Legislative Update 4-5-13

Yesterday at the Capitol

We’ve reached the point in the legislative process when it becomes a little more tricky to follow all the moving parts, as individual bills find a home in finance division omnibus bills. The first two committee deadlines have come and gone and now lawmakers are working toward the final committee deadline of April 19 when all finance bills must be out of committee.

The House Higher Education Finance and Policy committee was originally scheduled to take up their omnibus finance bill yesterday and today. Both those meetings have been canceled and the schedule indicates the appropriations article of the omnibus bill in the House will be released on Monday, April 8.

Over in the Senate, the Higher Education and Workforce Development committee met yesterday to address the issue of performance funding. Committee Chair Terri Bonoff, DFL-Minnetonka, said it is the intention of the committee to incorporate performance funding into the higher education omnibus bill; however, Bonoff said she is open to amendments.

The first measure the committee is looking at for Minnesota State Colleges and Universities is increasing by at least four percent in fiscal year 2013, compared to fiscal year 2010, graduates or degrees, diplomas and certificates conferred. The second measure is to increase by at least one percent the fall 2013 persistence and completion rate for fall 2012 entering students compared to the fall 2010 rate for fall 2009 entering students.

The third measure discussed yesterday is increasing by at least four percent the fiscal year 2013 related employment rate for 2012 graduates compared to the 2011 rate for 2010 graduates. Vice Chancellor Laura King said the MnSCU colleges and universities currently do survey graduates to learn of their employment, but not every year because it is costly and time consuming.

The fourth measure reads that by 2014, MnSCU must increase the number of Open Educational Resources (OER) tools and services offered to actualize a one percent reduction in expenses directly related to the cost of instruction incurred by students. Vice Chancellor King said MnSCU is unable to actually measure this because this data is not readily available. She asked the committee the opportunity to work on this measure. Chair Bonoff said it is the committee’s intention to work with both MnSCU and the University of Minnesota on the metrics included in the bill.

And the fifth measure is reallocating $22 million that became available through expense realignment in fiscal year 2014. Chair Bonoff recognized that included in MnSCU’s budget request is efficiencies of $22 million each year of the 2014-2015 biennium. She said the committee would like to recognize the system’s work in the area of efficiencies.

King told committee members that the MnSCU Board of Trustees led with performance funding by including measures in the system’s biennial budget request. She said MnSCU is in strong support of the concept of performance funding, but has concerns about the Senate’s proposed five percent holdback. King said the colleges and universities have to budget now for the next biennium, and withholding five percent of the budget leaves great uncertainty on the campuses.

There is language in the bill that reads, “If the commissioner finds the board has not met three of the five performance standards, the appropriations subject to the standards shall be transferred by the commissioner in fiscal year 2015 to the director of the Minnesota Office of Higher Education for scholarships for students attending a Minnesota state university of college.” King asked that if the performance metrics and this language is to be included in the bill, that they consider changing 2015 to 2016 so if the system is unsuccessful meeting the goals, and the campuses would have to cut five percent from their budget, it would not happen in the next biennium.

Sen. Greg Clausen, DFL-Apple Valley, said having worked in K-12, he understands having to make budget cut decisions and acknowledged King’s concerns.  Sen. Kathy Sheran, DFL-Mankato, said she wants to be better informed about what a five percent cut could potentially mean to the colleges and universities before she votes, because she said she doesn’t want to talk about “unintended consequences” down the road if the measures are not met.

A copy of the proposed performance funding metrics for Minnesota State Colleges and Universities is attached.  Senate performance metrics for MnSCU.

The Senate committee is scheduled to take up their version of the higher education omnibus bill on Monday, April 8 at 12:30 p.m. and continue that discussion Tuesday and Wednesday. As soon as the omnibus bills are available, I will be sure to forward for everyone’s review.

In the area of bonding, a spokesperson for Gov. Dayton said he plans to release his approximate $750 million bonding proposal early next week. Next Tuesday morning, the House Capital Investment committee intends to present their omnibus bonding bill using HF 270 as the vehicle. The schedule indicates the committee plans to mark-up the bill and pass it out on Thursday.

Today at the Capitol

9:00 a.m.

Legislative Commission on Planning and Fiscal Policy
Room: 10 State Office Building
Chair: Representative Paul Thissen
Agenda: I. Budget implications of demographic changes
II. Federal funds summary
III. Sequestration and its potential impact on Minnesota

10:00 a.m. *Meeting Canceled*
House Higher Education Finance and Policy Committee
Room: 5 State Office Building
Chair: Rep. Gene Pelowski

Agenda: Omnibus higher education finance and policy bill

10:30 a.m.
Legislative leaders weekly media briefing

Looking Ahead

Monday, April 8

8:30 a.m.
Senate Taxes

Room: 15 Capitol

Chair: Sen. Rod Skoe
Agenda:
S.F. 1451-Jensen: Greater Minnesota businesses property and sales tax incentives and appropriation; job opportunity building zones (JOBZ) prohibition.
S.F. 240-Tomassoni: Jobs training program establishment and appropriation.
S.F. 241-Eken: Greater Minnesota internship program establishment and appropriation.
S.F. 389-Eken: Western border city enterprise zones supplemental tax reduction allocation.
S.F. 289-Brown: Clearwater local sales tax revenues use modifications.
S.F. 1500-Eken: Disparity reduction credit annual adjustment.

10:00 a.m.

House Ways and Means
Room: 200 State Office Building
Chair: Rep. Lyndon Carlson

Agenda:
HF819 (Murphy) Public Facilities Authority grant programs reorganized, and small community wastewater treatment grants provided for.
HF742 (Dill) Natural resources commissioner’s authority and duty modified, definitions modified, invasive species provisions modified, watercraft provisions modified, license seizures provided for, game and fish license provisions modified, game and fish taking requirements modified, all-terrain vehicle registration and watercraft license exemptions modified, nonresident all-terrain vehicle state trail pass requirements modified, and rulemaking required.
HF1069 (Lillie) Labor agreements and compensation plans ratified.

11:00 a.m.
Senate in Session

12:00 p.m.
Senate Higher Education and Workforce Development Division

Room: 123 Capitol

Chair: Sen. Terri E. Bonoff
Agenda: Discussion on State Grant Program
Presentation of the Higher Education & Workforce Development Division’s Omnibus Bill

12:30 p.m.
House Higher Education Finance and Policy Committee

Room: 5 State Office Building
Chair: Rep. Gene Pelowski

Agenda: HF983 (Lien): Omnibus higher education policy bill

Article 1 (Appropriations) of the omnibus higher education bill will be released.

12:30 p.m.
House State Government Finance and Veterans Affairs

Room: 200 State Office Building
Chair: Rep. Mary Murphy
Agenda: Phase III, Building the Omnibus State Government Finance and Veterans Affairs Bill
Amendments will be taken to the Delete-everything amendment to HF1184.
Notes: Amendments are due to committee staff by 9 a.m. April 5.
The intention of the chair is to complete all amendments at the April 8 meeting.

3:00 p.m.

House in Session

Tuesday, April 9

8:15 a.m.

House Capital Investment
Room: 200 State Office Building
Chair: Rep. Alice Hausman
Agenda: Presentation of delete everything amendment to HF270 – Omnibus Bonding bill. ***No action will be taken.*** NOTE: The DE amendment and a link to the spreadsheet will be posted on the committee website following the April 9 hearing.

8:15 a.m.
House Education Finance

Room: 10 State Office Building

Chair: Rep. Paul Marquart

Agenda:

HF1003 (Morgan) Minnesota math corps program established and money appropriated.
HF1401 (Mullery) Special School District No. 1, grant money appropriated for community engagement and empowerment.
HF1491 (Isaacson) Intermediate school districts authorized to sell and issue facility bonds upon adoption of a resolution.
HF1645 (Bernardy) College concurrent enrollment program full funding provided, and money appropriated

10:00 a.m.
House Government Operations

Room: 5 State Office Building
Chair: Rep. Michael Nelson
Agenda: HF1152 (Murphy) Volunteer firefighter relief association fiscal year defined, leave exemption clarified from minimum resumption service requirements for break-in-service service credit, and municipal approval mandated for certain interest rates creditable to deferred service credits.
The second omnibus pension bill that was recommended by the Pension Commission on Tuesday, April 2, will be considered as a DE amendment for HF1152

2:15 p.m.
House Ways and Means

Room: 200 State Office Building
Chair: Rep. Lyndon Carlson
Agenda: Pending referral on the House floor:
Omnibus Commerce Finance Bill
Omnibus Jobs and Economic Development Finance Bill
Omnibus Housing Finance Bill

3:00 p.m.
Senate Higher Education and Workforce Development Division

Room: 123 Capitol

Chair: Sen. Terri E. Bonoff
Agenda: S.F. 1236-Bonoff: Minnesota state colleges and universities (MnSCU) board of trustees, University of Minnesota (U of M) board of regents and the office of higher education appropriations.

Thursday, April 11

8:15 a.m.

House Capital Investment
Room: 200 State Office Building
Chair: Rep. Alice Hausman
Agenda: Mark up and final passage of Omnibus Bonding bill (HF270) as amended.

Monday, April 15

12:30 p.m.
House Higher Education Finance and Policy Committee

Room: 5 State Office Building
Chair: Rep. Gene Pelowski

Agenda: Omnibus higher education finance and policy bill; final mark-up

Bill Introductions

Please see the attached spreadsheet for the higher education related bill introductions.  Copy of 2013 Bill Tracking

Thank you.

Melissa Fahning, Government Relations
Minnesota State Colleges and Universities (651) 201-1757
melissa.fahning@so.mnscu.edu

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