Back to 2006 updates archive
Legislative
updates for the week of February 20-24, 2006
Welcome back readers
Each session the Government Relations Office produces a brief weekly newsletter to keep the system informed on actions of the Legislature. Watch for the Legislative Notes each Friday afternoon. The Government Relations Office has experienced some staff changes. Mary Jacquart has been appointed the director of Government Relations. She can be reached at 651-296-0664 or mary.jacquart@so.mnscu.edu. Sandy Smith has joined us as the assistant to Government Relations. Sandy (651-296-6518 or sandy.smith@so.mnscu.edu) brings experience from the Legislative Commission on Minnesota Resources, where she worked as the Commission’s Assistant. Jerry Janezich (651-296-6097 or jerry.janezich@so.mnscu.edu) and Bernie Omann (651-296-6277 or bernie.omann@so.mnscu.edu), support the system directly on Capitol Hill, and Melissa Fahning (651-296-0669 or melissa.fahning@so.mnscu.edu) is available to help with legislative questions and will continue to keep you informed on what is happening during the session.
"Short Session"
Lawmakers return to St. Paul on March 1, 2006, for the “short session.” Even-numbered years are considered “short sessions” at the Legislature, making the bonding bill the priority. With 2006 being an election year, lawmakers would like to finish their business before the Easter/Passover Break. But with issues including the bonding bill, undocumented student tuition, academic bill of rights, veteran’s re-entry services and the University of Minnesota/Rochester Higher Education Development Committee, lawmakers may be sticking around longer. We also are likely to see a pension bill this session and legislation on school safety and eminent domain. Unrelated to higher education, issues that are likely to take center stage at the capitol this year include gay marriage and stadiums (more likely for the University of Minnesota and the Twins, and less likely for the Vikings), and we may see further debate on a Maple Grove hospital. The constitution will allow lawmakers to stay in St. Paul until May 22, 2006.
2006 Bonding Bill
Lawmakers will focus their efforts on a capital investment (bonding) bill this session. The Board of Trustees reviewed campus requests and ultimately requested funding for $280.4 million. The first $110 million is for needed repair and replacements, and the balance is for 23 institution projects and three systemwide initiatives. Governor Pawlenty has recommended $142 million for Minnesota State Colleges and Universities projects. The Governor’s request focuses on science-related projects and includes only $20 million of the $110 million repair and replacement request. The Governor’s recommendation is a good start, but we will continue to work with the Legislature and the Governor during the session to fund more HEAPR and additional projects in the request. A complete description of each project can be found at www.mnscu.edu/media/publications/pdf/systembondingbook2006.pd or contact Sandy Smith at sandy.smith@so.mnscu.edu to receive a bonding book.
Both the House and Senate Capital Investment and Higher Education committees have toured a majority of the projects around the state and soon will start to hear presentations on the system’s request. The House Higher Education committee will hear our bonding presentation on March 13, and the House Capital Investment committee will hear it on March 14. Stay tuned for details.
Board of Trustees Request a $31.5 Million Supplemental Budget
The Board of Trustees is requesting a $31.5 million supplemental budget from the Legislature. The request includes $10 million for fuel cost increases, $15 million for infrastructure and security technologies, $3 million for expanding bioscience programs and $3.5 million for a global initiative. Since legislators have indicated that the FY2005 surplus will be used for some type of property tax relief, and the FY2006-07 surplus is designated under current law to be used for the K-12 education accounting shifts, it will be hard to find revenue to fund the request. Legislators seem to agree that there is no money to do much this session.
February Forecast - Little Change in Economic Outlook?
The Department of Finance prepares formal forecasts of state revenues and expenditures in November and February each year as required by state law. Forecast information is used by the Governor and Legislature to ensure that enacted budgets remain on track and in balance, and to plan for future budgets. The November forecast included a $337 million surplus in FY2005 to be deposited in the tax relief account, and a $701 million FY2006-07 surplus required to reverse the education accounting shifts enacted in 2002 and 2003. The FY2008-2009 outlook has slightly improved. However, with the cost of inflation and the loss of revenues from a potential constitutional amendment that would dedicate all general fund motor vehicle sales tax revenue to transportation, the outlook is fairly flat. It is anticipated that the little change will be produced by the February forecast, expected on Tuesday, Feb. 28. We might expect to see negative individual tax receipts offset by positive corporate tax receipts, sales tax receipts stable or slightly higher, and motor vehicle tax receipts lower. Stay tuned.
Important Dates to Remember
February Economic Forecast - February 28, 2006
2006 Legislative Session Convenes - March 1, 2006
Governor’s State of the State - March 9, 2006
First Committee Deadline - March 28, 2006
Second Committee Deadline - April 4, 2006
Third (Final) Committee Deadline - April 11, 2006
Last Day of Session - May 22, 2006
Committee Membership and Schedules
The House Higher Education Finance committee's standing meeting time is Monday and Wednesday from 12:30 to 2:15 p.m. in Room 300S of the State Office Building. The membership roster for the 2006 session is:
House Higher Education Finance Division
Bud Nornes, Chair, R-Fergus Falls
Dean Urdahl, Vice Chair, R-Grove City
Gene Pelowski, Lead-DFL, DFL-Winona
Jim Abler, R-Anoka
Ron Abrams, R-Minnetonka
Lyndon Carlson, DFL-Crystal
Ray Cox, R-Northfield
Jerry Dempsey, R–Red Wing
Rob Eastland, R-Isanti
Larry Haws, DFL-St. Cloud
Ron Latz, DFL-St. Louis Park
Carlos Mariani, DFL-St. Paul
The Senate Higher Education Budget Division’s standing meeting time is Tuesday and Thursday from 12:00 to 2:30 p.m. in Room 123 of the Capitol. The membership roster for the 2006 Session is:
Senate Higher Education Budget Division
Sandy Pappas, Chair, DFL-St. Paul
Yvonne Prettner Solon, Vice Chair, DFL-Duluth
Bob Kierlin, Ranking Minority Member, R-Winona
Tarryl Clark, DFL-St. Cloud
Cal Larson, R-Fergus Falls
Lawrence Pogemiller, DFL-Minneapolis
Claire Robling, R-Jordan
Carrie Ruud, R-Breezy Point
Rod Skoe, DFL-Clearbrook
David Tomassoni, DFL-Chisholm
The House Capital Investment Committee’s standing meeting time is Tuesday and Wednesday at 2:30 p.m. in Room 200 of the State Office Building. The membership roster for the 2006 session is:
House Capital Investment Committee
Dan Dorman, Chair, R-Albert Lea
Denny McNamara, Vice Chair, R-Hastings
Alice Hausman, Lead-DFL, DFL-St. Paul
Laura Brod, R-New Prague
Matt Dean, R-Dellwood
Randy Demmer, R-Hayfield
John Dorn, DFL-Mankato
Rob Eastlund, R-Isanti
Pat Garofalo, R-Farmington
Larry Howes, R-Walker
Mike Jaros, DFL-Duluth
Phyllis Kahn, DFL-Minneapolis
Margaret Anderson Kelliher, DFL-Minneapolis
Jim Knoblach, R-St. Cloud
Ron Latz, DFL-St. Louis Park
Tim Mahoney, DFL-St. Paul
Mary Murphy, DFL, Hermantown
Gene Pelowski, DFL-Winona
Neil W. Peterson, R-Bloomington
Steve Smith, R-Mound
Loren Solberg, DFL-Grand Rapids
Kathy Tingelstad, R-Andover
The Senate Capital Investment Committee’s standing meeting time is Monday and Wednesday from 3:00-5:30 p.m. in Room 123 of the State Capitol. The membership roster for the 2006 session is:
Senate Capital Investment Committee
Keith Langseth, Chair, DFL-Glyndon
Sheila M. Kiscaden, Vice Chair, DFL-Rochester
Cal Larson, Ranking Minority Member, R-Fergus Falls
Linda Berglin, DFL-Minneapolis
Satveer Chaudhary, DFL-Fridley
Richard Cohen, DFL-St. Paul
Dennis R. Frederickson, R-New Ulm
Chris Gerlach, R-Apple Valley
Linda Higgins, DFL-Minneapolis
Dean E. Johnson, DFL-Willmar
Bob Kierlin, R-Winona
Paul E. Koering, R-Fort Ripley
James P. Metzen, DFL-S. St. Paul
Steve Murphy, DFL-Red Wing
Sandra L. Pappas, DFL-St. Paul
Claire A. Robling, R-Jordan
Carrie L. Ruud, R-Breezy Point
Dallas C. Sams, DFL-Staples
David H. Senjem, R-Rochester
Wesley J. Skoglund, DFL-Minneapolis
LeRoy A. Stumpf, DFL-Thief River Falls
Federal Update
The second session of the 109th Congress convened the end of January. Here is what is happening in Washington, as well as issues we can expect to see this session:
- The Higher Education Act, Perkins Vocational and Technical Education Act, and the Workforce Investment Act are still pending.
- Representative John Boehner (R-Ohio) moved into the majority leadership role, and Buck McKeon (R-Calif) moved into the position of chair of the Education and the Workforce Committee.
- President Bush’s vision: American Competitiveness Initiative. This initiative:
- Doubles the federal commitment to critical basic research programs in the physical sciences over the next 10 years
- Encourages the expansion of an incentives for additional private-sector investment in innovation
- Improves the quality of education promoting a strong foundation in math and science
- Supports universities that provide world-class education and research opportunities
- Provides job training that directly helps more workers and manufacturers to improve their skills and better compete in the 21st century global market
- Attracts and retains the best and brightest to enhance entrepreneurship, competitiveness and job creation in America by supporting comprehensive immigration reform
- Fosters a business environment that encourages entrepreneurship and protects intellectual property
You may learn more about the American Competitiveness Initiative at www.ostp.gov/html/ACIBooklet.pdf.
- President Bush’s 2007 Budget includes once again the elimination of Perkins. However, keep in mind that Congress historically supports Perkins.
- The President’s budget also includes:
- Cuts to TRIO: GEAR UP, Upward Bound and Talent Search. No major increases in other TRIO programs.
- Level funding for the Pell grant at $4,050
- Level funding for Title III Aid for Institutional Development
- A slight increase for Title VI: International Education and Foreign Language Studies
- Level funding for the Fund for the Improvement of Postsecondary Education
- Elimination of funding for Teacher Quality Enhancement
- $24 million for a new program Advancing America through Foreign Language Partnerships. (Competitive grants to establish fully articulated language programs of study in languages critical to U.S. national security through grants to institutions of higher education for partnerships with school districts for language learning from kindergarten through high school and into advanced language learning at the postsecondary level)
- Career Advancement Accounts - self-managed accounts of up to $3,000 per job seeker ($6,000 maximum over two years) to obtain training and other employment services. States would be required to allocate approximately 75 percent of WIA funds for CAAs - 3 percent maximum for administrative costs, and up to 22 percent for basic employment services to job seekers and employers
- $150 million for the President's Community-Based Job Training Grants initiative