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.