Financial Aid bill advances; Schedule posted

Yesterday at the Capitol

The House Finance committee passed HF 3757 yesterday and referred it to the Tax committee. The bill, introduced by Rep. Bill Hilty, DFL-Finlayson, increases the fee to register a mutual fund from 1/20 of one percent to 1/10 of one-percent. Rep. Hilty testified that this is consistent with most other states and said that for every $10,000 invested in a mutual fund, there would be a $5 fee increase to help fill $23 million of the now $35 million state grant shortfall. Rep. Mary Kiffmeyer, R-Big Lake, said in committee that while many other states charge a fee of 1/10 of one percent, the other states set a cap on the fee, while HF 3757 does not.

Chair Lyndon Carlson, DFL-Crystal, asked the Office of Higher Education, or OHE, to explain what the average loss students are seeing in their state grant awards. Tricia Grimes with OHE said that the average student will see a $300 loss in their grant, but some students at a higher cost institution could see up to a reduction of $1,000 in their state grant. In response to Chair Carlson, Grimes also told committee members that 7,000 students will lose their state grant award altogether and over 5,000 of these students are from lower cost two-year community and technical colleges.

Chair Carlson explained to committee members that due to the economy, many more students are showing up at higher education institutions and a larger number of these students have a greater financial need. The Office of Higher Education moved dollars from the second year of the biennium to the first year to cover the cost of this greater need, which has resulted in the shortfall in the second year. Chair Carlson also said that it is difficult to predict how much funds will be needed in the state grant program from year to year, but under law, the OHE has to prorate students' awards if there is a shortfall.

Rep. Laura Brod, R-New Prague, said that the state grant program is a great program and lawmakers should make it a priority, but should find a different way to fund it without creating a tax.

If the Tax committee passes the bill on its own, it will travel to the Ways and Means committee and then the next stop would be the House floor. The Tax committee could also roll the bill into its omnibus bill or not pass the bill at all.

Today at the Capitol

8:30 AM
Joint Meeting: E-12 Education Budget and Policy Division; House Committee on K-12 Education Finance Division
Room: 200 State Office Building
Chairs: Sen. LeRoy A. Stumpf, Rep. Mindy Greiling
Agenda: Race to the Top Discussion

9:00 AM
Senate Taxes
Room: 15 Capitol
Chair: Sen. Thomas M. Bakk
Agenda: S.F. 3327-Bakk: Omnibus Tax Bill (walk-through, no amendments)

11:00 AM
Senate in Session
SF 3134 - Omnibus state government policy bill
SF 184 - Omnibus higher education policy bill

1:30 PM
Senate Finance
Room: 123 Capitol
Chair: Sen. Richard J. Cohen
Agenda:
S.F. 2716-Saltzman: Charter school provisions modifications; charter schools facilities authority establishment; credit enhancement account creation; purchasing and borrowing authority authorization; building lease transition aid eligibility authorization.

2:45 PM
House State Government Finance
Room: 300N State Office Building
Chair: Rep. Phyllis Kahn
Agenda:
*Bill removed: HF2227 (Marquart) Board of Innovation reestablished, powers and duties imposed, and money appropriated.
*Bill removed: HF3184 (Champion) Contracting requirement restrictions placed for using bond proceeds.
HF3449 (Kahn) State government programs or activities money appropriated or reduced, and provisions changed relating to expenses of governor-elect, income earned by the permanent school fund, lease-purchase agreements, general services, resource recovery, payment of aids and credits to school districts, tax return preparers, and implied consent.
HF3748 Simon) Chairs and ranking minority members of the Committee on Finance and Ways and Means authorized to request local impact notes.
**The State Government Finance omnibus policy bill will be assembled on 4/20. Amendments to the bill will be taken at a meeting in the first week in May.

Looking Ahead

Wednesday, April 21

8:30 AM
Senate Finance
Room: 123 Capitol
Chair: Sen. Richard J. Cohen
Agenda:
S.F. 2998-Sheran: Programs for all-inclusive care for the elderly (PACE) authorization modifications.
S.F. 3073-Sheran: People with disabilities state programs and services effectiveness report request from the Arc of Minnesota.
S.F. 2589-Prettner Solon: High-voltage transmission lines route permits granting regulations.
S.F. 2429-Erickson Ropes: Veterans with service-connected disabilities public transit fee exemption clarification.
S.F. 1770-Jungbauer: Ladder out of poverty task force establishment.
S.F. 2900-Chaudhary: Miscellaneous game and fish, aquaculture and wildlife provisions
modifications.
S.F. 2199-Olson, G.: Legislature size reduction and senate district division prevention.
H.F. 2899/S.F. 2354-Betzold: Data practices violations administrative remedies and civil penalties.
S.F. 2186-Betzold: Civil commitment venue clarification.
S.F. 3029-Berglin: Advocating Change Together (ACT) self-advocacy network federal participation requirement.

9:00 AM
House in Session

9:00 AM
Senate Taxes
Room: 15 Capitol
Chair: Sen. Thomas M. Bakk
Agenda: S.F. 3327-Bakk: Omnibus tax bill (amendments and passage)

Wednesday, April 28

8:30 AM
Senate Finance
Room: 123 Capitol
Chair: Sen. Richard J. Cohen
Agenda:
S.F. 2918-Betzold: Omnibus retirement bill.
S.F. 2573-Betzold: State, local, legislator and hospital public employees retirement financial sustainability provisions modifications.
S.F. 2644-Betzold: Minneapolis employees retirement fund (MERF) administrative functions transfer to the public employees retirement association (PERA); MERF consolidation account in PERA establishment and operation provisions.