Enrollment of new underrepresented students increases 22 percent this fall at Minnesota State Colleges and Universities

Enrollment of new students from groups traditionally underrepresented in higher education increased by 22 percent this fall at the 32 Minnesota State Colleges and Universities, according to a new report presented to the Board of Trustees. These groups include students of color, low-income students and students whose parents did not attend college.

The state colleges and universities system enrolled 7,300 new underrepresented students. In addition, 8,000 more underrepresented students returned to the system’s institutions this fall, a 15 percent increase over a year ago. The total number of underrepresented students this fall is 94,302, an increase of 18 percent.

"These increases are important for the state of Minnesota," said Chancellor James H. McCormick. "The numbers show we have made substantial progress in recruiting and retaining more underrepresented students, although the economy also played a role in the increase."

To help the state’s employers maintain their competitive edge in the global marketplace, Minnesota needs more students from these groups to complete postsecondary programs as aging baby boomers retire and the state’s population grows more diverse, McCormick said. The system produces 33,500 graduates each year. Eighty percent of them stay in Minnesota to work or continue their education.

Though the state colleges and universities have been working to improve recruitment and retention of underrepresented students for years, a system initiative called "Access, Opportunity and Success" began in the fall of 2007. The Board of Trustees allocated $11 million a year for the initiative.

The system provided funds to every college and university to expand programs and services that have proven to be effective. The best practices include programs to help new students succeed in the transition from high school, advisors who routinely initiate contact with students, learning communities of students, summer programs and tutoring.

Brochures, posters and a Web site in nine languages also reached out to students from non-English speaking backgrounds in the 8th through 10th grades to explain the benefits of attending college and to encourage them to prepare for college.

"Underrepresented students often face barriers to entering college and succeeding once they get there," McCormick said. "The Legislature and the governor have supported this initiative, and we are grateful for their interest. It is gratifying that we are making some notable progress, but we still are a long way from eliminating the achievement gap that separates low-income and minority students from others."

Enrollment was up in nearly all subgroups. The number of new students of color this fall grew by 16 percent, new first-generation college students increased by 21 percent and new students eligible for Pell grants increased by 37 percent. Pell grant eligibility is typically used by higher education institutions as an indication of family income. The numbers released today are the official enrollment count of students taking credit-based courses on the 30th day of the fall semester. Total fall enrollment was 198,792 students.

View attached pdf of underrepresented students by institution.

Booming enrollment growth at Minnesota State Colleges and Universities sets record high

More students poured into the 32 Minnesota State Colleges and Universities this fall than ever before, resulting in the largest increase in the number of students since the system began, officials said today in releasing enrollment figures.

The state colleges and universities system now has 198,792 students or 12,641 more students than last fall when 186,150 students were enrolled. That’s nearly a 7 percent increase. Previously, the largest increase in the fall headcount was 9,023 additional students in 1999. Also, this is the fourth consecutive year that the system’s fall enrollment has set a record high.

Enrollment increases were particularly strong at the system’s 25 community and technical colleges. Thirteen colleges had increases greater than 10 percent.

“We know the economy was a major factor driving this enrollment boom,” said Chancellor James H. McCormick. “This unprecedented growth comes at a time when budgets have been cut at the state colleges and universities so faculty and staff are working harder than ever to serve students. We especially welcome the opportunity to serve displaced workers seeking to retool and upgrade their knowledge and skills.”

Enrollment was up in nearly all categories. The number of students of color this fall grew by 18.7 percent, from 27,446 to 32,585, while enrollment of white students was up 8.6 percent. In recent years, the colleges and universities have expanded programs to recruit and retain more students from groups traditionally underrepresented in higher education – students of color, low-income students and students who are the first in their families to attend college.

Enrollment of high school students in college courses, through the Post-Secondary Enrollment Options program, grew by 4.8 percent. Under Minnesota law, high school students can take courses tuition-free at the state’s public colleges and universities.

The number of students taking online courses, which includes credit and noncredit courses, grew by 21.7 percent to 47,794 this fall. The system offers about 200 programs completely or predominantly online through Minnesota Online (www.minnesotaonline.org), the largest provider of online education in the state.

Full-year-equivalent enrollment is projected to increase by almost 5.5 percent for the current year. (Full-year-equivalent enrollment is calculated by adding the credits taken by all students and dividing by the number of credits considered to be a full-time course load – 30 credits per year for undergraduates and 20 credits for graduate students.) The colleges and universities project a full-year-equivalent enrollment of 151,805 for the current year, compared with the actual full-year-equivalent enrollment of 143,924 for the 2008-2009 academic year.

The numbers released today are the official enrollment count of students taking credit-based courses on the 30th day of the fall semester.View pdf Thirtieth Day Headcount Enrollment

Student Aid and Fiscal Responsibility passes House

The U.S. House of Representatives passed HR 3221, the Student Aid and Fiscal Responsibility Act, this afternoon by a vote of 253 to 171. The vote occurred largely on a party-line basis.

As you know, the bill contains the community college initiative in Title V, which is an historic federal investment in community colleges. The bill also includes guaranteed increases in the Pell Grant maximum, and changes in financial aid, such as simplifying the FAFSA form. Funding is available for these initiatives and others in the bill, by requiring that all institutions begin participating in the Direct Loan program by July 1, 2010. There has been an estimated $80 billion cost savings over 10 years from moving to the Direct Loan program.

On the floor, House Education and Labor Committee chairman George Miller, D-CA, offered an amendment that includes limiting the quantitative benchmarks that colleges that receive grants must set and meet. The amendment also includes language that says in order for States to receive funding under the community college initiative, they must establish and implement comprehensive articulation agreements.

Another amendment that passed on the floor ensures that colleges that received funding under the American Recovery and Reinvestment Act, or ARRA, are not denied facilities funding under the bill. The House did reject amendments that would have stripped the community college initiative and construction funds from the bill.

Now that the full House has passed the bill, the Senate will introduce their version of the bill, which could be as early as next week. Stay tuned.

Student Aid and Fiscal Responsibility Act heads to House floor

This week, H.R. 3221, the Student Aid and Fiscal Responsibility Act of 2009, will be brought to the House floor for a vote. This landmark legislation contains the American Graduation Initiative, the $12 billion initiative proposed by President Obama and focused on community colleges. This is the largest single Federal investment ever made in community colleges.

H.R. 3221 also includes the following:

- $6.3 billion in grant funding to community colleges over the next ten years;

- $2.5 billion in facilities funding, made available on October 1, 2010;

- Guaranteed annual increases in the Pell Grant maximum, to ensure that it continues to grow faster than inflation;

- Guaranteed funding for Hispanic-Serving Institutions;

- Simplification of the application form and process for Federal student aid

Federal address to nation's students

The Minnesota State Colleges and Universities continually work on closing the achievement gap and providing access to students who want to further their education. President Barack Obama is delivering a similar message to students, administrators and teachers next week.

At 11:00 a.m., Central Time, September 8, 2009, President Barack Obama will deliver a national address to the students of America. During this special address, the president will speak directly to the nation’s children and youth about persisting and succeeding in school. The president will challenge students to work hard, set educational goals, and take responsibility for their learning.

The U.S. Department of Education invites students of all ages, teachers, and administrators to participate in this historic moment by watching the president deliver the address, which will be broadcast live on the White House Web site and on C-SPAN at 11:00 p.m., CT. We also encourage educators to use this moment to help students get focused and inspired to begin the new academic year. The Department of Education offers educators a menu of classroom activities—created by its teachers-in-residence, the Teaching Ambassador Fellows—to help engage students in the address and stimulate classroom discussions about the importance of education.

To learn more, please visit this site.

Senator Franken visits system office, emphasis placed on students

U.S. Senator Al Franken, DFL- Minn., visited with the Leadership Council of the Minnesota State Colleges and Universities, Monday, August 31. The focus of the discussion centered around serving students. Campus presidents told Senator Franken what was unique about their institutions and explained that Minnesota State Colleges and Universities serve students differently- some students may transfer between two year and four year institutions, others are taking classes at multiple locations and many are non-traditional, some going back to school after facing unemployment. There was also discussion about how the federal government could better structure financial aid to serve the system's unique learners. Senator Franken said he learned valuable information at the session, which he hopes to bring back to Washington, D.C. He is a member of the Health, Education, Labor, and Pension Committee; the Judiciary Committee; the Committee on Indian Affairs, and the Special Committee on Aging. After the August recess, the HELP committee is expected to begin work on higher education legislation.

Federal government progresses on funding higher education; legislators will be at state fair

Both the U.S. House and Senate have been busy drafting their fiscal year 2010 Labor-Health and Human Services-Education appropriations bills, which has Congress on-track to finish the appropriation process on-time this year (prior to the start of a new fiscal year Oct. 1). Last Friday, the full House passed their version of the bill, HR 3293, by a vote of 264-153. This bill appropriates $163.4 billion in discretionary programs. Those programs under the Department of Education will receive $67.8 billion resulting in an increase of $6.2 billion above last year's (2009) appropriation.

Higher education programs will receive a total of $2.3 billion which is an increase of $194 million over fiscal year 2009 and student aid programs will receive $19.6 billion, an increase of $478 million. $17.8 billion will go toward Pell Grants supporting an award of $4,860, which combined with mandatory funding provided in the 2007 College Cost Reduction and Access Act, will increase the maximum award to $5,550 for the 2010-2011 school year. The bill also provides $20 million increases for both the TRIO and GEAR UP programs.

Of the 12 appropriations bills the House and Senate are to consider, the House is considering its last bill, the Defense spending bill, which is being debated on the floor this week.

In the Senate, of the 12 appropriations bills, the full Senate has passed only two appropriations bills, leaving ten bills to take up. The Senate's agenda is full, including the debate and vote on the Supreme Court nominee, Judge Sonia Sotomayor. However, the Senate did introduce their version of the Labor-HHS-Education bill on Tuesday, and the full Appropriations Committee approved the bill yesterday afternoon. Similar to the House bill, the Senate bill includes funding for student financial aid, and maintains the maximum discretionary Pell Grant award level at $4,860, and combined with mandatory funding provided in the 2007 College Cost Reduction and Access Act, will increase the maximum award to $5,550 for the 2010-2011 school year.

Unlike the House bill, other than an increase of $441 million above 2009 funding for the National Institutes of Health, the Senate bill would fund all other higher education programs at their 2009 levels, including Federal Work-Study ($980 million) and Supplemental Educational Opportunity Grants ($757 million). The Perkins Loan Program would receive no new funds under this measure.

The Senate bill was influenced by the recent passage of the American Recovery and Reinvestment Act (ARRA), which appropriated more than $124 billion for programs that are funded in this bill, including almost $100 billion for the Education Department. Since most of the funding for ARRA programs will be obligated during fiscal year 2010, Committee Chair Sen. Tom Harkin, D-Iowa, said they generally did not provide additional large increases in this bill to those programs that received large increases in ARRA, such as Title I grants. Harkin said they expect to put a higher priority on these critical programs in the fiscal year 2011 appropriations bill.
The bill will likely not be before the full Senate until Congress returns from August recess. Once the full Senate passes the bill, a conference committee will be formed to work through the differences between the two bills.

In addition to the Labor-HHS-Education appropriation bill is HR 3221, the budget reconciliation bill. The Student Aid and Fiscal Responsibility Act of 2009, introduced by George Miller, D-Calif, Chairman of the House Education and Labor Committee, contains the new community college initiative announced by President Obama earlier this month. Included in the bill is $6.3 billion in funding to community colleges and other eligible entities. Funding is made available to eligible entities to compete for four year grants (minimum grant is $750,000) to support innovative programs or programs of demonstrated effectiveness that lead to the completion of a postsecondary degree, certificate, or industry recognized credential leading to a skilled occupation in a high-demand industry. Funding will also be provided annually to states to apply for grants to engage in the systematic reform of their community colleges.

The legislation also provides $2.5 billion to states for new community college facilities and modernizing, renovating, and repairing existing facilities. Grants can be used to reduce the financing cost of loans, provide matching funds for community college capital campaigns, and capitalize a revolving loan fund.

The bill also includes reforms to student aid, including simplifying the FAFSA form. The legislation reduces the amount of information that students will need to provide in order to file a Free Application for Federal Student Aid, or FAFSA.

Also included is a provision that ends the subsidized Federal Family Education Loan, or FFEL program by July 2010, and requires all colleges to participate in the Direct Loan program, under which loan capital is provided by the Federal government rather than banks. The Congressional Budget Office has projected a savings of $87 billion over ten years with this change.

Also under the measure, the Pell Grant maximum is increased from $5,550 in fiscal year 2010 to $6,900 in fiscal year 2019. The bill however, does not make the Pell Grant program an entitlement program, as proposed by President Obama; but rather $40 billion of savings from moving to the Direct Loan program is used to augment funding provided through the regular appropriations process. President Obama had proposed transforming the Pell Grant program into an entitlement program that, like Social Security and Medicare, would ensure a minimum level of funding that would increase each year.

The bill also provides $600 million annually from 2010 to 2014 for a "College Access and Completion Fund" designed "to promote innovation in postsecondary education practices and policies by institutions of higher education, States, and nonprofit organizations to improve student success, completion, and post-completion employment, particularly for students from groups that are underrepresented in postsecondary education."

The full House is not expected to take up the bill until September, after the August break. The Senate has yet to formally begin work on its version of the bill.

On Aug. 7 Education Secretary Arne Duncan will participate in a webinar to discuss the Obama administration's higher education agenda and take questions from campus leaders. This is being co-sponsored by the American Council on Education and the National Association of College and University Business Officers. You may find more information here.

Congress is scheduled to be on a recess starting August 10 through Labor Day for summer district work. We will continue to keep you updated as things progress federally.
As a reminder, many of our state and federal elected officials greet citizens at the Minnesota State Fair (August 27 - September 7). This is a good opportunity to meet your representatives and remind them that in hard economic times, the role of Minnesota State Colleges and Universities becomes even more critical as people seek education and training to update their skills or find new jobs. See you at the Fair!

State and federal updates- July 14, 2009

Legislative Advisory Commission reviews governor’s unallotment plan

Further cuts to state government and local government aid were made by Gov. Tim Pawlenty mid-June through the unallotment process after the Legislature and governor failed to reach agreement during the legislative session ended May 18. Many of those cuts took effect July 1 for the start of fiscal year 2010. The Minnesota State Colleges and Universities system received an unallotment of $50 million in fiscal year 2011, the second year of the biennium. The additional cut to the system will not affect the one-time American Recovery and Reinvestment Act funding of $79.2 million the system received.

Since the governor’s unallotment plan was made public, the Legislative Advisory Commission has been meeting to discuss the cuts. By law, the governor's administration has to consult with legislative leaders, but they do not need legislative approval. Members of the commission approved a resolution condemning Gov. Pawlenty’s unallotment plan, citing concerns over job losses and future deficits.

The resolution stated that the governor’s proposal to cut nearly $2.7 billion from the state’s biennial budget by executive action would be “unwise and not in the interest of the state’s long-term fiscal stability.” State Economist Tom Stinson told the commission that the proposed unallotments would result in 3,300 to 4,700 public- and private-sector job losses. Minnesota Management and Budget Commissioner Tom Hanson defended the governor’s plan, arguing that tax increases would have put Minnesota at a long-term competitive disadvantage with other states. “It is our view that the governor’s plan will put us in a better position to recover from this recession,” Hanson said.

Labor contracts approved

The Legislative Coordinating Commission Subcommittee on Employee Relations met late last month to approve labor contracts and plans including the Minnesota State College Faculty, the Minnesota State University Administrative and Service Faculty, AFSCME, MAPE, the Minnesota State Colleges and Universities Administrators Plan and the Commissioner’s Plan.

A copy of the adopted resolution can be found here.

A summary of the collective bargaining agreement can be found here.

As a reminder, the current Inter Faculty Organization contract was approved by the Legislature this past session and can be found in Session Laws 2009, Chapter 85.


Minnesota officially has two U.S. Senators

A new Minnesota senator was sworn into office last week. Gov. Pawlenty signed Sen. Al Franken’s election certificate June 29 after the Minnesota Supreme Court ruled that Franken had won the election. Franken will join the U.S. Senate nearly seven months after the other newly elected senators were sworn into office. The new senator already has been reaching out to the state’s colleges and universities. A copy of Sen. Franken’s election certificate can be viewed here.

Rep. Kurt Zellers named new minority leader

With former House Minority Leader Marty Siefert, R-Marshall, stepping down to make a run for governor, the House Republican Caucus elected a new leader. Rep. Kurt Zellers, R-Maple Grove, defeated Rep. Randy Demmer, R-Hayfield, for the position. The minority leader is instrumental in raising money and helping elect new candidates into office. Zellers said his goal is to see the caucus membership increase to around 70 members after the 2010 election, two more than needed to regain control of the House. Currently, House Republicans hold 47 seats. He said that anything is possible and that “a year from now is a long time.” Zellers also said the House Republican Caucus will “stick to the basics” like limited government and low taxes.

Rep. Kurt Zellers began his state service in 2003 when he won a special election to the House of Representatives. This past session, he was the Republican lead on the House Commerce and Labor Committee and also has served on the House Labor and Consumer Protection Division, House Taxes Committee and House Transportation, and Transit Policy Oversight Committee.

Governor race wide open

Since the announcement that Gov. Tim Pawlenty will not seek a third term in office, a lengthy list of contenders stepped forward. The lists below are those who have announced they will run, and still others who are exploring a run and are likely to throw their hats in the ring. For the DFL party, those who have announced their candidacy for governor include:

● Current State Sen. Tom Bakk
● Former U.S. Sen. Mark Dayton
● Former House Minority Leader Matt Entenza
● Ramsey County Attorney Susan Gaertner
● Current State Sen. John Marty
● Current State Rep. Paul Thissen

Other DFL candidates exploring a run:
● Current St. Paul Mayor Chris Coleman
● Former State Sen. Steve Kelley
● Current Minneapolis Mayor R.T. Rybak
● Speaker of the House Margaret Anderson Kelliher

The Republican Party candidates include:

● Current State Sen. Mike Jungbauer
● Former State Rep. Bill Haas
● Current State Rep. Paul Kohls
● Former House Minority Leader Marty Seifert
● Current State Rep. Tom Emmer

Other Republican candidates exploring a run:
● Former State Auditor Pat Anderson
● Current State Sen. David Hann
● Current State Sen. Paul Koering
● MN Business Partnership, former governor chief of staff and former State Rep. Charlie Weaver
● Former Speaker of the House and Dept. of Labor and Industry Commissioner Steve Sviggum

July economic update below forecast

According to Minnesota Management and Budget, the state’s general fund revenues for fiscal year 2009 are estimated $150 million or 1 percent less than February’s economic forecast. Individual income tax receipts were cited as the primary source of the shortfall, down $232 million, or 3.2 percent, from the forecast. Also down were sales tax revenues by $16 million. Receipts from the corporate income tax, motor vehicle sales tax, and other taxes and revenues exceeded projections by a combined $98 million. All fiscal year 2009 results are preliminary and
subject to change. A complete accounting of fiscal year 2009 revenues will be published in the October Economic Update.

New laws take effect July 1

The House of Representatives Public Information Services office publishes summaries of all new laws from the 2009 session. The new laws for 2009, taking effect July 1, can be found here. A summary can be found here.

The system also publicizes “Mandates and Curiosities,” a summary designed to highlight and explain legislation passed during the 2009 session that affects the Minnesota State Colleges and Universities system. This can be found online here. If you have any questions regarding new laws, please do not hesitate to contact the government relations staff:

Mary Davenport
Mary.Davenport@so.mnscu.edu
651-296-0664

Bernie Omann
Bernie.Omann@so.mnscu.edu
651-296-6277

Jerry Janezich
Jerry.Janezich@so.mnscu.edu
651-296-6097

Melissa Fahning
Melissa.Fahning@so.mnscu.edu
651-296-0669

Candi Walz
Candi.Walz@so.mnscu.edu
651-296-6518

Obama supporter of community colleges

In The Washington Post Sunday, President Obama was quoted as saying he believes it’s time to reform community colleges so that they provide Americans of all ages a chance to learn the skills and knowledge necessary to compete for the jobs of the future. Today, the president will visit Macomb Community College in Warren, Mich., and call on the nation's community colleges to produce five million more graduates by the year 2020 and propose spending $12 billion over 10 years to improve programs, courses, and facilities at two-year institutions, according to White House officials. Obama said in his article, “In an economy where jobs requiring at least an associate's degree are projected to grow twice as fast as jobs requiring no college experience, it's never been more essential to continue education and training after high school. That's why we've set a goal of leading the world in college degrees by 2020. Part of this goal will be met by helping Americans better afford a college education. But part of it will also be strengthening our network
of community colleges.”

The proposal includes $9 billion to go toward creating two grant programs for two-year campuses and states to test programs and practices designed to improve student learning and training, increase completion rates, and better track student progress. President Obama’s proposal will need to be addressed by Congress.

U.S. House works to fund higher education

Since President Obama submitted his fiscal year 2010 budget, Congress has been busy crafting legislation. Last week, the federal budget started to take shape in the House. The U.S. House Appropriations Subcommittee on Labor, Health and Human Services, and Education began to mark up the fiscal year 2010 bill.

The current legislation funds most programs at the current levels, However, funding for the Pell grant would increase $498 million to award maximum grants at the base level of $4,860. As you may recall, the College Cost Reduction and Access Act of 2007 brought the maximum award
to $5,550, which just went into effect July 1. Both TRIO and Gear-Up received a $20 million increase under the new language. The subcommittee approved the bill, and it is expected to go before the full Appropriations Committee this Friday, July 17.

You can read a copy of Chairman David Obey’s comments on the legislation here.


Steps taken to simplify the student financial aid application

The Obama administration has announced a simplified, more user-friendly Free Application for Federal Student Aid, or FAFSA form. Last month, Education Secretary Arne Duncan announced a shorter and simpler online application that skips unnecessary questions, asks Congress for
legislation to remove more than half of the financial questions, and a Web application that will let some families easily answer the remaining financial questions with data from the IRS. You may find more information here on the proposal to simplify the form.

Rep. Zellers elected minority leader

PRESS RELEASE
ZELLERS ELECTED MINNESOTA HOUSE MINORITY LEADER

ST. PAUL, June 23, 2009 – The Minnesota House Republican Caucus on
Monday elected State Representative Kurt Zellers, R-Maple Grove, to be
the next House Minority Leader effective immediately.  Zellers replaces
former State Representative Marty Seifert, R-Marshall. 

“Our caucus will continue to be the peoples’ advocate for a
government that spends responsibly, sets priorities and keeps a lid on
taxes.  That means more than just sitting back and saying no every time
Democrats propose a new tax increase.  We will offer new solutions and
new ideas, all with a continued respect for the taxpayers’ hard-earned
dollars.

“Our constituents sent us here to play a part in finding solutions,
they don’t want to see another legislative session like the one that
just finished.  We will keep offering ideas for reform that we believe
chart the best course to an economic recovery, and we’ll work with
willing Democrats to get things done.”

Zellers is in his fourth term in the Minnesota House, having first been
elected in a 2003 special election, and won re-election in 2004, 2006
and 2008.  He represents House District 32B in the northwest Twin Cities
metro area, including the city of Osseo and part of Maple Grove.
Zellers and his wife, Kim, have two children, son Will, age 4, and
daughter Reagan, age 5. 

Zellers Bio & Background
Born: Devils Lake, North Dakota, 1969
First elected: 2003 special election (replacing Rich Stanek)
Re-elected: 2004, 2006, 2006
District: 32B, Osseo and part of Maple Grove in Hennepin County,
northwest metro area
Family: Wife, Kim (teacher); Two children, son Will (3) and daughter Reagan (4)
Education: University of North Dakota, Political Science
Prior to serving in the Minnesota House: field staff for former Senator
Rod Grams in 1994; Became Grams’ communications director after the election
Worked on former Senator Norm Coleman’s 2002 campaign
Former House Republican Caucus communications director
Committees: Commerce and Labor; Labor and Consumer Protection Division;
Taxes; Transportation and Transit Policy and Oversight Division  

Request for $403.6 million in building and remodeling projects approved by Minnesota State Colleges and Universities trustees

The Minnesota State Colleges and Universities will seek authorization for $403.6 million in funding next year for construction and remodeling projects across the state. The Board of Trustees Thursday approved a list of 31 projects that will be submitted for funding.

The request to the Legislature is for $305.8 million in state general obligation bond financing with $97.8 million in debt service financed by the system and its institutions, bringing the total project authorization to $403.6 million.

The top priority is $110 million in repair and replacement projects for roofs and mechanical and electrical systems, as well as health and safety improvements, on nearly all 54 campuses.

"Repair and replacement projects are the No. 1 priority because we must make sure the system’s 855 buildings are, first and foremost, in good repair," said Chancellor James H. McCormick. "These projects also give us the opportunity to reduce energy by using energy-efficient materials and devices, as well as sustain these important state buildings into the future." Overall, the system is responsible for nearly one-third of state-owned building space.

Funds also are being sought for 30 other capital improvement projects, which largely would add, replace or remodel classrooms, science labs and applied technology labs.

Laura King, the system’s vice chancellor and chief financial officer, said, “We will be able to better serve the growing number of students on our campuses if we can make these renovations and improvements.” Enrollment of students taking credit courses has increased by 10,572 students between 2002 and 2008, and is projected to continue increasing.

Board Chair David Olson said, "These projects correspond directly to the board's strategic plan that calls for increasing access and opportunity, strengthening regional and state economic vitality, delivering high-quality learning options and services, and promoting innovation.

"We are optimistic that the governor and Legislature will recognize that upgrading our existing facilities, particularly for science and technology programs, will help us produce more graduates that the state’s employers need to remain globally competitive," Olson said. Legislators are expected to visit campuses around the state this summer and fall to become familiar with the capital requests.

The 31 projects were winnowed from more than $700 million in requests submitted by the system's institutions. In January, teams of representatives from the campuses and system office scrutinized and scored the proposals.

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 serves about 250,000 students per year in credit-based courses and an additional 140,000 students in non-credit courses.

Unallotment announced

Gov. Pawlenty today announced further cuts to state government and aid to local governments through the unallotment process in order to resolve the remaining $2.7 billion budget deficit. Many of the cuts will go into effect July 1, 2009, the beginning of the 2010 fiscal year, however many of the cuts will be made in the second year of the biennium due to interaction with the federal stimulus funds.

The governor unalloted a total of $100 million to higher education in 2011, the second year of the biennium. The Minnesota State Colleges and Universities system and the University of Minnesota received a cut of $50 million each.

The governor did not make across-the-board cuts and left K-12 education, public safety, corrections, the national guard, veterans affairs and nursing homes unharmed. Here is a summary of the cuts:

• $300 million Reduction of local aids and credits
• $67 million Reduction of refunds and other payments
• $236 million Reduction in human services spending
• $100 million Reduction in higher education appropriations
• $33 million Reduction in most state agency operating budgets
• $1.77 billion K-12 payment deferrals and adjustments
• $169 million Administrative actions

Details of the proposed unallotments may be found here.

The letter to Gov. Pawlenty regarding unallotments can be found here.

The unallotments are recommendations, and are not considered final. The governor and his administration will follow the process of consulting with legislative leaders for their input and reaction. On Thursday at 3:00, the Legislative Advisory Commission will hold a hearing to hear from Commissioner Tom Hanson with Minnesota Management and Budget on the unallotments. By law, the governor's administration has to consult with legislative leaders, but he does not need legislative approval.

Thursday, June 18
3:00 PM
Legislative Adivsory Commission
Room: 15 State Capitol
Chairs: Speaker Margaret Anderson Kelliher, Sen. Larry Pogemiller
Agenda: Consultation on unallotment as required by state statute.

Final week is busy

Legislative Update
May 15, 2009

Countdown to Monday - no special session
The House and Senate both approved a “lights-on” bill earlier this week that would keep government going if no other appropriation bills for the 2010-11 biennium are enacted; however, such a bill may not be necessary. Gov. Tim Pawlenty said Thursday that he would like to work out a compromise with legislative leaders, but if such an agreement cannot be reached, he will resolve the budget on his own with line-item vetoes and his authority to unallot, making a special session unnecessary.

Pawlenty said he intends to sign all the omnibus appropriation bills sent to him, but he will line-item veto them where necessary. Without providing any specifics, he said the end result will resemble his budget proposal in January. He has already line-item vetoed the health and human services finance bill. Lawmakers have passed budget bills that leave a $3 billion shortfall between spending and revenues; however, the tax bill passed by the Legislature attempts to resolve that shortfall. The governor vetoed that bill, saying he will not sign a bill with any tax increases included.

Speaker Margaret Anderson Kelliher, DFL-Minneapolis, responded to the governor's plan by saying Minnesotans expect to know where the governor is planning to cut. With the intention of making the process as open as possible, DFL leaders continue to flesh out the budget through the Legislative Commission on Planning and Fiscal Policy. The Commission was meeting at the time of this writing. Legislative leadership is hoping to understand the details behind the governor’s plan.

Senate Majority Leader Larry Pogemiller, DFL-Minneapolis, said he thinks it's important to find a calm and reasonable solution to the end of session and not make rash decisions. Pogemiller said the governor is showing willingness to compromise by signing the budget bills. With only a few days left, can a global deal be reached, or will the governor end up resolving the budget deficit through line-item vetoes and unalloting?

You may view Pawlenty's press conference and the reaction from legislative leadership here.

Agreement reached on higher education omnibus appropriation bill
The House and Senate approved the higher education conference committee report Wednesday. The Senate approved it by a vote of 54-12, and the House approved it 103-31.

Going into conference committee, the governor and House were recommending a 2010-11 base cut to the Minnesota State Colleges and Universities system of $161.8 million, with a one-time federal stimulus appropriation of $133.8 million. The Senate was recommending a cut of $103.8 million, with a one-time federal stimulus appropriation of $75 million. The final bill cuts the Minnesota State Colleges and Universities system $95 million over the 2010-11 biennium, with a one-time federal stimulus appropriation of $79 million, $15.3 million one-time in the current fiscal year 2009 and $63.9 million one-time funds in fiscal year 2010.

For financial aid, the bill language provides for an increase in the tuition maximum for students in four-year programs from $650 to $10,488; does not change the two-year cap; increases the number of semesters a student is eligible for a state grant from eight semesters to nine semesters; funds a summer bridge program, which is a research-based high school-to-college development transition program after high school graduation to prepare students for college-level academic coursework; and increases the living and miscellaneous expenses, or LME, by $800 to $7,000. The bill also increases work study by $5 million and child care assistance grants by $1 million.

Included in the bill for the Minnesota State Colleges and Universities:

• Tuition cap of 5 percent each year with a buy-down using the federal stimulus funds to 3 percent in FY 2010 and 3 percent in FY 2011 for a net increase of 6 percent.

• Language on the American Recovery and Reinvestment Act of 2009 taken from the House bill that states the federal funds may be used for modernization, renovation, or repair of facilities that are primarily used for instruction, research or student housing. Language also reads that the federal funds must be used as a bridge for budget reductions, and may be used to retain faculty and staff jobs, provide severance and early retirement incentives and to mitigate the rising costs of attendance through minimizing tuition increases and the support of student employment opportunities.

• Separate line item for the Office of the Chancellor and Shared Services Division of $47.328 million in both FY 2010 and FY 2011.

• Caps the technology initiative, including technology infrastructure improvements, at $40 million for the 2010-11 biennium.

• $150,000 each year for technical and community college emergency grants for students experiencing extraordinary economic circumstances that may result in the student dropping out of school without completing the term or their program.

• $500,000 ongoing funds each year for the Power of You program at the three current institutions; Saint Paul College, Minneapolis Community and Technical College and Metropolitan State University; and $500,000 one-time funds each year for an expansion of the program to rural and suburban pilot sites.

• $40,000 each year for the Cook County Higher Education Board to provide educational programs and academic support services.

• $1 million each year for the Northeast Higher Education District and area high schools for state-of-the-art technical education opportunities.

• $225,000 each year to enhance the eFolio Minnesota project on the Iron Range

• The Board of Trustees is encouraged to place a priority on identifying and implementing measures to improve the human resources system used by the Minnesota State Colleges and Universities in order to increase efficiencies and equity for faculty and staff.

The provision from the House bill that stated the Minnesota State Colleges and Universities could not fill administrative or managerial positions or use search firms for hiring was not included in the final bill.

The language that capped the funds for underrepresented students at $5 million over the biennium was not included in the final bill.

The Senate language that removes the restriction on marketing to high school students about the financial benefits of the PSEO program was not included in the final bill.

The tuition guarantee language that requires the system to offer students a four-year stable tuition rate was not included in the final bill.

Included in the final bill was the House language on the 60 college and 120 university credit cap policy for the Minnesota State Colleges and Universities system. The language states that the A.A.S. degree is exempt from the 60-credit limit until July 2, 2012. By January 2, 2012, MSCF and MSCSA are to present a joint report to the Legislature on a process for reviewing the credit requirements for an A.A.S. degree.

The provision on course equivalency that directs the Minnesota State Colleges and Universities system to maintain course equivalency guides that include information on the course equivalency and awarding of credit for learning acquired as a result of the successful completion of formal military courses and occupational training, is in the final bill. The system currently does this so is already in compliance.

The language on notice to prospective students on possible impact of criminal records was amended in the final bill to read that each institution is to give notice to every person accepted for admission. The notice is to be given at or before the time of acceptance for admission to the institution and at or before the time students select a major. An institution is not liable for failing to provide notice.

The provision on American made clothing in bookstores was amended to delete the word "only." The final language now reads, "To the extent possible, a bookstore located on the campus of a public college or university in Minnesota must offer for sale clothing or articles of apparel that are manufactured in the United States of America. The college or university must make a report to the legislature on the results of efforts to comply with this section."

There is language included in the bill that encourages public higher education institutions to offer research-based high school-to-college developmental transition programs to prepare students for college-level academic coursework. A program must not be more than one semester of full-time study occurring in the summer following high school graduation.

The provision in the bill that required, as a condition of enrollment, that each entering Minnesota resident student complete the federal application for student aid, or FAFSA, was amended to now require all eligible institutions to adopt policies and procedures that ensure applicants are aware that they must annually complete the FAFSA to be eligible for financial aid. The Minnesota Office of Higher Education is to report to the Legislature.

Regarding the Board of Trustees, language was adopted that amends the board’s membership so that a commissioner of a state agency may not serve as a member of the board. However, the bill includes language that allows for a commissioner currently serving on the board to continue serving the remainder of the term.

The final language on labor market data review for the Minnesota State Colleges and Universities was amended to now read, "The board must assess labor market data when conducting college program reviews. Colleges must provide prospective students with the job placement rate for graduates of technical and occupational programs offered at the colleges."

Language regarding textbooks was included that requires the Office of Higher Education to report to the Legislature on the implementation of textbook information requirements under federal code. The Minnesota State Colleges and Universities system is to take part in preparing the report.

Also included in the bill is the Senate language on a teacher education report. The Minnesota Office of Higher Education and the Minnesota Department of Education are to report on best practices in innovative teacher education programs and teacher education research by June 15, 2010.

The language that was in the House bill for the sale of the Minnesota State College - Southeast Technical aviation training center was included in the final bill.

The language in the final bill on the oral health practitioner and dental therapist programs was amended to be the advanced dental therapist program. Either the University of Minnesota or the Minnesota State Colleges and Universities will be able to train dental therapists and advanced practice dental therapists.

The final bill is available online here.

The spreadsheet is available online here.

As of the time of this writing, the governor has not taken any action on this bill.

Final bonding bill
The House approved the bonding bill on the floor this week by a vote of 109-25. The Senate passed it by a vote of 59-8. The total general obligation bond proceeds is $299.9 million. Included in the bill is $40 million in HEAPR for the Minnesota State Colleges and Universities. All five of the 2008 vetoed projects are also in the final bill:

• Lake Superior College health science center - $11 million

• Mesabi Range Community and Technical College, Eveleth addition - $5.25 million

• Metropolitan State University classroom center - $5.7 million

• North Hennepin Community College center for business - $13.3 million

• System wide classroom renovations - $3.625 million

There are other projects in the bill related to the Minnesota State Colleges and Universities system. Those include:

• Minnesota State College - Southeast Technical - authority to retain proceeds from sale of surplus property

• City of Mankato - $6.5 million grant for the women's hockey Expo Center for use by Minnesota State University, Mankato. The Board may lease land on campus to the city.

• Olmsted County steam line - $5 million grant to construct steam pipeline to the Rochester Community and Technical College campus

• Metropolitan State University and Minneapolis Community and Technical College co-located Law Enforcement Training Center - excluding revenue from student tuition and fees, the university and college may use up to $2 million of college/university funds, or other non-state money for the remainder of the project.

• Owatonna College and University Center - may use remaining funds from property acquisition for capital improvements to the property.

• St. Cloud State University - may use funds available from Brown Science Hall renovation to complete design and construction drawings for the Science and Engineering Lab and to demolish building number 801.

The final bill can be found here.

The final spreadsheet can be found here.

As of the time of this writing, the governor has not taken any action on this bill.

Agriculture and veterans affairs bill passes with overwhelming support
The full House and Senate overwhelmingly approved the agriculture and veterans affairs omnibus bill this week. The bill includes $100,000 each year for mental health counseling support to farm families and business operators through farm business management programs at Central Lakes College and Ridgewater College. Language is also included in the bill that establishes a Feeding Minnesota Task Force to study the consumption of Minnesota-grown produce and livestock by facilitating the donation of harvested products to charities that provide food for hungry people. Included on the task force is a representative from a higher education institution.

Also included in the bill is the Green Jobs Food Production Study provision that requires the Agricultural Utilization Research Institute to prepare a detailed study of the state's food production sector in coordination with the Minnesota State Colleges and Universities; urban, rural, and tribal community-based agriculture and food security organizations; members of the Legislature with service on committees created by the Green Jobs Task Force; and other interested stakeholders. The study is to define the size of the employment base and identify opportunities to increase the number of green jobs in each of the following sector segments: organics and organic value-added processing and local, conventional, natural, traditional, and urban farming.

In the veterans section of the bill, $100,000 each year is included for the costs of administering the Minnesota GI Bill program.

As of the time of this writing, the governor has not taken any action on this bill.

Contract ratification bill passes
Both the Senate and House have passed the state contract ratification bill, SF 1036, and it is now awaiting the governor’s signature. Included in the bill is the 2010-11 Inter Faculty Organization contract. Also included is the 2008-09 MSUAASF contract that was not ratified last session due to timing. The 2010-11 MSUAASF and MSCF contracts, as well as other contracts and plans, will be heard by the Legislative Coordinating Commission Subcommittee on Employee Relations during the interim and ratified by the Legislature next session.

Pension bill
The omnibus pension bill made its way through the committee process this week. The bill, sponsored by Rep. Mary Murphy, DFL-Hermantown, and Sen. Don Betzold, DFL-Fridley, comprises the work of the Legislative Commission on Pensions and Retirement. It includes language from more than two dozen individual bills dealing with pension issues. Included in the bill is the provision that permits the Minnesota State Colleges and Universities system to establish an early separation incentive program for its employees.
The bill is awaiting action by the full House and Senate.

Survey regarding economic future of colleges and universities
Witt/Kieffer, a search firm that conducts searches on behalf of colleges and universities, national educational associations and others, surveyed 1,551 college and university presidents and chancellors in February 2009 to gauge their reactions to the economic crisis.

Responses indicated presidents and chancellors expect the economic downturn will have a lasting impact on higher education including: decreased levels of support from state, local and federal governments; a growing burden on families to finance college education; increased scrutiny of the quality and outcomes of programs; and increasing competition from for-profit schools.

You may view the full report here.

President Obama’s FY 2010 budget
Last week, President Obama released further details of his fiscal year 2010 budget. The details in the administration’s budget will assist Congress in understanding the president’s priorities. Nearly all of the higher education accounts have been level funded at the FY 2009 level. The proposal does provide further detail on the president’s Pell entitlement proposal to make the program a complete and full entitlement, not subject to the annual appropriations process. In addition, federal supplemental educational opportunity grants, or SEOG, is funded at $757 million, and work-study is funded at $980 million. There is an increase of $50 million for the Academic Competitiveness and SMART grants, which encourage students to take more challenging courses in high school and pursue college majors in high demand in the economy, such as science, mathematics, technology, engineering and critical foreign languages.

Institutional aid to higher education institutions to strengthen academic quality, institutional management and financial stability provided through Titles III and Title V of the Higher Education Act both saw overall funding levels drop; however, with regard to discretionary funding, the administration has requested higher funding amounts. The College Cost Reduction and Access Act of 2007 provided mandatory funding for Historically Black Colleges and Universities and Hispanic Serving Institutions. These funds were only provided for fiscal years 2009 and 2010. The president requests an additional $31.5 million for Title III schools and an additional $4.6 million for Title V schools.

The federal TRIO program, designed to motivate and support students from disadvantaged backgrounds, is level funded at $905 million, and GEAR-UP, designed to increase the number of low-income students who are prepared to enter and succeed in postsecondary education, is level funded at $313 million. The administration is recommending an increase of $4.2 million to the Fund for the Improvement of Postsecondary Education, or FIPSE, program, which supports and disseminates innovative reform projects that serve as models for improving the quality of postsecondary education and increasing student access.

Higher education bill work continues; Economic Development vetoed; Tax bill agreement reached

Legislative Update
May 8, 2009

Conferees close to agreement on higher education omnibus appropriation bill - waiting for targets
After meeting for almost two weeks, the higher education conference committee has made progress on many policy differences in the House and Senate bills, but without targets, they cannot negotiate the finance provisions. Conferees have adopted the language that requires the Pell grant surplus to stay in the state grant program, but no other decisions on how to spend the state grant surplus have been made. Minnesota State Colleges and Universities students are advocating for an increase in the living and miscellaneous expense, or LME allowance, which they said is the most equitable way to spend the state grant surplus.

Conferees considering the policy provisions have deleted the language that states the Minnesota State Colleges and Universities cannot fill administrative or managerial positions or use search firms for hiring.

The provision on American-made clothing in bookstores was amended to delete the word "only." The language now reads, "To the extent possible, a bookstore located on the campus of a public college or university in Minnesota must offer for sale clothing or articles of apparel that are manufactured in the United States of America. The college or university must make a report to the legislature on the results of efforts to comply with this section."

The provision on labor market data review for the Minnesota State Colleges and Universities was amended to read, "The board must assess labor market data when conducting college program reviews. Colleges must provide prospective students with the job placement rate for graduates of technical and occupational programs offered at the colleges."

Conferees also deleted the tuition guarantee provision that requires the system to offer students a four-year stable tuition rate. Also, the language in the House bill authorizing the sale of the Minnesota State College-Southeast Technical aviation training center was adopted.

The provision in the bill that required, as a condition of enrollment, that each entering Minnesota resident student complete the federal application for student aid, or FAFSA, was amended to now require all eligible institutions to adopt policies and procedures that ensure applicants are aware that they must annually complete the FAFSA to be eligible for financial aid. The Minnesota Office of Higher Education is to report to the Legislature.

The language on the oral health practitioner and dental therapist programs was amended to be the advanced dental therapist program. Either the University of Minnesota or the Minnesota State Colleges and Universities will be able to train dental therapists and advanced practice dental therapists.

The conference committee has adjourned until Monday. Because the higher education bill includes federal stimulus funds, more time may be needed to work through the complications presented by the federal stimulus package. Stay tuned.

Governor vetoes economic development bill - lawmakers go back to work
Gov. Tim Pawlenty vetoed the economic development conference committee report this week. The bill includes $350.6 million in total spending, representing a cut from forecasted base funding. The Senate had proposed $356 million and the House $368.4 million. "I think we have a really good compromise here," said economic development conference committee co-chair Sen. David Tomassoni, DFL-Chisholm, after the conferees adopted the report. Tomassoni said he did not like some of the budget cuts included in the final bill, but said they were made in the interest of reaching a compromise with the governor’s office.

The governor stated in his veto message to the Legislature, that the items he felt necessitated a veto were not subject to line-item veto, therefore triggering a veto of the entire bill. One of the biggest reasons given by the governor for vetoing the bill is the provision that forgives a loan payment by the city of St. Paul to the state of Minnesota for the Saint Paul River Centre.

Included in the bill was $1 million from the 21st Century Minerals Fund for a grant to the Northeast Higher Education District for planning, design, and construction of classrooms and housing facilities for upper-division students in the engineering program.

Also included was language that directs the Commissioner of the Department of Employment and Economic Development to lead a project to provide advice on state agency collaboration in the design, coordination, and administration of a strategic science and technology program for the state. A representative of the Minnesota State Colleges and Universities was to be a project member.

Conferees reach agreement on tax bill - will likely be vetoed
Working late into the night Thursday, the tax conference committee passed a tax bill that would raise approximately $1 billion from new taxes to fund K-12 schools, nursing homes and hospitals. The bill adds a new fourth-tier income tax rate of 9 percent for married couples filing jointly and earning more than $250,000, and for single taxpayers making more than $141,250. The 9 percent rate sunsets after tax year 2013 if the February 2013 economic forecast shows a general fund balance of $500 million or more. The bill also charges credit card companies a 30 percent surtax on income from interest exceeding 15 percent, raises the sales tax on alcoholic beverages from 2.5 to 5 percent and charges an excise tax on alcoholic beverages. Of the revenue raised from the different taxes, $586 million would fund K-12 education, $288 million would go to nursing homes and long-term care, and $114 million to hospitals.

The conference committee report is currently being debated on the House floor. The bill will likely be vetoed by Gov. Pawlenty who has said he will not sign any bill with tax increases included. The governor’s budget proposes using $1 billion from tobacco bonds that will have to be repaid over 20 years. Speaker Margaret Anderson Kelliher, DFL-Minneapolis, said that if the bill is vetoed, deeper cuts can be expected in E-12 education and health care.

Bonding bill still being debated
Conferees for the capital investment bill continue to meet and negotiate a number of projects. This week, lawmakers discussed flood mitigation, commuter and passenger rail projects and transit projects. For the Minnesota State Colleges and Universities, both the House and Senate are now at $40 million for HEAPR and both bodies include all five vetoed projects from the 2008 session. At the time of this writing, a conference committee has not been called.

With May 18 deadline approaching lawmakers continue session-ending negotiations
While conference committees meet to wrap up appropriation bills, the Legislative Commission on Planning and Fiscal Policy continues to meet almost daily to reach agreement on the $6.4 billion budget deficit. The commission, chaired by Speaker Margaret Anderson Kelliher, DFL-Minneapolis, has become the forum for transparency regarding end-of-session negotiations.

Speaker Anderson Kelliher said that federal stabilization money is complicating the mix in setting spending targets, especially in the areas of health and human services, K-12 education and higher education. Thursday was the final deadline for conference committee reports to be finished. However, the House and Senate voted to amend their Joint Rules regarding committee deadlines. In Thursday’s floor session, Majority Leader Tony Sertich, DFL-Chisholm, referenced Minnesota Management and Budget Commissioner Tom Hanson who stated in a recent commission hearing that he would rather see them all take a little more time and not rush through bills just to meet a deadline.

With May 18 just a little more than a week away, many wonder if the Legislature is headed into overtime. Stay tuned.

Here's What's Happening at the Capitol:
The legislative schedule is fluid and subject to change. Please watch the House and Senate schedules posted on the Legislature web site.

Monday, May 11

8:30 AM
House State Government Finance
Room: Basement State Office Building
Chair: Rep. Phyllis Kahn
Agenda:
HF0354 (Hilstrom) Mortgage foreclosure proceedings on homestead property mediation provided prior to commencement, and homestead-lender mediation account created;
HF0723 (Murphy, M.) Omnibus retirement bill;
HF0866 (Hosch) School districts required to obtain employee health coverage through the public employees insurance program;
HF1032 (Fritz) Self-advocacy program established for persons with developmental disabilities, and appropriated money transferred.

At the call of the Chair
Higher Education Conference Committee
Room: 118 Capitol
Chairs: Sen. Sandra L. Pappas and Rep. Tom Rukavina
Agenda: S.F. 2083-Pappas: Omnibus higher education appropriations.

Time TBA
Legislative Commission on Planning and Fiscal Policy
Room: TBA
Chair: Speaker Margaret Anderson Kelliher
Agenda: TBA

Higher education and bonding conference committees begin to meet; Two weeks of session remain

Higher education conferees begin working through differences
Conferees for the higher education bill met this week to work through the differences between the House and Senate bills. Senate conferees include Sen. Sandy Pappas, DFL-St. Paul; Sen. Claire Robling, R-Jordan; Sen. Ann Lynch, DFL-Rochester; Sen. Ron Latz, DFL-St. Louis Park; and Sen. Sharon Erickson Ropes, DFL-Winona. Conferees on the House side include Rep. Tom Rukavina, DFL-Virginia; Rep. Linda Slocum, DFL-Richfield; Rep. Larry Haws, DFL-St. Cloud; Rep. David Bly, DFL-Northfield; and Rep. Carol McFarlane, R-White Bear Lake.

Conferees have adopted language in the two bills that is the same or similar and now are working to come to an agreement on the bigger issues including the budget. Co-chairs Sen. Pappas and Rep. Rukavina said they will conduct an open and inclusive process and asked for testimony from anyone with concerns on any of the provisions in either bill.

The same or similar language that was adopted includes the course equivalency provision that directs the system to maintain course equivalency guides with information on the course equivalency and awarding of credit for learning acquired as a result of the successful completion of formal military courses and occupational training.

Another provision adopted yesterday is language that encourages the Board of Trustees to place a priority on identifying and implementing measures to improve the human resources system used by the Minnesota State Colleges and Universities to increase efficiencies and equity for faculty and staff.

Conferees adopted the language pertaining to American Indian scholarships that provides for the Minnesota Office of Higher Education director to contract with at least one person with demonstrated competence in American Indian culture to assist students with scholarships and other financial aid. Bemidji State University is to provide office space to administer the American Indian scholarship program.

Also adopted is language that requires the Office of Higher Education to report to the Legislature on implementation of textbook information requirements under federal code.

There has been discussion on the state grant program and how each body and the governor packages the state grant surplus. Jacob Littler of the Minnesota State College Student Association and Graeme Allen with the Minnesota State University Student Association testified that using the state grant surplus to increase the living and miscellaneous expense, or LME, is the most equitable for students. No action has been taken on the state grant, and conferees indicated financial aid would be further discussed Monday. The conference committee meets again at 9 a.m. Monday in Room 118 of the Capitol.

The side-by-side comparison of the two bills prepared by the Revisor’s office can be found here.

Bonding conference committee update
The Capital Investment Conference Committee met early this week and heard from Minnesota Management and Budget Commissioner Tom Hanson regarding Gov. Tim Pawlenty's letter sent April 24 to bonding conferees. Hanson reiterated that a $275 million bonding bill is too large and emphasized that projects should be "shovel ready." The governor has said he is not in favor of projects that build new facilities, but rather wants to focus on preserving existing buildings. The governor also has said he would like to see flood mitigation funding to address the immediate needs in northwestern Minnesota.

Capital Investment conferees may meet again as soon as this evening. Currently, $5 million in HEAPR separates the system in the Senate and House bills. The last Senate proposal is $45 million in HEAPR and the five vetoed projects. The House is at $40 million in HEAPR and also includes the five projects. Those projects include the health and science center addition at Lake Superior College; the carpentry and industrial mechanical technology shops at Mesabi Range Community and Technical College; the smart classroom center at Metropolitan State University; the center for business and technology at North Hennepin Community College; and the systemwide classroom renovation initiative at Central Lakes College, Minnesota State Community and Technical College, Minnesota West Community and Technical College, Northland Community and Technical College, Pine Technical College, and Rochester Community and Technical College.

Approximately two weeks remain to reach agreement
This week at the Legislature consisted of long floor sessions and even longer conference committees. Speaker Margaret Anderson Kelliher, DFL-Minneapolis, said the work by conference committees on four omnibus appropriation bills should be completed this weekend with the intent of having them to the governor by the middle of next week. Those bills include agriculture and veterans affairs, transportation finance, economic development, and environment and natural resources.

While conference committees meet, the Legislative Commission on Planning and Fiscal Policy also is meeting to discuss budget targets. Speaker Anderson Kelliher has called for transparency as the House, Senate and the governor work toward a 2010-2011 biennial budget agreement. Anderson Kelliher emphasized that as the constitutionally required deadline of May 18 nears, there will be some closed-door negotiations, but she expects more work to be done openly through the committee process.

Trustees confirmed by full Senate
The full Senate confirmed Cheryl Dickson, Jacob Englund, Clarence Hightower, Allyson Lueneburg, Louise Sundin and Terri Thomas as members of the Board of Trustees of the Minnesota State Colleges and Universities earlier this week after the Senate Higher Education Policy Committee recently put forth the recommendation. The committee recommended the final trustee confirmation of David Paskach this week. That recommendation will head to the full Senate for final confirmation. David Metzen was also confirmed by the full Senate as director of the Minnesota Office of Higher Education.

Congress passes FY 2010 budget resolution
The House of Representatives passed a FY 2010 budget resolution this week by a vote of 233-193. The Senate then passed the resolution by a vote of 53-43. The budget resolution provides approximately $1.06 trillion to be divided among the 12 appropriations bills, including the Labor-Health and Human Services-Education bill. Congress is expected to begin the appropriations process shortly, with the expectation that appropriation bills will be finalized in the fall. It is also expected that President Obama will submit his budget priorities the first week of May.

The budget calls for the education committees to reduce spending in programs by $1 billion over the next five years. However, the resolution also contains reserve funds that would allow the committees to spend for a specific purpose. It allows for a higher education reserve fund to accommodate legislation that would impact access to higher education. This could allow for a measure that increases funding for the Pell Grant program, including the maximum award, and shifts all higher education loans to be made through the Direct Loan Program as suggested by President Obama. The appropriations committees will determine final funding levels for education and each specific program.

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 4

9:00 AM
Higher Education Conference Committee
Room: 118 Capitol
Chairs: Rep. Tom Rukavina, Sen. Sandy Pappas
Agenda: higher ed bill

11:00 AM
Senate in Session

12:00 PM
House in Session

Time to be announced
E-12 Education Conference Committee
Room: 200 State Office Building
Chairs: Sen. LeRoy A. Stumpf and Rep. Mindy Greiling
Agenda: H.F. 2-Stumpf: Omnibus K-12 appropriations.

Tuesday, May 5

8:00 AM
House Finance
Room: TBD
Chair: Rep. Lyndon Carlson
Agenda: HF1193 (Koenen) Department of Corrections and Department of Employment and Economic Development claims settlement provided, and money appropriated.
HF1218 (Lillie) State labor contracts ratified.
HF905 (Doty) Commissioner of military affairs authorized to accept uncompensated and voluntary services.
SF666/HF985 (Hayden) Children aging out of foster care provisions modified.
HF1988 (Murphy, E.) Managed care plan and county-based purchasing plan provider medical assistance (MA) reimbursement rate information annual report requirement
HF1565 (Kelly) Goodhue County; Nursing facility beds consolidated and relocated to a new site.
HF682 (Magnus) Rock County; Nobles County; State rail line loan forgiven.
HF108 (Norton) Seat belt violation made a primary offense in all seating positions regardless of age.

Higher education bill goes to conference committee; Taxes debated; Session adjournment nears

Legislative Update
April 24, 2009

Higher education bill heads to conference committee
The House passed the higher education omnibus bill on the floor this week by a vote of 86-46. After almost three hours of debate and multiple amendments, only three amendments were adopted. The amendment adopted that affects the Minnesota State Colleges and Universities system was offered by Rep. Larry Haws, DFL-St. Cloud, and requires that the college and university bookstores, to the extent possible, sell clothing made in America. The institutions must report to the Legislature on their efforts to comply. Earlier in the week, the House Ways and Means Committee took up the bill before sending it to the floor and amended the tuition guarantee provision. Instead of guaranteeing students a stable tuition rate for up to four consecutive academic years, the language now reads that students must be offered the opportunity to participate in a four-year stable tuition rate plan.

Now that both bodies have passed their respective higher education omnibus bills, a conference committee will be formed to work through the differences. We anticipate conferees meeting early next week.

Bonding bill conferees closer to agreement
The Capital Investment Conference Committee met this week and conferees are closer to an agreement. On Wednesday, Sen. Keith Langseth, DFL-Glyndon, presented a new offer totaling $275 million, which was reduced from the Senate’s original position of $329 million. The only change to the Minnesota State Colleges and Universities system in the Senate’s offer was the HEAPR number, which went from $50 million to $45 million. The House, which held the gavel, called another conference committee Thursday to present its proposal. The House came up $10 million in HEAPR for the system and is now at $40 million, so $5 million in HEAPR for the system separates the Senate and House.

All five vetoed projects are still in both the Senate and House proposals. Those projects include the health and science center addition at Lake Superior College; the carpentry and industrial mechanical technology shops at Mesabi Range Community and Technical College; the smart classroom center at Metropolitan State University; the center for business and technology at North Hennepin Community College; and the systemwide classroom renovation initiative at Central Lakes College, Minnesota State Community and Technical College, Minnesota West Community and Technical College, Northland Community and Technical College, Pine Technical College and Rochester Community and Technical College.

Tax plan debated at the Capitol
The Senate and House of Representatives moved the omnibus tax bill through the process this week. In the Senate bill, SF 2074, income tax rates are set at 6 percent, 7.7 percent and 8.5 percent. The bill also creates a fourth tier with a rate of 9.25 percent for single taxpayers making $141,250 or more in taxable net income and for married couples making at least $250,000 in taxable net income. The bill also sets the alternative minimum tax rate at 7 percent for tax years 2009 to 2013 and then returns to the current rate in tax year 2013.

Sen. Tom Bakk, DFL-Cook, tax committee chairman, said the proposal raises income taxes at all levels to bring in $2.19 billion over the next biennium. Bakk said the new income tax rates will blink off in 2014. He said the income tax increase will have an impact on most tax filers, but 15 percent of taxpayers will not be affected by the change. Bakk said the bill is part of the solution to the state's budget crisis. "The (Senate) appropriation bills all contain 7 percent cuts in base spending, but those cuts would be much more severe without the revenue raised in the bill," Bakk said. On Friday afternoon, the Senate was debating the tax bill on the floor.

The House bill was narrowly approved in the Tax Committee this week by a vote of 16-14. Rep. Ann Lenczewski, DFL-Bloomington, the committee chairwoman, said the bill, HF 2323 is an attempt to reform the tax code. The bill cuts $1.6 billion in the current biennium by eliminating many existing business subsidies and other tax expenditures, including Gov. Tim Pawlenty's economic development initiative known as Job Opportunity Building Zones, or JOBZ. The bill raises $1.5 billion in revenue, with a new income tax rate of 9 percent for couples making more than $300,000 a year, a tax on cigarettes of 54 cents a pack, and an additional 1 to 3 cents on the cost of a drink through the alcohol tax. The bill also expands the sales tax to the purchase of goods on the Internet, as well as digital downloads of music, books and video. The House is expected to take up the tax bill on the floor Saturday.

Countdown to adjournment
The House and Senate were busy this week debating omnibus appropriation bills on the floor. Now that lawmakers have approved the majority of these bills, conference committees will be formed to work through the differences between the House and Senate. The fifth and final committee deadline, when conference committee reports are to be to the floor, is May 7. The Legislature is on track, but multiple things could stall the process. Legislative leadership and the governor disagree on taxes, and Gov. Pawlenty has indicated he will not sign a bill that includes any tax increases. Also, the complications the federal stimulus package presents could cause delays in adjourning on time. With only three weeks left until May 18, Capitol watchers are wondering if a global deal between lawmakers and the governor can be reached.

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.

Saturday, April 25
9:30 AM
House in Session

11:00 AM
Senate in Session

Tuesday, April 28
9:30 AM
Senate E-12 Education Budget and Policy Division
Room: 112 Capitol
Chair: Sen. LeRoy A. Stumpf
Agenda: S.F. 191-Betzold: Omnibus retirement provisions modifications.

Thursday, April 30
8:30 AM
Senate Higher Education Committee
Room: 107 Capitol
Chair: Sen. Sandra L. Pappas
Agenda: Continued Confirmations of MnSCU and HEFA Board of Trustees

Omnibus bills move

Legislative Update
April 17, 2009

Higher education omnibus appropriation bills make their way through the process

It was a busy week in the Senate and House of Representatives as finance committees assembled omnibus bills and moved them to the full Finance Committees prior to the April 16 deadline. The higher education omnibus bill in both bodies was no exception as each made its way through the process.

Members of the House Finance Committee split up several of the major spending bills in the House and realigned them to match up with the Senate’s spending bills. HF 869 now only includes the omnibus higher education finance provisions. The committee removed the workforce development-related portions of the bill and amended them into HF 1169.

While the House bill has one more stop in Ways and Means, the Senate bill made it to the floor today. Sen. Sandy Pappas, DFL-St. Paul, introduced the bill on the floor by outlining four goals she hopes to achieve: meet the Senate directive of seven percent cuts across-the-board; protect financial aid for students; use federal stimulus funding wisely; and provide for research based reform, such as the summer bridge program and refocusing the Achieve scholarship program to meet both merit and need. The bill passed by a vote of 41-23.

The Ways and Means Committee is scheduled to meet early next week to take up omnibus appropriation bills, and then the higher education omnibus bill will go to the floor. Once the House passes the bill, a conference committee will be formed to work through the differences between the two bills.

The House bill, HF 869, includes:

• Cuts to the Minnesota State Colleges and Universities system of $160 million in base funding over the 2010-11 biennium, with an allocation of one-time federal stabilization funds of $130 million.

• Financial aid: the tuition maximum in the state grant program is set at $9,938 for students in four-year programs; the tuition and fee maximum for a student at a two-year college is the maximum tuition and fee amount charged at a two-year college; the living and miscellaneous expense is set at $6,900 each year; the assigned student responsibility is reduced from 46 percent to 45 percent of the cost of attending the institution; the number of semesters a student is eligible for a state grant is increased from 8 semesters to 10 semesters; and as a condition of enrollment, each entering Minnesota resident student must complete the FAFSA.

• $2 million each year of the biennium for the existing Power of You program and for pilot rural and suburban sites.

• $100,000 each year total for financial aid offices at the colleges in the system to provide emergency aid grants to technical and community college students who are experiencing extraordinary economic circumstances.

• The appropriation to the Minnesota State Colleges and Universities is for operation and maintenance for direct support of instruction and related functions necessary to protect the core mission of educating students.

• The Board may only fill essential administrative and managerial vacancies during the 2010-11 biennium in the central office or on a campus.

• The Board must not expend appropriations for competitive salaries, awards of excellence, campus and technology initiatives outside the allocation model or other Board or Chancellor initiatives.

• During the 2010-11 biennium, expenditures for technology must not exceed $40 million and expenditures for underrepresented students must not exceed $5 million.

• Tuition increases for an undergraduate student must not exceed five percent each year of the 2010-11 biennium. Federal stimulus money must be used to buy down the tuition increase to no more than two percent per year.

• Exempts the AAS degree from the 60-semester credit length until July 2, 2012. By Jan. 2, 2012, MSCF and MSCSA must present a joint report to higher education committees on a process for reviewing the credit requirements for an AAS degree.

• Encourages the Board to place a priority on identifying and implementing measures to improve the human resources system used by the Minnesota State Colleges and Universities to provide seamless information on faculty and employees to facilitate transfers between institutions.

• Requires the Office of Higher Education to report on the implementation of textbook information requirements under U.S. Code.

• Directs the system to maintain course equivalency guides that include information on the course equivalency and awarding of credit for learning acquired as a result of the successful completion of formal military courses and occupational training. (The Minnesota State Colleges and Universities system already does this).

• Requires a bookstore located on a public college or university campus to only offer clothing manufactured in the U.S.

• Changes the selection process for the Board of Trustees to an election by the Legislature.

• Provides for an undergraduate tuition guarantee - guarantees a stable tuition rate for up to four consecutive academic years.

The Senate bill, SF 2083, includes:

• Cuts to the Minnesota State Colleges and Universities system of $103.8 million in base funding over the 2010-11 biennium, with an allocation of one-time federal stabilization funds of $75.6 million.

• Financial aid: the tuition and fee maximum for four-year programs in the state grant program is set at $11,038 in each year, and the tuition and fee maximum for the two-year programs is set at $6,908 each year; the living and miscellaneous expense is set at $6,447 each year; reduces the assigned family responsibility for dependent students from 96 to 93 percent of the parental contribution, for independent students with dependents, it is reduced to 83 percent from 86 percent, and for independent students without dependents, the assigned family responsibility is reduced to 65 percent of the student contribution from 68 percent.

• System priority allocations must be reviewed by the Board to determine whether they are critical to advancing the educational mission and priorities of the system. Those programs include centers of excellence, competitive salaries, community energy pilots and economic development e-folio. If the board determines any programs to not be essential, they may discontinue the programs and reallocate the funding.

• Federal stimulus funding must first be allocated to mitigate the need to raise tuition and fees for Minnesota resident students. The board must consult with the chairs of the higher education committees and then submit a plan to MOHE that has to be approved.

• Repeals the 60-120 credit cap program language from the 2007 legislative session.

• Encourages the Board to place a priority on identifying and implementing measures to improve the human resources system used by the Minnesota State Colleges and Universities to provide seamless information on faculty and employees to facilitate transfers between institutions.

• Allows institutions to provide information about PSEO, including the potential financial and educational benefits of its programs, to secondary students.

• Includes language related to relationships with K-12, including establishing a P-20 Education Partnership, postsecondary education planning and other college readiness efforts.

• Directs the system to maintain course equivalency guides that include information on the course equivalency and awarding of credit for learning acquired as a result of the successful completion of formal military courses and occupational training. (The Minnesota State Colleges and Universities system already does this).

• Institutions must provide notice regarding the possible impact of criminal records to prospective students about the chances of employment in the field of study and chances to obtain financial aid. Language was included on the floor that states institutions are not liable for failing to provide the notice required.

• Encourages higher education systems and institutions to offer a research-based high school-to-college development transition program (bridge program for the summer after high school graduation) to prepare students for college-level academic coursework and provides for a one-time grant to help pay expenses.

• Amends Board of Trustee membership language so that a commissioner of a state agency may not serve as a member of the Board. The bill includes language that allows for a commissioner currently serving on the Board to continue serving the remainder of the term.

• Amends the Power of You program language to be permissive rather than required at Metropolitan State University, Minneapolis Community and Technical College and Saint Paul College.

• Amends the Centers of Excellence language to be permissive rather than required, and requires an annual report to the Legislature, rather than in odd-numbered years.

• Includes the language from the bill carried by Sen. Ann Lynch, DFL-Rochester, that puts into place two different types of mid-level practitioners that will provide dental services to patients in rural and underserved communities. The first practitioner in this section of the bill is an Oral Health Practitioner (OHP) designed by the Minnesota State Colleges and Universities, and the other model, the dental therapist, was designed by the University of Minnesota.

• Requires Minnesota State Colleges and Universities to assess labor market data when conducting college program reviews. Colleges will be required to enroll no more than the approximate number of students in a technical or occupational program that the labor market data indicates have a reasonable likelihood of obtaining a job in the field of study. Colleges are also to provide prospective students job placement rate information.

Bonding conference committee holds first meeting

The Capital Investment Conference Committee met for the first time this week, and House and Senate conferees compared the differences in the respective bills. HF 855, sponsored by Rep. Alice Hausman, DFL-St. Paul, and SF 781, sponsored by Sen. Keith Langseth, DFL-Glyndon, differ by $129.2 million. For the Minnesota State Colleges and Universities system, the two bills differ by approximately $20 million. The Senate is recommending $90 million for the system and the House is recommending $67.9 million. “We are encouraged there will be a bill this year,” Rep. Hausman said, adding that she and Sen. Langseth have spoken with the governor’s office.

A side-by-side comparison of the House and Senate bills is available here.

A summary comparison of the two bills can be found here.

The second conference committee has yet to be called. Stay tuned.

Senate Higher Education Committee forwards trustee confirmations to full Senate

The Senate Higher Education Budget and Policy Division forwarded the names of Cheryl Dickson, Jacob Englund, Clarence Hightower, Allyson Lueneburg, Louise Sundin and Terri Thomas to the full Senate for confirmation of their appointment to the Minnesota State Colleges and Universities Board of Trustees. After introductions and background comments, trustees in attendance responded to a variety of questions related to access, affordability, tuition, campus locations and the current budget situation. Committee members also recommended David Metzen to be confirmed as the director of the Minnesota Office of Higher Education.

One month to go before adjournment

Legislators have arrived at the point in session when committee hearings start to wind down, and conference committees and floor session pick up. The higher education committees will likely not meet again now that the bills have been put together, unless there is some other business that comes before the committee. The question on everyone’s mind is can legislative leaders and Gov. Tim Pawlenty agree on how to solve the $6.4 billion budget deficit by the constitutionally required deadline of May 18.

House Speaker Margaret Anderson Kelliher, DFL-Minneapolis, said she is still hopeful a special session will not be needed, however she has indicated that the Legislature may be back after May 18. Speaker Anderson Kelliher said that this year has some unprecedented issues; the stimulus package presents complications and delays. The delay may be due to the level of staffing needed to process the information, she said. Kelliher however, stressed the importance of legislators having the needed information to develop “a complete understanding before making their decisions.”

House Minority Leader Marty Seifert, R-Marshall, said there is a need to strip proposed tax increases from House and Senate omnibus bills, or they can expect Gov. Pawlenty to veto them. Rep. Seifert said that bipartisan cooperation is necessary if the majority party does not want to end up in a special session.

Many of the omnibus appropriation bills in both bodies are expected to be acted on next week. As omnibus appropriation bills take shape, Speaker Anderson Kelliher stressed the need for transparency in the process and public involvement from the governor as they work toward resolving the budget.

The next committee deadline is April 22. This is the deadline that requires the Finance, Ways and Means and Tax committees to act on the omnibus appropriation bills. Stay tuned as conference committee members try to assemble bills most everyone can agree on.

Middle Class Task Force looks at college affordability

Vice President Joe Biden said today at a meeting of his Middle Class Task Force, that the administration will seek new ways of helping American families afford to send their children to college. Vice President Biden said he would like to make further progress in the area of college affordability, such as extending a tax credit for families paying for college and making government-backed student loans more cost-efficient. You can find a full staff report of the Middle Class Task Force, “Financing the Dream: Securing College Affordability for the Middle Class.”

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, April 20

8:30 AM
Senate Finance
Room: 123 Capitol
Chair: Sen. Richard Cohen
Agenda:
S.F. 1198-Tomassoni: Economic Development and Housing Omnibus Budget Bill.
S.F. 1627-Foley: Judiciary Omnibus Budget Bill.

11:00 AM
Senate in Session

1:00 PM
House in Session

3:00 PM or immediately following session
House Ways and Means
Room: TBA
Chair: Rep. Loren Solberg
Agenda: Omnibus finance bills coming out of the House Finance Committee

Tuesday, April 21

8:30 AM
Senate Finance
Room: 123 Capitol
Chair: Sen. Richard Cohen
Agenda: S.F. XXXX-Anderson, E. R.: Environment and Natural Resources Omnibus Budget Bill.

8:30 AM
Joint Meeting: E-12 Education Budget and Policy Division and K-12 Education Finance Division
Room: Basement Hearing Room State Office Building
Chair: Sen. LeRoy A. Stumpf
Agenda:
Presentation by Education Commission of the States (ECS):
Overview of ECS
Aligning Education and Workforce Development
Update on the American Recovery and Reinvestment Act
High School Exit Exams and End of Course Exams
Community Schools: Locating Government Services in Schools

Wednesday, April 22

8:30 AM
Senate Finance
Room: 123 Capitol
Chair: Sen. Richard Cohen
Agenda: TBA

11:00 AM
House in Session

12:00 PM or immediately following session
House Ways and Means
Room: TBA
Chair: Rep. Loren Solberg
Agenda: Omnibus finance bills coming out of the House Finance Committee

Thursday, April 23

9:30 AM
House in Session

Friday, April 24

9:30 AM
House in Session

Saturday, April 25

9:30 AM (If needed to continue to process omnibus budget bills)
House in Session