent of the budget, in instructional reduction with faculty position layoffs and program closures. The university also identified $1.9 million, or 7 percent, in non-instructional reductions including elimination of staff positions and reorganizations, and four varsity sports have been indentified for elimination.

University of Minnesota President Bob Bruininks said the trade-offs are not insignificant and told Higher Education committee members that the university could cut all four of its coordinate campuses and still not save enough to address the cuts the size of 15 or 20 percent.

Gov. Mark Dayton has recommended a 6 percent reduction to the Minnesota State Colleges and Universities system. Senate Majority Leader Amy Koch, R-Buffalo, said she would like to see a vote taken next week on the governor’s budget plan and indicated she expects bipartisan opposition to Dayton’s plan that raises $4 billion in tax revenue. However, the governor’s plan does not have an author and has not been introduced in bill format yet.

As the Republican Legislature and DFL governor compromise to find a solution to the state’s budget deficit, the Senate Republican caucus sent a letter to Gov. Dayton this week indicating their position on the governor’s budget. “Minnesotans want us to work together at the Capitol and we believe we are off to a great start,” the letter reads. “We write to make perfectly clear, however, that we all are opposed to raising taxes to balance the 2012-2013 $6.2 billion deficit.” Majority Leader Koch said that given the governor’s budget proposal and depth and breadth of the tax increases, they want to make it very clear that tax increases are not on the table for Senate Republicans. Senate Minority Leader Tom Bakk, DFL-Cook, said he was surprised by the letter, and if Republicans really intend to put together a budget without revenue increases, they have a lot of work to do.

The next step in the budget-balancing process is the release of the February economic forecast, scheduled for 11:30 a.m. Monday. Commissioner of Minnesota Management and Budget Jim Schowalter indicated that the forecast might show an increase in tax revenues and a smaller projected deficit. The February forecast is the indicator lawmakers use in preparing a budget. Legislative leaders have indicated they are digging into state agency’s budget detail in the committee process to determine the $32 billion spending budget Republicans have set. Koch said they are focused on what will make Minnesota even more competitive and that they are open to compromise within the $32 billion spending limit. House Majority Leader Matt Dean, R-Dellwood, said Republican leaders are focused on how to spend the $32 billion they have and not raise revenue. He indicated there are people in the House Republican caucus who would like to see a budget less than $32 billion. Senate Deputy Majority Leader Geoff Michel, R-Edina, said there are 87 days before the May 23 constitutional adjournment date, and his caucus would like to get some clarity on where they are going with the budget. He said the committee deadlines are very aggressive and leadership is pushing committee chairs to craft their bills.

Dean said leadership is moving forward with setting budget targets. Chair of the House Ways and Means Committee Mary Liz Holberg, R-Lakeville, said the House is going to meet with Senate counterparts today and once they have the new budget numbers from the February forecast on Monday, they will move quickly in setting the budget targets for each of the committees. Holberg said to expect targets by the second week of March.

House Minority Leader Paul Thissen, DFL-Minneapolis, said he is pleased Republican leaders want to move the budget process forward, but expressed concern that for Minnesotans to have a voice in what he said is going to be a devastating budget proposal, there needs to be time allowed for public input.

House holds hearing on governor’s bonding bill
Rep. Larry Howes, R-Walker, chair of the House Capital Investment committee and author of Gov. Dayton's bonding proposal, held a hearing this week to discuss the bonding bill. It includes $127.6 million in projects and repairs and replacement for the Minnesota State Colleges and Universities system. Rep. Bev Scalze, DFL-Little Canada, questioned Howes about the future of proposed capital projects. Howes said if the bills are referred to his committee, they would get a hearing. When asked why he introduced Dayton’s bonding proposal as legislation, Howes said it is protocol to introduce the governor’s proposal and he thought it was worthwhile to have a hearing. After much testimony supporting the projects in the bill, the measure was laid over for further consideration. The Senate has not scheduled a capital investment hearing; however, Sen. Keith Langseth, DFL-Glyndon, recently introduced the companion bill. The legislation can be found here.

Lawmakers approve four new University of Minnesota Regents
Lawmakers approved four new regents for the University of Minnesota this week. Steve Sviggum, a former House speaker, was chosen to represent the Second Congressional District; business executive David McMillan was chosen to represent the Eighth Congressional District; David Larson, a retired Cargill executive, was selected for a second term representing the Third Congressional District; and Laura Brod, a former Republican representative, was selected for the at-large seat over current regent Steven Hunter, the secretary/treasurer of the AFL-CIO. The Board of Regents consists of 12 members who serve staggered six-year terms, with one regent selected from each of the state’s eight congressional districts and four who serve at-large.

U.S. House passes current year budget, Senate scheduled to take it up next week
After 580 amendments and a weeklong debate, the U.S. House of Representatives early Saturday morning passed H.R. 1, which reduces spending for the current fiscal year 2011 by almost $100 billion and cuts the Pell Grant program maximum grant by $845 for the award year starting July 1. With the passage of this bill and the differences between the House and Senate, federal departments are preparing for a government shut down in the event Congress doesn't resolve the fiscal year 2011 budget, operating under a continuing resolution that expires March 4. However, a shutdown is highly unlikely with options such as week-to-week funding, or departments operating under a "band-aid" approach to keep the federal government operational. Senate Majority Leader Harry Reid, D-Nevada, introduced a short-term measure that would maintain fiscal year 2010 spending levels through March 31 to allow time for negotiation on a longer-term spending bill. U.S. House of Representatives Speaker John Boehner, R-Ohio, said the House is working on a measure that would cut $4 billion from current funding levels in a two-week extension.

No action was taken on the federal budget this week while both the House and Senate are on recess. All congressional members are back to work on Monday, and the Senate will begin working on their version of the bill. President Obama has threatened to veto the House version of the bill.

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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, February 28
11:15 AM
Senate in Session

11:30 AM (televised and Senate webcast live)
February forecast released

3:00 PM
Senate Higher Education
Room: 107 Capitol
Chair: Sen. Michelle L. Fischbach
Agenda:
Minnesota State Colleges and Universities Trustee Confirmations:
Trustee Duane Benson
Trustee Philip Krinkie
Trustee Alfredo Oliveira
Trustee Thomas Renier
Trustee Michael Vekich

3:00 PM
Senate Education
Room: 15 Capitol
Chair: Sen. Gen Olson
Agenda: A presentation by the Foundation for Excellence in Education

3:00 PM
House in Session

4:00 PM (or 30 minutes after session ends)
House State Government Finance
Room: 5 State Office Building
Chair: Rep. Morrie Lanning
Agenda: Budget overview by Explore Minnesota Tourism
Budget overview by Administrative Hearings
HF577 (Lanning) Legal fees imposed by federal courts funding provided, reimbursement of expenses provided relating to the recount in the 2010 gubernatorial election, and money appropriated.
HF299 (Quam) Executive branch agency retained savings program established.
HF89 (Benson) Voter picture identification required before receiving a ballot, voter identification card provided at no charge, notice required, and provisional balloting procedure established.

5:00 PM
House Education Reform and Education Finance Joint Hearing
Room: 15 State Capitol
Chairs: Rep. Sondra Erickson, Rep. Pat Garofalo
Agenda: "The Florida Story"
Foundation for Excellence in Education
Patricia Levesque, Executive Director, Foundation for Excellence in
Education
Jay Greene, Department Head and 21st Century Chair in Education Reform, University of Arkansas

Tuesday, March 1
8:15 AM
House Education Reform
Room: Basement Hearing Room State Office Building
Chair: Rep. Sondra Erickson
Agenda: HF682 (Kiel) Career and technical levy modified; and career and technical education credits provided.

8:30 AM
Senate Finance
Room: 123 Capitol
Chair: Sen. Claire A. Robling
Agenda:
Presentation of February 2011 Economic Forecast:
Commissioner Jim Schowalter
Tom Stinson, State Economist
Margaret Kelly, Budget Director

10:30 AM
Senate Jobs and Economic Growth
Room 107 Capitol
Chair: Sen. Geoff Michel
Agenda:
S.F. 1-Michel: Job creation; business tax reductions; department of natural resources (DNR) permitting efficiency; environmental review requirements modifications.

12:30 PM
House Higher Education Policy and Finance
Room: Basement State Office Building
Chair: Rep. Bud Nornes
Agenda: University of Minnesota Academic Health Center presentation
Minnesota Partnership for Biotechnology and Medical Genomics
Presentation (University of Minnesota and Mayo Clinic)

12:30 PM
House Jobs and Economic Development Finance
Room: 10 State Office Building
Chair: Rep. Bob Gunther
Agenda: DEED budget overview
HF102 (Mahoney) Minnesota science and technology program established

3:00 PM
Senate Education
Room: 15 Capitol
Chair: Sen. Gen Olson
Agenda: S.F. 451-Stumpf: School districts career and technical levy formula modification; career and technical education academic credit requirement.

5:00 PM
House Ways and Means
Room: 200 State Office Building
Chair: Rep. Mary Liz Holberg
Agenda: HF110 (Kahn) Legislative Commission on Pensions and Retirement membership increased.
Overview of February forecast by MMB Commissioner Jim Schowalter and State Economist Tom Stinson

Wednesday, March 2
3:00 PM
Senate Higher Education
Room: 107 Capitol
Chair: Sen. Michelle L. Fischbach
Agenda: Presentations from student and faculty groups from the University of Minnesota and the Minnesota State Colleges and Universities

3:00 PM
Senate Education
Room: 15 Capitol
Chair: Sen. Gen Olson
Agenda:
S.F. 325-Hann: MNovate commission to provide leadership for the creation of new and innovative models of public schools and schooling establishment.
S.F. 289-Limmer: School finance capital expenditure health and safety revenue program modifications; health and safety policy.
S.F. 95-Bonoff: Independent school district #284, Wayzata; alternative facilities revenue program eligibility.
S.F. 315-Olson, G.: School lease levy authority modification.

Thursday, March 3
11:00 AM
Senate in Session

Friday, February 18, 2011

Governor and President release budgets; Veterans centers discussed; Students talk tuition; New paths to teaching debated; U.S. Congress budget talk

Legislative Update
February 18, 2011

Governor proposes 6 percent cut to higher education


The big news at the Capitol this week was the release of Gov. Dayton’s budget proposal. “A budget is about values and priorities as well as about dollars and sense,” Dayton said. In outlining his proposal, Dayton said the budget raises taxes on the wealthiest 5.5 percent of Minnesota taxpayers, increases funding for K-12 education and protects state aid to cities, counties and townships to preserve services like police and fire.

While Dayton resolves the $6.2 billion budget deficit with mostly tax increases for the wealthiest 5 percent of Minnesotans, he does make almost $1 billion in permanent expenditure reductions, with an offset of new spending for a net reduction of $485 million. Dayton's reductions include a 6 percent cut to both the Minnesota State Colleges and Universities system and the University of Minnesota. A 6 percent reduction to the system equates to $37.8 million a year, which reduces the system's base to $592.6 million for each year of the biennium.

Director of the Office of Higher Education, Sheila Wright, said the governor will protect the state grant program. Mark Misukanis, also with the Office of Higher Education, explained that the governor did not reduce the state grant program because projections indicate a need to ration grants to serve the increasing numbers of students. The state work study program however is being reduced 33 percent, which means approximately 3,500 fewer students will be employed on state work study funds. Dayton's budget proposal also eliminates the Achieve Scholarship program.

Minnesota Management and Budget Commissioner Jim Schowalter said the state is unable to repay the K-12 shift this biennium, but will begin buying back the shift at 10 percent a year starting in 2014. As for K-12 education, Dayton pledges to increase funding $52 million, with $33 million of it dedicated to all-day kindergarten. Also included in Dayton's budget plan is a 6 percent reduction in the state workforce. Schowalter said 800 state workers would lose their jobs, through resignations, retirement and layoffs.

Schowlater said in preparing the budget, the administration was looking for a balance, including spending reductions and revenue increases. Gov. Dayton said the Legislature will now have the opportunity to present their plan as they work towards an agreement. The governor said there is plenty of time to resolve differences with the Legislature, and a government shutdown is not an option.

In response to the governor’s proposed budget, Senate Majority Leader Amy Koch, R-Buffalo, said the governor's tax increases are not going to be approved by the Legislature, but she did say there is plenty of time to find a compromise. Koch said legislative leadership is working on a $32 billion budget. When asked by the media if lawmaker can do an “all-cuts budget” without cutting K-12 or health care for the elderly, Koch said they are looking at all areas and setting priorities. House Majority Leader Matt Dean, R-Dellwood, said, “We’re trying as hard as we can to get as much information as we can from the agencies. You’ll see a lot more detail and information from agencies in the committee process.”

The Minnesota State Colleges and Universities system has been asked to respond to Gov. Dayton’s proposed budget on Thursday in the House Higher Education committee, and provide a detailed discussion of the system’s finances.

Bill proposes to save veteran centers on campus

HF384, a bill sponsored by Rep. Bob Dettmer, R-Forest Lake, that repeals the sunset on campus veteran centers, allowing veteran services to remain on higher education campuses, was heard earlier this week in the House Veterans Services Division.

The Department of Veterans Affairs has had representatives on college and university campuses to help veterans returning to school since 2006. However, the Veterans Higher Education Assistance Program is set to expire on June 30, 2012 unless the sunset is repealed. Dettmer said Veterans Affairs will need to find $1.5 million in its budget for the program in the next fiscal year.

Donald Pfeffer, the Veterans Affairs director of higher education veterans programs, told committee members the program has grown to more than 60 service centers on both public and private campuses. He said that today, there are more than 12,000 residents eligible for veterans’ benefits and last year, 7,000 new veterans sought help.

“This is something I want to give our young veterans,” said Bill Johnson, a Vietnam veteran, who is a student and veterans staff person at Hennepin Technical College. Johnson said the G.I. bill gave him a chance at the American dream, and he wants others to have that chance. A Minnesota veteran and student at Dakota County Technical College, Jason Johnson, said if a veterans assistant staffer had not been available to help him, he would not be in college right now.

The bill was approved and sent to the State Government Finance committee where it will be heard Wednesday. There is no Senate companion bill at this time.

College and university students bring tuition message to Capitol

College and university students spent a day at the Capitol this week educating lawmakers about student issues, including tuition. Students packed a Senate hearing room to speak to a bill that would freeze tuition for the 2012-2013 biennium. The author of the bill, Sen. John Carlson, R-Bemidji, explained the bill by saying the state cannot continue to balance the budget on the backs of students. Carlson explained that SF 268 addresses the short-term impact of tuition increases and provides guidance for Minnesota families to plan for college.

Minnesota State University Student Association Chair Andrew Spaeth told committee members that in 1980, the state funded 80 percent of higher education costs, and today that number is around 50 percent. Spaeth said he's concerned with the debt load of students with the average student graduating with $26,000 in debt.

Travis Johnson, President of the Minnesota State College Student Association, or MSCSA, said he is concerned about the pattern of rapidly increasing tuition rates. Geoff Dittberner, Vice President of MSCSA said in 2003 when the system's budget was reduced by $191 million, the cut was made up in tuition increases which still have a negative consequence on students today. Dittberner said students are willing to be part of the solution, but not the entire solution. He said students believe the Minnesota State Colleges and Universities Board of Trustees is sincere in their desire to keep tuition low. Dittberner said while they cannot fully support a tuition freeze as the bill proposes, they would like to work with the committee to impose a tuition cap.

Russ Stanton with the Inter Faculty Association, or IFO, also spoke to the tuition freeze bill and said the IFO has always been an advocate of low tuition and affordable higher education, but state funding has not kept up with enrollment growth or inflation. He said the Minnesota State Colleges and Universities system is highly efficient and the cost of delivering instruction is among the lowest in the nation. Stanton said the IFO opposes setting tuition rates in the political arena, but would rather leave the Board of Trustees with the flexibility to make tuition decisions.

The bill was laid over for possible consideration in the omnibus bill. There is no companion bill in the House. You may review the bill here.

All parties work toward compromise for alternative teacher licensing

Gov. Mark Dayton and his education commissioner, Brenda Cassellius, have been working with lawmakers to reach an agreement on alternative teacher licensing legislation that is moving through the Legislature. On Thursday, Dayton released a letter to Sen. Gen Olson, R-Minnetrista, the bill’s sponsor, indicating the bill does not do enough to guarantee that teachers licensed under the proposal would have enough grounding in the subjects they will teach. He also says it is “regrettable that this bill does not better define a connection to higher education as a partnership,” and that it is “essential that non-profit groups partner with colleges of education to ensure integrity of the licenses issued upon the completion of the programs and a consistent, reliable standard of preparedness among teacher candidates.” Dayton said his administration and the Republican Legislature are close to reaching a compromise. “We would rather have a bill that is signed,” Olson said.

U.S. House debates spending bill to finance federal government for remainder of fiscal year

The U.S. House of Representatives has been debating legislation this week that sets spending for the remainder of the current 2011 fiscal year and cuts $100 billion from President Obama’s budget proposal. According to the Committee on Appropriations, this legislation represents the largest single discretionary spending reduction in the history of Congress. The current continuing resolution Congress is operating under is set to expire March 4, so lawmakers are working under a deadline. The Senate is expected to take up the bill the week of Feb. 28, and one can expect the Democratic controlled Senate to oppose many of the proposed cuts in the bill.

Students are affected greatly by the House proposal with cuts to the Pell Grant program. The bill would cut the maximum grant award by $845 from $5,550 to $4,705. The bill also zeroes-out all campus-based federal aid, except for the Federal Work-Study Program; eliminates all funds for the Teacher Quality Partnership Grants; reduces TRIO funding by $25 million and GEAR-UP funding by $20 million. You may find more information on the legislation here.

President Obama releases fiscal year 2012 budget plan

President Obama released his fiscal year 2012 budget this week, which can be found here. His plan would keep the maximum college financial aid award at $5,550. However, to do this, a cut in other areas of the Pell Grant would have to be realized. Obama’s proposal would end the "year-round Pell" policy that let students collect two grants in a calendar year, with the second grant used for summer school. The second proposal would reduce loan subsidies for graduate and professional students.

Obama’s budget also calls for a restructuring of funding for teacher preparation programs, by eliminating the current TEACH Grant program, and replacing it with the Presidential Teaching Fellows program, or PTF. His proposal requests $185 million for the PTF program for grants to states that upgrade licensure and certification requirements, hold the least effective teacher preparation programs accountable, and provide recognition to effective classroom teachers.

Other areas of the president’s budget as it relates to higher education include a $67 million increase for TRIO programs, specifically targeted to the Upward Bound program. The GEAR-UP program is level funded at $323 million in the proposed budget, and Obama is proposing a new program called College Completion Incentive Grants at $50 million. States would compete for these funds as they pursue methods for increasing college completion, and states would be required to set benchmarks for attainment.

Key higher education themes from this year’s State of the State addresses around the country

The Association of State Colleges and Universities, or AASCU, has compiled a summary of key higher education themes and policy proposals included in governors' state of the state addresses to date. You may view the full analysis, including a state-by-state summary of gubernatorial higher education priorities, at the below link.
AASCU Report: 2011 State of the State Addresses and Higher Education.


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, February 21

10:15 AM
House Ways and Means
Room: 200 State Office Building
Chair: Rep. Mary Liz Holberg
Agenda: Presentation of Gov. Dayton's Budget - Commissioner Jim Schowalter, Minnesota Management & Budget
HF103 (Murray) Unemployment insurance eligibility and extension provisions modified.

11:00 AM
Senate in Session

4:00 PM
House in Session

4:15 PM
Joint Convention of the House and Senate
Agenda: Elect regents to the University of Minnesota Board of Regents

Tuesday, February 22

8:15 AM
House Education Reform
Room: Basement State Office Building
Chair: Rep. Sondra Erickson
Agenda: HF511 (Erickson) Public school unneeded mandates removed.

10:30 AM
Senate Jobs and Economic Growth
Room: 107 Capitol
Chair: Sen. Geoff Michel
Agenda:
Overview from Dr. David Crowe, Chief Economist at the National Association of Home Builders
S.F. 283-Howe: Minnesota business investment company credit establishment and appropriation.

12:30 PM
House Higher Education Policy and Finance
Room: Basement Hearing Room, State Office Building
Chair: Rep. Bud Nornes
Agenda: University of Minnesota:
Response to Gov. Dayton's proposed budget
Detailed discussion of organization and finances

12:30 PM
House Jobs and Economic Development Finance
Room: 10 State Office Building
Chair: Rep. Bob Gunther
Agenda: Presentation of the Metro Business Plan from Saint Paul Mayor Chris Coleman and Doug Baker, CEO of Ecolab.
-Presentation and overview of the Minnesota Youth Program
-Presentation from Dr. David Crowe - National Assoc. of Home Builders

12:30 PM
House Education Finance
Room: 5 State Office Building
Chair: Rep. Pat Garofalo
Agenda: Presentation of governor’s proposed budget
HF576 (Kelly) Aid shift extended.

3:00 PM
Senate Education
Room 15 Capitol
Chair: Sen. Gen Olson
Agenda: Governor's Budget-MN Department of Education Testimony


Wednesday, February 23


8:15 AM
House State Government Finance
Room: 200 State Office Building
Chairs: Rep. Morrie Lanning,
Agenda:
Capitol Area Architectural and Planning Board (CAAPB)
Department of Military Affairs
HF384 (Dettmer) Campus veterans representative program sunset repealed.

8:30 AM
Senate Finance
Room: 123 Capitol
Chair: Sen. Claire A. Robling
Agenda:
Continuation of Presentation of Governor Dayton's Budget - Commissioner Jim Schowalter, Minnesota Management and Budget
Presentation of Fastest Growing Expenditures Report - Minnesota Management and Budget

2:30 PM
House Capital Investment
Room: 10 State Office Building
Chair: Rep. Larry Howes
Agenda: HF607 (Howes) Capital improvement funding provided to acquire and better public land and buildings and for other improvements of a capital nature, nonprofit housing bond authorization changes made, bonds issued, appropriations modified, and money appropriated.
Testifying: Minnesota Management and Budget

3:00 PM
Senate Education
Room: 15 Capitol
Chair: Sen. Gen Olson
Agenda: Governor's Budget-MN Department of Education Testimony

Thursday, February 24

8:15 AM
House Education Reform
Room: Basement State Office Building
Chair: Rep. Sondra Erickson
Agenda: HF269 (Downey) Teacher contract qualified economic offer provided.

10:15 AM
House Government Operations and Elections
Room: 5 State Office Building
Chair: Rep. Joyce Peppin
Agenda: HF191 (Downey) Redundant Technology Elimination Act proposed, state agency information technology systems and services consolidated, Office of Enterprise Technology duties transferred, and money appropriated.
HF297 (Kahn) State agency information technology system and service consolidated, and duties transferred to the Office of Enterprise Technology.

11:00 AM
Senate in Session

12:30 PM
House Higher Education Policy and Finance
Room: Basement Hearing Room, State Office Building
Chair: Rep. Bud Nornes
Agenda: Minnesota State Colleges and Universities:
Response to Gov. Dayton's proposed budget
Detailed discussion of organization and finances

12:30 PM
House Education Finance
Room: 5 State Office Building
Chair: Rep. Pat Garofalo
Agenda:
Presentation on the collective bargaining process from Education Minnesota and Minnesota School Boards Association

Friday, February 4, 2011

Dayton proposes bonding; College readiness discussed; P-20 partnership discussed; Budget reduction bills move

Legislative Update
February 4, 2011

Dayton proposes $127.6 million in bonding for the system


Gov. Mark Dayton released his capital budget proposal earlier this week and said he purposefully left open almost half of the bill for legislators to include their own projects. He urged lawmakers to act swiftly to pass a bonding bill. The proposal includes $531 million in general obligation bonds, with the intent to pass a $1 billion bill. Dayton said criteria for including a project in his recommendation included, but are not limited to, asset preservation and shovel-ready projects.

For the Minnesota State Colleges and Universities system, Dayton included projects totaling $127.6 million, of which $30 million is for repair and replacement, or HEAPR, and the remaining $97.6 million is for eight projects throughout the system. The breakdown is $95.1 million in general obligation bonds and $32.5 million in user financing.

The eight projects on Gov. Dayton's list are as follows (* indicates a project that was vetoed last session):
• Alexandria Technical and Community College, $4.2 million for main building renovation and addition
• Anoka-Ramsey Community College, Coon Rapids campus, $5.4 million for Fine Arts building renovation*
• Hennepin Technical College, $10.6 million for Learning Resource and Student Services renovation*
• Minneapolis Community and Technical College, $13.0 million for workforce program renovation*
• Ridgewater College, Willmar campus, $14.3 million for technical instruction lab renovation*
• South Central College, Faribault campus, $13.4 million for classroom renovation and addition*
• Minnesota State University Moorhead, $14.9 million for Livingston Lord Library and information technology renovation*
• Normandale Community College, $22.0 million for Academic Partnership Center and student services building

House Capital Investment Chair Larry Howes, R-Walker, said, "We are saying 'no' to a bonding bill unless it is an emergency." Howes said that instead of bringing out the state's "credit card," he would like to divert financial commitments from previously bonded projects that have been delayed to others that can get going immediately. House Minority Leader Paul Thissen, DFL-Minneapolis, said Republicans are wrong to dismiss Dayton’s bonding bill proposal.


Lawmakers discuss college readiness of high school students


Earlier this week, the Senate and House higher education committees learned more about recent public high school graduates' readiness for college. Scott Olson, interim vice chancellor for academic and student affairs, and Craig Schoenecker, system director for research, both with the Minnesota State Colleges and Universities system, were joined by Kent Pekel with the College Readiness Consortium at the University of Minnesota to give lawmakers a better understanding of student readiness and what is being done to address those students who are not ready for college.

The Minnesota State Colleges and Universities system and the University of Minnesota have been jointly preparing a report entitled, “Getting Prepared,” since 2000 that measures Minnesota public high school graduates who enroll in a Minnesota public college or university and have taken one or more developmental courses within two years of high school graduation. The information is summarized for the Department of Education, and a detailed report is provided to school districts throughout the state.

Olson said the readiness of students varies with the mission and selectivity of the college or university. Selective universities have less developmental instruction, while there is a greater need for students in colleges with open door policies. The panel informed committee members that the vast majority of developmental courses are taken in mathematics.

Committee members learned that the Minnesota P-20 Education Partnership works to improve college readiness. Part of the group’s readiness initiative includes encouraging middle school and high school students to take rigorous courses, along with strategies to close the achievement gap in science, technology, engineering and math, also known as STEM. The system provides college access and opportunity centers and placement testing at high school, among many services. Olson said the system and the University of Minnesota are working on better communication with high schools on postsecondary expectations.

Sen. Tom Saxhaug, DFL-Grand Rapids, observed that the state needs to focus on children's needs starting in grade school and throughout high school to see improvement in college readiness. A copy of the report can be found here.

Budget reduction bill heads to conference committee

The Senate passed the first budget reduction bill, HF 130, Thursday by a vote of 37-27. Chief author of the bill, Sen. Claire Robling, R-Jordan, said the bill includes cuts that have previously been voted on by the Senate. She said none of the cuts are easy to make or enjoyable, and also said the colleges and universities have wisely planned for these cuts.

During the floor debate, senators talked about the impact the reductions would have on individual institutions. Sen. Rod Skoe, DFL-Clearbrook, addressed the $185 million in cuts to higher education, saying there will be a very serious consequence to students when tuition rises. He said Minnesota students have the sixth-highest debt load in the nation. "Is it right in the first week of February to make it harder for our students to go to college?" Skoe asked. Sen. Paul Gazelka, R-Brainerd, said lawmakers have a tough job to do, and everyone is going to have to be part of the sacrifice. "It's not going to be easy or popular," he said.

The bill now heads to conference committee to work through the differences between the Senate and House versions. House Majority Leader Matt Dean, R-Dellwood, said the conference committee will meet Monday evening following the House floor session. There are a few major differences between the bills. One difference 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 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. Another difference between the House and Senate bills is that the House bill includes language regarding freezing state workers’ salaries beginning July 1, 2011.

Legislative leadership was asked today if, based on Gov. Dayton’s objections to what he has called piecemeal budgeting, if they are willing to make any changes to the bill. Dean said they will be in dialogue with the governor during the conference committee process and would like to find some agreements with the governor.

House conferees will be Rep. Mary Liz Holberg, R-Lakeville; Rep. Bud Nornes, R-Fergus Falls; Rep. Bob Gunther, R-Fairmont; Rep. Jim Abeler, R-Anoka; and Rep. Greg Davids, R-Preston.

In the Senate, conferees include Sen. Claire Robling, R-Jordan; Sen. Mike Parry, R-Waseca; Sen. David Hann, R-Eden Prairie; Sen. Julianne Ortman, R-Chanhassen; and Sen. Michelle Fischbach, R-Paynesville.

Dayton to increase funding for K-12 schools

With Gov. Dayton’s budget plan scheduled to be released Feb. 15, Dayton and Education Commissioner Brenda Cassellius outlined the administration’s “Better Schools for a Better Minnesota: A 7-Point Plan for Achieving Excellence,” which includes funding education for the future. This is an investment in early childhood and all-day kindergarten, as well as investing in strategies that close the achievement gap and target resources to the classroom. The second point of Dayton’s plan is better early childhood education, which includes expanding the existing K-12 system into a comprehensive pre-K-12 system and implementing clearly defined school readiness standards. Setting accountability targets to close achievement gaps is the third point in the administration’s plan, Raise the Bar, Close the Gap.

The fourth point is reading well by third grade. The governor plans to launch a statewide literacy campaign and adopt pre-K-3 literacy standards. The fifth point is supporting teaching for better schools through creating alternative pathways to teacher licensure that maintain quality, establishing a statewide teacher performance evaluation, and supporting early childhood teacher observation and development.

Better testing for better results is the sixth part of the plan that includes developing assessments for learning that measure growth, establishing a Test Reduction Task Force, and examining new accountability measures based on growth that fairly assess and report student and school progress. The last point of the plan outlines the Department of Education’s role in providing educational leadership and support. Commissioner Cassellius said she has begun a reorganization of the department to offer better support for teachers, superintendents and districts that will move the agency from a top-down compliance-driven model to one that offers support, transparency and high standards of accountability.

Gov. Dayton said: "Education was key to our state’s past prosperity, and it will be key to our future prosperity. An excellent public education system will be the driving force behind job creation in Minnesota. We must prepare today’s students for the jobs and the industries of the future, and thus we must make important innovations in our public school system. With this plan, we will take what is good with Minnesota’s K-12 education and make it even better, to ensure every student a full opportunity to succeed in this ever more competitive global economy."

The "Better Schools for a Better Minnesota" plan can be found here.

House Speaker Kurt Zellers, R-Maple Grove, said legislative leaders are optimistic that the February budget forecast will be a little better, but budget decisions will be made based on that forecast. He said this includes a commitment to holding K-12 classrooms harmless. When asked what this means, Zellers said that will be up to the K-12 education committees.

Legislative Passover/Easter break announced

It was announced this week that lawmakers will recess Monday, April 18 starting at 3 p.m. for the traditional Passover/Easter break in preparation for the start of Passover at sundown. The break will last through the following Monday after Easter. Legislative committees are scheduled to resume Tuesday, April 26.

The latest from Washington

With the federal government currently operating under a continuing resolution that is set to expire March 4, Congress will be busy the next couple weeks crafting a budget that addresses the second half of the 2011 fiscal year. Congress also will be looking ahead to address the budget for fiscal year 2012, with President Obama expected to release his 2012 budget Feb. 14.

The Budget Committee in the House has released its official spending targets for the rest of fiscal year 2011. Budget Chairman Paul Ryan, R-Wisconsin, will submit the 2011 total allocation next week when the House returns from recess. The allocation at $1.055 trillion represents a cut of $32 billion from the $1.087 trillion full-year cost of funding the government at current levels. The individual appropriations committees, including the Education and the Workforce Committee, will decide how the overall cut will be handled. A group of conservative House Republicans are pressuring Speaker John Boehner, R-Ohio, to meet the caucuses goal of cutting $100 billion and has pressed for even deeper cuts, pushing Republican leaders to roll back spending to 2006 levels. They project that would cut spending by $2.5 trillion over the next decade.

Many in higher education are speculating how the budget cuts will affect the Pell Grant program. The U.S. Education Department is required by law to estimate by Feb. 1 what it believes the maximum Pell Grant will be in the next academic year so that colleges and families can plan accordingly. On Tuesday, the department announced that the maximum award for 2011-12 would be $5,500. However, the Education Department's announcement does not actually ensure that the Pell Grant will remain at $5,550 next year. Congress could still decide, as they deliberate over the 2011 budget in committee, to cut Pell funding.

Also this week Chairman of the Senate Appropriations Committee Sen. Daniel Inouye, D-Hawaii, announced a two-year ban on earmarks. With Republicans vowing to get rid of them, and President Obama promising in his State of the Union speech to veto any legislation that includes them, Inouye said that for now, at least, the committee will not fund them. “The handwriting is clearly on the wall,” Inouye said. “The president has stated unequivocally that he will veto any legislation containing earmarks, and the House will not pass any bills that contain them. Given the reality before us, it makes no sense to accept earmark requests that have no chance of being enacted into law.” Sen. Al Franken’s office announced this week that he won't accept or submit earmark requests for spending bills this year due to Sen. Inouye’s announcement. Franken says he will continue pushing for federal funding through programs that benefit Minnesota residents and help constituents seeking federal grants and other funds.

Three members of Minnesota's Congressional delegation will be holding town hall meetings over the next few days. DFL Rep. Betty McCollum from Congressional District 4, is holding an event Saturday in Maplewood. DFL Rep. Tim Walz from Congressional District 1, is holding an event Monday in Winona, and GOP Rep. Erik Paulsen from Congressional District 3, is holding an event Monday night in Rogers.

What: Town hall meeting with Congresswoman Betty McCollum, state Rep. Leon Lillie, state Rep. Nora Slawik and state Sen. Chuck Wiger
When: Saturday, February 5, 9:30-10:30 a.m.
Where: Maplewood City Hall Council Chambers, 1830 County Road B East, Maplewood

What: Congress on your Corner with Rep. Tim Walz
When: Monday, February 7, 11:30 a.m. - 1:00 p.m.
Where: Midtown Foods, 126 E Fifth Street, Winona

What: Town hall meeting with Rep. Erik Paulsen
When: Monday, February 7, 7:00 p.m.
Where: Rogers Community Room, 21201 Memorial Drive, Rogers

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, February 7

11:00 AM
Senate in Session

3:00 PM
Senate Higher Education
Room: 107 Capitol
Chair: Sen. Michelle L. Fischbach
Agenda: Minnesota Career Colleges Association Presentation

3:00 PM
Senate Education
Room: 15 Capitol
Chair: Sen. Gen Olson
Agenda: MINNESOTA'S FUTURE: World-class Schools, World-class Jobs
Charlie Weaver, Executive Director, Minnesota Business Partnership
Peter Hutchinson, President, Bush Foundation

3:00 PM
House in Session

Tuesday, February 8

8:15 AM
House State Government Finance
Room: 200 State Office Building
Chair: Rep. Morrie Lanning
Agenda: HF173 (Peppin) Sunset Commission created, sunset and review of state agencies provided, and money appropriated.
HF2 (Banaian) Zero-based budgeting required, and sunset advisory commission and sunset process established for state agencies.

12:30 PM
House Higher Education Policy and Finance
Room: Basement Hearing Room, State Office Building
Chair: Rep. Bud Nornes
Agenda: Increasing Educational Achievement:
Susan Heegaard, Bush Foundation - Vice President, Educational Achievement
Peter Hutchinson, Bush Foundation - President

12:30 PM
House Jobs and Economic Development Finance
Room: 10 State Office Building
Chair: Rep. Bob Gunther
Agenda: Agency overview from Mark Phillips - Commissioner of the Department of Employment and Economic Development (DEED).

3:00 PM
Senate Education
Room: 15 Capitol
Chair: Sen. Gen Olson
Agenda: S.F. 170-Daley: Teacher candidates basic skills exam pass requirement.
Vallay Varro, Executive Director of MinnCAN

Wednesday, February 9

8:15 AM
House State Government Finance
Room: 200 State Office Building
Chair: Rep. Morrie Lanning
Agenda: Minnesota State Arts Board Overview:
Sue Gens, Executive Director of the Minnesota State Arts Board
Minnesota Historical Society Overview:
Michael Fox, Director of the Minnesota Historical Society
Minnesota Management and Budget presentation on recently released 2010 State Workforce Report:
Judy Plante, Assistant Commissioner for State Human Resources
Meeting Documents: Workforce Report

12:00 PM
Governor’s State of the State Address
House Chamber

3:00 PM
Senate Education
Room: 15 Capitol
Chair: Sen. Gen Olson
Agenda: TBA

Thursday, February 10

8:15 AM
House State Government Finance
Room: 200 State Office Building
Chair: Rep. Morrie Lanning
Agenda: HF4 (Downey) State workforce reduction required, and early retirement program created.

11:00 AM
Senate in Session

12:30 PM
House Higher Education Policy and Finance
Room: Basement Hearing Room, State Office Building
Chair: Rep. Bud Nornes
Agenda: Student and faculty testimony