Higher ed bills pass; Field hearings held; College completion toolkit;

Higher education omnibus bills are headed to the floor

Committees have been working around the clock this week to pass budget bills prior to today’s deadline. Legislative leadership has set budget targets that address the $5 billion budget deficit with all cuts. Lawmakers and the governor agree that they can solve $1.3 billion of the deficit with the K-12 school aid shift, which leaves approximately $3.7 billion left to cut. With snow still on the ground, lawmakers are ahead of schedule; we typically do not see spending bills on the floor in March. But Republican leadership has said they are placing a high priority on the budget this year and do not want to wait until May.

Higher education was part of the flurry of activity as both the House and Senate committees met long hours to craft their bills. The House unveiled their higher education omnibus bill late last week, but took it up in committee Tuesday. After multiple votes on proposed amendments, members passed it by a vote of 8-6 and sent it to Ways and Means, where it was approved without any amendments. In the Senate, Higher Education committee members approved their version of the higher education omnibus
bill by a vote of 7-6 this week and sent it to the Finance Committee, where it was also approved. Both versions of the bill are now headed to their respective chambers for a floor vote next week. Once the bills are passed off the floor, a conference committee will be formed to work through the differences in the bills.

Representatives of the Minnesota State Colleges and Universities system weighed in on both bills in the House and Senate higher education committees regarding the reductions and tuition caps in the bills. Presidents Edna Szymanski of Minnesota State University Moorhead, Larry Litecky of Century College and Pat Johns of Lake Superior College requested the support of committee members for local control of tuition. The Senate higher education bill caps tuition increases for the
Minnesota State Colleges and Universities system's four-year institutions at 4 percent and the two-year institutions at 3 percent.

This is a slight change from the House higher education bill that caps the state universities at 4 percent and the two-year colleges at 2 percent. Higher Education Policy and Finance Chair Bud Nornes, R-Fergus Falls, said the committee is expecting the systems to make up about a third of the reduction in state appropriation by increasing tuition at the set caps. Nornes said, “They will also need to reduce spending and reform to live within their means.”

President Litecky said that honoring the local control of tuition-setting is a concern for all the colleges and universities in
the system, and indicated that as a result of tuition caps and the cut in the bill, it could mean fewer class offerings for students at his college. Sen. Ron Latz, DFL-St. Louis Park, said that cuts to the system today will cost students and the state additional money in the long run, because students will not be able to get the classes they need and therefore will not be able to graduate on time.

In addition to the tuition caps in both bills, the Senate bill cuts the Minnesota State Colleges and Universities system $167 million over the biennium from the 2012-2013 forecasted base. In comparison, the House bill cuts $201 million from the same base, while the governor recommended a cut of $75.6 million. This brings the system’s annual base down to $546.8 million in the Senate. The House bill reduces the system's base to $529.8 million, and the governor's recommendation brings the system's base to $592 million. In testimony this week, Chancellor Jim McCormick told committee members that if we want Minnesota to be competitive, we have to do better than these cuts to higher education.

The Senate bill also specifies that if there are any salary savings to the Minnesota State Colleges and Universities system caused by legislation that limits, reduces, or eliminates salary increases in any other bill, the savings are to be used to mitigate tuition increases or be allocated to institutions under the Board of Trustees allocation model. The State Government omnibus bill in its current form includes a salary freeze provision for state employees that prohibits any increases during the 2012-2013 biennium.

Both the Senate and the House bill include the provision on senior citizen tuition age. The language reduces the age of a senior citizen in statute to be eligible to receive reduced tuition back to age 62 from 66 (the statute was changed in 2010 from 62 to 66). Also similar to the House bill, the Senate bill sets a statutory amount for the tuition and fee maximum used to calculate the state grant award to the highest tuition and fees charged by a Minnesota public college for two-year programs, and the highest average tuition and fees charged by a Minnesota public university for four-year universities.

The House bill, HF 1101, can be found here.

The Senate bill, SF 924, can be found here.

We can expect long floor sessions next week as lawmakers work to get the spending bills to conference committee. House Speaker Kurt Zellers, R-Maple Gove, said in a press conference today that he expects six major finance bills to be voted on next week, including the higher education bill Tuesday, March 29. The Senate has not yet indicated when they will take up the higher education bill. Zellers said lawmakers are focused on balancing the budget and “getting out of here on time.” What remains unclear is the action Gov. Dayton will take on the budget bills when they reach his desk. The Legislature is scheduled to adjourn May 23.

Field hearings examine local solutions to improve education and the economy

This week, the U.S. House Committee on Education and the Workforce, chaired by Rep. John Kline, R-Minnesota, held two field hearings in Pennsylvania and New York entitled, “Reviving our Economy: The Role of Higher Education in Job Growth and Development.” The field hearings were designed to solicit feedback on education and workforce needs in
American communities. Each hearing featured panel discussions on the state of the local economy and the ability of higher education institutions to successfully prepare graduates to join the workforce.

College Completion Toolkit available

Vice President Joe Biden and the U.S. Department of Education have announced the availability of a toolkit for states concerning college completion. In 2009, President Obama proposed the American Graduation Initiative, which established the goal that by 2020, the U.S. would regain its position as the nation with the highest percentage of its population with postsecondary degrees. The College Completion Toolkit highlights key strategies that state leaders can use to help colleges in their state increase their completion rates. The “toolkit” can be accessed at the U.S. Department of Education Web site here.

Here's What's Happening at the Capitol:

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

Monday, March 28

10:00 AM
Senate in Session

12:00 PM
House in Session

15 minutes after session
Senate Finance
Room: 123 Capitol
Chair: Sen. Claire A. Robling
Agenda:
S.F. 898-Gimse: Omnibus transportation appropriations.
S.F. 1047-Parry: State government and veterans affairs appropriations;
Minnesota Sunset Act; state agency positions modifications; zero-based
budgeting proposals implementation; federal offset program
implementation; health care savings account.

2:00 PM or call of the chair
House Ways and Means
Room: 200 State Office Building
Chair: Rep. Mary Liz Holberg
Agenda:
HF1049 Jobs and Economic Development Omnibus Bill
HF1039 Agriculture Omnibus Bill

Tuesday, March 29

10:00 AM
Senate in Session

10:30 AM
House in Session

15 minutes after session
Senate Finance
Room: 123 Capitol
Chair: Sen. Claire A. Robling
Agenda: Omnibus bill to be announced

5:00 PM or call of the chair
House Ways and Means
Room: 200 State Office Building
Chair: Rep. Mary Liz Holberg
Agenda:
HF440 Judiciary Omnibus Bill
HF853 Public Safety Omnibus Bill
Wednesday, March 30

10:00 AM
Senate in Session

10:30 AM
House in Session