Governor signs higher education bill

Gov. Pawlenty signed the higher education policy bill yesterday. The bill is now Session Law 2010, Chapter 364 and can be found here.

As a reminder, below are some of the provisions included in the bill:

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

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

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

● Office of the Chancellor is required to streamline services provided through the office to reduce expenditures, better target the use of state resources and provide services at the most appropriate and efficient level so as not to duplicate any services provided at the institution level.

● Post-retirement health insurance premium reimbursement language.

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

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

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

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

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

Final legislative wrap up

2010 Legislative Summary
Session review

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

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

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

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

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

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

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

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

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

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

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

Bonding Bill

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

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

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

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

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

Budget Bill

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

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

In the area of financial aid, lawmakers had to fill a $42 million state grant shortfall. In committee testimony, Rep. Lyndon Carlson, DFL-Crystal, explained the circumstances behind the shortfall. Carlson said many more students are enrolling in higher education institutions and a larger number of these students have a greater financial need. The Office of Higher Education moved dollars from the second year of the biennium to the first year to cover the cost of this greater need, which has resulted in the shortfall in the second year, fiscal year 2011. Carlson also said that it is difficult to predict how much funds will be needed in the state grant program from year to year, but under law, the Office of Higher Education has to prorate students' awards if there is a shortfall. Due to the shortfall, an average loss students will see in their state grant awards is $300, but some students could see up to a reduction of $1,000 in their state grant. 7,000 students will lose their state grant award altogether and over 5,000 of those students are from lower cost two-year community and technical colleges.

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

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


Higher Education Policy Bill

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

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

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

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

• Office of the Chancellor is required to streamline services provided through the office to reduce expenditures, better target the use of state resources and provide services at the most appropriate and efficient level so as not to duplicate any services provided at the institution level.

• Post-retirement health insurance premium reimbursement language.

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

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

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

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

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



Contract Ratification Bill

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

State Employee Retirement Incentive Bill

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

Omnibus Pension Bill

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

Omnibus Agriculture and Veterans Affairs Bill

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

Omnibus Economic Development Bill

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

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

Omnibus K-12 Education Bill

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

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

Wrap-up

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

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

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

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

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

Government Relations Blog

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Policy bill passes; Budget talks continue

The Senate passed the higher education policy conference committee report yesterday by a vote of 62-2, and the House passed it 113-17. The bill, SF 184, now heads to the governor. For details of the bill, please refer to yesterday's daily update, or you may find the complete bill here.

Not included in the final higher education policy bill is the provision from the Senate version of the policy bill that allowed limited liquor sales in premium seating at the University of Minnesota’s TCF Bank stadium. However, yesterday, the House amended the Department of Commerce technical bill to allow the University to approve liquor sales in the stadium’s premium seating area only if they offered it in at least one-third of the general seats. Rep. Joe Atkins, DFL-Inver Grove Heights, offered the amendment and said the bill allows for two-thirds of the general seats to be designated "family seating" where no alcohol is allowed. At least 75 percent of the revenue from liquor sales would go to student scholarships.The House passed the bill 130-2. It now returns to the Senate, where a different version passed earlier.

With just three days remaining until the end of session, Gov. Pawlenty and lawmakers are still negotiating a $3 billion budget shortfall. The governor is in northern Minnesota for the annual fishing opener this weekend, but both the governor and lawmakers said they can still get this done. According to Minnesota Public Radio, the three controversial issues remaining are ratifying the governor's unallotment, the K-12 education shift and the early expansion of Medicaid. DFL leaders say early Medicaid expansion is a key factor to the budget deal. That provision was in the health and human services bill that Gov. Pawlenty vetoed yesterday.

Both the House and Senate go into session at 12:00 p.m. today. We will continue to keep you updated over the weekend as things progress.

Higher education conference committee meets; Budget discussion continues

The conference committee assigned to work through the differences in the higher education policy bill met publicly for the first time yesterday to discuss a provision in the bill that allows the Office of Higher Education to reserve up to five percent of the projected demand for state grant awards in fiscal year 2011 to manage the uncertainty of demand based on enrollment or income changes of students. After much discussion, an amendment was adopted that sets the level of remaining funds at $1.5 million that provides if the Office of Higher Education determines the remaining funds are less than that amount, they may in lieu of increasing the allowance, transfer all the remaining funds to the state work-study program.

After the state grant discussion and passage of the amendment, conferees passed the report. The bill now heads to the Senate and House floors for a vote, and if passed, will make its way to the governor. You may find the final conference committee report here.

Included in the bill is the language that increases the age of a senior citizen in statute from 62 to 66 to receive a tuition discount, and the provision from the Senate bill that requires colleges and universities to make a reasonable attempt to identify and purchase locally grown food.

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

Also included is the provision from the House bill that requires the Office of the Chancellor to streamline services provided through the office to reduce expenditures, better target the use of state resources and provide services at the most appropriate and efficient level so as not to duplicate any services provided at the institution level.

The bill includes the House language on post-retirement health insurance premium reimbursements; the requirement that the Board of Trustees is to establish a pilot project to develop partnerships and training and employment opportunities for surgical technologists at institutions that offer a surgical technologist program; and the language that states the Minnesota State Colleges and Universities system and the University of Minnesota shall study nanotechnology research and education and report to the Legislature on ways nanotechnology is used responsibly and safely.

The final bill also includes the pilot project language that would establish up to eight institutions in the Minnesota State Colleges and Universities system to invest some campus reserves in a local bank.

The provision from the Senate bill that requires the Office of Higher Education to monitor the implementation of the Higher Education Opportunity Act as it relates to disclosure of textbook pricing and other information to students is also included in the final bill.

And finally, the bill includes a provision on credit transfer, which is somewhat of a hybrid between the language that was in the House bill and the language that was in the transfer conference committee report that was vetoed by the governor. The language requires the Board of Trustees to develop and implement a plan to improve credit transfers within the system. The Board may convene working groups of affected faculty, staff, students and administrators in the system to work on issues and barriers to credit transfer. The language also states the Board must provide systemwide transfer information on campus Web sites necessary to determine the transferability of course credits, and the information must be easily accessible and kept current.

Both the House and Senate are scheduled to meet in session today. The House is scheduled to convene at 11:00 a.m. and the Senate is scheduled to meet at 1:00 p.m.

As for a session-ending deal, the latest round of budget negotiations between legislative leaders and the governor have not produced an agreement. However House Speaker Margaret Anderson Kelliher, DFL-Minneapolis, and House Minority Leader Kurt Zellers, R-Maple Grove, said yesterdays' meetings were positive. Leaders from both parties have indicated they are optimistic a deal can be reached before adjournment Monday.

Governor vetoes budget balancing bill; House passes K-12 legislation

As we countdown the final days of session, there will be a different format to the daily updates, because other than floor sessions and conference committee meetings, it's now about how to solve the remaining budget deficit. Both the House and Senate are scheduled to go into session at 11:00 this morning.

As expected, the governor vetoed the budget balancing bill yesterday that was passed by the House and Senate Monday. The veto letter submitted to legislative leadership says the tax increase would disproportionately harm small business owners and hamper job creation in the state. Gov. Pawlenty also said the bill does not do enough to address a projected nearly $5 billion deficit for the 2012-2013 biennium. See the veto letter here.

House Speaker Margaret Anderson Kelliher, DFL-Minneapolis, said in a written statement that Pawlenty "can't keep pushing this problem away with his veto pen." Legislative leaders and the governor continue to meet behind closed doors to discuss the budget solution. In a meeting yesterday, House and Senate Republican leaders proposed a possible compromise. Under the plan, the Legislature would ratify the governor’s unallotments from last year. Some of the unallotments would be made permanent, while others would become only temporary reductions that would not carry into the next biennium.

House Minority Leader Kurt Zellers, R-Maple Grove, emphasized that tax increases are "off the table" as a possible budget solution. He said DFLers and Republicans need to agree on a way to solve the deficit without new revenue.

Negotiations will continue today. Lawmakers have until Monday to negotiate a new deal with the governor. The Minnesota Public Radio Web site includes a countdown to the end of session. If interested, you may find it here.

On the House floor yesterday, members passed the omnibus K-12 education bill by a vote of 86-47 just before midnight. HF 3833, sponsored by Rep. Mindy Greiling, DFL-Roseville, was introduced late in the process and approved by the House Ways and Means Committee just late last week.

The bill was amended to remove a proposal to codify the shifts made by the governor through the unallotment process. Rep. Greiling said legislative leaders are negotiating a separate plan to address unallotments and repayment of the K-12 shifts.

In regards to the controversy surrounding alternative teacher licensure pathways, an amendment that would have reinstated an alternative teacher licensure provision from an earlier version of the bill, was defeated 65-68, after nearly two hours of heated debate. One member in opposition to the amendment was Rep. Dean Urdahl, R-Grove City, who said it’s more important to draw new teachers into math and science teaching and interest more high-achieving students in traditional teacher preparation programs. The bill now heads to the Senate.

Stay tuned.

Budget balancing continues; Proposal sent to governor

Yesterday at the Capitol

Yesterday the Senate and House voted on a budget balancing bill to resolve the $3 billion deficit that legislative leaders said meets 80 percent of the governor's recommendation, but doesn't compromise Minnesota's most important priorities that includes kids, families and communities. The House passed the bill 71-63 and then the Senate passed the bill by a close vote of 34-33. The bill is headed to the governor who is expected to veto it due to included tax increases.

In a press conference yesterday, Sen. Richard Cohen, DFL-St. Paul, said that leadership tried to budget smartly by making sure there are contingencies if the expected federal funds do not come through, however he indicated they are fairly confident they will.

Related to higher education, the bill cuts the Minnesota State Colleges and Universities system and the University of Minnesota the same $50 million that the governor unalloted last year. So the bottom line remains the same. House Speaker Margaret Anderson Kelliher, DFL-Minneapolis, said a big priority was making sure higher education institutions are able to have students get the funding that they need. The bill includes an additional $36 million appropriated for financial aid if the federal medical assistance percentages extension is approved.

The bill raises $433 million in revenue by increasing the 4th tier on the income tax for joint married filers making $200,000 or more. The current rate is at 7.85 percent, the new rate in the bill would be 9.15 percent. Sen. Tom Bakk, DFL-Cook, and chairman of the Tax committee said there is a trigger mechanism in the bill that is based on the 2013 February economic forecast. If the state has a surplus of $500 million at the end of tax year 2013, the rate will come back down to 7.85 percent automatically. The bill also accelerates the expiration of the Bush tax cuts by one year.

House Majority Leader Tony Sertich, DFL-Chisholm, said this current deficit goes beyond the question of raising taxes and said it is a complex problem that needs a solution that works for everyone.

Senate Minority Leader David Senjem, R-Rochester, said the bill is "headed straight to veto land, the quicker the better."

Rep. Tom Emmer, R-Delano, said there is nothing bold in this proposal at all. He said it is disappointing that there is nothing in the bill that represents the people, but rather it just protects government.

The bill can be found here.

The spreadsheet for the bill can be found here.

Today at the Capitol

8:30 AM
Senate Finance
Room: TBA
Chair: Sen. Richard Cohen
Agenda: SF 3409 (Cohen) Cash flow forecast by Minnesota management and budget (MMB) commissioner to the governor and legislature requirement.
SF 2566 (Cohen) Executive branch unallotment authority modification.

10:00 AM
House in Session

11:00 AM
Senate in Session

12:30 PM *Note room change*
Senate Higher Education Budget and Policy Division
Room: 107 Capitol
Chair: Sen. Sandra L. Pappas
Agenda:
University District Alliance report
HEFA confirmations

Time TBA
House Ways and Means
Room: 5 State Office Building
Chair: Rep. Loren Solberg
Agenda:
HF2754 (winkler) Secretary of state filings regulated.
HF2922 (Thissen) Minneapolis Employees Retirement Fund; administrative functions transferred to the Public Employees Retirement Association, consolidation account created within the Public Employees Retirement Association, and money appropriated.
SF3134 (Kahn) State government programs or activities money appropriated or reduced, and provisions changed relating to expenses of governor-elect, income earned by the permanent school fund, lease-purchase agreements, general services, resource recovery, payment of aids and credits to school districts, tax return preparers, and implied consent.

Last full week of state session; Independence party endorses Horner; Budget negotiations continue

This is the last full week of the 2010 legislative session and schedules will be fluid, so please watch your email for any higher education related activity, including the possibility of a higher education policy bill conference committee. We will keep you posted throughout the week.

Over the weekend, public relations executive Tom Horner won the endorsement for governor at the Independence Party state convention in Bloomington.

Also this weekend, the Senate Finance committee approved a $2.8 billion budget balancing bill that includes spending cuts, payment shifts and tax increases. Sen. Richard Cohen, DFL-St. Paul, chair of the Senate Finance committee, said the measure includes some of the governor's cuts and his delayed school payments. It also includes $433 million in new tax revenue, which has yet to be determined. The governor has indicated he will not sign any legislation with tax increases. The full Senate is expected to vote on the bill today. In the House, the Finance committee is expected to discuss the budget balancing plan at noon today.

Today at the Capitol

9:00 AM
Senate in Session

9:00 AM
House in Session

12:00 PM
House Finance
Room: 200 State Office Building
Chair: Rep. Lyndon Carlson
Agenda:
Discussion of budget balancing plan
HF3834 (Carlson) Minnesota Management and Budget commissioner required to provide a cash flow forecast to the governor and legislature.
HF2866 (Carlson) Executive branch authority modified to reduce unexpended allotments.
SF2891 (Mullery) Interstate Compact for Juveniles adopted.
SF3134 (Kahn) State government programs or activities money appropriated or reduced, and provisions changed relating to expenses of governor-elect, income earned by the permanent school fund, lease-purchase agreements, general services, resource recovery, payment of aids and credits to school districts, tax return preparers, and implied consent.
HF2922 (Thissen) Minneapolis Employees Retirement Fund; administrative functions transferred to the Public Employees Retirement Association, consolidation account created within the Public Employees Retirement Association, and money appropriated.

Looking Ahead

Tuesday, May 11

8:30 AM
Senate Finance
Room: TBA
Chair: Sen. Richard J. Cohen
Agenda:
S.F. 3409-Cohen: Cash flow forecast by Minnesota management and budget (MMB) commissioner to the governor and legislature requirement.
S.F. 2566-Cohen: Executive branch unallotment authority modification.

12:30 PM
Senate Higher Education Budget and Policy Division
Room: 123 Capitol
Chair: Sen. Sandra L. Pappas
Agenda:
University District Alliance report
HEFA confirmations

Legislators to meet today on budget

Yesterday at the Capitol

Yesterday in the House Finance committee members approved a bill sponsored by Rep. Lyndon Carlson, DFL-Crystal, and Sen. Tom Bakk, DFL-Cook, HF1893/ SF1679, which lays out retirement eligibility for state authorities to provide employees the option to take early retirement before June 30, 2011. Eligible for early retirement are those employed in the legislative, executive and judicial branches, including the Minnesota State Colleges and Universities system and the University of Minnesota. The bill is now on the House floor. The Senate passed its version 44-19 on May 13, 2009.

Also meeting yesterday was the House Ways and Means committee who took up the omnibus K-12 education bill. Committee members discussed the controversial alternative teacher licensure language and rejected an amendment that would have deleted one of the two provisions in the bill. The bill now heads to the House floor.

The provision members tried unsuccessfully to remove from the bill would allow the Board of Teaching to offer limited two-year licensure for certain teacher candidates, such as Teach for America members, who have a bachelor’s degree and meet other criteria. It would require 200 hours of instructional time before classroom placement, then supervision by an on-site team.

A second alternative teacher licensure provision in the bill targets mid-career changers. It stipulates 200 hours of pre-classroom instruction, plus 12 weeks of closely supervised student teaching, and would narrow the scope of situations where alternatively licensed teachers may work.

The bill includes other policy and funding reform proposals, including a provision that would codify about $1.8 billion of school aid payment shifts made by Gov. Tim Pawlenty last year. In the Senate there are 3 companion bills awaiting action: SF3189, the policy omnibus bill, which awaits action by the Senate Rules and Administration Committee; and education finance bills SF3063 and SF3028, which await action by the full Senate.

As reported in yesterday's weekly update, House members were debating an amendment that would ratify Gov. Tim Pawlenty’s unallotments on the House floor. That amendment failed 27-105. Rep. Terry Morrow, DFL-St. Peter, offered an amendment to HF 2960, that would have reduced certain state agencies operating expenses for the current biennium. Rep. Tony Sertich, DFL-Chisholm, offered an amendment to Morrow’s amendment to ratify the governor’s 2009 unallotments that the Minnesota Supreme Court overturned Wednesday. House Minority Leader Kurt Zellers, R-Maple Grove, said the amendment was "gotcha politics again." He said he could not support the ratification without seeing how the majority party would balance the remainder of the budget. "This isn’t a gotcha vote, this is the governor’s proposal that he asked us to vote on. Let’s see if his proposal has the support of the Legislature," Sertich responded.

Today at the Capitol

The Senate is scheduled to meet this morning at 9:30. Also meeting today are:

8:30 AM
Senate Finance
Room: 15 Capitol
Chair: Sen. Richard J. Cohen
Agenda:
S.F. 3175-Anderson: Indoor ice arenas electronic air monitoring devices
requirement and air quality standards.
S.F. 3355-Tomassoni: Higher education securities transactions
exemptions modifications; state grant program for secondary education
appropriation.
H.F. 2037-Cohen: General fund dedicated revenues appropriations
movement.
S.F. 2567-Cohen: Nursing facility rate provision modification.

12:00 PM (or call of the chair)
Conference Committee on S.F. 2918
Room: 112 Capitol
Chairs: Sen. Don Betzold and Rep. Mary Murphy
Agenda: S.F. 2918-Betzold: Omnibus retirement bill.

Trustees confirmed; PSEO bill passed; Budget discussed

Yesterday at the Capitol

On the Senate floor yesterday, the full Senate confirmed Minnesota State Colleges and Universities Board of Trustees members David Paskach and Christopher Frederick.

Also on the Senate floor yesterday, members passed SF 3079 by a vote of 62-0. The bill modifies the postsecondary enrollment options program. The bill eliminates the language from statute that says a postsecondary institution may not advertise or otherwise recruit or solicit secondary students to enroll in postsecondary programs on financial grounds. The bill also allows a postsecondary institution to bill students for any textbooks and equipment that are not returned by the student.

Meeting twice yesterday were legislative leaders and the governor to discuss the deficit that still needs to be resolved. The governor, majority and minority have all characterized the budget situation as a crisis given the Minnesota Supreme Courts ruling to overturn the governor's $2.7 billion unallotments last year. Gov. Pawlenty has asked lawmakers to ratify the $2.7 billion in unallotments, however House Majority Leader Tony Sertich, DFL-Chisholm, said leaders are checking to see whether there is enough support among lawmakers to do so.

In a press conference yesterday, the governor's Deputy Chief of Staff Brian McClung, said the governor is looking at the deficit in three parts and then finding ways they can all agree. The three parts include the $1.8 billion K-12 school aid payment shift, $700 million in unallotment cuts and the remaining $536 million deficit. McClung said he is hopeful lawmakers will at least ratify the $1.8 billion shift, however while the shift has majority support in the House, there is not widespread support in the Senate. McClung said the governor has cleared his schedule to accommodate further negotiations.

Today at the Capitol

8:30 AM
House Ways and Means
Room: 10 State Office Building
Chair: Rep. Loren Solberg
Agenda: HF2431 (Greiling) Omnibus K-12 Education bill

9:00 AM
House Finance
Room: 200 State Office Building
Chair: Rep. Lyndon Carlson
Agenda:
HF2227 (Marquart) Board of Innovation reestablished, powers and duties imposed, and money appropriated.
HF3795 (Eken) FEMA Public Assistance Program money appropriated.
SF1679 (Carlson) Retirement incentives authorized.
2072 (Greiling) Education finance reference updated.
HF3699 (Greiling) School district discretionary levy authorized.

9:30 AM
House State Government Finance
Room: Basement State Office Building
Chair: Rep. Phyllis Kahn
Agenda:
HF2227 (Marquart) Minnesota Innovation and Research Council established, powers and duties council imposed, and money appropriated.
SF3134 (Kahn) State government programs or activities money appropriated or reduced, and provisions changed relating to expenses of governor-elect, income earned by the permanent school fund, lease-purchase agreements, general services, resource recovery, payment of aids and credits to school districts, tax return preparers, and implied consent.

10:00 AM
Conference Committee on S.F. 2510
Room 318 Capitol
Chairs: Sen. David J. Tomassoni and Rep. Tom Rukavina
Agenda: S.F. 2510-Tomassoni: Omnibus employment and economic development policy bill

12:00 PM
Senate in Session

2:00 PM
House in Session

Looking Ahead

Monday, May 10

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

Tuesday, May 11

12:30 PM
Senate Higher Education Budget and Policy Division
Room: 123 Capitol
Chair: Sen. Sandra L. Pappas
Agenda:
University District Alliance report
HEFA confirmations

Unallotment used improperly court says; House passes retirement bill

Yesterday at the Capitol

The big news yesterday was the Minnesota Supreme Court ruling of Gov. Tim Pawlenty's unalloment last year. The Court ruled 4-3 that the governor overstepped his executive authority by unilaterally cutting $2.7 billion from the state budget through the unallotment process. In a majority opinion written by Supreme Court Chief Justice Eric Magnuson, the court said that the budget process was defined, the deficit was known with the November and February Forecast, and the governor used the unallotment in an unintended way.

It is unclear right now if this ruling means the entire unallotment will be overturned, or just one relatively small provision pertaining to a nutritional program who were the plaintiffs in this case. As a reminder, the governor's cut of $2.7 billion included $50 million to the Minnesota State Colleges and Universities system.

How this will play out is unknown, but is likely to mean the remaining $536 million shortfall will grow substantially to approximately $3 billion. Lawmakers will have their work cut out for them over the next 11 days as they work to resolve it. You can find the complete Supreme Court ruling here.

Also yesterday, the Senate passed the omnibus retirement bill on the floor by a vote of 44-19. The companion bill in the House was heard in Ways and Means Monday and has been sent to the floor.

On the House floor, members passed the contract ratification bill 118-5 after an amendment was adopted that requires a summary of the proposed contract agreement, award or plan to be posted on a state Web site prior to being submitted to the Legislative Coordinating Commission for review. The Senate has already passed the bill without this amendment, so the Senate will have to take up the revised bill.


Today at the Capitol

The higher education budget policy conference committee that was scheduled for this morning has been canceled.

*Please note that the House Journal from Tuesday, May 4 was incorrect. Rep. Kathy Brynaert, DFL-Mankato, is not one of the three members on the conference committee in the House. The third member is Rep. Roger Reinert, DFL-Duluth.

9:00 AM *Canceled*
Higher Education policy Conference Committee on S.F. 184
Room: 318 Capitol
Chairs: Sen. Sandra L. Pappas and Rep. Tom Rukavina
Agenda: S.F. 184-Pappas: Omnibus higher education policy bill.
CONFEREES: SENATE: Pappas; Robling; Latz - HOUSE: Rukavina; Brynaert; McFarlane

9:00 AM
Senate Taxes
Room: 15 Capitol
Chair: Sen. Thomas M. Bakk
Agenda:
S.F. 3063-Stumpf: Career and technical education levy formula adjustment.
S.F. 3028-Stumpf: Pre-kindergarten through grade 12 education appropriations and appropriation reductions.

9:00 AM
Conference Committee on S.F. 2737
Room: 107 Capitol
Chairs: Sen. Dan Skogen and Rep. Al Juhnke
Agenda: S.F. 2737-Skogen: Omnibus agriculture and veterans policy bill.

9:30 AM
House State Government Finance
Room: Basement State Office Building
Chair: Rep. Phyllis Kahn
Agenda:
SF3134 (Kahn) State government programs or activities money appropriated or reduced, and provisions changed relating to expenses of governor-elect, income earned by the permanent school fund, lease-purchase agreements, general services, resource recovery, payment of aids and credits to school districts, tax return preparers, and implied consent.

10:00 AM
Conference Committee on S.F. 863
Room: 112 Capitol
Chairs: Sen. Mary A. Olson and Rep. Joe Mullery
Agenda: S.F. 863-Olson, M.: Omnibus government data classifications provisions.

11:00 AM
Senate Economic Development and Housing Budget Division
Room: 107 Capitol
Chair: Sen. David J. Tomassoni
Agenda:
S.F. 3304-Cohen: Housing finance agency (HFA) affordable housing projects funding with mortgage registry tax and deed tax proceeds.
S.F. 3355-Tomassoni: Higher education securities transactions exemptions modifications; state grant program for secondary education appropriation.
S.F. 3273-Tomassoni: Challenge program bonds for affordable housing and permanent supportive housing authorization.

12:00 PM
House in Session

1:00 PM
Senate in Session

Looking Ahead

Friday, May 7

8:00 AM
House Finance
Room: 200 State Office Building
Chair: Rep. Lyndon Carlson
Agenda:
HF2227 (Marquart) Board of Innovation reestablished, powers and duties imposed, and money appropriated.
HF3795 (Eken) FEMA Public Assistance Program money appropriated.
SF1679 (Carlson) Retirement incentives authorized.

9:00 AM
House in Session

Tuesday, May 11

12:30 PM
Senate Higher Education Budget and Policy Division
Room: 123 Capitol
Chair: Sen. Sandra L. Pappas
Agenda:
University District Alliance report
HEFA confirmations

Committee says system should apply for federal health grants, Higher education policy conference committee appointed, Governor wants budget solution

Yesterday at the Capitol

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

Elizabeth Biel, with the Healthcare Education Industry Partnership located at Minnesota State University, Mankato testified to the success of the original pilot project and current program. The goal of the project is to coordinate work sites for nursing students to get the clinical experience they need to complete in order to graduate and increase efficiency and utilization within the state's clinical experience environment. Biel said that without the necessary space for clinicals, nursing programs across the state cannot educate more nursing students. Minnesota's healthcare education programs report that securing these experiences is among the top 3 barriers to maintain and expand graduation rates. Sen. Kathy Sheran, DFL-Mankato, a former nursing professor at Minnesota State University, Mankato, testified that competing for clinical space was a real problem. Biel said there are 38 nursing programs in the state, and the program is designed to tear down the silos and work together. Author of the bill, Sen. Sharon Erickson Ropes, DFL-Winona, said the program can be used as a model across the health care spectrum, and that this program is a good model that will help the state qualify for federal grants available through the Health Care and Education Reconciliation Act of 2010.

On the Senate floor, Sen. Sandy Pappas, DFL-St. Paul, moved to not concur with the House higher education policy bill and requested that a conference committee of 3 be appointed. Senate appointees include: Sen. Pappas, Sen. Ron Latz, DFL-St. Louis Park, and Sen. Claire Robling, R-Jordan.The House appointed 3 conferees as well. They are Rep. Tom Rukavina, DFL-Viriginia, Rep. Kathy Brynaert, DFL-Mankato and Rep. Carol McFarlane, R-White Bear Lake. A conference committee has not yet been scheduled.

On the House floor yesterday, members debated the health and human services bill for over nine hours and passed it by a vote of 79-54. However, Gov. Pawlenty has said he will veto the bill because of costs in future years. While the bill makes cuts of $164 million in the current biennium, it does designate an additional $38 million in fiscal year 2011 and $53 million in the 2012-2013 biennium for Minnesota’s participation in an early federal health care reform initiative, an expansion of the state’s Medicaid program.

In a press conference yesterday, the governor revealed his plan to balance the remaining $536 million budget deficit without relying on the expected $408 million in federal funds. Most of the cuts the governor is recommending were included in his original supplemental budget plan. In addition to the budget cuts he already proposed, Pawlenty is calling for additional reductions of $65 million from an Iron Range trust fund; $36 million to health and human services programs; and $30 million to local government aid.

The governor criticized the Legislature for only enacting one-third of the necessary budget cuts so far in session and threatened to use his unallotment powers to make cuts unilaterally if lawmakers do not balance the budget before they adjourn May 17.

Today at the Capitol

8:30 AM
House K-12 Education Policy
Room: 10 State Office Building
Chair: Rep. Carlos Mariani
Agenda: Federal School Improvement Grants and Minnesota's list of "Persistently Lowest-Achieving Schools"

8:30 AM
House State and Local Government Operations Reform, Technology and Elections
Room: 200 State Office Building
Chair: Rep. Gene Pelowski
Agenda: HF2227 (Marquart) Board of Innovation reestablished, powers and duties imposed, and money appropriated.
HF3825 (Solberg) Alternative plans for a new National Football League stadium in Minnesota provided, Minnesota Stadium Authority established, and Metropolitan Sports Facilities Commission abolished.
HF3821 (Winkler) Disclaimer required on certain campaign material, independent expenditure provisions modified, and money appropriated

12:00 PM
House in Session

1:00 PM
Senate in Session
Agenda:
SF 2337 - Omnibus Health and Human Services bill
SF 3028 - Omnibus E-12 Finance Bill
SF 2918 - Pensions bill

2:00 PM (or 30 minutes after session adjourns)
House Ways and Means
Room: 5 State Office Building
Chair: Rep. Loren Solberg
Agenda:
HF2431 (Greiling) Omnibus K-12 Education bill
HF3051 (Dill) Acquired stream easement modified; state forest boundaries provided; property exemption provided; state forest provisions modified; exchange of lands permitted within the BWCA; public access acquisition moratorium established; Lake Vermilion State Park acquisition provided, state parks and forests added to and deleted from; and public and private sales, conveyances, and exchanges authorized.
HF3124 (Dill) Aquaculture provisions modified, provisions for taking, possessing, and transporting wild animals modified, fish and wildlife management plans requirements modified, and game and fish license provisions modified.

3:00 PM
Senate Economic Development and Housing Budget Division
Room: 107 Capitol
Chair: Sen. David J. Tomassoni
Agenda:
S.F. 3304-Cohen: Housing finance agency (HFA) affordable housing projects funding with mortgage registry tax and deed tax proceeds.
S.F. 3355-Tomassoni: Higher education securities transactions exemptions modifications; state grant program for secondary education appropriation.
S.F. 3273-Tomassoni: Challenge program bonds for affordable housing and permanent supportive housing authorization.

Looking Ahead

Thursday, May 6

9:00 AM
Senate Taxes
Room: 15 Capitol
Chair: Sen. Thomas M. Bakk
Agenda:
S.F. 3063-Stumpf: Career and technical education levy formula adjustment.
S.F. 3028-Stumpf: Pre-kindergarten through grade 12 education appropriations and appropriation reductions.

9:00 AM
Conference Committee on S.F. 2737
Room: 107 Capitol
Chairs: Sen. Dan Skogen and Rep. Al Juhnke
Agenda: S.F. 2737-Skogen: Omnibus agriculture and veterans policy bill.

9:30 AM
House State Government Finance
Room: Basement State Office Building
Chair: Rep. Phyllis Kahn
Agenda:
SF3134 (Kahn) State government programs or activities money appropriated or reduced, and provisions changed relating to expenses of governor-elect, income earned by the permanent school fund, lease-purchase agreements, general services, resource recovery, payment of aids and credits to school districts, tax return preparers, and implied consent.
**Testimony and amendments to the bill, as presented on 4/20, will be taken. If not completed before session, testimony and amendments will continue after session.

10:00 AM
Conference Committee on S.F. 863
Room: 112 Capitol
Chairs: Sen. Mary A. Olson and Rep. Joe Mullery
Agenda: S.F. 863-Olson, M.: Omnibus government data classifications provisions.

12:00 PM
House in Session

Tuesday, May 11

12:30 PM
Senate Higher Education Budget and Policy Division
Room: 123 Capitol
Chair: Sen. Sandra L. Pappas
Agenda:
University District Alliance report
HEFA confirmations

House passes higher education policy bill; Schedule posted

Yesterday at the Capitol

The full House passed the higher education policy bill by a vote of 98-31 yesterday afternoon. Discussion on the bill began with the author of the bill Rep. Tom Rukavina, DFL-Virginia, presenting a technical amendment to the bill which was adopted. Rep. Sarah Anderson, R-Plymouth, offered an amendment on the pilot project language that would establish up to 8 institutions in the Minnesota State Colleges and Universities system to invest some campus reserves in a local bank. Rep. Anderson said the amendment would ensure the interest rate paid on deposits in local banks must be at least equal to the rate paid on campus reserves deposited in the state treasury. The amendment did not pass by a vote of 45-83.

Rep. Phyllis Kahn, DFL-Minneapolis, offered an amendment to allow alcohol to be served in premier seating at the University of Minnesota sports arenas. After much discussion, the amendment did not pass. However, the Senate has included this provision in their version of the higher education policy bill.

As a reminder, the House bill includes the provisions included in the first policy bill plus provisions from other bills heard in committee. There is language that raises the age of senior citizen in statute from 62 to 66 to receive a tuition discount; caps the onetime grant for high school-to-college developmental transition program at $1 million; and establishes the Minnesota State Colleges and Universities central system office and provides for general duties of the office.

The supplemental budget bill signed by the governor raised the revenue fund authority in statute from $200 million to $300 million. The policy bill brings that authority increase down to $275 million. There is language in the bill that requires the system along with the Chamber of Commerce, and representatives of industry groups and labor unions to study program requirements for certificates and diplomas awarded by the system to determine the feasibility of designing technical education programs to allow students to have more opportunities to earn credentials with lower credit requirements that could be combined into higher level certificates or diplomas.

There is also a provision that requires the system office to streamline services provided through the office to reduce expenditures, better target the use of state resources and provide services at the most appropriate and efficient level so as not to duplicate any services provided at the institution level.

There is language on credit transfer, postretirement health insurance premium reimbursements and a provision that states the system office cannot pass through any reductions made to the office to the institutions.

And also included is language that the Minnesota State Colleges and Universities system and the University of Minnesota shall study nanotechnology research and education and report to the Legislature on ways nanotechnology is used responsibly and safely. There is also a provision that requires the Board of Trustess to establish a pilot project to develop partnerships and training and employment opportunities for surgical technologists at those institutions that offer a surgical technologist program.

You may find the House bill here.

You may find the Senate bill here.

The next step for this bill is conference committee where the House and Senate will work through the differences in the two bills. Stay tuned.

Today at the Capitol

8:30 AM
Senate E-12 Education Budget and Policy Division
Room: 112 Capitol
Chair: Sen. LeRoy A. Stumpf
Agenda: S.F. 3189-Stumpf: High school students statewide testing open-ended items inclusion.
S.F. 3189 A-3

8:30 AM *Meeting Canceled*
House Capital Investment Finance Division
Room: Basement State Office Building
Chair: Rep. Alice Hausman
Agenda: HF3678 (Clark) Challenge program for affordable housing and permanent supportive housing purposes funding provided, and bonds issued.
HF3725 (Marquart) Mortgage registry tax and deed tax proceed portion appropriated to the Minnesota Housing Finance Agency to be used for creation of affordable housing units.
Second Order Amending Order of Commissioner of Finance
Relating to Use and Sale of State Bond Financed Property, MMB
Meeting Documents: revised commissioner's order on section 16A.69

8:45 AM
Senate in Session

9:00 AM
House in Session

1:00 PM
Joint Meeting: Committee on Health, Housing and Family Security; Committee on Commerce and Consumer Protection
Room: 112 Capitol
Chairs: Sen. John Marty, Sen. Linda Scheid
Agenda:
Federal Health Care Reform Briefing
S.F. 3369-Olson, M.: Minnesota health benefits purchasing pool association establishment--DISCUSSION ONLY.
S.F. 3397-Erickson Ropes: Minnesota state colleges and universities (MnSCU) clinical coordination project appropriation. DISCUSSION ONLY.

2:30 PM
Senate Finance
Room: 123 Capitol
Chair: Sen. Richard J. Cohen
Agenda:
S.F. 3318-Dibble: Energy improvement financing program provisions modification.
S.F. 3043-Vandeveer: Minnesota Appraisal Management Company Licensing and Regulation Act; real estate appraiser advisory board modification.
H.F. 3056-Lourey: Health provider peer grouping timelines and system modification.
S.F. 2337-Berglin: Intensive care management program for medical assistance (MA) enrollees establishment.
S.F. 3063-Stumpf: Career and technical education levy formula adjustment.
S.F. 3028-Stumpf: Pre-kindergarten through grade 12 education appropriations and appropriation reductions.
S.F. 3064-Stumpf: Northwestern Online College in the high school program appropriations.

3:00 PM (or after the Tuesday floor session whichever is later)
House Taxes
Room: 10 State Office Building
Chair: Rep. Ann Lenczewski
Agenda:
HF2431 (Greiling) Omnibus K-12 education bill

Looking Ahead

Wednesday, May 5

8:30 AM
House K-12 Education Policy
Room: 10 State Office Building
Chair: Rep. Carlos Mariani
Agenda: Federal School Improvement Grants and Minnesota's list of "Persistently Lowest-Achieving Schools"

8:30 AM
House State and Local Government Operations Reform, Technology and Elections
Room: 200 State Office Building
Chair: Rep. Gene Pelowski
Agenda: (Marquart) Board of Innovation reestablished, powers and duties imposed, and money appropriated.

12:00 PM
House in Session

2:00 PM
House Ways and Means
Room: 5 State Office Building
Chair: Rep. Loren Solberg
Agenda:
HF2431 (Greiling) Omnibus K-12 Education bill
HF3051 (Dill) Acquired stream easement modified; state forest boundaries provided; property exemption provided; state forest provisions modified; exchange of lands permitted within the BWCA; public access acquisition moratorium established; Lake Vermilion State Park acquisition provided, state parks and forests added to and deleted from; and public and private sales, conveyances, and exchanges authorized.
HF3124 (Dill) Aquaculture provisions modified, provisions for taking, possessing, and transporting wild animals modified, fish and wildlife management plans requirements modified, and game and fish license provisions modified.

3:00 PM
Senate Economic Development and Housing Budget Division
Room: 107 Capitol
Chair: Sen. David J. Tomassoni
Agenda:
S.F. 3304-Cohen: Housing finance agency (HFA) affordable housing projects funding with mortgage registry tax and deed tax proceeds.
S.F. 3355-Tomassoni: Higher education securities transactions exemptions modifications; state grant program for secondary education appropriation.

Thursday, May 6

9:00 AM
Senate Taxes
Room: 15 Capitol
Chair: Sen. Thomas M. Bakk
Agenda:
S.F. 3063-Stumpf: Career and technical education levy formula adjustment.
S.F. 3028-Stumpf: Pre-kindergarten through grade 12 education appropriations and appropriation reductions.

12:00 PM
House in Session

Tuesday, May 11
12:30 PM
Senate Higher Education Budget and Policy Division
Room: 123 Capitol
Chair: Sen. Sandra L. Pappas
Agenda:
University District Alliance report
HEFA confirmations

Emmer endorsed; Credit bill vetoed; House expected to take up policy bill

On Friday, the Republican party endorsed State Representative Tom Emmer, R-Delano, for governor on the second ballot. Now that both state party conventions are over and candidates have been endorsed, the focus at the Capitol will be on wrapping up the session by May 17.

Also over the weekend, Gov. Pawlenty vetoed the credit transfer bill, HF 3164, Chapter 284. The veto letter written by Gov. Pawlenty says the "bill is unnecessary because the credit transfer issues identified by the Legislative Auditor, MnSCU staff, and students are already being addressed through internal actions and policy changes."

This week, the House omnibus K-12 education bill will be heard in the House Finance and Tax committees. The Senate omnibus K-12 education finance bill will be heard in the Finance committee Tuesday, and the Senate E-12 Education Budget and Policy Division is scheduled to take up the K-12 education policy bill.

On the House floor today at 3:00 p.m., the higher education policy bill is expected to be taken up. As a reminder, the full Senate has passed their version of the higher ed policy bill.

Today at the Capitol

9:00 AM
House Taxes
Room: 10 State Office Building
Chair: Rep. Ann Lenczewski
Agenda: HF3729 (Lenczewski) Omnibus tax bill

10:00 AM
House Finance
Room: 200 State Office Building
Chair: Rep. Lyndon Carlson
Agenda: HF2431 (Greiling) Omnibus K-12 education bill
SF1761 (Fritz) Health plans required to establish equal out-of-pocket requirements for oral and intravenously administered chemotherapy medications.

10:00 AM
House Ways and Means
Room: Basement State Office Building
Chair: Rep. Loren Solberg
Agenda:
Budget Resolution;
HF2614 (Huntley) Intensive care management program established for medical assistance enrollees, funding reduced for the medical assistance program, request for proposals required, report required, and money appropriated;
HF3281 (Murphy) Omnibus retirement bill;
HF3660 (Koenen) Department of corrections; settlement provided for certain claims against the state for injuries suffered, and money appropriated;
HF3571 (Koenen) Publicly owned nursing facilities rate increase authorized, and local share required for nonfederal medical assistance costs;
HF3702 (Wagenius) Omnibus environment and natural resources finance bill;
SF2505 (Slawik) Statewide child care provider training, coaching, consultation, and supports funding provided to prepare for the voluntary Minnesota quality rating system, and money appropriated.

2:00 PM
Senate in Session

3:00 PM
House in Session

Looking Ahead

Tuesday, May 4

8:30 AM
Senate E-12 Education Budget and Policy Division
Room: 112 Capitol
Chair: Sen. LeRoy A. Stumpf
Agenda: S.F. 3189-Stumpf: High school students statewide testing open-ended items inclusion.

8:30 AM
House Capital Investment Finance Division
Room: Basement State Office Building
Chair: Rep. Alice Hausman
Agenda: HF3678 (Clark) Challenge program for affordable housing and permanent supportive housing purposes funding provided, and bonds issued.
HF3725 (Marquart) Mortgage registry tax and deed tax proceed portion appropriated to the Minnesota Housing Finance Agency to be used for creation of affordable housing units.
Second Order Amending Order of Commissioner of Finance
Relating to Use and Sale of State Bond Financed Property, MMB
Meeting Documents: revised commissioner's order on section 16A.69

2:30 PM
Senate Finance
Room: 123 Capitol
Chair: Sen. Richard J. Cohen
Agenda:
S.F. 3318-Dibble: Energy improvement financing program provisions modification.
S.F. 3043-Vandeveer: Minnesota Appraisal Management Company Licensing and Regulation Act; real estate appraiser advisory board modification.
H.F. 3056-Lourey: Health provider peer grouping timelines and system modification.
S.F. 2337-Berglin: Intensive care management program for medical assistance (MA) enrollees establishment.
S.F. 3063-Stumpf: Career and technical education levy formula adjustment.
S.F. 3028-Stumpf: Pre-kindergarten through grade 12 education appropriations and appropriation reductions.
S.F. 3064-Stumpf: Northwestern Online College in the high school program appropriations.

3:00 PM (or after the Tuesday floor session whichever is later)
House Taxes
Room: 10 State Office Building
Chair: Rep. Ann Lenczewski
Agenda:
HF2431 (Greiling) Omnibus K-12 education bill

Wednesday, May 5

8:30 AM
House K-12 Education Policy
Room: 10 State Office Building
Chair: Rep. Carlos Mariani
Agenda: Federal School Improvement Grants and Minnesota's list of "Persistently Lowest-Achieving Schools"

8:30 AM
House State and Local Government Operations Reform, Technology and Elections
Room: 200 State Office Building
Chair: Rep. Gene Pelowski
Agenda: (Marquart) Board of Innovation reestablished, powers and duties imposed, and money appropriated.

Tuesday, May 11

12:30 PM
Senate Higher Education Budget and Policy Division
Room: 123 Capitol
Chair: Sen. Sandra L. Pappas
Agenda:
University District Alliance report
HEFA confirmations