Legislative Updates

Mediator may be called in for budget talks; U.S. Congress works on budget; No Child Left Behind discussed; Citizen League wants your opinion

2011-06-03T11:01:00.000-07:00

No budget deal yet

As Gov. Mark Dayton and Republican legislative leadership look to a special session to set the budget for the 2012-2013 biennium, the Legislative Commission on Planning and Fiscal Policy met yesterday to hold public conversations about the status of the state budget. Minnesota Management and Budget Commissioner Jim Schowalter and Revenue Commissioner Myron Frans were asked to speak in front of the panel, but Dayton called the hearing "political theater," and said they would not appear before the commission as requested. Republicans expressed disappointment in their absence. Senate Majority Leader Amy Koch, R-Buffalo, said she expects the commission to meet again next Tuesday and will once again invite the two commissioners.

Meanwhile, Dayton has said a third-party mediator may be needed to end the budget impasse, but Republican leaders have rejected that idea. House Speaker Kurt Zellers, R-Maple Grove, said they were elected to lead. Koch said she remains optimistic that they can reach agreement before July 1.

Gov. Dayton and Republican leaders met earlier today to talk about the budget and begin negotiations to set the stage for a special session, and both sides called it productive. The deadline leaders are now working against is June 30, the end of the 2011 fiscal year. Both parties have said they agreed to meetings beginning next week. Koch said the scheduled meetings call for a budget agreement by June 21 and a special session starting June 27; however, Dayton said he won't call a special session until there's a deal.

Congress working to set fiscal year 2012 budget

The U.S. House of Representatives has been working hard to pass all 12 fiscal year 2012 appropriations bills, and so far the Homeland Security bill and the Military Construction and Veterans Affairs bill have passed the full House. Four other spending bills; Energy and Water, Legislative Branch, Defense, and Agriculture have passed their respective House subcommittees and are awaiting action by the full Appropriations Committee and will then move to the House floor. The Labor, Health and Human Services, Education bill is still awaiting action. The Senate appropriations subcommittees, while holding hearings, have not started marking up the bills yet. The Senate has been on recess this week while the House was in session. The House is scheduled to recess this coming week, starting June 6.

U.S. Secretary of Education Duncan visits Minnesota

U.S. Education Secretary Arne Duncan visited Minnesota this week to discuss education, specifically the No Child Left Behind law. Duncan said the law is too punitive. "We simply can't continue to have the law on the books as an impediment to progress, this impediment to rewarding excellence. We're pushing Congress to act with greater urgency than you normally see," Duncan said. He said President Obama would like to have a new education law in place by the new school year this fall. Sec. Duncan also reflected upon the need for higher education providers to certify that standards required for high school graduation truly reflect college ready requirements and expectations.

Chairman of the House Education and the Workforce Committee, Congressman John Kline, of the second district in Minnesota said about Duncan's visit, "I'm pleased Secretary Duncan will be in my home state of Minnesota (today) to discuss education. Our education system is in critical need of improvement, but we have all seen what can result when Congress hastily crafts sweeping legislation to meet an arbitrary deadline. The future success of America's students is far too important to risk on a flawed process. Instead of focusing on timelines and rhetoric, the House Education and the Workforce Committee is advancing a series of thoughtful reform initiatives that will address key areas for improvement in the nation's classrooms. Just last week, the committee approved the Setting New Priorities in Education Spending Act, which will streamline and simplify the federal role in education…It is time to set preconceived notions aside and chart a new course that encourages innovation, reduces federal regulatory burdens, and puts the needs of students first. We look forward to working with the administration and the Senate in this effort."

Citizens League higher education study

The Citizens League, which involves citizens in studying public issues and developing policy solutions at the state and local levels, has published the first phase of its higher education study in the Minnesota Journal.

"Higher education-education beyond high school-is integral to the fabric of our nation and our state. In Minnesota, higher education has produced visionary and entrepreneurial leadership, productive workers, world-class research, engaged and active citizens, and increased equality and opportunity for many of our citizens. But there is growing concern that Minnesota’s higher education system is failing to deliver the outcomes-the educated workforce and informed citizenry-our state needs to meet the challenges of the 21st century. Our system of higher education is challenged by rising tuition and costs, students arriving unprepared for the academic demands of college, a growing workforce demand for post-secondary skills, and the loss of our graduates’ competitive edge in the global economy. As these pressures mount, we can no longer afford to ask should something be done. It is essential that we ask, and answer, not only what should be done and how, but why."

The May/June 2011 Minnesota Journal publication can be found here.

Performance based funding in public higher education financing

States around the country, including Minnesota, are grappling with budget deficits and cuts to public higher education. At the same time, there has been an increased value on human capital for economic security, which has led to President Obama's goal of leading the world in the proportion of college graduates by 2020. The American Association of State Colleges and Universities, or AASCU, has released the latest installment from its Policy Matters series entitled; Performance-Based Funding: A Re-emerging Strategy in Public Higher Education Financing. The policy brief looks at performance-based funding as one means of improving institutional effectiveness. The complete brief can be found here.

Final hours of the state session; Congress talks budget

2011-05-20T18:54:00.000-07:00

Legislative Update
May 20, 2010

The last week of the legislative session usually brings with it many twists and turns as legislative leaders and the governor attempt to negotiate a session ending deal. This week has been no exception. Republican legislative leaders were hoping to reach a deal with Gov. Dayton prior to sending him the budget bills. Senate Majority Leader Amy Koch, R-Buffalo, has said all along that they don't want to send the governor bills that he will veto. But as the clock started ticking without any sign of an agreement, both bodies went to work passing the conference reports in a quick 48-hour period working through the night. The higher education conference report was passed by the House overnight Tuesday by a vote of 69-57. The Senate passed the bill Thursday evening 35-31. As a reminder, the bill can be found here.

Republican leaders and Gov. Dayton continue to meet more frequently, but House Speaker Kurt Zellers, R-Maple Grove, said there's a lot besides the number that has to be negotiated in the conference reports, especially from a policy standpoint, and time is running out. State government conferees met with the governor today and Rep. Morrie Lanning, R-Moorhead, co-chair of the state government conference committee, was positive after the meeting. Lanning said he thinks the governor better understands what they are doing in the bill, and said he also thinks he understands the governor's perspective on some issues. "It's unfortunate that we didn't have this kind of meeting earlier. But be that as it may, we're now I think on the right path here," Lanning said.

At the time of this update, both the House and Senate are in recess. Lawmakers and the governor plan to work over the weekend to try and reach a deal before midnight Monday. If they cannot, Gov. Dayton will need to call a special session in order to pass a budget.

The Senate adopted Senate Concurrent Resolution No. 8 late Thursday that sets the 2012 legislative session start date for Tuesday, January 24, 2012 at noon.

We will keep you updated on the weekend activities and will send out a complete summary when lawmakers adjourn the regular session.

Updates from Washington D.C.

A “Dear Colleague” letter is making its way through the U.S. House of Representatives and Senate having originated with Rep. Judy Chu, D-Calif., and Sen. Barbara Boxer, D-Calif., expressing support for keeping the Pell Grant maximum award at $5,550 in fiscal year 2012. Many members of Congress have signed on to the letter. The House letter can
be found here.

The U.S. Department of Education released the final fiscal year 2011 funding information, which provides more details about the specific program cuts made when Congress passed the 2011 budget last month. You may recall the Pell Grant program was funded at the maximum award level of $5,550, but other programs did not fare as well. The detail can be
found here.

Congress will meet next week, and then the Senate will recess for a week beginning Monday, May 30, and the House will recess the following week, starting Monday, June 6.

Budget deal coming?: Conference committee bills move; U.S. Congress reviews job training; Senate considers DREAM Act; Federal budget talk timeline

2011-05-13T14:45:00.000-07:00

Legislative Update
May 13, 2011

Conference reports demonstrate momentum with 10 days remaining

Higher education, K-12 education and state government are among the conference reports conferees have negotiated to a single legislative position this week. Gov. Dayton said the conference reports need to only be posted, not sent to the floors for passage by the full Legislature, before he will start negotiating, so we should see the governor start to engage. Senate Deputy Majority Leader Geoff Michel, R-Edina, said legislative leaders want the governor to sign the bills. “We don’t want to send a bill to veto land,” Michel said. He said they’re still optimistic and there’s plenty of time to reach agreement.

Senate Majority Leader Amy Koch, R-Buffalo, said there’s an increase in the level of engagement with the governor and his staff. Koch said once the committee reports are posted, they will work with the governor to achieve a timeline. When asked by the media why leadership has not publicly released their conference committee targets, Koch said they are “working targets,” that are continually moving. She indicated the target position will be posted with the conference committee reports. When asked if leadership is moving away from the $34 billion budget target down to $32 billion with further cuts in some of the bills, Koch wouldn’t comment, but said they will continue to live with what’s in the checkbook. “We ultimately want agreement with the governor,” Koch said.

House Speaker Kurt Zellers, R-Maple Grove, said he is confident the work can be completed because Gov. Dayton and Republican leaders get along well. “This is a game of personal relationships,” Zellers said, and called Dayton a very genuine man. Dayton left this afternoon for the governor’s fishing opener in Grand Rapids with an expected return of Saturday evening. Lawmakers plan to meet in floor session Saturday, and leaders will work through the weekend to get closer to a deal. Dayton is expected to engage in negotiations this weekend when he returns. Given this movement, many wonder if a May 23 adjournment is within reach. Still remaining however, is the philosophical difference that exists between Republican legislators and the governor on raising taxes. Stay tuned.

Higher education conferees finalize bill

Conferees wrapped up the higher education finance bill Thursday night. The cut for the Minnesota State Colleges and Universities system ended up at $130 million, or 10.7 percent, for the 2012-2013 biennium from the fiscal year 2011 base doubled. (If you look at the numbers from the fiscal year 2012-2013 forecasted base, the cut comes out to be $180 million, or 14.3 percent, over the biennium). The total appropriation for the system each year is $540.5 million, down from the fiscal year 2011 budget of $605 million.

The House language that provided for a one percent performance set aside of state appropriation was included in the report and will be made available based on the achievement of three of five goals. Those goals include; (1) increase by at least seven percent, compared to fiscal year 2009, graduates or degrees, diplomas and certificates conferred; (2) increase by at least ten percent, compared to fiscal year 2010, the number of students of color; (3) increase by at least fifteen percent, compared to fiscal year 2010, the full year equivalent enrollment of students taking online or blended courses or the number of online and blended sections; (4) increase by at least one percent the fall 2011 persistence and completion rate for fall 2010 entering students compared to the fall 2010 rate for fall 2009 entering students; and (5) decrease by at least two percent, compared to calendar year 2009, total energy per square foot.

Also related to the budget, the House language was adopted that requires the Board of Trustees to place the highest priority on meeting the needs of employers for a skilled workforce when making reductions, approving programs of study, establishing requirements for completion of programs, and approving course offerings and requirements for credentials. The Board is also required to focus on the efficient delivery of higher education, eliminate duplication throughout the system and streamline the operation of the system to provide an education that prepares students for the workforce needs of Minnesota.

The bill caps tuition for the state universities at five percent in the first year of the biennium and four percent in the second year. For the state colleges, the bill caps tuition at three percent each year of the biennium. Regarding tuition and fees, language was included in the bill that reads; "The Board of Trustees of the Minnesota State Colleges and Universities must limit the rate of increase for any mandatory fee charged to a student at a university or college to four percent per year in the biennium ending June 30, 2013, unless a higher increase is approved by a public majority vote by the recognized campus student association." Mandatory fees are those that are generally charged to all students at a college or university.

Also adopted in the report is the House language regarding the undergraduate tuition guarantee plan that encourages the Board of Trustees to offer entering students a plan providing stable tuition for two-years for students pursuing a two-year degree, or four-years for students pursuing a four-year degree.

The language on credit transfer originally in the House bill was amended and then adopted that reads; “When providing the report required by Laws 2010, chapter 364, section 38, the Board of Trustees of the Minnesota State Colleges and Universities shall provide the information about progress made toward achieving the goals described in the system's Smart Transfer Plan, and shall provide information about the number of students transferring between and among the system's two- and four-year institutions during the previous fiscal year. In addition, the Board of Trustees shall include a system study of mechanisms for effective transfer in other states.”

Conferees put more money into the state grant program to partially fund the state grant projected deficit for 2012-2013. The program will see an additional $21.1 million over the biennium. This equates to a $6 million decrease from the House position and a $14 million increase from the Senate position.

The language relating to senior citizen tuition that was in both the House and Senate bills, was included in the final conference report. The language reverses the law set last session that moved the age from 62 to 66 to receive tuition benefits. This language moves the age back to 62.

And finally, the House repealers were adopted. They include; the requirement for public institutions to sell American-made clothing and apparel in their bookstores to the extent possible; the requirement that public employers purchase or require employees to furnish uniform or protective accessories that are made in America; the matching state grant program that is part of the Minnesota College Savings plan; and the requirement to provide one-time Achieve grants to students who were eligible before Jan. 1, 2009 and have not yet been awarded the grant.

Some of the provisions not adopted in the conference report include the language that says any transformational initiatives in the system can only be funded out of the Office of the Chancellor and shared services appropriation; the cap of $120,000 (governor’s salary) on the chancellor and presidents salaries; the allocation of any system salary savings to be used to mitigate tuition increases or allocated under the Board's allocation model; and the provision that requires the system to do a comprehensive evaluation of the system's structure and report back to the Legislature.

The spreadsheet for the bill is attached to this email for your review. The conference report is available here.

Legislative leaders have indicated they will hang onto the conference reports and not sign them in order to negotiate a global agreement with the governor.

State government conference committee reaches tentative agreement

There was quite a bit of activity in the state government conference committee this week. Earlier in the week, conferees spent time discussing state employees, including the Minnesota State Colleges and Universities system's employees in relation to the provisions in the bill. Russ Stanton with the Inter Faculty Organization, or IFO, testified that the IFO supports the House language that exempts the Minnesota State Colleges and Universities system faculty and administrators from the salary freeze. Stanton said the system has already taken reductions, and the current higher education bill already includes cuts.

Minnesota Management and Budget Commissioner Jim Schowalter said he appreciates the interest in the competitiveness for the employees in the Minnesota State Colleges and Universities system, but would hope the rest of state government would be exempt from a salary freeze as well. Schowlater said he understands the budget situation, but a salary freeze puts the state at a competitive disadvantage and will not get Minnesota where leaders are looking to go as a state. “We need to develop a trained and skillful workforce,” Schowalter said, and asked conferees to look at the policy from a workforce point of view as well. He said the language doesn't provide for any flexibility.

In regards to exempting the Minnesota State Colleges and Universities system from many of the state agency cuts or salary freeze, Rep. Mike Benson, R-Rochester, told Senate conferees that he sits on the higher education committee and heard the commitment the system already has on trimming the budget. He said the system has done a good job of managing costs and has already demonstrated the ability to look at the efficiencies needed to bring costs down. Co-Chair Morrie Lanning, R-Moorhead, said the Legislature should treat the system the same way they treat the University of Minnesota. Rep. Keith Downey, R-Edina, echoed Benson's comments, and added that the Office of the Chancellor has already undergone a lot of scrutiny in regards to the system's back office functions. Downey said the Office of the Legislative Auditor recommended a couple "tweaks" last year, but overall the system functions well.

As the end of the week drew near, conferees began taking action not only on identical and similar language between the House and Senate bills, and some of the more controversial policy provisions, but began to talk money. Conferees reached a tentative agreement Thursday night to set the overall cut to state government operations at 34 percent, which more closely resembles the House bill. Lanning said conferees will not sign the report right away, but instead will discuss it with Gov. Dayton and his administration. Another conference committee is scheduled for Monday evening. Once the report is available, it will be posted here.

Congressional review of job training programs in higher education subcommittee

The U.S. House Subcommittee on Higher Education held a hearing earlier this week regarding removing inefficiencies in the nation’s job training programs. This is a subcommittee of the House Education and the Workforce Committee chaired by Rep. John Kline, R-MN.

The Government Accountability Office, or GAO, identified 47 separate employment and training programs administered across nine federal agencies, which cost an estimated $18 billion in fiscal year 2009. The hearing was an attempt to look at consolidation and improved coordination among workforce development programs. Subcommittee Chairwoman Virginia Foxx, R-NC, asked for ideas of red tape that can be eliminated. She said the administrative dollars in this type of work can be spent better, and believes the states provide an opportunity to innovate.

Andrew Sherrill, Director for Education, Workforce and Income Security in the GAO office, discussed the benefits of co-location services, which allows a better delivery of services for clients. Sherrill researched states that consolidate services and agencies, and some states said they were able to save money from greater administrative efficiencies; however, they were unable to quantify it.

Larry Temple, Executive Director of the Texas Workforce Commission, provided an example of what’s been done in Texas. Temple said in 1995, the Legislature created the Texas Workforce Commission combining 20 plus services into one new commission. Temple said when leaders were asked to create the commission, there was no example or blue plan to follow so it was created without much knowledge on what should be done. He said the workforce commission has been able to save a lot of money by consolidating the services, especially in rural areas.

Evelyn Ganzglass, Director of Workforce Development with the Center for Law and Social Policy, said her organization does not believe in a one-size fits all approach. She said physical co-locations of services are not always the best fit. Ganzglass said the Center for Law and Social Policy believes Congress should align programs and encourage organizations to work together, provide multiple pathways to postsecondary education, and streamline paperwork with eligibility requirements.

Rep. Ruben Hinojosa, D-Texas, asked Dr. Sherrill if he found any duplication of services between the 47 employment and training programs. Sherrill responded that GAO found some overlap, but did not find any duplication. For example, Sherrill said they found TANF recipients who received training, also received training employment services. Chairwoman Foxx said she understands the local level is working on programs to help local people, but bureaucrats in Washington are trying to regulate the programs. Foxx said she thinks the nation might be better off by sending the money to the states and letting the states regulate their workforce programs.
An archived webcast of the hearing is available here.

DREAM Act re-introduced in Senate

On Tuesday, President Obama outlined a plan for immigration reform that included the DREAM Act, which was then reintroduced in the U.S. House and Senate on Wednesday. The DREAM Act would provide certain undocumented youth who have been in the United States for at least five years, have good moral character, complete high school or earn their GED, and complete two years of college or military service, the opportunity to apply for permanent legal status. The bill also includes a repeal of the ban on in-state tuition for undocumented students.

In support of the DREAM Act, Sen. Michael Bennet, D-CO, said, “The Administration can and should act now to grant deferred action to exemplary students who meet the rigorous requirements for eligibility under the DREAM Act. Not only will these children be better off for it, our country will be better off as well.” In response, House Judiciary Chairman Lamar Smith, R-TX, argued, “I am sympathetic to the young illegal immigrant children who were brought to the United States illegally by their parents, but the DREAM Act doesn't solve our illegal immigration problem, it exacerbates it. Amnesty will encourage millions more parents to bring their children to the U.S. illegally."

Allocation and timeline announced for fiscal year 2012 budget

This week, the U.S. House Appropriations Committee announced the fiscal year 2012 allocations for each of the 12 appropriations subcommittees and provided a tentative timeline for action on the bills. The 2012 allocation for the Labor, HHS, Education Subcommittee is being proposed at $139.2 billion, which is approximately $18 billion less than the fiscal year 2011 level at $157.4 billion. In comparison, President Obama is recommending an appropriation of $180 billion to Labor, HHS, Education for fiscal year 2012. This reduction in funding raises concern about funding the Pell Grant Program. Committee Chairman, Hal Rogers, R-KY, said he anticipates the committee mark-up and approval of all 12 appropriation bills before the August recess. The mark-up for Labor, HHS, Education is scheduled for July 26 for the Subcommittee and August 2 for the full Appropriations Committee. “I promised when I became Chairman that I would complete our Appropriations work on time and on budget, and I will do everything I can to fulfill that promise,” Rogers 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.

Saturday, May 14

10:00 AM
Senate in Session

1:00 PM
House in Session

Monday, May 16

8:00 AM
House Ways and Means
Room: 200 State Office Building
Chair: Rep. Mary Liz Holberg
Agenda:
HF211 (Wardlow) Liability limits modified for tort claims against the state and political subdivisions, conciliation court claims regulated, right of appeal provided on class action orders, statute of limitations on claims modified, prejudgment interest modified, attorney fees regulated, and cause of action for sex trafficking violations provided.
HF637 (Drazkowski) Food, beverage, and lodging establishment statutes exemption modified.
HF705 (Crawford) Counties permitted to perform private audits that meet state auditor requirements, publication and reporting requirements eliminated, surplus law library funds provided, county clerk hiring requirements repealed, seed and feed loan provisions repealed, Ramsey County Community Corrections Department duties provided, and clarifying and technical changes made.
HF1025 (Beard) Energy provisions modified relating to energy rates, energy conservation and savings programs, utility cost recovery and investments, qualifying facilities and non generating utilities, energy-related rate impacts, large energy customers, cold weather notices to energy consumers, hydropower, an innovative energy project, transmission lines, Public Utilities Commission approval for security issuance by utilities, assessments, establishment of Energy Reliability and Intervention Office, the Energy Conservation Information Center and residential weatherization programs, and membership in Melrose Public Utilities Commission.
HF1068 (Beard) Transportation and public safety policies governing provisions provided including data practices, bicycles and bikeways and bridges, transportation construction contracts, motor vehicles, traffic regulations, driver licensing and training, alternative financing for transportation projects, railroads, motor carriers and commercial drivers, and agency reporting, establishing fees and an account, pilot program expanded, seaplane base variance provided, provisions repealed, technical changes made, and money appropriated.
HF1423 (Gottwalt) Adoption assistance reform, child protection, child support, and technical and conforming amendments provided.
HF191 (Downey) Redundant Technology Elimination Act proposed, state agency information technology systems and services consolidated, Office of Enterprise Technology duties transferred, and money appropriated.
HF1261 (Holberg) Metropolitan area transit and paratransit capital expenditure additional financing provided, and certain obligations issued.
SF346 / HF554 the language of HF554 (Johnson) will be offered as a delete-everything amendment to SF346 .

6:00 PM
Conference Committee on S.F. 1047: Omnibus state government bill
Room: 200 State Office Building
Chairs: Sen. Mike Parry and Rep. Morrie Lanning
CONFEREES:
SENATE: Parry; Gazelka; Thompson; Daley; Vandeveer
HOUSE: Lanning; Downey; Benson; Stensrud; Anderson
Agenda: S.F. 1047-Parry: Omnibus state government, military affairs and veterans affairs appropriations; Minnesota Sunset Act.

Higher education conference committee mets; Trustee Englund confirmed; Senior citizens bill moves; State government bill stalled; Congress meets

2011-05-06T19:19:00.000-07:00

Legislative Update
May 6, 2011

Conferees hear testimony on the importance of higher education

The higher education conference committee met this week to hear testimony from those organizations affected by the House and Senate higher education bills. Testifying on behalf of the Minnesota State Colleges and Universities system was Chancellor Jim McCormick who asked conferees to provide the system with as much flexibility as possible so that there are tools available to preserve services to students as budgets are being reduced.

McCormick said the Board of Trustees, presidents, students, faculty and staff have been grappling with the fiscal challenges the state has been facing for several years. He asked conferees to do what they can to minimize budget cuts to the system. He said the colleges and universities enrollment is at a record setting pace, and the institutions want to continue being able to provide the education students seek. McCormick said, “The students and the institutions that comprise the Minnesota State Colleges and Universities are a national success story. We offer high quality, affordable education to the people of Minnesota, and we ask your help in protecting and preserving this public asset in the years ahead.”

Also offering a message of minimizing cuts to higher education was University of Minnesota President Bob Bruininks who said the University of Minnesota is one of the most productive universities in America, and cuts will erode the University's mission. Bruininks said the University expects to be part of the solution, but if the proposed cuts were enacted, it would take them back to 1998. He said state funding is essential to the quality of the University of Minnesota.

Ted Tollefson, Metropolitan State University faculty, informed conferees that he chose to teach at Metropolitan State because he supports the mission of the system; to provide an accessible and affordable education. Tollefson said higher education is an expense, but it is also an investment.

Kevin Lindstrom, Vice President for the Minnesota State College Faculty, told conferees that MSCF is concerned with how the cuts will impact access, quality, the communities they serve, and morale among the faculty. Lindstrom also said that the cuts will force bad decisions that will be the beginning of a downward spiral.

Don Larsson, President of the Inter Faculty Organization, and Russ Stanton, Director of Government Relations for the IFO, both testified that the IFO would like to see improvements in appropriation to the Minnesota State Colleges and Universities system. Stanton said the Board of Trustees tuition consultation process with the system should be allowed to work and the Legislature should not set tuition in law. Larsson said the IFO does not support salary caps for presidents or the chancellor. He said Minnesota needs quality people in those positions.

Andrew Spaeth, Chair of the Minnesota State University Student Association told conferees that the Minnesota State Colleges and Universities system is a valuable asset for the state of Minnesota. Spaeth also informed members that the best form of financial aid is low tuition, and that cutting the system to fully fund the state grant program sacrifices quality to the system.

Members listened to all the testimony and adjourned the meeting. Co-chair Bud Nornes, R-Fergus Falls, holds the gavel and will call the next conference committee meeting, likely next week.

With two weeks left, lawmakers and governor are not any closer to an agreement

Committees met this week to process policy bills before the final deadline today, and some of the conference committees made progress by adopting provisions that are the same or similar between the House and Senate versions. However, Gov. Dayton asked Republican legislative leaders to pick up the pace on the budget and said he would rather go to a special session than agree to the current legislative budget plan of $34 billion.

Republican leadership has said throughout session that the state will live within its means, and the budget will be at $34 billion, and the ten budget bills reflect that. When asked this week if they would move off that position to avoid a special session, Senate Majority Leader Amy Koch, R-Buffalo, said you need 34 votes in the Senate, 68 votes in the House and ultimately the governor’s signature, and indicated there is a way to work with the governor. Koch went on to say the Republican caucus is not going to raise taxes, but there are two-and-a-half weeks left to continue discussions.

Gov. Dayton continues to say he will negotiate with legislative leadership when they have a single position through passage of the conference committee reports. Rep. Morrie Lanning, R-Moorhead, co-chair of the state government conference committee, said this afternoon that he is disturbed that the governor does not want to engage during the conference committee process. “This means I have no idea how this is going to wrap up by May 23,” Lanning said. Koch said conference committees would meet six days next week and hopes some conference reports might be able to be brought to the floor for a vote. With only two weeks from Monday, Capitol watchers are not very hopeful there will be a May 23 adjournment, but two weeks in the legislative world is actually a very long time. Stay tuned.

Senate confirms Trustee Englund

Senate Higher Education committee members unanimously confirmed Minnesota State Colleges and Universities Board of Trustee member Jacob Englund earlier today. The committee’s confirmation will head next to the Senate floor, where it is to be taken up by the full Senate with the other five trustees confirmed earlier by the committee. Those trustees are: Duane Benson, Phil Krinkie, Alfredo Oliveira, Tom Renier and Michael Vekich.

Sen. Kathy Sheran, DFL-Mankato, asked Trustee Englund what he believes to be the most critical issues the system faces. “Students are our number one priority,” Englund said. He said the budget is the biggest issue trustees are currently dealing with, and he tries to think about students when making budget decisions, which includes keeping tuition as low as possible. Englund said he also thinks about students when determining how to maintain a quality education in this time of budget reductions. As a trustee, Englund said he sees his responsibility as meeting the needs of the workforce, providing an affordable education and getting students out the door with a great education.

Senior citizen tuition bill moves through process

On the House floor this week, HF 821, a bill introduced by Rep. Bud Nornes, R-Fergus Falls, that reduces the age from 66 to 62 for senior citizens to receive reduced tuition, passed by a vote of 126-4. The Senate also took action on the bill this week. The Senate Higher Education committee took up the bill today and amended it to include language that exempts the Minnesota State Colleges and Universities farm or small business management program that includes on-site individualized instruction, from the tuition benefit.

After a long discussion about the merits of offering free tuition to senior citizens, and at what age the benefit should be offered, if at all, Sen. Sandy Pappas, DFL-St. Paul, offered an amendment, that was eventually approved, that brings the age to 64 for senior citizen students to receive free tuition. The bill was sent to the floor.

The original senior citizen language (that does not include the two amendments adopted today) is also included in both the House and Senate versions of the higher education finance omnibus bill. As a reminder, this language would reverse the law passed last session that increased the age from 62 to 66.

Stalemate for the state government conference committee

The ten conferees for the state government finance bill met early in the week and adopted policy provisions that were the same or similar in the House and Senate versions of the bill. One of the provisions adopted includes the plan to create a “Sunset Advisory Commission.” This group would be tasked with recommending the abolishment or reorganization of state agencies based on certain criteria like duplicative services. Another provision includes requiring the Department of Administration to issue a request for proposals for a “strategic sourcing initiative” to save money on state procurement.

The House sponsor, Rep. Morrie Lanning, R-Moorhead, said adopting the provisions that are the same or similar between the two bills is the easy part. The bigger question, he said, is the fiscal provisions, which conferees attempted to tackle today. One of the provisions with substantive differences between the House and Senate bill is the salary freeze provision. The House bill exempts Minnesota State Colleges and Universities faculty and administrators from the freeze, but the Senate bill does not. As of the time of this writing, conferees have not debated that specific provision, or any others, because testimony from the affected agencies changed the course of the conference committee meeting.

Commissioners that represent the affected agencies in the state government bill testified to what a 15 percent reduction to their workforce would mean to their respective agencies. Governor Dayton’s Deputy Chief of Staff Michele Kelm-Helgen was asked about the governor’s position on the state government bill. Kelm-Helgen reiterated what Gov. Dayton said publicly this morning, that it is important the House and Senate establish one position in order to be compared to the governor’s position. She said once the positions are clear, then the governor will begin negotiating on the bill. Lanning questioned if the governor understands that his viewpoint will only delay finding a resolution on the budget. Co-Chair Sen. Mike Parry, R-Waseca, asked if the governor think his commissioners should be presenting worst case scenarios to the committee. Kelm-Helgen said that while she cannot speak for him, the governor feels it’s important that the commissioners articulate the potential impacts of the bill.

Chair Parry recessed the committee in order for Minnesota Management and Budget, or MMB, Commissioner Jim Schowalter to provide detail to the conferees regarding the direction provided to the respective commissioners on the bill. During the recess, Lanning and Parry held a press conference and said it’s clear that the agencies believe the bill does a lot of things it does not. Lanning said the commissioners are painting the worst case scenario, which is an exaggeration of the bill. He said the 15 percent reduction to certain agencies is not going to happen right away, but rather over four years, which is a misunderstanding. Lanning also said misinformation is being circulated that the 15 percent reduction is on top of other reductions in other bills, and clarified that every department is not going to receive a 15 percent reduction, but rather it is a goal across the state.

Congress returns to Washington and discusses the debt ceiling

After a brief recess last week for members of Congress to return to their home districts, Congress reconvened this week where the debate has centered on the fiscal year 2012 federal budget and the debt ceiling. House Speaker John Boehner, R-Ohio, said this week that trillions in real spending cuts should be made if the debt ceiling is raised. The $14.3 trillion legal limit on borrowing will be reached by Aug. 2, and Republicans are calling for immediate cuts and spending caps as concessions from the Obama Administration to raise the debt limit. Democrats have talked about a debt trigger that would require automatic tax increases or spending cuts later to ensure the debt is declining as a percentage of the economy. The debt ceiling has been raised almost 100 times since the early 1900’s.

Upcoming Education and Workforce Committee hearing

Minnesota Congressman John Kline, Chairman of the Education and Workforce Committee, announced a hearing for Wednesday, May 18, at 9:00 a.m. (CST) on “Removing Inefficiencies in the Nation’s Job Training Programs.” Webcasts of committee hearings are available at: http://edworkforce.house.gov/Webcast/

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, May 9

8:00 AM (will reconvene 30 minutes after session)
Senate Finance
Room: 123 Capitol
Chair: Sen. Claire A. Robling
Agenda:
S.F. 54-Jungbauer: Claims against the state appropriation.
S.F. 288-Howe: Dental laboratories regulations.
S.F. 1244-Dahms: Wetland conservation act provisions modifications; state environmental permit coordination and management requirements; environmental review procedures modifications; consumptive use of water permit authority.
S.F. 920-Gimse: Miscellaneous transportation and highway provisions modifications.
S.F. 918-Gerlach: Microdistilleries and various liquor licenses authorization.
S.F. 1363-Ingebrigtsen: Outdoor heritage fund, clean water fund, parks and trails fund, arts and cultural heritage fund appropriations and provisions modifications; outdoor heritage provisions modifications; Clean Water Legacy Act and clean water council provisions modifications.

8:30 AM
Conference Committee on S.F. 887: Omnibus jobs and economic development
Room: 107 Capitol
Chairs: Sen. Geoff Michel and Rep. Bob Gunther
CONFEREES:
SENATE: Michel; Pederson; Miller; Daley; Lillie
HOUSE: Gunther; Hoppe; McFarlane; Sanders; Kieffer
Agenda:
S.F. 887-Michel: Omnibus jobs and economic growth and development appropriations.

8:30 AM
Conference Committee on H.F. 42: Omnibus tax bill
Room: 15 Capitol
Chairs: Sen. Julianne E. Ortman and Rep. Greg Davids
CONFEREES:
SENATE: Ortman; Rosen; Senjem; Chamberlain; Limmer
HOUSE: Davids; Lenczewski; Runbeck; Anderson; Loon
Agenda: H.F. 42-Ortman: Omnibus tax bill.

9:00 AM
Conference Committee on S.F. 1030: K-12 education
Room: 5 State Office Building
Chairs: Sen. Gen Olson and Rep. Pat Garofalo
CONFEREES:
SENATE: Olson; Nelson; Thompson; Kruse; Wolf
HOUSE: Garofalo; Kelly; Doepke; Fabian; Erickson
Agenda: S.F. 1030-Olson, G.: Omnibus early childhood through grade 12 education policy provisions modifications and appropriations.

10:30 AM
Senate in Session

Tuesday, May 10

10:15 AM
House Capital Investment
Room: 10 State Office Building
Chair: Rep. Larry Howes
Agenda: HF959 (Howes) Flood hazard mitigation grant funding provided, bonds issued, and money appropriated.

Wednesday, May 11
3:00 PM (or 15 minutes after session)
Senate Capital Investment
Room: 123 Capitol
Chair: Sen. David H. Senjem
Agenda: To be announced

6:30 PM
Legislative Commission on Pensions and Retirement
Room: 10 State Office Building
Chair: Rep. Morrie Lanning
Agenda:
H.F. 409 (Poppe); S.F. xxxx: IRAP/TRA; MnSCU employee retirement coverage specified, and employer required to provide certain notices.
H.F. 1354 (Lesch); S.F. 1088 (Pappas): SPTRFA; Postretirement adjustment procedures revised, refund interest rate reduced, interest payments on reemployed annuitant savings accounts terminated, and deferred annuity augmentation rate lowered.
H.F. 1628 (Murphy, M.); S.F. xxxx: DTRFA; Definition for vesting added, and leave of absence, retirement, survivor, and disability benefits eligibility modified.
H.F. 1668 (Murphy, M.); S.F. xxxx: PERA; Duluth and Duluth Airport Authority optional correction of erroneous employee deductions and employer contributions.
H.F. 1528 (Morrow); S.F. 1277 (Sheran): MSRS; Increased annuity for survivors of DOT employee killed while engaged in emergency response to flooding.
Other Items as Designated by the Commission Chair.

Schedules posted

2011-04-20T07:46:00.000-07:00

As a reminder, legislators are on break. Here is a preview of what to expect when lawmakers come back to work next week.

Monday, April 25
Easter/Passover Legislative Break

Tuesday, April 26
8:15 AM
House Education Reform
Room: Basement State Office Building
Chair: Rep. Sondra Erickson
Agenda:
HF1487 (Myhra) Statewide literacy initiative formulated to ensure students succeed in achieving grade-level reading proficiency by the end of grade 3, and data provided to improve student outcomes.
HF1381 (Erickson) Prekindergarten through grade 12 education policy provided, including general education, education excellence, special programs, facilities and technology, early childhood education, and student transportation.

8:30 AM
Senate Finance
Room: 123 Capitol
Chair: Sen. Claire A. Robling
Agenda:
S.F. 509-Limmer: Voter photo identification requirement; picture identification issuance provisions; provisional balloting procedure establishment; challenged voter eligibility list establishment; electronic polling place roster standard for use establishment and use.

8:30 AM
Conference Committee on H.F. 42: Omnibus tax bill
Room: 15 Capitol
Chairs: Sen. Julianne E. Ortman and Rep. Greg Davids
CONFEREES:
SENATE: Ortman; Rosen; Senjem; Chamberlain; Limmer
HOUSE: Davids; Lenczewski; Runbeck; Anderson; Loon
Agenda: H.F. 42-Ortman: Omnibus tax bill.

9:00 AM
Conference Committee on S.F. 887: Omnibus jobs and economic development
Room: 107 Capitol
Chairs: Sen. Geoff Michel and Rep. Bob Gunther
CONFEREES:
SENATE: Michel; Pederson; Miller; Daley; Lillie
HOUSE: Gunther; Hoppe; McFarlane; Sanders; Kieffer
Agenda: S.F. 887-Michel: Omnibus jobs and economic growth and development appropriations.

10:30 AM
Senate Commerce and Consumer Protection
Room: 123 Capitol
Chair: Sen. Chris Gerlach
Agenda:
SF 26 (Rest): Homeowners insurance surcharge disclosure requirement
SF 918 (Gerlach) Omnibus Liquor Bill
SF 1208 (Sparks) Life insurance and title insurance reserves regulation

12:00 PM
House in Session

12:00 PM
Senate in Session

7:30 PM
House Taxes
Room: 200 State Office Building
Chair: Rep. Greg Davids
Agenda:
HF1231 (Paymar) Policy, technical, administrative, enforcement, and other changes made to individual income, corporate franchise, estate, sales and use, property, insurance, and other taxes and tax-related provisions, and conforming to Internal Revenue Code changes.
*NOTE: HF1231 is Governor Dayton's tax plan*

Legislature works to balance budget; Governor hosts higher ed round table; Conference committee met; President Obama signs budget bill

2011-04-20T07:09:00.000-07:00

Legislative Update
April 15, 2011

Four working weeks remain to resolve $5 billion budget deficit

This week the agriculture finance bill made its way through conference committee, and the final conference report was approved by both bodies before sending it to Gov. Dayton for consideration. Dayton signed the bill today saying it closely matches his recommendations and fits within his budget framework. The bill accounts for less than 1 percent of the state's total general fund budget. Included in the bill is $94,000 each year of the biennium for statewide mental health counseling support to farm families and business operators through farm business management programs at Central Lakes College and Ridgewater College.

Senate Majority Leader Amy Koch, R-Buffalo, said today that she is pleased the Legislature is three weeks ahead of last year’s schedule with the budget bills and called the signing of the agriculture bill a success. Legislative leaders characterized the current situation as one budget bill down (signed by the governor), nine more to go.

The signing of the agriculture bill was a moment of optimism in an otherwise tough week of disagreement and criticism between the Republican legislative leadership and Gov. Dayton. Dayton accused Republicans of pulling budget savings “out of thin air.” He said the budget plan that passed the House floor and is now in conference committee, is $1.2 billion out of balance, and the Senate approved plan is $1.1 billion off. Koch said Republicans are willing to work with Dayton to come up with numbers that they can both agree on. Republican legislative leaders continue to emphasize they do not support a tax increase as part of the solution to the deficit.

The House and Senate are scheduled to meet Monday for short floor sessions prior to recessing for a week-long Easter/Passover break. When asked today if leadership thinks they can come to an agreement with Gov. Dayton prior to the adjournment date of May 23, Senate Deputy Majority Leader Geoff Michel, R-Edina, said he sees a parallel to what is happing in Washington D.C., where Democrats in Washington have agreed with Republicans to cut spending and scale back some tax increases. Michel said the agreement in Washington “sets the tone for what we can do here.”

Koch said lawmakers will meet with constituents and hold town hall meetings over the break, but she said she also hopes they spend some much needed time with their families. Republican leaders did say they will continue meeting with Gov. Dayton’s office next week as they work to reach a compromise on the remaining nine budget bills before May 23.

Governor holds higher education round table

A panel of higher education leaders, faculty, students and staff met this week at Metropolitan State University in St. Paul for Gov. Dayton's round table discussion on higher education. Dayton heard about the impact the House and Senate proposed budget cuts would likely have on higher education, and participants discussed the future of higher education. Minnesota State Colleges and Universities Chancellor Jim McCormick said that studies show by 2018, 70 percent of jobs in Minnesota will require postsecondary education, and the current degrees and certificates will not be enough for the country to advance globally. He said more people need to obtain degrees.

Another round table participant, Minnesota State University Student Association Chair Andrew Spaeth, said he's concerned about the future of Minnesota if the legislative proposed budget cuts are enacted. Spaeth said that the Minnesota State Colleges and Universities system is one of the most efficient systems in the country already.

President of Metropolitan State University Sue Hammersmith said there is a direct relationship between the disinvestment on the part of the state and the increasing tuition burden on the students. President Terry Leas of Riverland Community College said decisions will have to be made, whether it's closing programs to balance the budget or cut off access. Leas said his college has nationally recognized programs, yet they will have to choose among them when deciding what to cut.

Metropolitan State University professor Monte Bute said higher education is a public good and told Gov. Dayton that if he stands up for the public good, there are many Minnesotans who will as well. Gov. Dayton said the round table discussion gave him a strengthening of his resolve to stand firm on minimal cuts and resist the deeper cuts being proposed in the House and Senate bills.

There are other round tables scheduled to discuss higher education, including Congresswoman Betty McCollum's round table Thursday, April 28 at 9:30 a.m. at Metropolitan State University with a focus on the potential consequences of the federal budget cuts to higher education. On Tuesday, April 19 at 1:00 p.m. at the University of Minnesota, Duluth, DFL state legislators from around the 8th Congressional District, along with the Director of the Minnesota Office of Higher Education, Sheila Wright, will hold a town hall meeting to discuss ways to improve higher education in Minnesota.

Higher education conference committee holds brief meeting

Conference committees began meeting this week and started walking through the side-by-sides of the House and Senate bills. Senate Majority Leader Amy Koch, R-Buffalo, said that conferees are getting a good start and have invited commissioners in Gov. Dayton’s administration to be part of the discussions.

The higher education finance conference committee met briefly Thursday afternoon, and House Researcher Kathy Novak walked through the side-by-side of the House and Senate bills, and Fiscal Analyst Doug Berg walked through the funding in both bills. There was no discussion, and no votes were taken.

You may find the side-by-side of the Senate and House bills here.

The spreadsheet for the bills can be found here.

Conference Committee Co-Chairs Rep. Bud Nornes, R-Fergus Falls and Sen. Michelle Fischbach, R-Paynesville, said there is a possibility the conference committee will meet Monday, April 18 before the legislative recess. If not, they will meet after the break to take testimony on the two bills.

President Obama signs 2011 budget bill with $38 billion in reductions

At the time we sent out the weekly update last Friday, it looked like Congress was headed toward a federal government shutdown; however, President Obama and congressional leaders were able to reach a deal. This week, the House passed that budget deal by a vote of 260-167, and the Senate passed the bill 81-19. The legislation funds the federal government until September 30, 2011 at a reduced spending amount compared to fiscal year 2010 by $38 billion. Republicans who voted against the bill said it doesn’t cut enough, while the Democrats who voted no, said the bill makes too many painful reductions. President Obama signed the legislation this afternoon.

Under the measure, the maximum Pell Grant award of $5,500 was preserved, however the year-round Pell Grant was eliminated in order to pay for maintaining the maximum grant level. Other areas of reductions include the Supplemental Educational Opportunity Grants and the GEAR UP program each reduced by $20 million; a $25 million reduction to TRIO; and the elimination of funding for the Career Pathways Innovation Fund. The Perkins Career and Technical Education program was also reduced by $138 million. With the fiscal year 2011 budget signed, Congress and President Obama now turn to the 2012 budget and the federal debt limit.

The Senate Committee on Appropriations has released a summary of the fiscal year 2011 continuing resolution here.

The House Appropriations Committee has also released a summary, you can find it here.

Movement in Congress on fiscal year 2012 budget

The U.S. House voted today to approve a 2012 budget resolution put forth by Republican leadership. The plan cuts $6.2 trillion over the next 10 years from the budget submitted by President Obama. Obama has acknowledged that spending cuts will have to be made, but has offered a much different vision. Obama’s plan calls for cutting the deficit $4 trillion over the next 12 years without significantly changing any of the entitlement programs, such as Social Security, Medicare and Medicaid. Obama’s plan also would repeal the Bush-era tax cuts on families making more than $250,000 annually.

The budget resolution now heads to the Senate where it is not expected to have any momentum. The Senate Budget Committee has not yet released their 2012 budget plan. The House Budget Committee released the report for the fiscal year 2012 budget plan which includes a proposed funding level of $7 billion below the current funding level for the Pell Grant, which if enacted could lead to a significantly reduced Pell Grant maximum award.

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, April 18

10:15 AM (Note: committee will recess by 12:00 and reconvene in the Basement Hearing Room at 1:00 p.m. or after session)
House Government Operations and Elections
Room: 200 State Office Building
Chair: Rep. Joyce Peppin
Agenda:
HF905 (Hamilton) Youth athletes with concussions resulting from participation in youth athletic activities policies established.
HF1440 (Beard) Hydroelectric facility municipal approval exception provided.
HF1470 (Stensrud) State government resource recovery program changes made.
HF1144 (Cornish) Former employees in the state employee group insurance program specified notice required for termination of rights.
HF1408 (Sanders) Vacancies in nomination procedures and requirements changed.
HFXXXX (Banaian) A bill for an act 1.1 relating to state government; assigning new duties to the Legislative Commission 1.2 on Planning and Fiscal Policy
HF1455 (Urdahl) State Capitol Preservation Commission established, and money appropriated.
HFXXXX (Peppin) A bill for an act relating to campaign finance; changing certain procedures and requirements of the Campaign Finance and Public Disclosure Board.

12:00 PM
Senate in Session

12:30 PM
House in Session

1:00 PM
Senate State Government Innovation and Veterans
Room: 123 Capitol
Chair: Sen. Mike Parry
Agenda:
S.F. 247-Dahms: Public employees insurance program local government employees participation or withdrawal approval requirements.
S.F. 1100-Brown: Interest arbitration factor consideration for public sector labor relations.
S.F. 1146-Wolf: Public employees dues check off written request requirement for certain contributions.

1:00 PM
Senate State Government Innovation and Veterans
Room: 123 Capitol
Chair: Sen. Mike Parry
Agenda:
S.F. 247-Dahms: Public employees insurance program local government employees participation or withdrawal approval requirements.
S.F. 1146-Wolf: Public employees dues check off written request requirement for certain contributions.

Tuesday, April 19 - Monday, April 25

Easter/Passover Break

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

2011-03-25T16:20:00.000-07:00

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

Budget bill out; Mandate reductions in bill; MSCSA goes to Washington; Congress passes CR

2011-03-18T15:20:00.000-07:00

Legislative Update
March 18, 2011

House higher education committee releases budget bill with cuts to the system

Early this week, the House Ways and Means committee adopted the budget targets, including a 15 percent cut for higher education. Committee Chair Mary Liz Holberg, R-Lakeville, said, "We feel that these numbers are living within our means, and that we'll be able to meet the necessary needs of the state in the numbers reflected in this target." Rep. Tom Rukavina, DFL-Virginia, offered an amendment that reflects Gov. Dayton's proposal of a 6 percent reduction to higher education. The amendment did not pass. With the approval of the targets, the finance committees got to work right away crafting their spending bills.

The House Higher Education Policy and Finance committee released their bill Thursday, which includes significant reductions to the Minnesota State Colleges and Universities system. Lawmakers looked at both the 2012-2013 forecasted base as well as the 2010-2011 base, which drives different percentages. If reduced from the 2012-13 forecasted base (which is what the governor's proposal does), it's a cut to the system of 16 percent. If reduced from the 2010-2011 base, it's a cut of 13.3 percent to the system. Either way you look at it, the reduction brings the system's annual base down to $528.7 million.

The bill caps tuition and mandatory fees for a Minnesota resident undergraduate student at 4 percent per year for the state universities and 2 percent per year for the state colleges. A provision is also included that encourages the Board of Trustees to offer entering students a plan providing stable tuition for students pursuing two-year or four-year degrees.

The bill provides language that holds back 1 percent of the fiscal year 2013 appropriation to the system until after the Board of Trustees demonstrates the system has achieved at least three of five goals: increase the number of graduates or degrees, diplomas and certificates conferred; increase the enrollment of students of color; increase the number of students taking online or blended courses or the number of online or blended sections; increase persistence and completion rates; and decrease energy consumption. The Board is also required to place the highest priority on meeting the needs of Minnesota employers for a skilled workforce. They are to focus on efficient delivery of higher education, eliminate duplication throughout the system and provide an education that prepares students for the workforce needs of Minnesota.

Other provisions in the bill include reducing 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); and language regarding transfer that reads by Feb. 15, 2012, the Board of Trustees must adopt a policy requiring every college and university in the system to grant credit for a course taken for credit at any of the colleges or universities in the system. The transfer provision also addresses the transferability of credits from 2+2 programs, including the Anoka STEP program.

In relation to the state grant program, the bill makes whole the 2012-13 state grant projected deficit of $34 million, and 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 bill also sets the living and miscellaneous expense allowance, or LME, at $7,000 each year.

The bill can be found here.

The spreadsheet can be found here.

The committee is expected to mark-up the bill Tuesday at 12:30 p.m. If they do not finish by the end of the scheduled time at 2:15, they will reconvene at 5:30 p.m. to pass the bill. The Senate is expected to release their higher education finance bill early next week. Senate Majority Leader Amy Koch, R-Buffalo, said it will be a busy couple of weeks as bills move to the Finance and Ways and Means committees and then to the floor. Koch indicated the finance bills would make their way to conference committee and to the governor’s desk prior to the start of the spring recess April 18.

House Speaker Kurt Zellers, R-Maple Grove, said, “The budget is the main thing.” He continued to say that the Republican leadership thinks they have a good balance with opportunity for anyone who wants to be part of the process. Zellers said the intent of the aggressive timeline is to move the process quickly instead of waiting until the last week of session.

Elimination of higher education mandates included in omnibus bill

Committees heard multiple bills this week as they worked to put together their respective omnibus finance bills. The House Higher Education Policy and Finance committee heard HF 849, a bill introduced by Committee Chair Bud Nornes, R-Fergus Falls. The bill proposes eliminating four higher education mandates in statute. Nornes said as committee chair he has been looking for relief from mandates this session and chose to eliminate four that include; the prohibition of higher education institutions entering into agreements with credit card companies to market to undergraduate students; the mandate that requires notice to be provided to students regarding possible impact of obtaining a job in certain fields for students with a criminal record; the requirement that to the extent possible bookstores sell clothing made in America; and the requirement that public employers purchase or require employees to furnish uniform or protective accessories that are made in America.

Committee members amended the bill to remove the repealer of the mandate that requires notice to be provided to students regarding possible impact of obtaining a job in certain fields for students with a criminal record, and then laid the bill over for possible inclusion in the omnibus bill. With the release of the higher education omnibus bill yesterday, the committee included two of the four repealers; the requirement for public institutions to sell American-made clothing and apparel in their bookstores to the extent possible, and the requirement that public employers purchase or require employees to furnish uniform or protective accessories that are made in America.

Two-year students travel to Washington D.C.

Students with the Minnesota State College Student Association, or MSCSA, spent the early part of the week in Washington D.C. sharing federal priorities with lawmakers and interest groups and talking about the important role higher education plays in our country's future. Students advocated on behalf of full funding of the Pell Grant and Supplemental Educational Opportunity Grant, as well as reforms that would protect access to state loans, such as Minnesota's SELF Loan. Students met with the entire Minnesota Congressional Delegation.

Congress votes to provide three more weeks of federal government operations

The U.S. House, Senate and the Obama administration will continue current fiscal year budget negotiations with the passage of the sixth continuing resolution, or CR. On Tuesday, the House approved the measure by a vote of 271-158 that will prevent a government shutdown through midnight April 8. There were 54 Republican members that voted against the bill that makes $6 billion in cuts from fiscal year 2010 funding levels, citing frustration with what they have said is too little of a reduction. House Republican leaders acknowledged that a longer-term bill that sees the federal government through the end of the fiscal year Sept. 30 is preferable, but blamed the Democratic Senate and President Obama for failing to put forth an alternative spending bill that can pass. The Senate passed the continuing resolution by a vote of 87-13 on Thursday. The $6 billion reduction includes $2.1 billion in rescissions of funds that have not been used; $2.5 billion in earmark terminations; and $1.1 billion to financial services/general government programs.

Congressional members have returned home to their districts for a week-long recess, but congressional leaders continue negotiations in Washington in the hopes of finding a compromise on the current fiscal year budget. President Obama has reaffirmed his commitment to ensuring the maximum Pell Grant award remains at $5,550.

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, March 21

9:00 AM
House Education Finance
Room: 5 State Office Building
Chair: Rep. Pat Garofalo
Agenda: HF 934 (Garofalo) Education finance statute obsolete reference removed.
Omnibus education finance bill walk through

9:30 AM
Rules and Legislative Administration
Room: 5 State Office Building
Chair: Rep. Matt Dean
Agenda: Proposed House budget

11:00 AM
Senate in Session

1:00 PM
Senate State Government Innovation and Veterans
Room: 123 Capitol
Chair: Sen. Mike Parry
Agenda:
S.F. 692-Hall: Natural resources department (DNR) peatland area management; recreational trail and snowmobile watercross requirements and mineral coordinating committee membership modifications; Blakeley state wayside repeal.
S.F. 759-Kruse: Coon Rapids dam commission creation; Three Rivers park district grant appropriation.
S.F. 907-Nelson: State building efficiency, fleet management improvements, and Medicaid and tax fraud prevention and detection consulting services contracts for improvements to state-operated systems and services requirements.
S.F. 908-Carlson, J.: Strategic sourcing request for proposals.
S.F. 813-Hoffman: State and public employees retirement plans member and employer contribution rates modifications.
S.F. 812-Gazelka: Salary reduction for state employees and elected officials.

3:00 PM
Senate Higher Education
Room: 107 Capitol
Chair: Sen. Michelle L. Fischbach
Agenda:
S.F. 591-Nelson: University of Minnesota and Mayo foundation research partnership appropriation.
S.F. 799-Miller: Student records and data usage liability clarification.
S.F. 897-Sheran: Higher education provisions modifications and appropriations.
S.F. 695-Fischbach: Human cloning prohibition.

3:00 PM
Senate Education
Room 15 Capitol
Chair: Sen. Gen Olson
Agenda: S.F. XXXX-Olson, G.: Education Finance Omnibus.

3:00 PM
House in Session

Tuesday, March 22

10:30 AM
Senate Jobs and Economic Growth
Room: 107 Capitol
Chair: Sen. Geoff Michel
Agenda:
S.F. XXXX: Senate Jobs and Economic Growth Committee Omnibus Budget Bill.

12:30 PM
House Higher Education Policy and Finance
Room: Basement State Office Building
Chair: Rep. Bud Nornes
Agenda:
HF1101 (Nornes) Postsecondary education provisions modified, and money appropriated.
HF821 (Nornes) Senior citizen higher education program eligibility changed.
HF849 (Nornes) College and university mandates eliminated.
*HF1101 will become the Omnibus Higher Education Bill. If necessary, Tuesday’s meeting will recess at 2:15 PM and reconvene at 5:30 PM in Room 200 until all amendments and testimony on the omnibus bill have been heard.

12:30 PM
House Jobs and Economic Development Finance
Room: 10 State Office Building
Chair: Rep. Bob Gunther
Agenda: HF1049 (Gunther) Jobs, economic development, and housing funding provided, and money appropriated.

12:30 PM
House Education Finance
Room: 5 State Office Building
Chair: Rep. Pat Garofalo
Agenda: K-12 omnibus bill

2:30 PM
House Capital Investment
Room: 10 State Office Building
Chair: Rep. Larry Howes
Agenda: House file to be introduced Monday, March 21st

Wednesday, March 23

10:30 AM
Senate Jobs and Economic Growth
Room: 107 Capitol
Chair: Sen. Geoff Michel
Agenda:
S.F. XXXX: Senate Jobs and Economic Growth Committee Omnibus Budget Bill.

2:00 PM
House Ways and Means
Room: 200 State Office Building
Chair: Rep. Mary Liz Holberg
Agenda: TBA

2:30 PM
House Capital Investment
Room: 10 State Office Building
Chair: Rep. Larry Howes
Agenda:
HF960 (Howes) Flood hazard mitigation grant funding provided, bonds issued, and money appropriated.
John Finney, Chair, Red River Watershed Management Board (RRWMB)
Ron Harnack, Project Coordinator, RRWMB
Dan Money, Administrator, Two Rivers Watershed District
Rob Sando, Administrator, Roseau River Watershed District
Nick Drees, Administrator, Middle-Snake-Tamarac Watershed District
Kevin Ruud, Administrator, Wild Rice Watershed District
Jon Roeschlein, Administrator, Bois de Sioux Watershed District
Curt Johanneson, Mayor, Hendrum
Jeff Paloski, Mayor, City of Roseau
City of Crookston
Bruce Albright, Buffalo-Red WD, Oakport Township & Georgetown
Kerry Netzke, AREA II
City of Austin - Turtle Creek Watershed District
City of Newport
Bob Zimmerman, Moorhead
Kent Lokkesmoe, Cap Inv Manager, DNR

6:00 PM
Senate Capital Investment
Room: 123 Capitol
Chair: Sen. David H. Senjem
Agenda:
S.F. 204-Langseth: Flood hazard mitigation grants bond issue and appropriation.

Thursday, March 24

11:00 AM
Senate in Session

4:30 PM
House Ways and Means
Room: 200 State Office Building
Chair: Rep. Mary Liz Holberg
Agenda: TBA

Budget targets out; Tuition freeze bill heard; Redesign state government; Congress crafts budget

2011-03-11T15:05:00.000-08:00

Legislative Update
March 11, 2011

Legislative leaders propose reductions of 16 percent to higher education

Republican leadership announced the budget targets this week. Senate Majority Leader Amy Koch, R-Buffalo, said government needs to live within their means. She said leadership implemented aggressive budget deadlines, and now the targets are turned over to committee chairs who will work to meet the March 25 deadline.

Sen. Geoff Michel, R-Edina, said, "We're building a budget on what is currently in Minnesota's checking account." Michel said this is a framework that doesn't include any details. "That's what the committee process is for," he said.

For higher education, the budget target is about a 16 percent reduction, which brings the proposed spending level for all of higher education to $2.505 billion. Gov. Dayton's budget proposal for higher education puts the fiscal year 2012-13 spending at $2.745 billion, a difference of $240 million.

We now turn our attention to the higher education committees in the Senate and House to see how they recommend spreading the cut. Republican leaders said today that the finance committees will be working overtime to put together the budget bills. The Senate Higher Education committee has said they expect to pass a budget bill March 23, and the House Higher Education committee has indicated discussion of a budget bill in committee on March 22. Senate Finance Chair Claire Robling, R-Jordan, said, "This earlier deadline will allow us to get done on time, and I think you are going to see that."

In addition to the state government cuts, the House’s budget plan includes cuts of $300 million in income taxes for low and middle class Minnesotans, and the Senate plan includes $200 million in tax cuts for businesses.

Gov. Mark Dayton’s spokesperson Katharine Tinucci said the governor believes a budget is a reflection of values and priorities, and these cuts will hurt school children, taxpayers, businesses and seniors. House Ways and Means Committee Chairwoman Mary Liz Holberg, R-Lakeville, described the dilemma facing lawmakers and the governor, "We have very diverse beliefs about what is best for the state. I’m not sure how we are going to resolve it."

Tuition freeze bill receives second hearing

The bill that freezes tuition for the 2012-2013 biennium at the Minnesota State Colleges and Universities and the University of Minnesota, was heard in the House Higher Education Policy and Finance committee this week. The bill was heard previously in the Senate Higher Education committee. HF 856, introduced by Rep. Chris Swedzinski, R-Ghent, also holds tuition increases to the annual percentage increase in the Consumer Price Index, or CPI, for every year thereafter. Swedzinski said the bill provides long-term tuition guidance for students and their families.

Travis Johnson, President of the Minnesota State College Student Association, or MSCSA, said his organization does not support a tuition freeze, but rather a tuition cap, and said he would like to see a predictability measure in place going forward. Johnson said tuition increases should be limited to ensure a college education remains affordable.

Russ Stanton, Director of Government Relations with the Inter Faculty Organization, or IFO, testified against the bill and said the IFO advocates for low tuition. Stanton said the Minnesota State Colleges and Universities system is a highly efficient system and tuition rates are among the lowest in the state. He said the IFO does not like the idea of setting tuition rates in the public arena, but rather should be left up to the Board of Trustees.

Dawn Reimer, Chief Finance and Facilities Officer at North Hennepin Community explained to committee members that a tuition freeze will have a significant impact on the college's students and employees. Reimer said students come to the colleges and universities in the Minnesota State Colleges and Universities system because of the system's high quality instructors, innovative programs, and state-of-the-art facilities, labs and technology. With a tuition freeze and cuts to state appropriations, Reimer said growth in innovations and new programs at the college will be limited, physical improvements will be stalled, and quality education will be compromised.

Remier told committee members that the Board of Trustees currently makes final tuition decisions based on data provided by the colleges and universities, and the Board requires each institution to consult with its students concerning its tuition and fee proposals. Remier said at North Hennepin Community College, Budget Task Force meetings are held with employees and students to work on the budget; and ensures budget cuts, operating efficiencies and other revenues are incorporated into the budget before tuition rates are determined.

As the committee begins to craft its omnibus bill, this bill was laid over for consideration.

Legislation to redesign state government receive hearings

Multiple bills, with the intent to redesign state government, have been making their way through committee. As lawmakers work to reduce the $5 billion budget deficit, many agree there is a need for change in the area of state government, but what that change will look like is still being debated.

The recently released budget target for state government in the House is a 34 percent reduction, and the Senate proposes reducing state government 53 percent. The impact of this is unclear as the committees work to put together a spending bill. Some of the proposals include; cutting the state workforce, salary freezes, consolidating backroom office functions, establishing a performance pay system, public and private sector salary comparisons, a zero-based budgeting process, early retirement programs, and reducing the number of state agencies.

At a press conference earlier this week, Rep. Paul Marquart, DFL-Dilworth, said the state is going to have to look at doing things differently, because legislators can no longer tax or cut their way out of this problem. Many of the redesign bills making their way through the process and heard this week have been sponsored by Rep. Keith Downey, R-Edina, who said legislators and state workers need to embrace the need for a leaner, more efficient state government.

Some legislators however, are challenging some of the more controversial plans. During the House State Government Finance committee hearing this week, Rep. Kerry Gauthier, DFL-Duluth, said he has been hearing Minnesota has the leanest workforce, yet bills are being introduced that include pay cuts, and outsourcing. Downey said, "This is about empowering people and valuing people; not the structures, not the organization, not the processes that we’ve locked them into."

All eyes are on Washington as March 18 draws near

With Congress passing a continuing resolution last week to fund the federal government at fiscal 2010 levels until March 18, the U.S. House and Senate work to pass a bill before next Friday. Senate Appropriations Chairman Daniel Inouye, D-Hawaii, introduced a continuing resolution that maintains funding for many higher education programs at fiscal year 2010 levels. You may recall the House passed legislation that cuts $61 billion in spending, including higher education.

Today, House Republicans released a three-week continuing resolution to keep government operating that cuts $6 billion in spending. In order to avoid a government shutdown, a short-term funding bill is almost unavoidable, especially with negotiations between the House Republicans, Senate Democrats and the White House at a stalemate. House Appropriations Committee Chairman Hal Rogers, R-Kentucky, said, "This is simply an extension to give negotiators more time." The House bill is expected to be voted on Tuesday.

Public policy agenda for the American Association of State Colleges and Universities

The American Association of State Colleges and Universities, or AASCU, has released their legislative priorities and positions on higher education issues at the federal and state levels. AASCU has said their advocacy efforts in 2011 will focus on the policy principle of "Delivering America’s Promise" in four policy areas including; affordability, access and attainment, accountability, and competitiveness. To learn more about the four areas of AASCU’s public policy agenda, please go 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 14

10:15 AM
House Ways and Means
Room: 200 State Office Building
Chair: Rep. Mary Liz Holberg
Agenda: Adopt budget targets

11:00 AM
Senate in Session

12:30 PM
House Education Finance
Room: 5 State Office Building
Chair: Rep. Pat Garofalo
Agenda: HF783 (Garofalo) Number of public school pupils covered by the permanent fund endowment apportionment expanded.
HF879 (Erickson) Annual evaluations for principals established, and a group of experts and stakeholders convened to recommend a performance-based system model for these evaluations.
HF360 (Peterson) School district requirement clarified that a school district is not required to provide educational services to students without disabilities from other states.

1:00 PM
Senate Local Government and Elections
Room: 112 Capitol
Chair: Sen. Ray Vandeveer
Agenda:
S.F. 509-Limmer: Voter photo identification requirement; picture identification issuance provisions; provisional balloting procedure establishment; electronic polling place roster use requirement; recount procedure enacting; appropriating money.
S.F. 479-Howe: Voter photo identification and issuance requirement; picture identification and issuance at no charge; provisional balloting procedure establishment.

1:00 PM
Senate State Government Innovation and Veterans
Room: 123 Capitol
Chair: Sen. Mike Parry
Agenda:
S.F. 208-Hann: Teacher employment contracts negotiating process establishment.
S.F. 650-Gazelka: Compulsive gambling appropriation.
S.F. 739-Lillie: Deputy commissioner and assistant commissioner positions reduction.
S.F. 146-Chamberlain: Priority-based budgeting process creation and state agencies sunset process establishment.

3:00 PM
Senate Higher Education
Room: 107 Capitol
Chair: Sen. Michelle L. Fischbach
Agenda:
S.F. 698-Magnus: University of Minnesota (U of M) agriculture experiment station and extension service appropriation
Presentation on the Agricultural Special by the University of Minnesota
S.F. 342-Bakk: Cook county higher education board educational programs and academic support services appropriation.

3:00 PM
Senate Education
Room 15 Capitol
Chair: Sen. Gen Olson
Agenda:
S.F. 390-Nelson: Americorps Innovation Act.
S.F. 636-Olson, G.: Teacher licensure, evaluations, and tenure provisions modifications.

3:00 PM
House in Session

5:30 PM
House Education Reform
Room: 10 State Office Building
Chair: Rep. Sondra Erickson
Agenda:
HF945 (Petersen) Teacher licensure, evaluations, and tenure modified.
HF947 (Erickson) Alternative teacher pay system modified.

Tuesday, March 15

8:15 AM
House Education Reform
Room: Basement State Office Building
Chair: Rep. Sondra Erickson
Agenda:
HF638 (Myhra) School grading system created, school recognition program created, school report cards modified, rulemaking authorized, and report required.
HF558 (Downey) Graduation-Required Assessment for Diploma mathematics exception removed.
HF329 (Bills) Public school employees prohibited from using public funds and resources to advocate to pass, elect, or defeat a political candidate, ballot question, or pending legislation.

10:30 AM
Senate Jobs and Economic Growth
Room: 107 Capitol
Chair: Sen. Geoff Michel
Agenda:
S.F. 428-Sieben: Boiler inspector provisions modifications.
S.F. 437-Dahms: Minnesota inventors congress grants appropriation.
S.F. 501-Nelson: BioBusiness Alliance appropriation.
S.F. 708-Pederson: Twin Cities RISE! job training programs appropriation; job training and retention grant requirements modifications.
S.F. 486-Tomassoni: Conservation Corps Minnesota statewide youth job skills development and training program grant appropriation.
S.F. 300-Bonoff: Minnesota science and technology program.

12:30 PM
House Higher Education Policy and Finance
Room: Basement State Office Building
Chair: Rep. Bud Nornes
Agenda:
HF900 (Abeler) Board of Trustees of MnSCU required to implement a policy on credit transfers relating to the Anoka STEP program, and report to the legislature required.
HF243 (Anderson) Optional student fees increase vote required.
HF862 (Benson) University of Minnesota and Mayo Foundation Partnership money appropriated.
HF849 (Nornes) College and university mandates eliminated

12:30 PM
House Jobs and Economic Development Finance
Room: 10 State Office Building
Chair: Rep. Bob Gunther
Agenda:
HF645 (Mullery) Minority population grant program provided for collaborative activities to reduce unemployment, and money appropriated.
HF995 (McFarlane) Womenventure funding provided for business development programs, and money appropriated.
HF983 (Gunther) Enterprise Minnesota, Inc. funding provided, and money appropriated.
HF893 (Gunther) Vinland Center for rehabilitation services funding provided, and money appropriated.
HF693 (McFarlane) Minority business development programs money appropriated.

2:30 PM
House Capital Investment
Room: 10 State Office Building
Chair: Rep. Larry Howes
Agenda: HFXXXX (Howes) A bill for an act relating to capital investment; canceling appropriations and reducing the corresponding bond sale authorizations.

Wednesday, March 16

8:00 AM
House State Government Finance
Room: 200 State Office Building
Chair: Rep. Morrie Lanning
Agenda: HF2 (Banaian) Zero-based budgeting required, and sunset advisory commission and sunset process established for state agencies.
Minnesota House of Representatives budget overview
General Fund Budget overviews by:
Teachers Retirement Association (TRA)
Minnesota State Retirement System (MSRS)
Public Employee Retirement Association (PERA)
Governor’s Office budget overview

1:00 PM
Senate Local Government and Elections
Room: 112 Capitol
Chair: Sen. Ray Vandeveer
Agenda:
S.F. 509-Limmer: Voter photo identification requirement; picture identification issuance provisions; provisional balloting procedure establishment; electronic polling place roster use requirement; recount procedure enacting; appropriating money.
S.F. 479-Howe: Voter photo identification and issuance requirement; picture identification and issuance at no charge; provisional balloting procedure establishment.

Thursday, March 17

10:15 AM
House Government Operations and Elections Committee
Room: 5 State Office Building
Chair: Rep. Joyce Peppin
Agenda:
HF1041 (Mack) State employee suggestion system for making state government less costly or more efficient established.
HF962 (Howes) Municipal tobacco license suspensions for sales to minors limited upon compliance with requirements.
HF681 (Downey) Minnesota pay for performance pilot program established, funding provided, bonds issued, and money appropriated.

State budget update; Trustees confirmed; Students, faculty testify; Alternative pathways passed; Transfer debated; Congress doesn't pass funding

2011-03-04T14:51:00.000-08:00

Legislative Update
March 4, 2011

February forecast shows $1.2 billion improvement

Earlier this week, the February forecast was released predicting more than a billion dollar improvement from a $6.2 billion budget deficit to a $5.028 billion deficit for the 2012-2013 biennium. Minnesota Management and Budget Commissioner Jim Schowalter said, “Federal action created some additional stimulus, and that’s what you see here.” Most of the additional revenue in the forecast comes from a temporary stimulus package of tax cuts passed by Congress in December. However State Economist Tom Stinson said that the unrest in the Middle East threatens to raise the price of oil and gasoline, which he said could diminish or even erase whatever stimulus the December tax package provided. The forecast documents can be found on the Minnesota Management and Budget Web site.

Following the announcement, Gov. Mark Dayton said he would eliminate from his budget proposal a temporary surtax on the state’s highest income earners. That surtax increase would have generated $918 million over the biennium. He said he would also reinstate $200 million in proposed cuts he made to human services, transit and economic development programs.

At $5 billion, 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 only, and Dayton is proposing raising revenue through an income tax on the wealthy to resolve the majority of the deficit. Republicans have said any proposal with a tax increase included is “dead on arrival.”

Legislative leaders said today they are working on committee budget targets to be released next week. Finance committees will continue to work on spending bills prior to the March 25 deadline. When asked by the media today what the time frame will look like once the spending bills are sent to the House Ways and Means Committee and the Senate Finance Committee, House Speaker Kurt Zellers, R-Maple Grove, said the chairs of the Ways and Means and Finance committees are working closely with the finance division chairs and they will let the process run its course. Zellers did indicate we can expect the bills to not be tied up in Ways and Means and Finance for weeks after the March 25 deadline. He said they tried to give themselves more time to solve the budget deficit this year, and then on the back end, allow for policy issues to be discussed.

Board of Trustees members confirmed by Senate committee

On Monday five of the Minnesota State Colleges and Universities Board of Trustee members were confirmed by the Senate Higher Education committee. The full Senate still has to vote on the confirmation. The trustees include: Duane Benson, Phil Krinkie, Alfredo Oliveira, Tom Renier and Michael Vekich. Committee members asked questions of the trustees, including Sen. Sandy Pappas, DFL-St. Paul, who asked each trustee how they would feel about taking an oath to support the Minnesota State Colleges and Universities system. All five trustees said they would be happy to take an oath. Trustee Tom Renier said, “We feel we’re all here to make a good system even better.”

Students and faculty carry higher education message to the Senate

Senate Higher Education committee members heard from students and faculty with the Minnesota State Colleges and Universities system and the University of Minnesota this week about the role higher education plays in their lives and in Minnesota, as well as the impact of cuts to the two systems. Some of the testimony included that of Geoff Dittberner, Vice President of the Minnesota State College Student Association. Dittberner said that without a strong Minnesota State Colleges and Universities system, it would be impossible to meet the state's workforce needs, and he urged committee members to keep in mind the system's principles, which are access, opportunity and success; high quality learning; enhancing the global economic competitiveness; and innovating to meet educational needs.

Caitlin Stene, Vice Chair of the Minnesota State University Student Association, or MSUSA, told committee members that state university system students are interested in how they can push the system to be the most innovative in the nation. Stene also said the state cannot afford to restrict access to higher education. Chair of MSUSA, Andrew Spaeth, told members that the organization's 75,000 students would urge lawmakers to keep in the forefront of their minds that these students are the workforce of tomorrow.

Lawmakers pass legislation allowing alternative pathways to becoming a teacher

After a small conference committee met this week to work through the differences in the House and Senate versions of the alternative teacher licensure legislation, the House and Senate passed the report Thursday by a vote in the Senate of 46-19, followed by a House vote of 81-50. Under the measure, some of the requirements for teachers in alternative licensure programs include a 3.0 or higher grade point average; pass basic reading, writing and math skills exams; and obtain qualifying scores on subject area content exams and performance assessments. The bill grants the Board of Teaching authority to rescind an alternative teacher preparation program that fails to meet the requirements laid out in the bill. Lawmakers in opposition to the legislation said the bill is too open and does not stipulate enough quality assurance. Rep. Mindy Greiling, DFL-Roseville, said she worries some alternative licensure programs will not hold high enough standards. Teacher union officials have said there are not enough supervision and oversight standards included in the bill. Some of the provisions Education Commissioner Brenda Cassellius wanted to see in the bill did not make it in the final compromise, including assurances that the new teachers would be connected to higher education institutions.

Rep. Carlos Mariani, DFL-St. Paul, was given the opportunity to offer some closing remarks on the House floor due to his extensive involvement in the legislation in prior years. Mariani said while the bill, which reflects a compromise between Gov. Dayton and the authors, is not perfect, it will help address problems in some high-need areas. He compared the issue of alternative teacher licensure to open enrollment and post secondary enrollment options, or PSEO, under Gov. Rudy Perpich. He said both PSEO and open enrollment had massive opposition and many claimed it would ruin K-12 education. Mariani said those programs now enjoy great success and he believes alternative teacher licensure will as well.

After having reached a compromise earlier, Gov. Dayton is expected to sign the bill early next week.

Transfer discussion continues at Capitol

The issue of credit transfer was once again a topic of the House Higher Education committee this week with the introduction of HF 717. The bill author, Rep. Jim Abeler, R-Anoka, said he introduced the bill to continue advancing the discussion of transfer and push well-intended institutions to move the issue forward. The bill requires the Minnesota State Colleges and Universities system to adopt a policy requiring colleges and universities to grant credit for a course that is taken for credit at any college or university in the system.

Following Abeler's presentation of the bill, Mike Lopez, Associate Vice Chancellor for Student Affairs with the Minnesota State Colleges and Universities system, spoke about the Improving Transfer of Credit report the system prepared in response to legislation from last session that required the system to develop and implement a plan to improve credit transfer within the system.

Lopez walked members through the Smart Transfer Plan which includes; establishing course outlines available on all college and university Web sites; e-Transcripts, which is an electronic transcript process for transfers within the system; a policy that clarifies that DARS and u.select databases are the official repository of course equivalencies between system colleges and universities; enhancements to the student appeals process, and information available to students; and continuous training for college and university staff who advise students in the area of transfer.

Chair of the Minnesota State University Student Association, Andrew Spaeth, told committee members that in coordination with the Office of the Chancellor, the student organizations completed a survey on transfer and continue to work together to make progress. Spaeth said the Board of Trustees has been involved and open to hearing students' concerns and recommendations regarding transfer.

Travis Johnson, president of the Minnesota State College Student Association, said he appreciates that the issue of transfer has received attention from the Legislature and the Board of Trustees and he views transfer as an area for continuous improvement.

The bill was held over for possible consideration in the committee's omnibus bill.

President signs measure to keep government running through March 18

With the expiration of the continuing resolution set to take place today, March 4, Congress passed legislation earlier this week that would extend the continuing resolution two weeks, and President Obama signed it into law Wednesday. This stopgap funding measure will keep government running through March 18. The Republican House and the Democratic Senate now need to work out a compromise on keeping government running through September 30 (the end of the fiscal year), and have both said they prefer a longer-term funding measure to a series of shorter-term ones.

Congress did not pass any of the 12 spending bills by the start of the 2011 fiscal year, which began Oct. 1. While this is not uncommon, it has set off a series of stopgap measures, known as continuing resolutions. This allows the federal government to continue operating at current budget levels. What remains unclear right now is how much time it will take congressional leaders to come to an agreement by March 18 when they vary so significantly on what the budget should look like. You may recall the House Republicans previously passed legislation that makes $61 billion in cuts for the remainder of the fiscal year, which includes cuts to the maximum Pell Grant award by $845 from $5,550 to $4,705. Senate Democrats and the White House have proposed approximately $10 billion in cuts; the $4 billion in the stop gap measure signed by the President and $6.5 billion proposed Thursday.

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, March 7

11:00 AM
Senate in Session

1:00 PM
Senate State Government Innovation and Veterans
Room: 123 Capitol
Chair: Sen. Mike Parry
Agenda:
SF 161 (Pederson) Lake Pepin phosphorus standard establishment
SF 196 (Pederson) Water rulemaking moratorium and study requirements
SF 449 (Magnus) Higher education veterans assistance program expiration date repeal

3:00 PM
Senate Higher Education
Room: 107 Capitol
Chair: Sen. Michelle L. Fischbach
Agenda:
S.F. 504-Miller: Higher education institutions administrative spending cuts requirement.
S.F. 546-Fischbach: Senior citizen higher education program qualifying age modification.

3:00 PM
House in Session

Tuesday, March 8

8:15 AM
House Education Reform
Room: Basement State Office Building
Chair: Rep. Sondra Erickson
Agenda:
HF339 (Kelly) Teacher employment contracts negotiation process identified.
HF464 (Norton) Teacher collective bargaining agreement deadline and process changed.
HF558 (Downey) Graduation-Required Assessment for Diploma mathematics exception removed.
HF329 (Bills) Public school employees prohibited from using public funds and resources to advocate to pass, elect, or defeat a political candidate, ballot question, or pending legislation.
If necessary, the committee will reconvene at 6pm in the Basement hearing room.

8:15 AM
House State Government Finance
Room: 200 State Office Building
Chair: Rep. Morrie Lanning
Agenda: HF174 (Peppin) Department of Revenue required to issue a request for proposals for a tax analytics and business intelligence contract.
HF191 (Downey) Redundant Technology Elimination Act proposed, state agency information technology systems and services consolidated, Office of Enterprise Technology duties transferred, and money appropriated.
Minnesota Management and Budget budget overview: Commissioner Jim Schowalter

12:30 PM
House Higher Education Policy and Finance
Room: Basement Hearing Room, State Office Building
Chair: Rep. Bud Nornes
Agenda: Higher Education Facilities Authority Presentation
HF856 (Swedzinski) Tuition increase temporary freeze and permanent limitation at public higher education institutions.

12:30 PM
House Jobs and Economic Development Finance
Room: 10 State Office Building
Chair: Rep. Bob Gunther
Agenda: Presentation of governor's Department of Labor and Industry budget proposal

1:00 PM
Senate Agriculture and Rural Economies
Room: 107 Capitol
Chair: Sen. Doug Magnus
Agenda:
"Agriculture's Contributions to Improving Water Quality"
Presentations from the MN Agriculture Water Resources Coalition, MN Department of Agriculture & University of Minnesota

Wednesday, March 9

8:15 AM
House State Government Finance
Room: 200 State Office Building
Chair: Rep. Morrie Lanning
Agenda: HF192 (Downey) Reinventing Government Employment Act proposed, public employee compensation freeze provided and future compensation method determined, state employee gainsharing system established, and state contract restrictions with private vendors removed.

6:00 PM
House Education Reform
Room: Basement State Office Building
Chair: Rep. Sondra Erickson
Agenda:
HF273 (Woodard) Students at low-performing schools enrollment options established.
HF638 (Myhra) School grading system created, school recognition program created, school report cards modified, rulemaking authorized, and report required.
HF617 (Woodard) AmeriCorps Innovation aligned to federal law.
HF575 (Erickson) Probationary teacher and principal status governing requirements clarified.

Thursday, March 10

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: HF821 (Nornes) Senior citizen higher education program eligibility changed.
University of Minnesota Presentation on Agriculture Initiatives

Monday, March 14

1:00 PM
Senate Local Government and Elections
Room: 112 Capitol
Chair: Sen. Ray Vandeveer
Agenda:
S.F. 509-Limmer: Voter photo identification requirement; picture identification issuance provisions; provisional balloting procedure establishment; electronic polling place roster use requirement; recount procedure enacting; appropriating money.
S.F. 479-Howe: Voter photo identification and issuance requirement; picture identification and issuance at no charge; provisional balloting procedure establishment.

February forecast shows $5.028 billion deficit

2011-02-28T09:54:00.001-08:00

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

2011-02-28T07:18:00.000-08:00

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.

Follow us on Facebook and Twitter
If you want to learn more about what is going on at the State Capitol and with Congress as it relates to higher education, you can follow government relations’ daily updates on Facebook or Twitter.

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

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

2011-02-18T20:02:00.000-08:00

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

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

2011-02-04T15:04:00.000-08:00

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

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

2011-01-28T15:06:00.000-08:00

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

Budget plans announced; Salary freeze bill introduced; Governor names higher education commissioner; Bonding bill disagreement; Board approves plan

2011-01-21T15:44:00.000-08:00

Legislative Update
January 21, 2011

Leadership rolls out phase one of budget balancing plan

Republican legislative leadership introduced an early action budget bill this week that proposes $1 billion in cuts. The House Ways and Means Chair Mary Liz Holberg, R -Lakeville, said this is phase one of the budget adjustment, and leadership plans to pass legislation prior to Feb. 10 in order to see a reduced deficit in the February forecast. When leadership was asked if they’re going to send the budget reduction bill to the governor right away or sit on it since the governor called the bill “piecemeal cuts and partial solutions,” Speaker Kurt Zellers, R-Maple Grove, said they will respect the process but “won’t wait around until April and let everything come to a screeching halt.” Zellers said he wants to be respectful of the governor and his administration since the governor is still appointing his cabinet.

Senate Finance Chair Claire Robling, R-Jordan, said the bill enacts the reductions made in last year's budget-balancing bill. The bill would make more than $840 million in one-time spending cuts permanent, including $584 million in cuts to tax aids and credits, $185 million to higher education, and $72 million to various health and human services programs. Robling said the bill also asks for Minnesota Management and Budget to identify $200 million in savings that could be achieved by capturing unspent funds in agencies’ budgets.

For the Minnesota State Colleges and Universities system, the reduction in the bill to the system's fiscal year 2011 budget is $50 million. This would bring the current annual state funding level of $605.5 million (which is slightly below the fiscal year 2002 funding level) to $582 million. Laura King, vice chancellor and chief financial officer of the system, addressed the $23 million cut to the base each year, telling committee members each cut makes the execution of the system’s mission harder. Fiscal Analyst Doug Berg said the cut is a 7.2 percent reduction to the system base and a 6.9 percent reduction to the University of Minnesota's base. There was much discussion in the House Higher Education committee regarding the cut's impact on campuses, and Rep. Joe Atkins, DFL-Inver Grove Heights, unsuccessfully made a motion to lay the bill on the table until they had a better sense of the impact. The bill passed by a vote of 8-7 and heads next to the Ways and Means committee on Monday morning. The Senate is expected to take up the bill Wednesday in the Finance committee.

House Minority Leader Rep. Paul Thissen, DFL-Minneapolis, said this first budget bill is not the direction lawmakers should take and that piecemeal budgeting is not going to work. Thissen told the media he hopes Republicans will explain next week why they are in such a hurry to pass along a property tax increase and tuition increase to Minnesotans.

Majority Leader Matt Dean, R-Dellwood, said, “This is not a normal year when lawmakers can slowly work their way into session.”

You may view the bill here.

Salary freeze bill gains traction in House
A bill that would freeze state employees’ salaries beginning July 1, 2011, and lasting indefinitely cleared the House State Government Finance committee this week and is on its way to the Ways and Means committee. Prior to the 12-8 party-line vote, members discussed the bill’s merits. At a time when many employees in the private sector have lost jobs or taken pay cuts, author of HF 127, Rep. Denny McNamara, R-Hastings, said it’s fair to hold public employee wages flat. He argued that allowing employees to accept raises at a time when the state is cutting its budget could result in layoffs. “I would prefer to see as many state employees keep their jobs as possible,” McNamara said.

Rep. Ryan Winkler, DFL-Golden Valley, called the idea of freezing pay “a perfectly reasonable position” but argued the issue would be better handled through the state’s normal labor contract negotiations.

Committee Chair Morrie Lanning, R-Moorhead, said that while lawmakers traditionally use a hands-off approach to collective bargaining for state employees, it is appropriate for the Legislature to require a pay freeze in a time of deficits.

The bill affects employees in all three branches of state government but would not prohibit employees who are promoted or transferred to different jobs from accepting increased salaries. Minnesota Management and Budget has estimated a cost savings at $64 million over the next biennium. There is no companion bill in the Senate at this time.

You may view the bill here.

News from the governor’s office
Gov. Mark Dayton continues to build his administration, with the addition of Sheila Wright to head the Office of Higher Education. Wright is dean of the Hamline University School of Education. According to Dayton’s news release, “Dr. Wright has dedicated her career in education to addressing the crucial issues of teacher quality and the achievement gap, working in P-12 and higher education, as well as in state government and non-profit organizations.” Wright also has served as associate dean of academic programs and a faculty member in the School of Education at Saint Xavier University in Chicago, and taught at Carleton College in Northfield and Minnesota State University, Mankato.

Also this week, Gov. Dayton named northern Minnesota developer Mark Phillips as the new commissioner of the Department of Employment and Economic Development. Dayton said the appointment helps him underscore his commitment to new jobs. Phillips, who works for Kraus-Anderson Construction, said he shares Dayton's strategy to engage the business community and make use of all the available tools in state government.

Dayton also announced this week that he will give his State of the State speech in the House chambers at noon on Wednesday, Feb. 9.

Disagreement on bonding bill
House Capital Investment committee members met this week for the first time this session to review the capital budget process. Gay Greiter, budget coordinator with Minnesota Management and Budget, said in her testimony that an off-year bonding bill typically has been for "emergencies" and the governor is not required to submit a capital budget recommendation, but she said he indicated he plans to do so this year.

Gov. Dayton has said he will introduce a $1 billion bonding bill later this month and that half of his proposal will fund the projects vetoed by former Gov. Tim Pawlenty, while the other half could be assigned by legislators. House Chair Larry Howes, R-Walker, said in this week’s Capital Investment meeting that if a project is in a lawmaker’s community or region, it's probably considered an emergency. Senate Capital Investment Chair Sen. David Senjem, R-Rochester, said he has no immediate plans to meet as a committee.

Board of Trustees approves 2011 legislative agenda
At this week’s Minnesota State Colleges and Universities Board of Trustees meeting, the board reviewed and approved the 2011 legislative agenda, which states: The members of the Minnesota State Colleges and Universities Board of Trustees will advocate for:

The board-approved biennial budget request of $1.26 billion, the amount set in current law.

Potential opportunities for capital budget funding to completeprojects that were approved in 2010 but not funded.

State and federal financial aid policies and formulas that have an overall benefit to students attending Minnesota State Colleges and Universities.

Actions that would enhance the system’s ability to meet its strategic plan and action plan goals:

Increase persistence and completion rates of students from groups traditionally underrepresented in higher education.

Increase the percentage of students enrolled in one or more college-level courses in science, technology, engineering and math.

Increase the percentage of credits provided through online and blended courses.

The members of the Minnesota State Colleges and Universities Board of Trustees will oppose:

Actions and policies that would restrict the ability of the Minnesota State Colleges and Universities system to maintain quality, preserve access and serve students.

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 24
10:15 AM
House Ways and Means
Room: 200 State Office Building
Chair: Rep. Mary Liz Holberg
Agenda: HF130 (Holberg) Fiscal year 2011 appropriations reduced, policies changed, and appropriation reductions made for fiscal years 2012 and 2013; and tax aid, credits and payment reductions made.

11:00 AM
Senate in Session

3:00 PM
Senate Higher Education Policy and Finance
Room: 107 Capitol
Chair: Sen. Michelle Fischbach
Agenda: Overview presentation from Minnesota State Colleges and Universities

3:00 PM
Senate Education
Room: 15 Capitol
Chair: Sen. Gen Olson
Agenda: S.F. 40-Olson, G.: Alternative Teacher Licensure

3:00 PM
House in Session

Tuesday, January 25
8:15 AM
House State Government Finance
Room: 200 State Office Building
Chairs: Rep. Morrie Lanning
Agenda: Minnesota Management and Budget (MMB) Department Overview:
Jim Schowalter, Commissioner
Lori Mo, Assistant Commissioner, Accounting Services
Kristin Dybdal, Assistant Commissioner, State Budget Director
Judy Plante, Assistant Commissioner, State Human Resources
Nathan Moracco, Director State Employee Insurance (SEGIP)
MMB will also give an overview and answer questions on the recently released "Workforce 2010" report.

10:30 AM
Senate Committee on Jobs and Economic Growth
Room: 107 Capitol
Chair: Sen. Geoff Michel
Agenda: S.F. 1-Michel: Discussion of SF 1.

12:30 PM
House Higher Education Policy and Finance
Room: State Office Building Basement Hearing Room
Chair: Rep. Bud Nornes
Agenda: Overview of Private Higher Education in Minnesota:
Minnesota Private College Council
Minnesota Career College Association

1:00 PM
Senate Agriculture and Rural Economies
Room: 107 Capitol
Chair: Sen. Doug Magnus
Agenda:
Summary of the Department of Agriculture Livestock Investment Grant Program
Presentation by Minnesota Farm Bureau
Presentation by Minnesota Farmers Union
Overview of the Agricultural Utilization Research Institute (AURI)
Overview of the NextGen Energy Board

3:00 PM
Senate Education
Room: 15 Capitol
Chair: Sen. Gen Olson
Agenda:
Testimony on mandate relief
S.F. 56-Thompson: School safe schools levy set aside requirement removal; school district and charter school salary freeze imposition; staff development reserved revenue and school district contract deadline and penalty repeal.

Wednesday, January 26
8:15 AM
House State Government Finance
Room: 200 State Office Building
Chair: Rep. Morrie Lanning
Agenda: Panel Discussion on Innovation and Transformation Opportunities in Government: This is a follow up discussion on the recently released Minnesota Commission on Service Innovation Report released in December 2010.

8:30 AM
Senate Finance
Room: 123 Capitol
Chair: Sen. Claire A. Robling
Agenda: S.F. 60-Robling: 2010 legislative-enacted budget reductions extended

10:15 AM
House Government Operations and Elections
Room: 5 State Office Building
Chair: Rep. Joyce Peppin
Agenda: HF173 (Peppin) Sunset Commission created, and sunset and review of state agencies provided.
HF2 (Banaian) State budget priority-based process created, sunset process established for state agencies, and money appropriated

3:00 PM
Senate Higher Education Policy and Finance
Room: 107 Capitol
Chair: Sen. Michelle Fischbach
Agenda: Minnesota State Grant Program Overview from Minnesota Office of Higher Education and follow-up information from Minnesota Office of Higher Education.

3:00 PM
Senate Education
Room: 15 Capitol
Chair: Sen. Gen Olson
Agenda:
S.F. 55-Hann: Charter school authorizer approval deadline modification.
S.F. 69-Olson, G.: Home schools mandates and reporting requirements reduction.

Thursday, January 27
8:30 AM
Joint Senate Meeting: Committee on Finance; Committee on Taxes
Room: 15 Capitol
Chairs: Sen. Claire A. Robling, Sen. Julianne E. Ortman
Agenda:
State Demographics, Presenter - Tom Gillaspy, State Demographer
Tax Expenditure Reports, Presenter - Dr. Paul Wilson, Research Director, MN Dept of Revenue

11:00 AM
Senate in Session

12:30 PM
House Higher Education Policy and Finance
Room: State Office Building Basement Hearing Room
Chair: Rep. Bud Nornes
Agenda: Legislative Reports from the Office of Higher Education:
Achieve Scholarship Program
Intervention for College Attendance Program (ICAP)
Reducing Textbook Costs

1:00 PM
Senate Agriculture and Rural Economies
Room: 107 Capitol
Chair: Sen. Doug Magnus
Agenda:
Summary of the Minnesota Agriculture and Rural Leadership (MARL) program
Presentation from the University of Minnesota

Friday, January 28
2:00 PM
Joint Meeting: Committee on Environment and Natural Resources; Committee on Jobs and Economic Growth
Room: Hibbing Community College
Chairs: Sen. Bill Ingebrigtsen, Sen. Geoff Michel
Agenda: Discussion on environmental permitting/jobs and economic growth

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

2011-01-14T17:00:00.000-08:00

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

Session priority- budget; Committee details shared; Governor sworn into office, names administration; Top ten federal issues

2011-01-13T09:41:00.000-08:00

2011 legislative session gets underway with $6.2 billion budget deficit looming

The 87th legislative session got underway Tuesday with mostly ceremonial floor sessions. 36 new members were sworn-in in the House; 33 new Republicans and 3 new Democrats. Republicans now hold the majority with a 72-62 split. In the Senate, 24 new members were sworn into office; 21 new Republican members and 3 new DFL members. For the first time in 38 years, the Republicans now hold the majority in the Senate by a split of 37-30. The election brought along with it many changes, including office locations. A condensed 2011-2012 legislative roster with offices and telephone numbers can be found at:
www.senate.leg.state.mn.us/members/2011-2012/info/roster.pdf

In the House, Rep. Kurt Zellers, R-Maple Grove, was elected Speaker of the House on a partisan vote of 72-61. In his acceptance speech, Zellers said to his fellow House members, "Our job now is to govern." Zellers also called on business people, teachers and others to bring their ideas and solutions to the Capitol to help balance the budget. He said the old way of doing things are no longer going to work. "We have a daunting task ahead of us," Zellers said, and asked his fellow legislators to start working on the issues they agree on first. The new House Minority Leader is Paul Thissen, DFL-Minneapolis.

The Senate elected Sen. Michelle Fischbach, R-Paynesville, as the first woman President of the Senate by a vote of 62-5. Senators adopted Senate Resolution 1, which names a majority leader and minority leader; Sen. Amy Koch, R-Buffalo, will serve as Majority Leader and Sen. Tom Bakk, DFL-Cook, will serve as Minority Leader. The Senate also elected Cal Ludeman as Secretary of the Senate.

Majority Leader Koch addressed the body, thanking many for assistance with the transition to leadership. She said the most important lesson Republicans learned over the last 38 years is how to treat members of the minority party. Over the course of the session, Koch said there will be differences between Republicans and Democrats, but there will also be agreements, and asked her colleagues to be prepared for long days and hard work ahead of them.

Legislators are faced with resolving the $6.2 billion state budget deficit this session. Koch said, "We are committed to spending within our means. We are not interested in raising taxes," and House Majority Leader Matt Dean, R-Dellwood, said lawmakers will overhaul state agency budgets, and will ask state agencies to justify their budgets by looking at what they are currently doing.

Republican leadership spoke to the media today and Deputy Majority Leader Sen. Geoff Michel, R-Edina, indicated they will announce a jobs bill Monday morning as they begin setting top priorities, including how to help job creators and position Minnesota to come out of the recession. Majority Leader Koch said the Senate intends to change the rules on the Senate floor Monday to provide for a ten percent reduction in per diem for members, as well as implement a ban on out-of-state travel reimbursement. Zellers said instead of focusing on whether or not to raise taxes, they will turn the conversation to how to spend the available $32 billion and fund priorities within their means.

Legislators must complete their work this session by the constitutional adjournment date of Monday, May 23. With a divided government once again (Republican Legislature and DFL Governor), lawmakers will likely need all five months to balance the budget.

New leadership appoints committees

With new legislative leadership at the helm, the committee structure has been changed for the 2011-2012 biennium. House and Senate leaders have said they want to make the legislative process more user-friendly, while remaining fair and transparent. The House has reduced the number of committees, divisions and subdivisions from 36 last year to 24, and the Senate has decreased committees from 25 to 16. "We have reformed government starting with ourselves," Speaker Kurt Zellers, R-Maple Grove, said. "We think we can be a little more efficient and effective in the way we run government." Legislative leaders said they also wanted to line up committees better so that conference committees, assigned to work through the differences in the bills between the House and Senate, will compare bills that address the same issues.

Information on all the House committees can be located at www.house.leg.state.mn.us/comm/commemlist.asp. Senate committee information is at www.senate.leg.state.mn.us/committees/index.php?ls=#header

Committee assignments for the House and Senate higher education committees are as follows:
House Higher Education Policy and Finance
Tuesdays and Thursdays, 12:30-2:15 p.m.
Room: Basement Hearing Room

Members:
Rep. Bud Nornes, R-Fergus Falls, Chair
Rep. Bob Dettmer, R-Forest Lake, Vice Chair
Rep. Tom Rukavina, DFL-Virginia, DFL Lead
Rep. King Banaian, R-St. Cloud
Rep. Mike Benson, R-Rochester
Rep. Kurt Daudt, R-Crown
Rep. Connie Doepke, R-Orono
Rep. David Hancock, R-Bemidji
Rep. Pat Mazorol, R-Bloomington
Rep. Bruce Vogel, R-Willmar
Rep. Joe Atkins, DFL-Inver Grove Heights
Rep. Terry Morrow, DFL-St. Peter
Rep. Kim Norton, DFL-Rochester
Rep. Gene Pelowski, DFL-Winona
Rep. Jeanne Poppe, DFL-Austin

Senate Higher Education Policy and Finance
Mondays and Wednesdays, 3:00-4:30 p.m.
Room: 107 Capitol

Members:
Sen. Michelle Fischbach, R-Paynesville, Chair
Sen. Jeremy Miller, R-Winona, Vice Chair
Sen. Sandy Pappas, DFL-St. Paul, DFL Lead
Sen. David Brown, R-Becker
Sen. John Carlson, R-Bemidji
Sen. Joe Gimse, R-Willmar
Sen. John Pederson, R-St. Cloud
Sen. Clair Robling, R-Jordan
Sen. David Senjem, R-Rochester
Sen. Ron Latz, DFL-St. Louis Park
Sen. Tom Saxhaug, DFL-Grand Rapids
Sen. Kathy Sheran, DFL-Mankato
Sen. Rod Skoe, DFL-Clearbrook
Sen. David Tomassoni, DFL-Chisholm

Governor Dayton takes oath of office

Gov. Mark Dayton, along with the other constitutional officers, was sworn into office this week, becoming Minnesota’s 40th governor. On Monday, Dayton said he plans to focus on three things; jobs, balancing the budget and improving public services. Dayton plans to focus on bringing more jobs to Minnesota to get Minnesotans working again. He attributed, among other things, the state’s colleges and universities as an advantage to putting Minnesota back to work.

Dayton also recognized the budget situation as an urgent priority and said, "Some people think eliminating a $6.2 billion deficit, almost 20 percent of expected revenues, will be simple and easy. I don't." He continued to say, "My proposed budget solution will be reasonable, balanced, and painful - because I see no easy alternative." He asked those who believe the state budget can be balanced without a tax increase, including no property tax increase, without destroying Minnesota’s schools, hospitals, and public safety, to send him the bill so he can sign it immediately.

Dayton’s third focus will be on improving services provided to citizens, starting with education innovation. Dayton said, "Better education for everyone is essential to getting Minnesota working again, and to keep Minnesotans working in the future. To give everyone the skills necessary to succeed in an ever more competitive global economy. Doing so must be everyone's shared responsibility."

The full text of Gov. Dayton’s speech can be found at http://mn.gov/governor/newsroom/pressreleasedetail.jsp?id=9252.

Dayton continues to shape his administration

Gov. Dayton continued building his administration this week making appointments in addition to those already named to cabinet-level positions. Earlier, Dayton appointed Ken Peterson as Commissioner of Labor and Industry, former senator David Frederickson as Commissioner of Agriculture, and Tom Sorel in Transportation. More recent appointments include Jim Schowalter as the Minnesota Management and Budget, or MMB, commissioner. Schowalter was most recently MMB deputy commissioner and coordinated the agency's financial, debt management, human resources and labor activities.

Dr. Brenda Cassellius was named Education Commissioner. Cassellius is most recently an Associate Superintendent in Minneapolis Public Schools, where she leads 19 middle and high schools. On Wednesday, Cassellius appointed her staff, including Jessie Montaño as Deputy Commissioner. Montaño has 35 years of service to the Department of Education serving as Acting Commissioner of Education and Assistant Commissioner.

Commissioner Cassellius appointed Charlene Briner Communications Director, who has ten years experience in communications, media and public affairs. Brian Shekleton was appointed Government Relations Director, and Karen Klinzing was appointed temporarily as Acting Assistant Commissioner. Klinzing has served for the past four years as Assistant Commissioner and for six months as the Deputy Commissioner.

Dr. Edward Ehlinger, with the University of Minnesota Boynton Health Services, was appointed the Commissioner of the Department of Health. "Dr. Ehlinger's long experience in public health and in leading a key Minnesota health facility will position him well to lead the Minnesota Department of Health and to restore our state's former preeminence in national health care initiatives," Dayton said.

Mike Rothman was named Commerce Commissioner and Myron Frans was named Commissioner for the Department of Revenue. Rothman was most recently an attorney with the firm of Winthrop & Weinstine, P.A., and Frans was most recently a tax attorney at the law firm of Faegre & Benson LLP.

Newly appointed Commissioner Frans will not join the Dayton Administration on a full-time basis immediately. Dayton said, "I respect his need, as the CEO of a successful and growing business, to conclude those responsibilities properly. In the meantime, he will advise me on a voluntary part-time basis, and the Revenue Department will be very capably managed by former Commissioner and now Deputy Commissioner, Dan Salamone."

Most recently, Dayton chose Nature Conservancy assistant state director Tom Landwehr to lead the Department of Natural Resources, or DNR. Before working for the Nature Conservancy’s Minnesota Chapter, Landwehr spent 17 years at the DNR as a scientist and wildlife manager.
The director for the Minnesota Office of Higher Education has not yet been appointed.

Important dates for the 2011 Session

January 3, 2011 New Governor Takes Oath of Office

January 4, 2011 2011 Legislative Session Convenes

January 2011 Governor’s State of the State Address

February 15, 2011 Deadline for Governor’s Budget Recommendations

Late February 2011 February Economic Forecast Released

May 23, 2011 Last Day of Session

New face for the 112th Congress

The 112th Congress convened Wednesday with Republicans taking control of the House and electing Rep. John Boehner, R-Ohio, Speaker by a vote of 241-173. Boehner said he will run the House in a more inclusive and businesslike way. The new Republican majority got down to business and changed House rules that would require spending increases to be directly offset with cuts elsewhere. This change will help Republicans, who are joined by 87 new members, repeal the health care legislation and cut federal spending, a promise made on the campaign trail.

The Senate also convened Wednesday and still maintain a Democrat majority by a split of 53-47, a reduction of 6 seats.

A change for Minnesota is the new Congressman from the eighth district, Chip Cravaack. Congressman Cravaack was officially sworn-in on the House floor this week and said of his first day as a congressman, "It was informative, it was hectic and it was wonderful. I'm very proud to be here and very humbled to be here."

Issues most likely to affect public higher education across the country

The American Association of State Colleges and Universities, or AASCU, has prepared a list of what they believe to be the top 10 issues most likely to affect public higher education across the nation this year. They based it on an environmental scan of the economic, political and policy landscape surrounding public higher education, as well as a review of recent state policy activities and trends. The complete document can be found at www.congressweb.com/aascu/docfiles/PM-Top10for2011.docx.pdf. Below we take a look at the 10 issues and see how they compare to what’s happening in Minnesota.

1. State Operating Support for Public Higher Education

AASCU reports, "States’ financial support for higher education has been pared back considerably during the past two years. Combined with strong growth in student enrollments, this has resulted in a sharp decline in states’ per-student spending." This is a top issue for higher education in Minnesota as higher education competes to be a funding priority for lawmakers while facing a $6.2 billion budget deficit. This is coupled with a divided government; a Legislature who has said they want to cut spending and a governor who would like to raise revenue.

2. State’s College Completion and Educational Attainment Agendas

Leading this movement for a greater rate of college completion is President Barack Obama, who has called for the United States to regain its former first place status of having the highest proportion of young adults with some type of post-secondary education. The Minnesota State Colleges and Universities system continues to support efforts related to this national goal as demonstrated by the Board of Trustees strategic direction 1: Increase access, opportunity and success. Initiatives such as Students First and established goals for improved persistence and completion rate of underrepresented students, and online education offerings, all support this effort.

3. College Readiness

AASCU reports that the lack of alignment between high school and college expectations contributes to high postsecondary remediation rates and hinders college completion. The Board of Trustees is currently studying the pros and cons of moving responsibility for remedial education from the universities to the colleges, and will make a decision on implementation by June 21, 2011. A study session was held in December 2010 to review schools of thought and best practices in remedial education, related demographic information and the achievement gap, and current best practices within the system.

4. Tuition Prices and Policy

AASCU reports that tuition prices and tuition policy will continue to be a major focus for state lawmakers in 2011, and this holds true as well for Minnesota lawmakers. With record enrollment, a large budget deficit, and varying legislative opinions on raising taxes; legislators, colleges and universities, and students and families, are faced with difficult choices. The trend of shifting responsibility for higher education funding from the state to students and families is evident across the nation.

5. State Student Aid Program Financing

With ever-tightening state budgets, there is concern across the country of decreasing state financial aid budgets, coupled with an increase in demand for financial aid. This is also true in Minnesota. Students in Minnesota experienced for the first time last year, a $42 million state grant shortfall, which resulted in reduced grants or students losing their grant altogether. With more students seeking a postsecondary education, there is a larger demand for the state grant program.

6. Student Enrollment Capacity

AASCU reports, "States throughout the nation have announced record student enrollments for the current academic year," and this is no different for Minnesota. States, including Minnesota, are experiencing enrollment increases with declining state appropriation. Many colleges in the Minnesota State Colleges and Universities system are experiences record enrollment increases and space has become an issue.

7. State Data System Development

AASCU reports that 23 states link, share and/or exchange data with their K-12 state education agency, and 26 do so with a labor/workforce agency in their state. However, their ability to address major policy issues varies widely. This continues to be an issue for Minnesota as the state works to improve longitudinal data reporting capacity under current data practices law.

8. Economic and Workforce Development

AASCU reports, "State lawmakers are calling for public colleges and universities in particular to be more responsive to regional workforce needs." Jobs and growing Minnesota continues to be a top issue for the governor, House and Senate. The Minnesota State Colleges and Universities system continues to be responsive to the job-training needs in Minnesota.

9. States’ Political Climate

AASCU reports, "Unlike other policy areas, higher education has generally been at the periphery of state-level partisan battles, leaving it somewhat protected from state politicians’ ideologically-driven agendas." They continue to say, "While those general philosophies will remain intact, there may be some impact on higher education due to a fiscally conservative movement that thrust many new politicians into state legislatures and governorships-some with little, if any, higher education policy-making experience." While the House and Senate higher education committees in Minnesota include many freshmen, it is too soon to predict their impact on higher education policy.

10. States’ Regulatory Framework

AASCU claims that due to the lack of funding for higher education this biennium, lawmakers are looking at other ways to help public colleges and universities contribute to broader state education and economic development goals, including regulatory reform. Cutting "state-imposed bureaucratic red tape" that may hinder the ability to fully maximize higher education’s public purpose missions is a legislative interest in many states. Mandate reductions for the system were worked through immediately after the higher education system merger and reduced and eliminated many barriers. The system continuously reviews policy and procedures for existing barriers.

Stay informed

Legislative news, both state and federal, can be found at the Minnesota State Colleges and Universities government relations Web site, blog, Facebook page and Twitter page. They can be located at the below sites:

Government Relations Web site:
http://www.govtrelations.mnscu.edu/

Government Relations Blog:
http://mnscufan.blogspot.com/2010/05/policy-bill-passes-budget-talks.html

Government Relations Facebook:
http://www.facebook.com/pages/Friends-of-Minnesota-State-Colleges-and-Universities/110872937120

Government Relations Twitter:
http://twitter.com/mnscufan

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 (http://www.leg.state.mn.us/).

Monday, January 10

8:00 AM
Regent Candidate Advisory Council
Room: 400N State Office Building
Chair: Jane Belau
Agenda: Candidate Interviews

9:00 AM
Senate Rules and Administration
Room: 112 Capitol
Chair: Sen. Amy Koch
Agenda: TBA

11:00 AM
Senate in Session

12:30 PM
House Veterans Services Division
Room: Basement State Office Building
Chair: Rep. Bruce Anderson
Agenda: Introductions of committee and staff
Jim Cleary, House Research, committee overview
Military affairs presentation, Brigadier General Joe Kelly, the assistant adjutant general of
the Minnesota National Guard and the deputy commissioner for the Department of Military Affairs

1:00 PM
Senate State Government Innovation and Veterans
Room: 123 Capitol
Chair: Sen. Mike Parry
Agenda: Minnesota Management and Budget Overview

3:00 PM
Senate Higher Education Committee
Room: 107 Capitol
Chair: Sen. Michelle Fischbach
Agenda: Minnesota Office of Higher Education overview

3:00 PM
House in Session

4:30 PM or Immediately following Session
House Rules and Legislative Administration
Room: Basement State Office Building
Chair: Rep. Matt Dean
Agenda: Welcome & introductions
HR policies, staff, miscellaneous personnel reports
House policies and resolutions

Tuesday, January 11

8:00 AM
Regent Candidate Advisory Council
Room: 400N State Office Building
Chair: Jane Belau
Agenda: Candidate Interviews

8:15 AM
House State Government Finance
Room: 200 State Office Building
Chair: Rep. Morrie Lanning
Agenda: Member and staff introductions
Helen Roberts, Fiscal Analyst: overview of the jurisdiction of the State Government Finance committee
Mark Shepard, House Research: overview of mandated reports within jurisdiction of committee

10:15 AM
House Taxes Committee
Room: 200 State Office Building
Chair: Rep. Greg Davids
Agenda: Introductions
Committee priorities
Background on Minnesota tax system

10:30 AM
Senate Committee on Jobs and Economic Growth
Room: 107 Capitol
Chair: Sen. Geoff Michel
Agenda: TBA

12:30 PM
House Higher Education Policy and Finance
Room: Basement Hearing Room - State Office Building
Chair: Rep. Bud Nornes
Agenda: Introductions
Committee Procedures
Overview of Jurisdiction and Accounts

1:00 PM
Senate Committee on Agriculture and Rural Economies
Room: 107 Capitol
Chair: Sen. Doug Magnus
Agenda: Introductions/Overview from the Minnesota Department of Agriculture

3:00 PM
Senate Education Committee
Room: 15 Capitol
Chair: Sen. Gen Olson
Agenda: Committee introductions
A presentation by Cecilia Retelle of the Minnesota Chamber of Commerce entitled "Wanted: Prepared Workforce; Needed: Education Reforms"

Wednesday, January 12

8:00 AM
Regent Candidate Advisory Council
Room: 400N State Office Building
Chair: Jane Belau
Agenda: Candidate Interviews
All-day legislative conference

Thursday, January 13

8:30 AM
Senate Finance Committee
Room: 123 Capitol
Chair: Sen. Claire Robling
Agenda: Introductions
Budget Overview - Matt Massman, Lead Fiscal Analyst - Senate Counsel, Research and Fiscal Analysis

8:30 AM
Senate Taxes Committee
Room: 15 Capitol
Chair: Sen. Julianne Ortman
Agenda: Committee Introduction, General Overview Minnesota Tax System

12:30 PM
House Higher Education Policy and Finance
Room: 5 State Office Building
Chair: Rep. Bud Nornes
Agenda: Minnesota State Colleges and Universities overview

3:00 PM
House in Session

Legislature convenes today, schedule posted

2011-01-04T07:07:00.000-08:00

When the House and Senate convene the 2011 session today at 12:00 p.m., the House will have 36 new members; 33 new Republicans and 3 new Democrats. The Republicans are now in the majority with a 72-62 split.

In the Senate, 24 new members will be sworn into office today; 21 new Republican members and 3 new DFL members. For the first time since 1972, the Republicans now hold the majority in the Senate by a split of 37-30.

The membership roster for 2011-2012 is available on line here.

The election brought along with it many changes, including office locations. A condensed 2011-2012 legislative roster with updated offices and telephone numbers can be found here.

Gov. Mark Dayton, along with the other constitutional officers, were sworn into office yesterday. Dayton said he plans to focus on three things; jobs, balancing the budget and improving public services. Dayton also continues to build his administration, appointing Jim Schowalter as the Minnesota Management and Budget Commissioner. Schowalter was most recently MMB deputy commissioner and coordinated the agency's financial, debt management, human resources and labor activities.

Dr. Brenda Cassellius was named Education Commissioner. Cassellius is most recently an Associate Superintendent in Minneapolis Public Schools. She leads 19 middle and high schools and is responsible for the achievement of over 18,000 students.

Legislators must complete their work this session by the constitutional adjournment date of Monday, May 23, 2011. This gives lawmakers approximately five months to solve the $6.2 billion state budget deficit. Senate Majority Leader Amy Koch, R-Buffalo, said about balancing the budget, "We are committed to spending within our means. We are not interested in raising taxes."

House Majority Leader Matt Dean, R-Dellwood, said lawmakers will overhaul state agency budgets, "We’re going to be saying [to state agencies], 'Let's justify your budgets. Let's go through them. What are you currently doing that you need to stop doing? What are you currently doing that you need to do less of? And what aren’t you doing that you need to start doing?'"

With tough decisions to be made and a divided government (Republican Legislature and DFL Governor), the rumors floating around the Capitol include a long, drawn-out session with potential gridlock.

Legislative news, both state and federal, can be found at the Minnesota State Colleges and Universities government relations Web site, blog, Facebook page and Twitter page. They can be located at the below sites:

Government Relations Web site

Government Relations Blog

Government Relations Facebook

Government Relations Twitter

Today at the Capitol

12:00 PM
House in Session (televised and webcast live)

12:00 PM
Senate in Session (webcast live)

Looking Ahead

Wednesday, January 5
10:30 AM
Senate Jobs and Economic Growth
Room: 107 Capitol
Chair: Sen. Geoff Michel
Agenda:
Committee Introduction
Testimony/Overview from Grow Minnesota

1:00 PM
Senate State Government Innovation and Veterans
Room: 123 Capitol
Chair: Sen. Mike Parry
Agenda:
Introductions
Committee Jurisdiction Overview
Peter Hutchinson Presentation

Monday, January 10
8:00 AM
Regent Candidate Advisory Council
Room: 400N State Office Building
Chair: Jane Belau
Agenda: Candidate Interviews

Tuesday, January 11
8:00 AM
Regent Candidate Advisory Council
Room: 400N State Office Building
Chair: Jane Belau
Agenda: Candidate Interviews

Wednesday, January 12
8:00 AM
Regent Candidate Advisory Council
Room: 400N State Office Building
Chair: Jane Belau
Agenda: Candidate Interviews

Congressional session ends; Dayton appoints cabinet; MN keeps 8 congressional seats; State Legislature meets Jan. 4

2010-12-23T14:34:00.000-08:00

Lame duck session not so lame as 111th Congress comes to an end

Congress was on a fast-track this week completing its work before adjourning for the year. Congressional members were productive as they acted on a wide variety of legislation, including several items of importance to higher education.

You may recall that the House passed the DREAM Act legislation earlier this month and the Senate tabled consideration of the bill. The Senate took up the bill this past Saturday, however the legislation failed to get the 60 votes needed to end a filibuster, so the DREAM Act bill is dead for now. The vote was 55-41.

We last reported that the House had passed a full year funding resolution that freezes fiscal year 2011 discretionary appropriations at the fiscal year 2010 level; and within that ceiling, adjusts funding between programs. The Senate had yet to take action on fiscal year 2011 appropriations with the hope of potentially wrapping all 12 appropriation bills into one large omnibus bill.

The Senate did not have enough votes to pass a measure to provide funds through the entire fiscal year. So this week Congress passed a continuing funding resolution that will provide funds until March 4, 2011 at the fiscal year 2010 funding levels for most government programs. This will require the new Congress come January, to determine the funding levels for the remainder of fiscal year 2011.

For higher education, the continuing resolution funds the Pell Grant program for the entire year and covers the fiscal year 2010 shortfall. This funding level will ensure that the maximum Pell Grant award remains at $5,550 for academic year 2011-2012.

The 112th Congress will convene on January 5, 2011.

Governor-elect Dayton begins announcing his cabinet appointments

Governor-elect Mark Dayton has begun to build his administration, but many more announcements have yet to be made. Most recently Ken Peterson was appointed the Commissioner of Labor and Industry. Peterson was Minnesota's labor and industry commissioner during Gov. Rudy Perpich's administration. Heading up the Department of Agriculture will be former state Senator David Frederickson, and Dayton announced he will retain the current Department of Transportation Commissioner Tom Sorel.

Also part of Dayton's senior staff will be longtime Senate Counsel Peter Wattson. Wattson will be Dayton's General Counsel. Tina Flint Smith will be Dayton's Chief of Staff. Smith was most recently the Chief of Staff to Mayor RT Rybak and ran Rybak's bid for governor.

Dayton's campaign manager and long-time employee, Dana Anderson, will be the Deputy Chief of Staff, and Dayton's campaign communications director, Katie Tinucci, will be the Press Secretary for the new Administration.

The Deputy Chief of Staff for Legislative Affairs will be Michele Kelm-Helgen. Kelm-Helgen was most recently serving as the Chief of Staff for the Minnesota State Senate. Andrea Mokros, will become the Deputy Chief of Staff for Communications and Outreach. Mokros is currently Principal of Mokros Strategies, LLC, and served as Deputy Chief of Staff to U.S. Senator Amy Klobuchar.

A new director for the Minnesota Office of Higher Education, or MOHE, has not yet been announced. David Metzen, the current director of MOHE in the Pawlenty administration, is leaving to become provost for Globe University based in Woodbury.

Governor-elect Dayton will continue to fill out his administration as he prepares to take office January 3, 2011.

Minnesota retains 8 congressional seats

There has been an on-going concern that Minnesota might lose a congressional seat due to the slow population growth compared to other states. Earlier this week, the U.S. Census Bureau announced the 2012 reapportionment results from the 2010 census. While the race to keep our 8th seat was tight, Minnesota did prevail. The U.S. Census Bureau releases information every ten years that prompts states reapportion the number of congressional seats in the U.S. House of Representatives.

With redistricting coming up, a loss of a congressional seat would surely have been a political fight. The new Republican majorities in both the House and Senate have created redistricting committees. Rep. Sarah Anderson, R-Plymouth will lead the redistricting effort in the House, and Sen. Geoff Michel, R-Edina, will be the lead in the Senate.

Legislators prepare for January 4

New Republican leadership has been preparing for the 2011 legislative session. Electing leadership positions, creating a new committee structure, assigning committee chairs and appointing members to each committee, are among the many responsibilities leadership has been handling. We recently shared with you the newly announced committee rosters. I am re-attaching them here.

The House Higher Education Policy and Finance committee is scheduled to meet Tuesdays and Thursdays 12:30-2:15 p.m. In the Senate, the Higher Education committee will meet Mondays and Wednesdays 3:00-4:30 p.m. If you are interested in seeing the complete House committee schedule, you may find it here.

You may check the government relations Web site throughout the upcoming session for further information and resources.

House Higher Education Committee members named

2010-12-23T07:11:00.000-08:00

The membership for the 2011-2012 House committees was recently announced. Members of the higher education committee are:

Rep. Bud Nornes, R-Fergus Falls, Chair
Rep. Bob Dettmer, R-Forest Lake, Vice Chair
Rep. Tom Rukavina, DFL-Virginia, DFL Lead
Rep. King Banaian, R-St. Cloud
Rep. Mike Benson, R-Rochester
Rep. Kurt Daudt, R-Crown
Rep. Connie Doepke, R-Orono
Rep. David Hancock, R-Bemidji
Rep. Pat Mazorol, R-Bloomington
Rep. Bruce Vogel, R-Willmar
Rep. Joe Atkins, DFL-Inver Grove Heights
Rep. Terry Morrow, DFL-St. Peter
Rep. Kim Norton, DFL-Rochester
Rep. Gene Pelowski, DFL-Winona
Rep. Jeanne Poppe, DFL-Austin

Senate Higher Education Committee members named

2010-12-22T13:27:00.000-08:00

The Senate has released the committee membership for the 2011 legislative session. The make-up of the higher education committee is as follows:

Sen. Michelle Fischbach, R-Paynesville, Chair
Sen. Jeremy Miller, R-Winona, Vice Chair
Sen. Sandy Pappas, DFL-St. Paul, DFL Lead
Sen. David Brown, R-Becker
Sen. John Carlson, R-Bemidji
Sen. Joe Gimse, R-Willmar
Sen. John Pederson, R-St. Cloud
Sen. Clair Robling, R-Jordan
Sen. David Senjem, R-Rochester
Sen. Ron Latz, DFL-St. Louis Park
Sen. Tom Saxhaug, DFL-Grand Rapids
Sen. Kathy Sheran, DFL-Mankato
Sen. Rod Skoe, DFL-Clearbrook
Sen. David Tomassoni, DFL-Chisholm

Information about the House committee membership will be posted when known.

Dream act passes, Dayton is governor, Higher education tax legislation, MN's Kline to take office

2010-12-09T14:10:00.000-08:00

Dream Act passes House, tabled in Senate

By a vote of 216-198, the U.S. House of Representatives passed the Dream Act bill last night that would create a path to citizenship for undocumented college students and make such students eligible for federal financial aid. The Senate voted earlier this morning by a vote of 59-40 to table consideration of the bill.

Emmer concedes governor's race, Dayton to take office next month

At his home in Delano yesterday, Tom Emmer conceded the governor's race to Mark Dayton. At Emmer's news conference, he said the integrity of the election is of utmost importance, but at the same time it is imperative that "we" allow the next Legislature and governor to govern. He went on to say he doesn't believe we should delay the process. Emmer said that he was proud of his campaign, and as a conservative came within 8,700 votes in a race few thought would be that close. He congratulated Mark Dayton and offered to help him in anyway he could. "It is our job to make sure he can be the best possible governor he can be," Emmer said.

Less than two hours after Emmer’s announcement, the state canvassing board certified Dayton the winner. Governor-elect Dayton thanked Rep. Tom Emmer for his integrity and graciousness at his news conference, also yesterday. He also thanked all the workers and volunteers that helped on his campaign and promised he will work to the best of his ability on behalf of the people of Minnesota. Dayton said we face difficult decisions ahead with the $6.2 billion budget deficit, and asked for everyone's ideas, talents and help in making a better Minnesota for everyone. Dayton will now begin to build his administration as he prepares to take office Jan. 3, 2011. He did say he would name his Chief of Staff within 48 hours.

Federal tax legislation includes components for higher education

As Congress wraps up the year and the 111th Congress, President Obama and Republican Congressional members reached a deal Monday on tax legislation that extends for two years the Bush-era income tax cuts in exchange for an extension of unemployment benefits and a payroll tax holiday.

The measure includes benefits of importance to colleges and students. The legislation extends for two years the American Opportunity Tax Credit, or AOTC, which was created in the American Recovery and Reinvestment Act. The AOTC builds on the previous Hope Scholarship Tax Credit and provides a tuition tax credit worth up to $2,500, a student-loan interest deduction worth up to $2,500, and a benefit that allows companies to provide up to $5,250 in tax-free tuition assistance to their employees.

The House Democratic Caucus however voted today to not bring up the tax legislation in its current form. This non-binding vote held during a closed meeting of the caucus puts pressure on House leaders to push for changes to the legislation and raises questions about whether the deal will move to the House floor for a vote.

Kline to chair House Education and Labor Committee

It's official. Rep. John Kline of the second district in Minnesota will be the chair of the House Education and Labor Committee when the Republicans take control of the U.S. House of Representatives next month. The House GOP conference voted on the slate of committee chair recommendations yesterday.

Congressman Kline, who has served as the ranking Republican on the committee since 2009, says he hopes the committee's work will help improve the economic climate and lead to more jobs. He says he also hopes to simplify federal law.

Speaker designee John Boehner, R-Ohio, said of Kline’s election as chairman of the Education and Labor Committee, "He's a savvy legislator who knows how to lead and can bring together members on both sides of the aisle to do what's best for our country."

2011 full year funding resolution passes House

As Oct. 1, the start of a new fiscal year, came and went without Congress passing any of the 12 appropriation bills for fiscal year 2011, the U.S. House and Senate passed a funding measure late September to keep federal government programs operating at current fiscal year 2010 funding levels until Dec. 3. As Congress works through a lame duck session, a further continuing resolution was passed Dec. 1 providing for a 15 day extension until Dec. 18, 2010.

Yesterday the House passed a full year funding resolution by a vote of 212 to 206 that freezes fiscal year 2011 discretionary appropriations at the fiscal year 2010 level. Within that ceiling, the measure adjusts funding between programs and accounts to deal with current demands and workloads. Overall, the Act includes $513 billion for the Department of Defense, $4.9 billion above 2010; $75.2 billion for military construction and veterans, $1.4 billion below 2010; and $501.4 billion for all other appropriations, $3.5 billion below 2010.

For education specifically, the bill provides $5.7 billion more for Pell grants to meet the current funding shortfall that has arisen because more people are qualifying for the grant. The discretionary portion of the maximum Pell Grant award is maintained at $4,860 which, combined with a mandatory supplement of $690, will support a $5,550 maximum Pell Grant in fiscal year 2011, the same as the 2010 level.

The bill also adjusts funding to allow the office of Federal Student Aid to maintain services to students and families in implementing the transition to 100 percent direct student lending mandated by law, and provides $550 million for Race to the Top, which was not funded in 2010.
You may find a summary of the bill here.

The bill now awaits action by the Senate, which could take up the resolution as a stand-alone bill or handle 2011 spending by wrapping all the appropriations bills into one "omnibus" bill and send it back to the House for a final vote.

Higher education, 2010 elections and the economy

The American Association of State Colleges and Universities, or AASCU, prepared a policy brief that examines November's elections as it relates to public higher education. In addition to discussing policy implications at the state and federal level, the paper explores the changing political and policy dynamics in governors' offices, state legislatures and Congress, as well as future implications of redistricting. Also included are higher education policy issues that may be taken up by the 112th Congress. You may find the brief here.

AASCU has also released a brief entitled, State Outlook: Fiscal and State Policy Issues Affecting Postsecondary Education. This document is a compilation of key economic trends, fiscal conditions and state policy actions that can serve as a helpful resource in preparation for the 2011 legislative session and can be found here.

Special session scheduled

2010-10-14T15:29:00.000-07:00

Gov. Pawlenty has scheduled a special session for Monday, Oct. 18 at 1:00 p.m. to address flood relief in southern Minnesota. Pawlenty had earlier called a special session for this week; however, it was rescheduled to allow for a federal disaster to be declared, which President Obama did yesterday for 21 affected counties. Lawmakers will vote on a bill that includes approximately $74 million in flood relief.

The special session will also include help for areas damaged by tornadoes earlier this summer. $5.2 million is slated for 13 storm-damaged counties. It also includes $750,000 to update Wadena’s existing pre-design and design plans for public facilities and $693,000 for school districts that incurred uninsured losses to buildings and equipment. Students in grades 9 - 12 from the local Wadena high school have been taking classes at the Minnesota State Community and Technical College, Wadena since the start of school this fall, and are expected to attend classes there for the next two years.

The Senate Finance Committee is scheduled to meet Monday, Oct. 18 at 8:00 a.m. in room 123 of the State Capitol to review the 2010 Disaster and Emergency Assistance legislation prior to the special session convening at 1:00 p.m. Following the Finance Committee, the Capital Investment committee will meet to review the bill at 9:30, also in room 123 of the Capitol. The Senate Taxes Committee is scheduled to review the legislation at 10:30 in room 15 of the Capitol.

The House Finance Committee is scheduled to meet the morning of Oct. 18 at 9:00 a.m. in room 200 of the State Office Building.

Three gubernatorial candidates explain views on higher education

2010-10-07T10:36:00.000-07:00

Videotaped interviews of candidates are available online

The three major gubernatorial candidates offered their views about tuition, budget priorities, jobs for graduates, online learning and other higher education issues in videotaped interviews with Scott Thiss, chair of the Board of Trustees and a student leader, Caitlin Stene.

Their responses are available online here.

“We are pleased that the three candidates answered questions that are important to our students and system,” Thiss said. “The Minnesota State Colleges and Universities system is critical to helping the state ensure that it has a well-educated and competitive workforce and that it has active and engaged citizens.”

The candidates - Democrat Mark Dayton, Republican Tom Emmer and Independent Tom Horner - answered questions from Stene, who represented the Minnesota State University Student Association and the Minnesota State College Student Association, and Thiss.

The interviews were sponsored by the Board of Trustees in partnership with the two student associations. The three candidates were asked the same questions in individual sessions.

Travis Johnson, president of the state college student group, said: “We have been working hard to get our students registered and mobilized, and these videos go a long way to help voters make an informed decision about this very important issue. Quality, affordable and accessible higher education is not a luxury in today's economy. It is an indispensable part of creating jobs, providing security for working families and getting the economy back on track.”

Caitlin Stene, vice chair of the state university student association, said: "I believe it is important our members hear about the issues that matter to them from the gubernatorial candidates. This might be the only avenue to hear directly from these individuals about rising tuition costs, state funding for higher education, online courses, and other topics that directly affect our state university students. This effort fits into our goal of getting out the student vote this election."

Besides being posted online here, the videos will be shown at various campus events this fall.

The Minnesota State Colleges and Universities system comprises 32 state universities and community and technical colleges serving the higher education needs of Minnesota. The system also serves about 277,000 students per year in credit-based courses and an additional 157,000 students in non-credit courses.

Congress passes funding bill; White House holds community college summit; Dream bill fails; State election update

2010-10-05T10:14:00.000-07:00

Congress Passes Funding Measure

With the start of a new fiscal year today, Oct. 1, the U.S. House of Representatives and Senate passed a funding measure earlier this week to keep federal government programs operating at current fiscal year 2010 funding levels. The approved continuing resolution is in effect until Dec. 3, 2010.

Congress is expected to come back into session after the November elections. Members are scheduled to return for a week, the week of Nov. 15, and then return the week of Nov. 29 to finish business. When Congress returns, they will address a funding measure that will provide funding for all or part of fiscal year 2011.

There are 12 appropriations bills Congress needs to act on, including the bill that addresses higher education, the Labor-HHS-Education bill. In the Senate, that bill was approved by the full Appropriations committee late July. In the House, the Labor-HHS-Education appropriations subcommittee approved a draft bill mid-July. The main difference between the two bills is largely attributable to Pell Grant funding. The House includes $5.7 billion toward the Pell Grant shortfall, while the Senate does not include any funding.

Community College Summit to meet next week

The White House is hosting a summit next week to discuss how community colleges can ensure that the U.S. has the best educated workforce in the world in order for businesses in the United States to compete in the global economy. Summit participants will also address President Obama’s goal to lead the world with the highest proportion of college graduates by 2020.

The opening and closing session of the White House Summit on Community Colleges will be streamed live Tuesday, Oct. 5. The opening session begins at 12:15 p.m. EDT and the closing session begins at 3:00 p.m. EDT. You can find a link here.

Summit participants include; Dr. Jill Biden, wife of Vice President Joe Biden and a community college English professor, who will lead the summit; U.S. Education Secretary Arne Duncan; U.S. Labor Secretary Hilda Solis; Admiral Mike Mullen, chair of the Joint Chiefs of Staff; Melinda Gates, co-chair of the Bill and Melinda Gates Foundation; William Green, chair and CEO of Accenture; Eduardo Padrón, president of Miami Dade College in Florida; Jim Jacobs, president of Macomb Community College in Michigan; Ted Carey, president of the American Student Association of Community Colleges; Albert Ojeda, graduate of Estrella Mountain Community College in Arizona; and an honors student at Arizona State University.

The White House has been accepting questions and topics for discussion here.

AASCU Policy Brief now available - Boosting Financial Literacy in America: A Role for State Colleges and Universities

The American Association of State Colleges and Universities, or AASCU, has released the latest installment from its Perspectives series entitled; Boosting Financial Literacy in America: A Role for State Colleges and Universities. The papers released by AASCU take a more in-depth look at current higher education issues. This most recent paper can be found here.

State colleges and universities have an opportunity to provide financial education programs and services that can elevate financial literacy. This paper discusses the implications financial literacy has on the collective economic and societal interests and sets forth arguments for why state colleges and universities are well-positioned to meet this challenge.

DREAM Act bill falls flat

Last week, U.S. Senate Democrats attempted to offer the DREAM Act bill as an amendment to the Defense Department bill. Democrats, who hold the majority in the Senate, only needed one Republican vote in order to get the 60 votes necessary to take up the Defense bill without threat of a filibuster. They did not get the 60 votes needed and instead the Senate proceeded to the debate on the full bill.

The DREAM Act would create a path to citizenship for undocumented students and make them eligible for some federal student aid. Supporters see the DREAM Act as the solution to many barriers facing illegal immigrants who want to enroll in college and go on to well-paying jobs and productive lives in the United States. Those who oppose the measure, say it would reward illegal behavior and encourage more immigration.

Supporters of the DREAM Act say this is only a setback and have vowed to find another legislative vehicle for the bill.

Gubernatorial candidates discuss higher education

The three major candidates running for governor in Minnesota: Independent candidate Tom Horner, Republican candidate Tom Emmer, and DFL candidate Mark Dayton, visited the Minnesota State Colleges and Universities Office of the Chancellor last week for a brief interview with Board of Trustees Chair Scott Thiss and Winona State University Student Caitlin Stene.

The candidates for governor forum was sponsored by the Minnesota State Colleges and Universities Board of Trustees, the Minnesota State College Student Association and the Minnesota State University Student Association. The taped interviews, which include each candidates thoughts on higher education, and specifically the Minnesota State Colleges and Universities system, will be available soon for viewing. We will notify you when the link is available.

As a reminder, election Day is Nov. 2, 2010. Offices up for election this year are state senators and representatives, state executive officers including the governor, and U.S. representatives. You may tune in to election activity and campus events on the government relations Web site.

Final legislative wrap-up

2010-05-17T11:59:00.000-07:00

2010 Legislative Summary
Session review

The 2010 legislative session began with a flurry of activity Feb. 4 with the Senate Capital Investment committee rolling out their version of a bonding bill the first day of session. After spending the summer and fall traveling the state touring bonding projects, lawmakers were ready to get to work on a bill. Between the House, Senate and Minnesota Management and Budget, colleges and universities in the system hosted over 50 bonding visits. Traditionally, the bonding bill is not completed until the end of session; however, Rep. Alice Hasuman, DFL-St. Paul, and Sen. Keith Langseth, DFL-Glyndon, chairs of the House and Senate Capital Investment committees, said that the bill should stand alone and not be delayed until the end of session, because interest rates are low and bids are coming in low.

Lawmakers passed two different bills out of conference committee. When it appeared the governor would veto the first bill, legislative leaders pulled the bill back to re-work it and include projects the governor wanted. The final bill sent to the governor included $239 million (including user financing) in projects and repair and replacement for the Minnesota State Colleges and Universities system, which was a reduction of $66 million from the first bill. The governor line-item vetoed the bonding bill down to $680 million with cuts to the system projects over $130 million. In the final days of session, lawmakers attempted to make one last run at a bonding bill to include the vetoed projects, however the bill, HF 3492, ended up being only technical in nature.

Also competing for lawmakers attention in what is normally considered a bonding year, was an anticipated $1.2 billion budget shortfall for the current biennium, which was later adjusted in the February Forecast to $994 million for the biennium. For the upcoming FY2012-13 biennium, Minnesota Management and Budget projected a $5.8 billion shortfall.

A total reduction of $46.6 million was targeted for higher education. Under the 2009 American Recovery and Reinvestment Act, each state was required to follow a “maintenance of effort” spending proposal in education. If a state chose to receive federal education funding, it could not dip below the 2006 funding levels. This meant that Minnesota could only cut $46.6 million more out of the higher education budget in fiscal year 2011. If the cut was distributed in accordance with 2006 funding levels, the Minnesota State Colleges and Universities would receive a $10.467 million cut while the University of Minnesota would see a reduction of 36.1 million. The governor recommended a reduction to the Minnesota State Colleges and Universities system of $10.5 million and the House and Senate followed with the same recommendation for the system.

The Legislature approached the almost $1 billion budget deficit in three phases. The first phase resolved approximately one-third of the state’s budget deficit through a supplemental budget bill that made $313 million in reductions to state agencies and cuts to county and city aid. The reductions included $10.5 million to the Minnesota State Colleges and Universities system. The next two phases in the budget balancing process were slated to be the health and human services bill and the K-12 education bill. After passing the first budget bill, lawmakers went home to their districts for an Easter/Passover break and there were rumors around the Capitol that the Legislature would take an extended recess while waiting for Congress to pass legislation that would appropriate a little over $400 million to the state in federal funds.

However, legislators stayed in St. Paul and worked on other issues, such as K-12 education initiatives to help strengthen a potential second application for Race to the Top. As lawmakers worked to balance the remaining deficit, which included using the $408 million in federal funds to plug the majority of the remaining $536 million shortfall, two things happened; it became clear Congress would not pass legislation in time to rely on the $408 million in federal funding, and the Minnesota Supreme Court overturned Gov. Pawlenty’s unallotment from the 2009 session. While a nutritional program was the only plaintiff in the case and the court ruled on that program only, lawmakers and the governor were concerned about other cases being brought forward and sought to resolve what they considered to be a $3 billion deficit.

The last week of session, the Legislature passed a budget balancing bill that resolved the $3 billion deficit, and included $433 million in revenue through a fourth tier income tax bracket. As soon as the bill arrived on the governor’s desk he vetoed it claiming the tax increase would disproportionately harm small business owners and hamper job creation in the state. Gov. Pawlenty also said the bill does not do enough to address a projected nearly $5 billion deficit for the 2012-2013 biennium. Lawmakers got back to work on a bill.

Lawmakers worked around the clock the last remaining days of session to wrap-up outstanding bills and try to find an agreeable solution to balance the budget. The House and Senate passed another budget bill to solve the state’s shortfall but lawmakers did not have a firm agreement with Gov. Pawlenty. The bill was passed in the remaining hours and would resolve the deficit mostly through spending cuts. Negotiations over the bill fell apart however, over a provision dealing with health care funding.

The 2010 regular legislative session came to an end at approximately five minutes to midnight Sunday, May 16 when the House and then Senate adjourned sine die. House Majority Leader Tony Sertich, DFL-Chisholm, said the Legislature had an agreement with the governor, and at 12:01, Monday, May 17, the governor would call lawmakers back for a special session. Members reconvened for a special session at 12:01 a.m., May 17, and the agreed-upon budget balancing bill became HF 1 / SF 1.

The $50 million unallotment for the Minnesota State Colleges and Universities system was included in the bill. The cut was divided between the Office of the Chancellor and the campuses with a cut of $2.079 to the Office of the Chancellor and $47.9 million to the campuses. There is also rider language that states none of the reductions made in the Office of the Chancellor may be charged back or allocated to the campuses.

Members passed HF 1/SF 1 and the Senate adjourned the special session at 10:45 a.m. Monday, May 17 and the House adjourned shortly thereafter. The complete bill can be found here.

Bonding Bill

Early in the session, lawmakers passed a $1 billion bonding bill, which included $305.9 million in projects and repair and replacement for the Minnesota State Colleges and Universities system. Gov. Pawlenty indicated he would veto the bill due to the large size, so legislators held back the bonding bill in order to try and reach a compromise. The capital investment conference committee went back to work to revise the bill. Members brought the total down slightly from $999.9 million to $986.4 million, and included the core projects identified by the governor. The bill was revised once again to include an $11.5 million increase for the sex offender treatment facility in Moose Lake that the governor wanted, and was sent to the governor at $999.6 million. The new bill included $239 million (including user financing) in projects and repair and replacement for the system, which was a reduction of $66 million.

Gov. Tim Pawlenty line-item vetoed the bonding bill down to $680 million. In his veto letter to legislative leadership, the governor told lawmakers that “like any family or business, state government needs to live within its means and follow a budget,” and that he had said earlier he would not sign a bill as large as what was presented to him. The final bill the governor signed however; was smaller than his initial bonding recommendation. The governor cut 16 projects from the system, which totaled more than $130 million in line-item vetoes. Those vetoes include:

• Anoka Ramsey Community College fine arts building renovation - $5,357,000
• Anoka Ramsey Community College bioscience and allied health addition - $400,000
(original request was $16,484,000)
• Hennepin Technical College learning resource center - $10,566,000
• Minneapolis Community and Technical College workforce program renovation - $12,990,000
• Ridgewater College lab construction and renovation - $14,300,000
• South Central College, Faribault classroom renovation and addition - $13,360,000
• North Hennepin Community College bioscience and health careers center addition - $600,000
(original request was $26,581)
• Minnesota State University Moorhead Livingston Lord library and information technology renovation - $14,901
• Southwest Minnesota State University science lab renovation - $200,000
(original request was $5,666,000)
• St. Cloud State University integrated science and engineering laboratory facility - $42,334,000
• Dakota County Technical College transportation and emerging technologies lab renovation - $300,000
(original request was $7,230,000)
• Rochester Community and Technical College workforce center co-location - $3,238,000
• System wide initiative (nine campuses) for renovation of STEM classrooms - $4,835,000
• Minnesota State University, Mankato clinical science building design - $1,908,000
• Minnesota West Community and Technical College, Canby wind turbine training facility - $200,000
• Mesabi Range Community and Technical College engineering program - $3,000,000

Also included in the bill was an appropriation for $200,000 for a matching grant to Pine Technical college to design, construct, furnish and equip an entrepreneurship and technology business incubator. Lawmakers included $12 million to the City of Mankato to expand the Civic Center, including a performing arts theater and the Southern Minnesota Women’s Hockey Exposition Center for joint use by the city and Minnesota State University, Mankato; however, the governor vetoed this project.

The final bill includes lease revenue language for St. Cloud Technical College. The Minnesota State Colleges and Universities are to pay Minnesota Management and Budget one-third of the lease revenue received from the Allied Health Building property acquired for St. Cloud Technical College. The bill also includes language that allows a campus to use any unspent portion of an appropriation for a project that is completed for HEAPR purposes at the campus.

Budget Bill

The February economic forecast indicated that the state would be facing a $994 million state budget deficit for fiscal year 2011. The Legislature approached the almost $1 billion budget deficit in three phases. The first phase resolved approximately one-third of the state’s budget deficit through a supplemental budget bill that made $313 million in reductions, including a cut to the Minnesota State Colleges and Universities system.

Included in the higher education article of the bill is $10.467 million in reductions to the system in fiscal year 2011. Of the cut to the system, $500,000 is to be reduced from the central system office, along with an additional $500,000 internal obligation. The bill includes language that says the Board of Trustees must make a good-faith effort to make the reductions at campuses and the central office in a manner that minimizes reductions related to providing direct services to students and maximizes reductions for administrative services not providing direct services to students. The bill also increases the revenue fund authority in statute from $200 million to $300 million for college and university revenue fund projects.

In the area of financial aid, lawmakers had to fill a $42 million state grant shortfall. In committee testimony, Rep. Lyndon Carlson, DFL-Crystal, explained the circumstances behind the shortfall. Carlson said many more students are enrolling in 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, fiscal year 2011. Carlson also said that it is difficult to predict how much funds 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. Due to the shortfall, an average loss students will see in their state grant awards is $300, but some students could see up to a reduction of $1,000 in their state grant. 7,000 students will lose their state grant award altogether and over 5,000 of those students are from lower cost two-year community and technical colleges.

The state grant shortfall was a topic of much debate among legislators. Rep. Tom Rukavina, DFL-Virginia, chairman of the House higher education committee expressed his regret at having to cut the state grant program and indicated he had hoped more could have been done for the students and higher education.

The bill reduces state work study $1.768 million in fiscal year 2011, and also reduces the summer transition grant funding by $1 million in fiscal year 2011. The bill reduces from nine to eight, the number of semesters that a student can attend while maintaining eligibility for the state grant program. A provision in the bill increases the assigned student responsibility and the assigned family responsibility. Both of these actions will help to resolve the shortfall. The bill also modifies the Achieve scholarship program and reduces the technical and community college emergency grants and makes clear that the emergency grant appropriation in fiscal year 2009 was a one-time appropriation. The bill also increases the borrowing limit for the SELF Loan program. The complete bill can be found here.

Higher Education Policy Bill

In addition to the budget bill, lawmakers passed a higher education policy bill. As of the time of this writing, the governor has not yet signed the bill. Included in the bill is:

• Language that increases the age of a senior citizen in statute from 62 to 66 to receive a tuition discount.

• Requirement of colleges and universities to make a reasonable attempt to identify and purchase locally grown food.

• The system, Minnesota Chamber of Commerce and representatives of industry groups and labor unions are to study program requirements for certificates and diplomas awarded by the system to determine the feasibility of designing technical education programs to allow students to have more opportunities to earn credentials with lower credit requirements that could be combined into higher level certificates or diplomas.

• Office of the Chancellor is required 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 any services provided at the institution level.

• Post-retirement health insurance premium reimbursement language.

• Board of Trustees is required to establish a pilot project to develop partnerships and training and employment opportunities for surgical technologists at institutions that offer a surgical technologist program.

• Minnesota State Colleges and Universities system and the University of Minnesota are required to study nanotechnology research and education and report to the Legislature on ways nanotechnology is used responsibly and safely.

• Pilot project language that would establish up to eight institutions in the Minnesota State Colleges and Universities system to invest some campus reserves in a local bank.

• The Office of Higher Education is required to monitor the implementation of the Higher Education Opportunity Act as it relates to disclosure of textbook pricing and other information to students.

• Credit transfer language that requires the Board of Trustees to develop and implement a plan to improve credit transfers within the system. The Board may convene working groups of affected faculty, staff, students and administrators in the system to work on issues and barriers to credit transfer. The language also states the Board must provide systemwide transfer information on campus Web sites necessary to determine the transferability of course credits, and the information must be easily accessible and kept current. The complete bill can be found here.

Contract Ratification Bill

Legislators passed the contract ratification bill the last couple weeks of session and the governor signed the bill May 13, 2010. An amendment was included in the bill that requires the Minnesota State Colleges and Universities system to submit a summary of the proposed agreements, awards or plans to Minnesota Management and Budget at a time and in a manner specified by the commissioner, so the commissioner can post information relating to these appointing authorities on the Web site. The bill includes the contracts and plans for Minnesota State College Faculty or MSCF; the Minnesota State University Association of Administrative and Service Faculty or MSUAASF; the American Federation of State, County and Municipal Employees or ASCFME, the Minnesota Association of Professional Employees or MAPE; the Middle Management Association or MMA; the Minnesota State Colleges and Universities Administrators; the Commissioner’s Plan; and the Managerial Plan.

State Employee Retirement Incentive Bill

The Legislature passed an early retirement incentive bill, Chapter 337, this session that was introduced in the 2009 session, however failed to make it to the governor’s desk last year. Lawmakers took up the bill again this session, passed it, and the governor signed the legislation into law May 13, 2010. The bill provides for employer discretion regarding who will be offered the incentive while taking into consideration equity, budgetary constraints and workforce planning concerns. Executive, legislative and judicial branch employees are eligible for the incentive, including Minnesota State Colleges and Universities employees. The employee has to have at least 15 years of service and is eligible for retirement. The incentive is an amount equal to the value of up to 24 months of employer paid medical and dental insurance programs to be paid into the employee’s pre-tax Health Care Savings Plan.

Omnibus Pension Bill

The omnibus pension bill worked its way through the Legislative Commission on Pensions and Retirement and the appropriate legislative committees, the differences between the House and Senate bills were worked out in conference committee, and the final bill passed both bodies prior to being sent to the governor. The last few days of session the governor’s spokesman, Brian McClung indicated the governor would veto the bill. The bill's Senate author, Don Betzold, DFL-Fridley, noted that the bill was the product of a year's worth of negotiations, and said the veto threat came as a surprise to him. Gov. Pawlenty did end up signing the bill in the final hour. The bill includes a provision that authorizes the Minnesota State Colleges and Universities system to contract out for investment selection and review services for the Individual Retirement Account Plan with providers other than just the State Board of Investment.

Omnibus Agriculture and Veterans Affairs Bill

The omnibus agriculture and veterans affairs bill includes a provision that extends the sunset on the veteran centers on higher education campuses from June 30, 2011 to June 30, 2012. Included in the bill is language that requires the commissioner of veterans affairs to report to the Legislature regarding alternative funding sources for the higher education veterans assistance program. Also included in the bill is language that requires the commissioner of agriculture to convene one or more meetings with milk producers, other industry stakeholders, and representatives of the University of Minnesota and the Minnesota State Colleges and Universities system whose work relates to the dairy industry, to consider the elements of a dairy research and education facility which would represent a partnership between higher education institutions and the dairy industry.

Omnibus Economic Development Bill

The employment and economic development policy bill was signed by the governor with the exception of two line-item vetoes; $2 million for a grant to the Mountain Iron Economic Development Authority for renewable energy projects, and an appropriation of 2.706 cents per ton to the Virginia Regional Medical Center for operating room equipment and renovations. Included in the bill that relates to the Minnesota State Colleges and Universities system includes language regarding the Minnesota Science and Technology Authority. Included in the duties of the Authority is working with the University of Minnesota, Minnesota State Colleges and Universities and the Mayo Clinic in promoting collaborative efforts to respond to federal funding opportunities. A Science and Technology Initiative Advisory Commission of 18 members is established in law and includes two representatives from the system, including a faculty member actively involved in science and technology research.

The bill also adds an additional duty of the Board of Trustees in statute. The Board must identify colleges offering flexible academic programs that accommodate the needs of laid-off workers and assist its other institutions in determining whether to offer similar programs. Language reads that colleges must increase the number of certificate programs available to meet the needs of unemployed Minnesotans.

Omnibus K-12 Education Bill

The K-12 education bill traveled a long road this session. The original bill in the House, HF 2431, which made its way through the committee process over the duration of the session, was tabled late in the session in the House Ways and Means committee, so it was replaced with HF 3833, another omnibus bill. That bill was fast-tracked and passed the House during the last week of session. The Senate did not have one omnibus K-12 education finance and policy bill, instead the Senate split proposals into smaller bills.

In the final hours of session, the House took up HF 2072, a third version of an omnibus K-12 education bill, sent it to conference committee, and then passed the final bill on the floor. However, the Senate rejected the bill. The House voted to give school boards the power to renew expiring property tax hikes without voter approval, but the Senate voted the bill down to send back to conference committee. Opponents said the proposal would deny voters the ability to renew a property tax increase previously approved by referendum. The bill also did not include the controversial provision regarding alternative teacher licensure or address job evaluation for existing teachers. Throughout session, the bill contained some contentious issues as lawmakers and the governor tried to put together a second-round application for federal Race to the Top funds. The governor, legislators and teacher unions could not agree on some of the key reforms that are part of the grant application criteria, including alternative teacher licensure.
During the special session Monday morning, legislators tried one more time to pass a bill, and took up the K-12 education bill in the form of SF 2 / HF 2. Members on the Senate floor said they were able to work out an agreement with the governor, and the Senate passed the bill. However, the House was unable to get enough votes needed (90) to suspend the rules and take up the bill. So the omnibus K-12 education bill once again did not pass.

Wrap-up

The bills summarized in this report do not include all bills passed during the 2010 session that relate to the Minnesota State Colleges and Universities system. Please watch for Mandates and Curiosities, the annual publication that highlights and summarizes new laws relating to higher education in Minnesota, to be posted to the government relations Web site in the coming weeks.

The 2011 legislative session is scheduled to begin January 4, 2011. When lawmakers return to St. Paul for the 2011 legislative session, the make-up of the Legislature will look different. 21 legislators have announced their retirement, including Representatives Dan Severson, R-Sauk Rapids, Larry Haws, DFL-St. Cloud, Rob Eastlund, R-Cambridge, Tom Emmer, R-Delano, Marty Seifert, R-Marshall, Laura Brod, R-New Prague, Jeremy Kalin, DFL-North Branch, Doug Magnus, R-Slayton, Randy Demmer, R-Hayfield, Paul Kohls, R-Victoria, Karla Bigham, DFL-Cottage Grove, Margaret Anderson Kelliher, DFL-Minneapolis, and Cy Thao, DFL-St. Paul.

Retiring senators include Senators Tarryl Clark, DFL-St. Cloud, Steve Dille, R-Dassel, Dennis Frederickson, R-New Ulm, Debbie Johnson, R-Ham Lake, Mee Moua, DFL-St. Paul, Jim Vickerman, DFL-Tracy, Steve Murphy, DFL-Red Wing, and Pat Pariseau, R-Farmington.

The primary election this year has been moved up to August 10, 2010 and Election Day is November 2, 2010. Offices up for election this year are state senators and state representatives, state executive officers including the governor, and U.S. representatives. You may tune in to election activity and campus events on the government relations Web site here.

Be sure to keep up on legislative news, both state and federal, at the Minnesota State Colleges and Universities blog, Facebook page and Twitter page. They can be located at:

Government Relations Blog

Government Relations Facebook

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Countdown to session end; Federal updates on STEM, stimulus funds and credit cards

2010-05-14T14:15:00.000-07:00

Legislative Update
May 14, 2010

Countdown to the end of session

With just a little over two days remaining until adjournment, legislative leaders and Gov. Pawlenty continue to negotiate a session-ending deal to balance the budget. According to the constitution, lawmakers must adjourn Monday, May 17, but note the Legislature is not allowed to pass bills the last day of session. So for all practical purposes, the Legislature will adjourn Sunday at midnight.

Senate Majority Leader Larry Pogemiller, DFL-Minneapolis, said today that the Senate has completed its work and is waiting to put the final touches on the budget balancing approach that will be acceptable to the governor. Pogemiller said if something comes out of conference committee that is good for the state, the Senate will pass it, but there is nothing left that needs to be passed other than a budget bill. Others are arguing there is still a K-12 education bill that should be passed.

The K-12 education bill has traveled a long road this session. The original bill, HF 2431, which made its way through the committee process this session, was tabled late last week in the House Ways and Means committee, so it has been replaced with HF 3833, the most recent omnibus K-12 education bill. That bill was fast-tracked and passed the House earlier this week by a vote of 86-47. The Senate does not have an omnibus K-12 education finance and policy bill, instead the Senate has split proposals into smaller bills. Lacking a Senate companion, the fate of the House K-12 education bill is unknown.

The higher education policy bill moved this week. After conferees met for the first and only time and passed the conference committee report Wednesday, the Senate passed the bill by a vote of 62-2, and the House passed it 113-17. The bill, SF 184, now heads to the governor. You may find the complete bill here.

A final summary of the 2010 Minnesota legislative session will be sent out Monday, May 17 after the Legislature adjourns sine die.

Please find the latest federal news below.

Science funding legislation stalls

The U.S. House was expected to vote on the America COMPETES law Thursday but the legislation was sent back to committee. This legislation would have doubled the budget of the National Science Foundation, continued funding for science and research programs for five years, and emphasized training in science, technology, engineering and math. The America Creating Opportunities to Meaningfully Promote Excellence in Technology, Education and Science (COMPETES) Act was originally enacted in 2007. It was sent back to committee after Republicans raised concern about the bill creating too many programs and spending too much money.

No stimulus funding for teachers?

Colleges and universities may not receive extra stimulus funding this year to prolong teaching contracts. The Senate Appropriations Committee approved a $58.8 billion supplemental appropriations bill Thursday that did not include the teacher funding provision. Senator Todd Harkin, D-Iowa, originally proposed the education legislation calling for $23.3 billion to be used to "starve off the coming wave of teacher layoffs," he wrote in a press release. Education Secretary Arne Duncan sent a letter to leadership including Senate Majority Leader Harry Reid, D-Nevada, and Speaker of the House Nancy Pelosi, D-California, asking them to reconsider and support this legislation.

Credit card swipe fees reduced under amendment

College bookstores received a victory this week in Congress. The U.S. Senate voted 64-33 Thursday to pass an amendment which would require that fees associated with paying for books on a credit card be "reasonable and proportional" to the cost of the transaction, which could lower the fees colleges pay when students use credit and debit cards to pay for tuition or books. The fees average 1 to 2 percent of the purchase. This amendment is likely to benefit students as costs are sometimes passed onto the consumer. The amendment was tacked onto S.3217, the Restoring American Financial Stability Act of 2010.

Budget negotiations continue; Trustees confirmed; Policy conferees appointed; Nursing supported; Lots of bill passage; Federal Pell grant legislation

2010-05-07T14:43:00.000-07:00

Legislative Update
May 7, 2010

Minnesota Supreme Court overturned governor’s unallotment

The big news this week that is changing the legislative landscape for the remaining 10 days of the session is the Minnesota Supreme Court ruling concerning Gov. Tim Pawlenty's unallotment last year. The court ruled 4-3 that the governor overstepped his executive authority by unilaterally cutting $2.7 billion from the state budget through the unallotment process. In a majority opinion written by Supreme Court Chief Justice Eric Magnuson, the court said the governor used the unallotment in an unintended way by cutting a state nutrition program before the Legislature had adjourned with a balanced budget. Magnuson said the Legislature has the primary responsibility for establishing the state's spending priorities through the enactment of appropriation laws. You can find the complete Supreme Court ruling here.

It appears that the implications of the ruling are much broader than the relatively small provision pertaining to the nutrition program that was the plaintiff in this case, and lawmakers now have to deal with a budget deficit that goes beyond the current $536 million shortfall. With the $2.7 billion unallotment overturned, the shortfall is likely to grow substantially to more than $3 billion. The governor's cut of $2.7 billion included $50 million to the Minnesota State Colleges and Universities system. Chair of the Senate higher education committee Sen. Sandy Pappas, DFL-St. Paul, said in the MinnPost online newspaper that the University of Minnesota and the Minnesota State Colleges and Universities system should not expect restoration of $50 million each from the governor’s unallotments. “Frankly I think that’s pretty unlikely,” she said. “We still have holes in our budget to fill, and so to go back and spend money on something that’s already cut is going to be unlikely, not this year, with this governor.” Pappas also said that because of the federal maintenance-of-effort requirements there are very limited areas in the higher education budget that can be cut. “We’ve cut the maximum we can cut from MnSCU and the University of Minnesota,” Pappas said.

Legislative leaders have been meeting with the governor to discuss how to handle this new deficit. In a press conference late this week, the governor's Deputy Chief of Staff Brian McClung said the governor is looking at the deficit in three parts and looking for ways everyone can agree. The three parts include $1.8 billion in shifts in K-12 school aid payments and property tax recognition, $700 million in unallotment cuts and the remaining $536 million deficit. McClung said he is hopeful lawmakers will at least ratify the $1.8 billion shift; however, while the shift has majority support in the House, there is not widespread support in the Senate. Sen. Larry Pogemiller, DFL-Minneapolis, said in a media availability today that while the Senate does not support the shift, he does acknowledge that it might be necessary to “kick the can down the road,” to resolve part of the deficit. Pogemiller said the Senate DFL caucus would rather make the hard structural decisions. Gov. Pawlenty has asked lawmakers to ratify the $2.7 billion in unallotments. As of the time of this writing, members of the House are debating an amendment on the floor that would enact the unallotments. Pogemiller and House Speaker Margaret Anderson Kelliher, DFL-Minneapolis, said lawmakers will also consider a new round of spending cuts.

Lawmakers will have their work cut out for them this next week as they work to balance the budget before heading home May 17. Pogemiller said today he does not want to work up until the last minute of session resolving the deficit. He said they learned from last session when they attempted to pass a major piece of legislation at the final hour.

Board of Trustee members confirmed by Senate

The full Senate has confirmed Minnesota State Colleges and Universities Board of Trustees members David Paskach and Christopher Frederick. Trustee Paskach was confirmed by the Senate Higher Education Budget and Policy Division in January 2009 and the full Senate just took action on his confirmation Thursday. Trustee Frederick was confirmed by the committee earlier this session and also received confirmation Thursday by the full Senate.

Higher education policy bill passes House, conferees appointed

The full House passed the higher education policy bill earlier this week by a vote of 98-31. Discussion on the floor was mainly surrounding an amendment offered by Rep. Phyllis Kahn, DFL-Minneapolis, that would allow alcohol to be served in premier seating at the University of Minnesota sports arenas. The amendment did not pass; however, the Senate included this provision in their version of the higher education policy bill.

Also on the House floor, Rep. Sarah Anderson, R-Plymouth, offered an amendment regarding the pilot project language in the bill that would establish up to eight institutions in the Minnesota State Colleges and Universities system to invest some campus reserves in a local bank. Rep. Anderson said the amendment would ensure the interest rate paid on deposits in local banks would be at least equal to the rate paid on campus reserves deposited in the state treasury. The amendment did not pass by a vote of 45-83.

After the House passed the bill, Sen. Sandy Pappas, DFL-St. Paul, moved to not concur with the House higher education policy bill and requested that a conference committee be appointed to work through the differences in the two bills. Senate appointees include Sen. Pappas; Sen. Ron Latz, DFL-St. Louis Park; and Sen. Claire Robling, R-Jordan. The House appointed three conferees as well. They are Rep. Tom Rukavina, DFL-Viriginia; Rep. Roger Reinert, DFL-Duluth; and Rep. Carol McFarlane, R-White Bear Lake. As of the time of this writing, the conference committee has not publicly met. You may review the side-by-side comparison of the two bills here.

The House bill includes language that increases the age of a senior citizen in statute from 62 to 66 to receive a tuition discount, caps the for-profit institutions in the state grant program, caps the one-time grant for a 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. The House bill brings that authority increase down to $275 million. There is language in the House bill that requires the system along with the Minnesota Chamber of Commerce and representatives of industry groups and labor unions to study program requirements for certificates and diplomas awarded by the system to determine the feasibility of designing technical education programs to allow students to have more opportunities to earn credentials with lower credit requirements that could be combined into higher level certificates or diplomas.

Another provision in the House bill 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 any services provided at the institution level.

The House bill does include language on credit transfer, which is somewhat different than what the recent conference committee adopted and the governor vetoed late last week. The language requires the Board of Trustees to develop and implement a plan to improve credit transfers within the system. The House bill also includes language on post-retirement health insurance premium reimbursements and language that states the system office cannot pass through any reductions to campuses that were made to the system office.

Also included in the House bill is language that states the Minnesota State Colleges and Universities system and the University of Minnesota shall study nanotechnology research and education and report to the Legislature on ways nanotechnology is used responsibly and safely. And finally, language in the House bill requires the Board of Trustees to establish a pilot project to develop partnerships and training and employment opportunities for surgical technologists at institutions that offer a surgical technologist program.

The Senate bill includes a provision that requires colleges and universities to make a reasonable attempt to identify and purchase locally grown food, and includes language that requires the Office of Higher Education to monitor the implementation of the Higher Education Opportunity Act as it relates to disclosure of textbook pricing and other information to students.

Nursing programs receive coordinated support

In the Senate this week, the committees on Health, Housing and Family Security and Commerce and Consumer Protection met jointly and among other issues, took up SF 3397, which encourages the Minnesota State Colleges and Universities system to apply for federal grants available to further the development and expansion of the clinical coordination project. This bill was before the committee for discussion.

Elizabeth Biel with the Healthcare Education Industry Partnership located at Minnesota State University, Mankato testified to the success of the original pilot project and current program. The goal of the clinical coordination project is to coordinate work sites for nursing students to get the clinical experience they need to complete to graduate and to increase efficiency and utilization within the state's clinical experience environment. Biel said that without the necessary space for clinicals, nursing programs across the state will be unable to educate more nursing students. Minnesota's health care education programs report that securing these experiences is among the top three barriers to maintain and expand graduation rates. Sen. Kathy Sheran, DFL-Mankato, a former nursing professor at Minnesota State University, Mankato, said that competing for clinical space is a real problem. Sheran said a lot of time and frustration goes into negotiating and scheduling clinical lab space with hospitals and clinics.

Biel said there are 38 nursing programs in the state, and the program is designed to tear down the silos and work together. The program has the potential to decrease nursing and allied health education program waiting lists that currently exist and increase the numbers of Minnesota’s qualified health care workers. Author of the bill, Sen. Sharon Erickson Ropes, DFL-Winona, said the program can be used as a model across the health care spectrum, and that this program is a good example that will help Minnesota qualify for federal grants available through the Health Care and Education Reconciliation Act of 2010.

Lawmakers act on legislation with one week left to adjournment

With just a little over one week left before the Legislature must adjourn Mon., May 17, both the House and Senate are busy processing bills. On the House floor this week, members debated the health and human services bill for more than nine hours and passed it by a vote of 79-54. The Senate passed the bill 42-19, and it is now in conference committee to work through the differences. However, Gov. Pawlenty has said he will veto the bill because of costs in future years. While the House bill makes cuts of $164 million in the current biennium, it does designate an additional $38 million in fiscal year 2011 and $53 million in the 2012-2013 biennium for Minnesota’s participation in an early federal health care reform initiative, an expansion of the state’s Medicaid program. Sen. Linda Berglin, DFL-Minneapolis, author of the Senate bill, has urged the governor to back away from his threatened veto of the bill. The Senate bill makes cuts of $114 million.

Also this week, the Senate passed the omnibus retirement bill on the floor by a vote of 44-19, and the House is scheduled to take up the bill on the floor today. The bill includes a provision that authorizes the Minnesota State Colleges and Universities system to contract out for investment selection and review services for the Individual Retirement Account Plan with providers other than the State Board of Investment. The bill also extends the early retirement incentive program that expired on July 15, 2009, to October 1, 2012, and resets the incentive payment amount from $17,000 to the total of the maximum state regular unemployment compensation and employer-paid medical, dental and life insurance premiums payable to the incentive recipient in the event of a layoff.

On the House floor this week, members passed the contract ratification bill 118-5 after an amendment was adopted that requires a summary of the proposed contract agreement, award or plan to be posted on a state Web site prior to being submitted to the Legislative Coordinating Commission for review. The Senate had passed the bill earlier without this amendment, so the Senate will have to take up the revised bill. As a reminder, the bill ratifies the contracts and plans for Minnesota State College Faculty or MSCF; the Minnesota State University Association of Administrative and Service Faculty or MSUAASF; the American Federation of State, County and Municipal Employees or ASCFME, the Minnesota Association of Professional Employees or MAPE; the Middle Management Association or MMA; the Minnesota State Colleges and Universities Administrators; the Commissioner’s Plan; and the Managerial Plan.

Another bill passed by the Senate this week by a vote of 62-0 is SF 3079. It modifies the Post-Secondary Enrollment Options program. The bill eliminates the language from statute that says a post-secondary institution may not advertise or otherwise recruit or solicit secondary students to enroll in post-secondary programs on financial grounds. The bill also allows a post-secondary institution to bill students for any textbooks and equipment that are not returned by the student. The House companion is awaiting a hearing in House Finance. The House omnibus K-12 education bill also includes the textbook provision.

Bills will continue to make their way out of committee and onto the floor the remaining days of session, and lawmakers will continue to pass bills off the floor and send them to the governor for signature, all while negotiations continue on how best to balance the state’s budget.

Congressman Paulsen introduces legislation to show support for full funding for Pell Grants

Earlier this week, Congressman Erik Paulsen, D-Minn., introduced legislation in the U.S. House of Representatives that calls for full funding of Pell grants, federal grant aid for post-secondary education. The bill, H.R.5198, expresses the sense of Congress that the federal Pell grant program plays a unique role in promoting economic and social mobility in the United States, financial aid has a significant positive impact on the post-secondary enrollment and success rates of students from low income families, and should be a high funding priority. The bill was referred to the Committee on Education and Labor.

“Pell grants are one of the most important tools in helping students afford the growing costs of post-secondary education, especially as the economy continues to lag,” Paulsen said. “As Congress seeks to prioritize the federal budget, meeting the commitments we've made to students who depend on Pell grants will be critically important. I'm hopeful this bipartisan effort will bring greater attention to this need, while also building momentum to fully fund Pell grant awards as we go forward.” You may find the bill 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 legislative web site.

Monday, May 10

9:00 AM
House Finance
Room: 200 State Office Building
Chair: Rep. Lyndon Carlson
Agenda:
SF2891 (Mullery) Interstate Compact for Juveniles adopted.
SF3134 (Kahn) State government programs or activities money appropriated or reduced, and provisions changed relating to expenses of governor-elect, income earned by the permanent school fund, lease-purchase agreements, general services, resource recovery, payment of aids and credits to school districts, tax return preparers, and implied consent.
HF2866 (Carlson) Executive branch authority modified to reduce unexpended allotments.
HF2922 (Thissen) Minneapolis Employees Retirement Fund; administrative functions transferred to the Public Employees Retirement Association, consolidation account created within the Public Employees Retirement Association, and money appropriated.

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

Budget discussions prevalent; Transfer bill before governor; K-12 bill moving

2010-04-30T13:51:00.000-07:00

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

Short session weeks; Policy bill moves; State grant shortfall bill moves; Race for the Top discussed; Federal Student Loan Act heard

2010-04-23T13:34:00.000-07:00

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.

Lawmakers reassess budget; Confirmation of Trustee Frederick; Contract bill moves; Nanotech discussed; Race to the Top debated; U.S. Senate talks jobs

2010-04-19T07:13:00.000-07:00

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)

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

2010-04-09T15:19:00.000-07:00

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.

Budget and policy bill advance, Transfer bill moves, Lawmakers get ready for break, Congress passes loan reform, Appropriations out

2010-03-27T07:55:00.000-07:00

Legislative Update
March 26, 2010

Conference committee comes to agreement on higher education article 

Approximately one-third of the state’s budget deficit of almost $1 billion is close to being resolved. The supplemental budget conference committee negotiating the bill that makes $313 million in reductions has been meeting this week to resolve the differences between the House and Senate. After a long meeting Thursday night, conference committee members went back to work today and adopted the higher education article and moved that the article be placed in the omnibus bill. As of the time of this writing, the conference committee is still meeting to finalize the remaining articles.

Included in the higher education article of the bill is $10.467 million in reductions to the Minnesota State Colleges and Universities system in fiscal year 2011. Of the cut to the system, $500,000 is to be reduced from the central system office, along with an additional $500,000 internal obligation. The bill includes language that says the Board of Trustees must make a good-faith effort to make the reductions at campuses and the central office in a manner that minimizes reductions related to providing direct services to students and maximizes reductions for administrative services not providing direct services to students.

The bill also increases the revenue fund authority in statute from $200 million to $300 million and removes the House language that limited the revenue fund to only state university projects. As for financial aid, lawmakers had to fill the $42 million state grant shortfall. The bill reduces state work study and also reduces from nine to eight, the number of semesters that a student can attend while maintaining eligibility for the state grant program. The bill modifies the Achieve scholarship program and reduces the technical and community college emergency grants and makes clear that this appropriation in fiscal year 2009 was a one-time appropriation.

The policy language was removed from the bill; however, it was added to the House higher education policy bill earlier this week.

House Majority Leader Rep. Tony Sertich, DFL-Chisholm, said he hopes for smooth passage of the legislation on the House floor. Both the House and Senate are expected to take up the supplemental budget conference committee report on the floor Monday, prior to adjournment for the Passover and Easter break. House Speaker Rep. Margaret Anderson Kelliher, DFL-Minneapolis, said, “We want a signed bill on this piece of legislation,” adding that if that happens, everyone could go home early.

Higher education policy bill moving through House

Higher education policy was discussed by members of the House Higher Education and Workforce Development Finance and Policy Division this week. Included in the bill is language that increases the age from 62 to 66 for receiving reduced tuition as senior citizens. The bill includes language that establishes the system office in statute and provides for general duties of the office. Also in the bill is amended language calling for streamlining of the system office by better targeting the use of state resources and providing services at the most efficient level to avoid duplicating services provided at the colleges and universities. An amendment also passed that includes language on appropriation reductions to the system office that states any reduction to the system office must not be passed through to any institution or campus.

The bill was amended to include the policy language from the House supplemental budget bill that was removed in conference committee. Among the provisions is credit transfer language directing the Board of Trustees to develop and maintain a system wide effective and efficient mechanism for seamless student transfer between system institutions with a goal of minimal loss of credits for transferring students (this also traveled in its own bill, see below). Language also was included that requires a report of transfer activities to the Legislature. The provision regarding the pilot project for local deposit of reserves for system institutions also was amended into the policy bill. The committee adopted the bill as amended. The Senate higher education committee passed their version of a policy bill earlier this session, which differs greatly from the House bill. As the bills make their way through the process, lawmakers will have to iron out the differences.

Transfer bill heard on floor

Transferring credits within the system should be easier. That sums up the intent of new legislation passed by the House and Senate this week. Rep. Larry Haws, DFL-St. Cloud, carried the House version of the bill, HF 3164, which requires documentation of transfer, accessible transfer information online, consistent transfer among institutions and training for campus staff. “The students are happy, the faculty are happy,” Haws said. Rep. Mark Buesgens,R Jordan, questioned why this needs to be legislated, saying, “We have to tell them how to talk to each other?” Haws responded, “This is exactly what this House should be doing … I will take teamwork anytime” in making policy. The Senate passed its version of the credit transfer bill, SF 2822, earlier this week. Bill author Sen. Tarryl Clark, DFL-St. Cloud, proposed the Senate’s version of the bill to help make the credit transfer process seamless. The bill versions differ slightly so a conference committee would need to work through the differences. As noted above, transfer language is also included in the House higher education policy bill.

Lawmakers head home for break

As is tradition every year around the Easter and Passover holidays, legislators head home to their districts for a much-deserved break. House DFL leaders have said they are optimistic about their
accomplishments and quick pace in the session thus far. Monday, March 29 will mark the third committee deadline, when divisions of the House and Senate Finance committees need to pass omnibus finance bills. Lawmakers continue to work into the evening tonight to wrap up the supplemental budget bill. Once the House and Senate take up the budget bill and jobs creation bill on the floor Monday, they anticipate adjourning in time to allow those traveling and preparing for Passover adequate time before the sunset start of the religious holiday. Lawmakers will be in their home districts Tuesday, March 30 through Monday, April 5.

U.S. Congress approves student loan reform

It appeared that the House and Senate were riding a seesaw with the nation’s student loan reform legislation this week. First it was at the House, then it went to the Senate, where changes were made, then back to the House for final approval. The student loan reform was sent to the President after the House passed the Senate’s amended bill Thursday on a vote of 220-207. The Student Aid Fiscal Responsibility Act traveled with the health care reform bill in the budget reconciliation process. After the passage of the reconciliation bill, the House and Senate wrapped up and left Washington, D.C. for a two week recess.

Under the legislation, all student loans will be given out under the Direct Lending program. This change will begin July 1, 2010. The Congressional Budget Office estimates the change will save $61 billion over the next 10 years. The savings will be used to increase the Pell Grants $690 in mandatory funds (not subject to annual appropriations approval). This change will bring the current $4,860 award to $5,550. The legislation also directs the award to increase by the consumer price index for a projected maximum $5,975 award. This maximum would be maintained for fiscal years 2019 and beyond without further Congressional action.

The legislation also includes $2 billion for the Community College and Career Training Grant Program. This program would award funds to programs taught at institutions of higher education that do not exceed two years in length and have a strong community focus and component. The program is to be directly tied to improving the skill sets of individuals who have lost their jobs for trade-related reasons and will be administered through the U.S. Department of Labor.

The existing College Access Challenge Grant program will receive $150 million each year (currently funded at $66 million) for five years for a total amount of $750 million. This program is designed to help students understand the benefits of a postsecondary education, provide the financing options for postsecondary education, and initiate outreach programs for students at risk of not enrolling or completing.

The bill also will provide $2.5 billion for Minority Serving Institutions, including Historically Black Colleges and Universities. This funding continues previously authorized funds through the College Cost Reduction and Access Act to better target programs focused on retention and completion.

Finally, funds were provided to make changes to the current Income Based Repayment Program that first was proposed in President Obama’s fiscal year 2011 budget. Currently, students who pursue that program may have their loan payment amount reduced to 15 percent of their total income and must make 25 years of continuous payments before any remaining balance is forgiven. The president proposed reducing these amounts to 10 percent and 20 years, respectively. Using funds provided in this legislation, first-time borrowers will be eligible for these benefits under the updated program beginning in 2014.

To see how the Senate voted, click here.
To see how the House voted, click here.

Learn more about earmark appropriation submissions 

U.S. House members have posted their fiscal year 2011 appropriations projects that have been submitted to the Appropriations Committee on their web pages. Congressman Kline, Congressman Paulsen, and Congresswoman Bachmann did not submit appropriations projects. Links to the pages are below:

Congressman Tim Walz (DFL - 1st District)

Congresswoman Betty McCollum (DFL - 4th District)

Congressman Keith Ellison (DFL - 5th District)

Congressman Collin Peterson (DFL - 7th District)

Chairman Jim Oberstar (DFL - 8th District)


Jobs legislation passes House

In the second phase of what is expected to be a series of jobs legislation, the U.S. House passed a tax incentives bill (HR 4849) this week. The bill provides an estimated $13.2 billion for bond programs used largely by state and local governments for infrastructure development. Among the bond provisions is an extension of the Build America Bonds program through June 2013, which provides financial support to state and local governments through federal tax exemptions for interest on municipal bonds. The third piece, headed to the House floor (HR4899), would provide $5.7 million for disaster relief, $600 million in funding for summer jobs, and $60 million for a small-business loan program. The estimates indicate this bill would support 300,000 summer jobs for teens and young adults.

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 29

8:30 AM
House in Session
Anticipated consideration of:
● Omnibus supplemental budget bill
● HF2695 (Lenczewski) Job creation encouraged, small business tax credits allowed, special assessment use expanded, tax increment financing expanded, Bloomington's development restrictions of the Mall of America site repealed, tax system and debt collection management provided, energy improvement financing program established, property tax exemption and minerals distribution modified, and money appropriated.

8:30 AM
Senate in Session
Anticipated consideration of:
● Omnibus supplemental budget bill
● S.F. 2568 (Bakk) Economic development and job creation encouragement; small business investment credit and appropriation, Minnesota business investment credit and historical structure rehabilitation credit establishment and appropriation; compact development district.

Tuesday, March 30 - Monday, April 5
Legislative Break

Tuesday, April 6

10:00 AM *Note time change* House Higher Education and Workforce Development Finance and Policy Division
Room: 10 State Office Building
Chair: Rep. Tom Rukavina
Agenda: Higher education system and campus budget planning

Wednesday, April 7

8:00 AM
Trustee Candidate Advisory Council
Room: 300N State Office Building
Chair: Kent Eklund
Agenda: Candidates interviewed for Minnesota State Colleges and Universities Board of Trustees

Thursday, April 8

8:00 AM
Trustee Candidate Advisory Council
Room: 300N State Office Building
Chair: Kent Eklund
Agenda: Candidates interviewed for Minnesota State Colleges and Universities Board of Trustees

Final bonding bill; Supplemental budget moves; Higher education cost savings; System budget considered; Congress works toward student loan reform

2010-03-19T17:40:00.000-07:00

Legislative Update
March 19, 2010

Governor reduces bonding bill by more than $300 million

Gov. Tim Pawlenty line-item vetoed the bonding bill this week from a $999 million bill that passed the Legislature, down to $680 million. In his veto letter to legislative leadership, the governor told lawmakers that "like any family or business, state government needs to live within its means and follow a budget," and that he had said earlier he would not sign a bill as large as what was presented to him. The final bill the governor signed however; was smaller than his initial bonding recommendation.

Chief authors of the capital investment bill, Rep. Alice Hausman, DFL-St. Paul, and Sen. Keith Langseth, DFL-Glyndon, said the line-item vetoes will mean about 7,000 fewer jobs created. Among the areas hit hardest by the governor’s veto is the Minnesota State Colleges and Universities system, which had reductions of more than $130 million and saw its bonding funding going from $239 million down to $106 million (numbers include user financing). Hausman noted that the system has three times as many students as the University of Minnesota but receives less in the law. Langseth said that Minnesota has lost an opportunity because interest rates are favorable now and construction bids are lower.

The 16 projects cut by the governor are the fine arts building renovation and the bioscience and allied health addition at Anoka-Ramsey Community College; the learning resource center at Hennepin Technical College; the workforce program renovation at Minneapolis Community and Technical College; lab construction and renovation at Ridgewater College; the classroom renovation and addition at South Central College, Faribault; the bioscience and health careers center addition at North Hennepin Community College; the Livingston Lord library and information technology renovation at Minnesota State University Moorhead; the science lab renovation at Southwest Minnesota State University; the integrated science and engineering laboratory facility at St. Cloud State University; transportation and emerging technologies lab renovation at Dakota County Technical College; the workforce center co-location at Rochester Community and Technical College; the systemwide initiative for renovation of STEM classrooms at nine campuses; the clinical science building design for Minnesota State University, Mankato; the wind turbine training facility at Minnesota West Community and Technical College, Canby; and the engineering program at Mesabi Range Community and Technical College.

Here is the link to the letter from the governor that explains his line-item vetoes. Here is the link to the final spreadsheet for the bonding bill that includes the governor’s vetoes.

Supplemental budget bill heads to the floor Monday
The supplemental budget bill in the House and Senate worked its way through the committee process this week and is headed to the floor for debate Monday in both bodies. HF 1671/SF 3223, includes all the finance division's supplemental budget bills with the exception of K-12 education and health and human services, which will be addressed at a later time. The reductions to state agencies and programs in the bill, including the $10.5 million reduction to the Minnesota State Colleges and Universities system, total $209 million. The budget bill also includes tax provisions that cut $105 million in state spending from county program aid, local government aid and the market-value homestead credit. Finance Committee Chair Rep. Lyndon Carlson, DFL-Crystal, said the bill is loaded with some very difficult decisions.

Legislative leaders are working to resolve the $1 billion budget deficit in three phases, of which the supplemental budget bill is considered the first phase. Speaker of the House, Margaret Anderson Kelliher, DFL-Minneapolis, in a media availability today said the House is running three weeks ahead of schedule. Kelliher said a forthcoming health and human services finance bill is on hold until Congress takes action on legislation that could provide more than $408 million in one-time federal stimulus funds. If the federal funding comes through, legislators might not have to cut too much beyond this first phase of cuts. Senate Tax Committee Chair Tom Bakk, DFL-Cook, said, "There's no point in passing a huge reduction bill if, at the end of the day, we get some federal money that would have back-filled some of the cuts." However, Senate Minority Leader Dave Senjem, R-Rochester, said lawmakers need to see the whole budget. "Until we see their budget in its entirety, we are not going to agree to participate in this solution."

Senate hears about cost savings mechanisms for higher education

The Senate Higher Education Budget and Policy Division heard from Larry Isaak with the Midwestern Higher Education Compact this week regarding services provided, including cooperative purchasing. Isaak, the president of MHEC, told committee members that each of the 12 states that are part of the compact pay $95,000 a year in dues; however, the return on that investment for Minnesota in fiscal year 2009 was 26:1. Minnesota higher education institutions, school districts, state and local governments and students have achieved cost savings of $28.8 million since joining the compact in 1991 by using MHEC's cost savings and student exchange programs, including technology hardware and software purchases.

Minnesota State Colleges and Universities also work in collaboration to leverage the best value in purchasing. Steve Gednalske, system director of tax and financial services and Michael Noble-Olson, purchasing manager at Minneapolis Community and Technical College, explained to members about the system's collaborative sourcing team. The team’s mission is to collaborate to seek innovative strategic sourcing solutions to achieve sustainability and best value by leveraging the system's buying power. The team includes representation from system institutions and the Office of the Chancellor. Gednalske provided examples of benefits gained.
The team has been able to obtain quality mattresses at reduced prices through a contract that is used by all campuses with dorms; leveraged spending on office supplies to obtain lower prices; collaborated with the Department of Administration to leverage spending and reduce the pricing of travel management; and saved money on textbook delivery as well as other shipped items.

Lawmakers learn about system’s budget planning for upcoming biennium

Members of the Senate Higher Education Budget and Policy Division heard from the higher education systems this week about budget plans for fiscal years 2012-2013. Laura King, vice chancellor and CFO for the Minnesota State Colleges and Universities system, told committee members that with notice of the $50 million unallotment to the system occurring a year in advance, and the state's poor economic outlook, the system adjusted its budget planning framework early in the budgeting process and aimed for a $594 million base each year for planning purposes. The $594 million base reflects the governor's $50 million unallotment and the proposed $10.5 million reduction to the system in FY2011.

Jake Hite, a student at Winona State University, testified on the effects the appropriation cuts have had on students. Hite told committee members that the Minnesota State University Student Association listened to students at the seven state universities to learn more about how the reductions are affecting them. Hite said some of the trends include reduction of course offerings and increased class sizes; student service reductions in financial aid and childcare; fewer hours of operation at libraries and student centers; increased fees and charges for services; and reduced public safety.

Hite said that the initial picture of how recent cuts have affected the state universities and the students attending them raises concern as to how the quality, affordability, and accessibility of education will be affected as further steps are taken to balance the campus budgets. Sen. Sharon Erickson Ropes, DFL-Winona, said that this year higher education is seeing a 2 percent reduction. Next year, however, given the economic outlook, higher education could be looking at a 20 percent reduction. Erickson Ropes encouraged Hite to have conversations within the student organization regarding what has to change and what has to go away.

Next week, the House Higher Education and Workforce Development Finance and Policy Division is scheduled to learn more about the system’s 2012-13 budget planning Thursday. The system's 2012-13 budget planning report is here.

Reconciliation bill combines health care reform with student loan reform

Last week we reported that Congress was looking at merging the health care overhaul bill with the Student Aid and Fiscal Responsibility Act in a process called budget reconciliation. Late this week, Congress released the reconciliation bill that contains both the health care reform package and student loan reform legislation. The bill contains $500 million per year for fiscal years 2011-14 for the Community College and Career Training Grant Program to improve educational and career training programs. Grants will go to institutions in all 50 states on a competitive basis, but institutions in each state will receive at least $2.5 million each year.

The bill would end the Federal Family Education Loan Program and require all federal education loans to be originated through the Direct Lending Program beginning July 1, 2010. The impact of this change in policy is estimated to produce a savings of $61 billion. The reconciliation bill will also provide funds for the Pell Grant. The bill ensures a continued maximum grant of $5,550, as is scheduled to take effect this July 1. For 2014-2018, the bill provides for an automatic annual increase in the maximum Pell Grant by the rate of inflation. The legislation will also provide $13.6 billion to help address a large shortfall in the program that has developed due to booming enrollment increases that have resulted in more students qualifying for grants, and many qualifying for larger grants.

It is anticipated that the House will take up the bill Sunday. House Democrats need 216 votes to pass the bill. If passed, the bill will be considered by the Senate, where it will need a simple majority of 51 votes to pass.

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 22

8:00 AM
House Finance
Room: 200 State Office Building
Chair: Rep. Lyndon Carlson
Agenda:
HF2899 (Pelowski) Administrative remedy provided for certain data practice law violations, civil penalty provided, and money appropriated.
HF2499 (Mullery) Minnesota State Colleges and Universities Board of Trustees required to study technical education credentials.
HF3274 (Obermueller) Benefit account requirements modified for unemployment benefits.
HF3048 (Norton) Construction codes and licensing provisions modified, and certain notice provisions modified.
HF2925 (Kath) Public facilities programs amended and technical changes made.

8:30 AM
Senate Finance
Room: 123 Capitol
Chair: Sen. Richard J. Cohen
Agenda:
S.F. 2598-Saxhaug: Collaborative urban educator grant program appropriation clarification.
S.F. 2533-Bakk: Lake Vermilion state park land acquisition authority and incorporation of existing park land.
S.F. 2564-Anderson: Outdoor heritage appropriations.
H.F. 2624/S.F. 2462-Anderson: Legislative-citizen commission on Minnesota resources (LCCMR) environment and natural resources appropriations.
S.F. 2364-Pappas: Higher education facilities authority revenue bond limit increase.
S.F. 2386-Metzen: Labor agreements and compensation plans ratification.
S.F. 364-Sparks: Drainage systems provisions modifications.

10:00 AM
House in Session
It is anticipated the House will come in to session, then recess to caucus.
HF1671 (Carlson) Omnibus supplemental budget

11:00 AM
Senate in Session

3:00 PM
Senate Economic Development and Housing Budget Division
Room: 107 Capitol
Chair: Sen. David J. Tomassoni
Agenda:
S.F. 1590-Sieben: Inflatable amusement equipment safety standards establishment.
S.F. 2895-Bonoff: Unemployment insurance administrative, benefit and tax provisions modifications; special state extended unemployment insurance program establishment.
S.F. 2310-Saltzman: Comparative study of state regulation affecting small business start-ups.
S.F. 3014-Saltzman: Minnesota Science and Technology Authority Act.

Tuesday, March 23
8:30 AM *Note time and room change*
Higher Education and Workforce Development Finance and Policy Division
Room: 500S State Office Building
Chair: Rep. Tom Rukavina
Agenda:
HF3076 (Juhnke) Elevator provisions modified.
HF3293 (Clark) State building Code amended, and licensing requirements modified.
HF3533 (Rukavina) Joint powers agreements may not circumvent or impinge upon the rights of employees covered by certain collective bargaining agreements.
HF3024 (Murdock) Manufactured Home Building Code requirements modified
Other bills may be added

8:30 AM
House K-12 Education Finance
Room: Basement State Office Building
Chair: Rep. Mindy Greiling
Agenda: HF2887 (Drazkowski) Independent School District No. 858, St. Charles, disaster aid funding and declining pupil unit aid appropriation used to help the city cover revenue losses.
HF3404 (Mariani) Aid payment schedule modified for certain charter schools.
HF3539 (Benson) Charter schools revised evaluation requirements and changes in sponsorship fees postponed.
HF2867 (Newton) Child with a disability definition clarified and obligations to children with disabilities specified.
HF3487 (Newton) Conciliation conference requirements clarified, and Minnesota Department of Education directed to amend two special education rules.
HF2885 (Davnie) Capital project referendum ballot language modified in cases where the same level of taxing authority is renewed.
HF3237 (Huntley) Health care provisions changed relating to education plan requirements, health access program, private nursing coverage, children's health insurance reauthorization act, long-term care, asset transfers, clinics, dental benefits, prior authorization, drug formulary and administrative committees, preferred drugs, multisource drugs, health plans, claims against the state, and eligibility standards. - Article 1 only

10:30 AM
House State Government Finance Division
Room: 300N State Office Building
Chair: Rep. Phyllis Kahn
Agenda:
HF2758 (Lillie) Labor agreements and compensation plans ratified.
HF2815 (Bly) Fiscal note requirements modified.
HF3205 (Mahoney) Preference created for community banks and credit unions for the state's general revenue account, state depository accounts required to be held in community banks or credit unions, and a study required of possible further use of community banks and credit unions by the state and municipalities.
HF3589 (Kath) Contracts for professional or technical services reporting threshold reduced.
HF1818 (Mariani) State commissioners required to provide a poverty impact statement on bills when requested by a legislator.
HF2613 (Hilstrom) Mediation provided prior to commencement of mortgage foreclosure proceedings on homestead property, and homestead-lender mediation account created.

12:30 PM
Senate Higher Education Budget and Policy Division
Room: 123 Capitol
Chair: Sen. Sandy Pappas
Agenda: S.F. 3180-Sparks: Malt liquor and spirits tasting authorization at exclusive liquor stores; University of Minnesota stadium liquor licensing conditions modification.

Wednesday, March 24

8:30 AM *Note time and room change*
House Higher Education and Workforce Development Finance and Policy Division
Room: 500S State Office Building
Chair: Rep. Tom Rukavina
Agenda: Higher Ed and Workforce Finance/Policy omnibus bill 2

10:00 AM
Senate State Government Budget Division
Room: 112 Capitol
Chair: Sen. Don Betzold
Agenda:
S.F. 2809-Higgins: State bond proceeds recipients requirements and electronic reporting requirement.
S.F. 2199-Olson, G.: Legislature size reduction and senate district division prevention.
S.F. 2471-Olseen: Declaration of trust and real property secretary of state filings modification.
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.
S.F. 2573-Betzold: State, local, legislator, and hospital public employees retirement provisions modifications.
S.F. 3084-Carlson: Professional or technical services contract reporting threshold reduction.
Thursday, March 25

8:30 AM
House K-12 Finance Division
Room: Basement State Office Building
Chair: Rep. Mindy Greiling
Agenda: Governor's charter school property tax exemption proposal (see HF3306 article 6, section 2)
HF3421 (Mariani) High school assessments established to determine college and career readiness.

10:30 AM *Note time and room change*
House Higher Education and Workforce Development Finance and Policy Division
Room: 10 State Office Building
Chair: Rep. Tom Rukavina
Agenda: Higher Education Plans for FY2012-13 Budgets

12:30 PM
Senate Higher Education Budget and Policy Division
Room: 123 Capitol
Chair: Sen. Sandy Pappas
Agenda: TBA

Bonding bill final movement; Higher education budgets set; Credit transfer bill heard; U.S. Congress may act on SAFRA; McCollum hears jobs ideas

2010-03-12T15:38:00.000-08:00

Legislative Update
March 12, 2010

Bonding - almost wrapped up?

After weeks of negotiations, the House and Senate passed a revised $1 billion bonding bill this week. The new legislation contains $239 million (including user financing) in projects and repair and replacement for the Minnesota State Colleges and Universities system.

The bonding bill passed the House Thursday by a vote of 89-44. House Majority Leader Rep. Tony Sertich, DFL-Chisholm, said the bill is about getting Minnesotans back to work. Proponents of the bill have said the legislation is expected to create 21,000 to 27,000 jobs.

Shortly after the House passed the bill, the Senate took it up and passed it by a vote of 49-17. The legislation now heads to the governor. Gov. Tim Pawlenty said he can work with the bill but will use his line-item veto authority to trim the large size. He has not publicly stated how much he will cut; however, in the past he has mentioned he would like the bill to be near $725 million.

Flurry of activity on budget bills this week

The House Higher Education and Workforce Development Finance and Policy Division passed the committee’s budget bill this week. The legislation reduces the Minnesota State Colleges and Universities system by $10.5 million to help address the state’s almost $1 billion budget deficit. The bill directs $3 million of the system cut to be taken from the Office of the Chancellor. The remaining $7.5 million is to be cut from campus budgets. The overall cut brings the system back to the 2006 budget level, which was a federal stipulation of receiving the American Reinvestment and Recovery Act, or ARRA, funds last year. The bill passed by a vote of 13-4. A spreadsheet of the bill is available here.

In addition to addressing the budget, the higher education bill contained some policy. The legislation increases the revenue fund authority for the Minnesota State Colleges and Universities system from $200 million to $275 million, and for 2010 and 2011, limits the revenue fund to only state university projects. The revenue fund allows campuses to upgrade dorms, build parking lots or construct wellness centers, among other projects. The Senate bill increases the revenue fund authority to $300 million and does not specify in language which campuses are eligible for use.

In attempts to improve local economies, the House bill calls for eight pilot projects of transferring reserves for Minnesota State Colleges and Universities campuses to local banks. The legislation also calls for the Board of Trustees and the Minnesota Management and Budget office to report independently on the effectiveness of the pilot projects. The evaluation is to include recommendations on the future implementation of the pilot project.

To reduce the state grant shortfall, committee members adopted an amendment to eliminate the ninth semester of eligibility, remove the high school-to-college developmental summer transition program and reduce the tuition maximums to $5,364 for fiscal year 2012 for students in two-year programs and for students in private, for-profit four-year programs. The House reductions do not completely address the $42 million state grant shortfall, so more work may be needed in this area. Rep. Mike Obermueller, DFL-Eagan, said cutting the state grant program is doing a disservice to the state and its students. Committee Chair Tom Rukavina, DFL-Virginia, expressed his regret at having to cut the state grant program and indicated he had hoped more could have been done for the students and higher education. Rukavina said higher education has taken a heavy hit over the years and government should be investing in people, not cutting.

The bill, HF 1835, was heard this afternoon in the full Finance committee, where it was incorporated with other supplemental budget bills into HF 1671. There were no amendments related to higher education. The bill was recommended to pass and was referred to the Ways and Means committee.

In the Senate, the Finance committee passed the higher education supplemental budget bill Wednesday. The bill was first heard in the Senate Finance committee Monday; however, no action was taken as the Office of Higher Education and lawmakers worked through a tuition reciprocity issue with North Dakota. Chair Sandy Pappas, DFL-St. Paul, came back to the Finance committee on Wednesday and applied the savings from the reciprocity agreement to reduce cuts to the state grant program, the American Indian Scholarship and work study. The legislation was rolled into a larger supplemental budget bill, SF 3223.

After both the Senate and House pass the supplemental budget bills, differences between the two versions will be worked out in conference committee.

Credit transfer a hot topic at the Legislature

Both the House and Senate higher education committees heard legislation on transfer this week. Sen. Tarryl Clark, DFL-St. Cloud, presented SF 2822 before the Senate Higher Education Budget and Policy Division Tuesday. The legislation requires the Board of Trustees to create a mechanism for seamless student transfer between system institutions. The legislation also states that the Degree Audit and Reporting System and u.select database (or successor databases) housed in the Office of the Chancellor shall be the official repository of course equivalencies between system colleges and universities. Senior Vice Chancellor Linda Baer told committee members that the system has been working extensively on transfer. Baer said that while the system is doing pretty well and that 91 percent of credits transfer, “We know we can and must do better.” The bill was passed by the committee and laid on the table for possible inclusion in the higher education policy bill, and was sent to the Senate floor as an individual bill.

The House Higher Education and Workforce Development Finance and Policy Division also heard transfer legislation this week and included it in its omnibus bill. The language, similar to the Senate, requires the Board of Trustees to develop a system that minimizes the loss of credit transfer for students and develops a mechanism for seamless student transfer between institutions. The House bill also includes a provision regarding a report on credit transfer activities to be submitted to lawmakers annually on the system’s activities to achieve the credit transfer goals spelled out in statute.

U.S. Congress to possibly merge student loans with health care overhaul

Congress may be merging the health care overhaul bill with the Student Aid and Fiscal Responsibility Act in a process called budget reconciliation. The purpose is two-fold. One hope is that the health care - student loan package will have broader support. Another benefit is that a reconciliation bill speeds up the process. By definition, a reconciliation bill is a single piece of legislation that combines multiple legislative provisions that affect the federal budget that cannot be filibustered, which means there cannot be any attempt to block or delay Senate action on a bill by debating it at length or by offering numerous procedural motions. A reconciliation bill also can be passed with 51 votes in the Senate. In the case of a 50-50 vote, the vice president is called on to break the tie.

The federal student loan changes, requiring all campuses to move to Direct Lending, would save the federal government an estimated $78 billion over the next 10 years. (This number previously was reported at $87 million, but new projections from the Congressional Budget Office have shown that the $78 billion estimate is more accurate.) Some in the higher education community said they fear that a budget reconciliation merger of health care and higher education may apply the savings to health care initiatives instead of providing higher Pell Grants for low-income students, which is where the savings was pegged to go. Some say that the merger of these two bills will speed up the process and get money to campuses quicker. Recall that the Student Aid Fiscal Responsibility Act passed in the House last September; however, the legislation has not yet been heard in the Senate.

Student loan reform was the topic of a press conference Thursday featuring Sen. Al Franken, D-Minn. Minnesota’s junior senator joined with Senate Health, Education, Labor and Pensions Chair Tom Harkin, D-Iowa, and House Education Chairman George Miller, D-Calif., in the announcement. The senators called for action on the student aid reform, noting that the changes could save billions. Specifically, the Student Aid and Fiscal Responsibility Act would eliminate the Federal Family Education Loan program and require college campuses to use Direct Lending, making the federal government provide the funding for college loans. “In this tough economy, when so many students are struggling to afford college, it just doesn’t make sense to me that we would choose banks over students,” Franken said.

Congresswoman McCollum hosts listening session on jobs for Minnesotans

Minnesotans going back to school rely on federal Pell Grants. This was the message that Senior Vice Chancellor Linda Baer shared at Congresswoman Betty McCollum’s federal hearing on workforce Monday. Enrollment at the Minnesota State Colleges and Universities has increased nearly 8 percent, but the number of Pell Grant recipients has grown by 32 percent. “In other words, the number of our students whose financial situation puts them at risk has grown four times faster than our enrollment,” Baer said. She credited McCollum and leaders in Washington, D.C., for providing assistance to states with the American Recovery and Reinvestment Act funding. This has “directly contributed to supporting our institutions to keeping tuition affordable,” Baer said. Federal workforce funding also has allowed campuses to be innovative to design accelerated programs with multiple start dates. These programs help get Minnesotans back into the workforce faster. Congresswoman McCollum held Monday’s forum in St. Paul to get opinions on what the federal government can do improve workforce services. Being a member of the Labor, Health and Human Services and Education Appropriations subcommittee, the congresswoman plans to bring the ideas back with her to Washington.

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 15

9:00 AM *Meeting Canceled*
Senate Taxes
Room: 15 Capitol
Chair: Sen. Tom Bakk
Agenda: 2010 Supplemental Budget

11:00 AM
Senate in Session

12:30 PM
Senate State Government Budget Division
Room: 112 Capitol
Chair: Sen. Don Betzold
Agenda:
S.F. 2629-Sieben: County assistive voting, vote-counting and optical scan equipment grants appropriation.
S.F. 2870-Rest: Legislative auditor audit costs payment authorization from heritage funds appropriations.
S.F. 2915-Dahle: Fiscal note requirements modification.
S.F. 3134-Betzold: State government appropriations, appropriation reductions and one-time transfers.

1:00 PM
House in Session

Tuesday, March 16

8:30 AM
Senate Education
Room: 112 Capitol
Chair: Sen. LeRoy A. Stumpf
Agenda:
S.F. 2757-Bonoff: Teaching board teacher preparation and licensure programs authorization.
S.F. 3104-Saltzman: School and parent conciliation conference requirements clarification.
S.F. 2698-Koch: Graduation required assessment for diploma (GRAD) retake requirement modification.
S.F. 3002-Bonoff: School desegregation and integration advisory task force establishment.

8:30 AM
House K-12 Education Policy and Oversight
Room: Basement State Office Building
Chair: Rep. Carlos Mariani
Agenda: HF2867 (Newton) Child with a disability definition clarified and obligations to children with disabilities specified.
Presentation by Margaret Bird, the director of Utah's Children's Land Alliance Supporting Schools (CLASS) and Kevin Carter, director of the Utah School and Institutional Trust Lands Administration on Utah school trust land governance and land management practices

8:30 AM
House State and Local Government Operations Reform, Technology and Elections
Room: 200 State Office Building
Chair: Rep. Gene Pelowski
Agenda: HF3389 (Mahoney) Minnesota Science and Technology authority created, and money appropriated.
HF3106 (Bigham) Implied consent, driving while impaired, and ignition interlock provisions modified.
HF3124 (Dill) Aquaculture provisions modified, provisions for taking, possessing, and transporting wild animals modified, fish and wildlife management plans requirements modified, and game and fish license provisions modified.
HF3475 (Dittrich) Independent agency created to oversee management of Minnesota's permanent school fund lands.
HF1828 (Hornstein) Municipal comprehensive plan for affordable housing amendments authorized to be approved by a simple majority.
HF2660 (Thissen) Minnesota Coalition for Innovation and Collaboration created, rule and law waivers provided, and money appropriated.
HF3055 (Thissen) State-County Results, Accountability, and Service Delivery Redesign Act changes made, and public employee status specified for service delivery units.
HF2510 (Gardner) Threats of reprisal against a person who is or is considering being a candidate prohibited.

9:00 AM
Joint Senate Finance and Taxes
Room: 15 Capitol
Chairs: Sen. Richard Cohen and Sen. Tom Bakk
Agenda: Discussion with David Walker, President and CEO of the Peter G. Peterson Foundation, Former Comptroller General of the United States, Former head of the Government Accountability Office (GAO)

12:30 PM
Senate Higher Education Budget and Policy Division
Room: 123 Capitol
Chair: Sen. Sandra L. Pappas
Agenda:
MHEC: Discussion of purchasing and CREST agreements
Discussion of MnSCU purchasing agreement
Discussion on salary freezes and furloughs at MnSCU and U of M
S.F. 2941-Saltzman: 4-H funding procedure modification; county and state fair surcharges authorization; University of Minnesota extension service policy modification for 4-H programs support.
Budget Plan Report (March 15th Report)

2:45 PM
House Capital Investment Finance Division
Room: Basement State Office Building
Chair: Rep. Alice Hausman
Agenda: Discussion on bonding policy issues

Wednesday, March 17

8:30 AM
House K-12 Education Policy and Oversight
Room: Basement State Office Building
Chair: Rep. Carlos Mariani
Agenda: HF3421 (Mariani) High school assessments established to determine college and career readiness.

12:30 PM
House in Session

Thursday, March 18

8:30 AM
House State and Local Government Operations Reform, Technology and Elections
Room: 200 State Office Building
Chair: Rep. Gene Pelowski
Agenda: HF2952 (Murphy) State employees retirement plan contribution rates increased,
interest rates on refunds and certain benefit accrual rates reduced, vesting requirements and early retirement reduction rates increased, and certain amortization periods extended.
HF3281 (Murphy) Volunteer fire relief associations technical corrections made, break-in-service return revised, Minnesota deferred compensation plan service pension transfers authorized, payout defaults revised in survivor benefits, and corrections of certain special fund deposits authorized.
Recommendations from the Legislative Commission on Pensions and Retirement.

10:30 AM
House in Session

12:30 PM
Senate Higher Education Budget and Policy Division
Room: 123 Capitol
Chair: Sen. Sandra L. Pappas
Agenda: To be announced

2:45 PM
House Education K-12 Finance
Room: 10 State Office Building
Agenda:
HF3043 (Kalin) Computer-adaptive assessments provided for general education students.
HF3267 (Newton) Advisory task force established on school desegregation and integration.
HF3163 (Mariani) Prekindergarten through grade 12 funding provided, including general education, education excellence, special programs, and early childhood education.

Wednesday, April 7

8:00 AM
Trustee Candidate Advisory Council
Room: 300N State Office Building
Chairs: Kent Eklund
Agenda: Candidates interviewed for Minnesota State Colleges and Universities Board of Trustees

Thursday, April 8

8:00 AM
Trustee Candidate Advisory Council
Room: 300N State Office Building
Chairs: Kent Eklund
Agenda: Candidates interviewed for Minnesota State Colleges and Universities Board of Trustees

Friday, April 9

8:00 AM
Trustee Candidate Advisory Council
Room: 300N State Office Building
Chairs: Kent Eklund
Agenda: Candidates interviewed for Minnesota State Colleges and Universities Board of Trustees