Budget reduction vetoed; Deadlines set; State of the state given; Voter ID movement; Students and faculty testify; Zero-based budgeting; D.C. Update

Legislative Update
February 11, 2011

Governor Dayton rejects budget bill, prepares to release his own plan

What was termed the “phase one” budget reduction bill, which reduced the $6.2 billion state budget deficit by about $900 million, did not sit very long on Gov. Mark Dayton’s desk. After making its way through committee and the respective floors, conferees came to agreement between the House and Senate versions of the bill Monday evening in record time. The fiscal year 2011 cuts the governor and his administration were required to make were reduced from the House's $200 million and the Senate's $125 million to $100 million. Many had questioned how much unencumbered funding could be found from state agencies yet this year. The agreed-upon report also specified that short-term cuts to specific programs, including the state grant program, would not apply in the $100 million cut. Conferees did not accept the House's language on freezing state employee wages, and the final bill reduces higher education $185 million, which was in both the Senate and House version. The effect on the Minnesota State Colleges and Universities system was a base reduction of $23 million from $605 million to $582 million.

The conference committee report was re-passed Wednesday by the House and then the Senate took its turn Thursday afternoon. The governor did not waste any time vetoing the bill when it reached his desk Thursday. He cited its potential to raise property taxes, its piecemeal approach and its vague approach to calling for $100 million in cuts without specifying what those cuts should be.

Senate Majority Leader Amy Koch, R-Buffalo, said she was disappointed to see the veto and pointed out a main difference between Republican leadership and the governor is cutting spending versus growing spending. When asked if the honeymoon is over, given the veto, Koch said she doesn’t think so. They still have a lot of work ahead of them, she said, and they have had good discussions with the governor on upcoming bills.

Sen. Julianne Ortman, R-Chanhassen, said she had hoped lawmakers and the governor would keep their eye on the goal - to reduce some of the deficit before the February forecast comes out the week of Feb. 28. Legislators will have a little more than three weeks once the forecast is released to craft a budget bill. The House approved a resolution on the floor this week that sets the committee deadlines. Unique this year is that the first deadline applies to finance bills. All budget bills must be out of their respective committee and headed to Ways and Means by March 25. The Senate indicated today they will have the same deadlines. House Republican leaders said they want the deadlines to reflect their commitment to getting the state’s budget shortfall resolved before policy issues are addressed.

The second and third deadlines are for the policy bills. The second deadline, April 29, is when policy bills are to be out of the committee of origin, and the third deadline, May 6, is when policy bills must pass out of the other body.

All eyes are now on Dayton’s budget plan, which will be released Tuesday. Deputy Majority Leader Geoff Michel, R-Edina, said governors across the country are reining in spending and lowering taxes. He said he gives the governor credit for being consistent but is concerned that when the governor comes out next week with a tax increase, it will put Minnesota out of step with other states. “How do we attract people to do business in Minnesota?” he asked. House Majority Leader Matt Dean, R-Dellwood, said lawmakers will take the governor’s budget and begin reviews immediately. Sen. Terri Bonoff, DFL-Minnetonka, said legislators need to work together to craft legislation that has a chance to become law. “The governor made it very clear from day one that he would not support a piecemeal approach to budgeting,” she said.

Gov. Dayton hints at what his budget will look like by calling on lawmakers to invest in the future of Minnesota

The first hints from the governor about his budget recommendation came Wednesday when Gov. Dayton delivered his State of the State address with a focus on investing in the future of Minnesota. Dayton invited legislators to join with him to pledge to the people of Minnesota that they will not shut down government, but rather will reach a shared solution to resolve the $6.2 billion budget deficit. “If this happens, the people of Minnesota will win,” Dayton said.

Although he didn't provide details about his budget proposal, Dayton did say the state needs to invest in job creation; better education; improved transportation; the health of citizens, communities and the environment; and the transformation of government services.

Education was a big part of Dayton’s 43-minute speech. He asked legislators to join him in increasing funding to K-12 education every year he is governor. “In our shared desire to improve our elementary and secondary schools, our colleges and our universities, I urge all of us to work together, instead of against one another,” he said. Dayton called for working cooperatively to enlist ideas from those most in touch with children's needs - parents and teachers. He again asked every business in Minnesota to adopt a school, college or university. When asked by the media what she thought about the governor's education plan, Senate Majority Leader Amy Koch, R-Buffalo, said it is still shy on details, “but it appears he is making promises he doesn't have the money to keep.”

Dayton also addressed the tax issue and announced his intentions to increase income tax for wealthy Minnesotans, something he promised on the campaign trail. He said: “Fewer people paying lower taxes has meant state per-pupil aid for our students from kindergarten through 12th grade has been reduced by 14 percent in real, after-inflation dollars during the past eight years. Tuition in our state’s two-year public colleges has risen to the third highest in the nation, and tuition in our four-year universities are among the top 10 highest.” In response to Dayton’s tax plan, House Speaker Kurt Zellers, R-Maple Grove, said that raising taxes during tough economic times is detrimental to the state.

Voter identification bills moving through committee process

Earlier this week, the House Government Operations and Elections committee approved two bills that would require Minnesotans to show a government issued photo identification before voting. The bills, HF 210, sponsored by Rep. Mary Kiffmeyer, R-Big Lake, and HF 89, sponsored by Rep. Mike Benson, R-Rochester, would provide a way for voters with the proper documentation to obtain an ID card free of charge. The passage of the bills in committee marks the first time since 2006 that a photo ID measure has cleared a House or Senate committee.

With the number of times college students move, showing a valid Minnesota identification card that demonstrates an address of residence in the precinct where the person votes can be difficult for many students. Also many students choose to use their parents’ address as their permanent address on their identification card, which also can prove problematic for college students to vote on Election Day.

Currently in Minnesota, registered voters do not have to show a photo identification when they go to vote, but rather they sign their name on a printed roster. Benson and others argue that unless voters are required to show a current ID, there’s no guarantee they’re not voting illegally.

Both bills head next to the House State Government Finance Committee.

Students and faculty talk higher education with House committee

Every college or university student has a story to tell about how he or she chose their college or university and what their education means to them. Earlier this week, House Higher Education committee members heard the story of Maureen Wanous, a student at South Central College in Faribault, who went back to school to make a better life for herself and her daughter. Samantha Potter-Rank, a PSEO student at Inver Hills Community College, shared with the committee that she will graduate from high school with a two-year college degree at the same time, which will help her family save on tuition.

Just as every student has a story, every faculty member who teaches and mentors these students also has a story. Ken Ryan, director of the mechatronics program at Alexandria Technical and Community College, shared with lawmakers the success of the program he oversees. Ryan indicated there are far more jobs in the field of mechatronics than graduates available to fill them.

Students and faculty from both the Minnesota State Colleges and Universities system and the University of Minnesota shared their stories with policy makers in light of the budget cuts facing both systems. Students told committee members that it is getting harder to obtain a degree with declining state appropriation and increasing tuition. Monte Bute, a faculty member at Metropolitan State University, said that any other cuts to the Minnesota State Colleges and Universities system will hinder young people from getting an education. “The key to prosperity is an educated workforce,” Bute said.

Zero-based budgeting concept gains legs at the Capitol

HF 2, sponsored by Rep. King Banaian, R-St. Cloud, presented his bill to the House State Government Finance committee earlier this week. Banaian explained that the bill provides for periodic review of state agencies through a zero-based budgeting process. The bill was amended to clarify how often state agencies are to go through the process. In the amendment, the Minnesota State Colleges and Universities system is to prepare the system's budget every four years beginning July 1, 2013, assuming the base to be zero and each proposed expenditure must be justified as if it were new. Committee members passed the bill by a vote of 12-7 and sent it to the Ways and Means committee. The Senate companion, SF 146, sponsored by Sen. Roger Chamberlain, R-Lino Lakes, has not yet received a hearing.

News from Washington

As reported last week, Republican leadership in the United States House of Representatives was supposed to release their funding proposal for the remainder of fiscal year 2011 this week; however, conservative Republicans are demanding that the bill come in $100 billion below the president's request, so leadership and appropriators need to find an additional $26 billion. The American Association of State Colleges and Universities is reporting that the Labor, Health and Human Services, and Education Subcommittee needs to find an additional $11 billion on top of the $6.7 billion that committee members already are assigned to cut. The president and Congress also begin crafting the budget for fiscal year 2012. President Obama is scheduled to release his 2012 budget Monday.

The below link provides the 2011 Congressional calendar for the 112th Congress. Both Senate and House recess dates are noted and useful to consider when planning for meetings or inviting congressional members to visit your campus. Congressional members spend time in their home districts during their recess, visiting and listening to constituents. You may link to the calendar here.

Here's What's Happening at the Capitol:

This schedule shows all meetings that we are aware of at the time of publication that MAY have an impact on the system. This schedule may change. Please watch the House and Senate schedules posted on the Legislature web site.

Monday, February 14

11:00 AM
Senate in Session

12:30 PM
House Veterans Services Division
Room: Basement State Office Building
Chair: Rep. Bruce Anderson
Agenda: HF223 (Scalze) Public assistance reporting information system use expanded.
HF226 (Davids) Fillmore County specified as one location for a new veterans cemetery.
HF384 (Dettmer) Campus veterans representative program sunset repealed.
Overview by Minnesota Assistance Council for Veterans: Executive Director Kathy Vitalis, Board Member Jill Laurence, Veteran Elmer Duncan and Veteran Robert Thomes
Overview of Defending The Blue Line Organization: Dan Larsen, Advisory Board, and Shane Hudella, Master Seargeant, founder

3:00 PM
Senate Higher Education
Room: 107 Capitol
Chair: Sen. Michelle L. Fischbach
Agenda: Presentation from the Minnesota Private College Council.

3:00 PM
Senate Education
Room: 15 Capitol
Chair: Sen. Gen Olson
Agenda:
S.F. 239-Kruse: School districts reserved for operating capital account transfer to undesignated general fund authorization.
S.F. 171-Stumpf: School finance total operating capital revenue vehicle lease expenditure authorization.
S.F. 166-Latz: School districts general education operating capital revenue use expansion for school closing costs.

3:00 PM
House in Session

Tuesday, February 15

8:15 AM
Senate Education Reform
Room: Basement State Office Building
Chair: Rep. Sondra Erickson
Agenda: Minnesota Elementary School Principals' and Minnesota Secondary School Principals' Associations, Introduction and Questions
Assessment overview
Successes in St. Paul

10:15 AM
House Agriculture and Rural Development Policy and Finance
Room: Basement State Office Building
Chair: Rep. Rod Hamilton
Agenda: Ag literacy
Dairy Day - Dairy Development, Dairy Research & Educational Center report

10:30 AM
Senate Jobs and Economic Growth
Room: 107 Capitol
Chair: Sen. Geoff Michel
Agenda:
Overview from the Minnesota Partnership for Biotechnology and Medical Genomics
Overview from the BioBusiness Alliance of Minnesota

12:30 PM
House Higher Education Policy and Finance
Room: Basement Hearing Room, State Office Building
Chair: Rep. Bud Nornes
Agenda: State Grant Projections for FY2012-13 - Minnesota Office of Higher Education
Financial aid administrators and students discuss how the State Grant Program works and what it means to institutions and students.

3:00 PM
Senate Education
Room: 15 Capitol
Chair: Sen. Gen Olson
Agenda: To be announced.

Wednesday, February 16

Student Rally Day

10:15 AM
House Taxes
Room: 200 State Office Building
Chair: Rep. Greg Davids
Agenda: Overview of Governor Dayton's Budget

10:30 AM
Senate Jobs and Economic Growth
Room: 107 Capitol
Chair: Sen. Geoff Michel
Agenda: Economic overview from Scott Anderson, Wells Fargo

3:00 PM
Senate Higher Education
Room: 107 Capitol
Chair: Sen. Michelle L. Fischbach
Agenda: S.F. 268-Carlson, J.: Minnesota state colleges and universities (MnSCU) and university of Minnesota temporary freezing and permanent tuition increase limitations.

3:00 PM
Senate Education
Room: 15 Capitol
Chair: Sen. Gen Olson
Agenda: To be announced.

5:30 PM
Joint House and Senate Committee on Higher Education
Room: 5 State Office Building
Chairs: Rep. Bud Nornes, Sen. Michelle Fischbach
Agenda: University of Minnesota Board of Regents candidate interviews
Election of nominees to forward to Joint Convention

Thursday, February 17

8:30 AM
Senate Finance
Room: 123 Capitol
Chair: Sen. Claire A. Robling
Agenda:
Presentation of Governor Dayton's Budget - Commissioner Jim Schowalter, Minnesota Management and Budget

11:00 AM
Senate in Session

12:30 PM
House Higher Education Policy and Finance
Room: Basement Hearing Room, State Office Building
Chair: Rep. Bud Nornes
Agenda: Office of Higher Education:
Governor Dayton's Proposed Budget for Higher Education
Detailed Discussion of Agency's Organization and Finances