State budget released

A $1.203 billion deficit is being projected for the FY2010-2011 biennium due to an extended weakness in the economy. Minnesota Management and Budget Commissioner Tom Hanson said this morning that the story of the forecast is unemployment is up and wages are dramatically down. Hanson said 70 percent of the $1.203 deficit is a result of a decline in income tax.

For the next biennium, 2012-13, a $5.426 billion deficit is being projected. This reflects many one-time solutions, including the federal stimulus funds that do not continue beyond fiscal year 2011.

You may review the complete forecast, along with the press conference handouts here.

Conversation with The Secretary of Education Arne Duncan

Secretary of Education Arne Duncan met with American Association of State Colleges and Universities presidents and chancellors on Tuesday, November 24 at the AASCU Annual Meeting, The Secretary communicated the Administration priorities as they relate to public higher education and encourage presidents and chancellors to engage in a dialogue regarding policy issues of mutual interest.

http://www.aascu.org/meetings/annual09/index.htm

State Jobs Task Force highlights System bonding

The state Jobs Task Force committee discussed bonding projects as one way to revive Minnesota’s economy. Alice Hausman, chair of the House Capital Improvement Committee said that the Minnesota State Colleges and Universities is a “poster child” for implementing projects swiftly and providing information on bonding project timelines.

Al Johnson, Associate Vice Chancellor for Facilities of the System, told the Jobs Task Force Committee that for each $1 million, a conservative estimate is that 20 jobs are created.

Johnson said 11 jobs on the Minnesota State Colleges and Universities request, approved by the Board of Trustees, would be immediately ready to start (hire workers) once the funds are released. He added that repair and replacement projects could also be out early. The maximum time for repair and replacement projects to be executed was a maximum two year time frame. “When you go out to campuses, you will see that people are already working,” Johnson said.

For a recap of the meeting, please go to the hearing archives.