Legislative Notes for the week of January 8-12, 2007

Lawmakers receive overview

Legislative committees began meeting this week with agendas largely consisting of informative overviews for members to become acquainted with the state agencies, programs and issues that will come before their committees over the next five months. For example, the House Ways and Means Committee and Finance Committee heard from experts regarding the budget and forecast and what they mean for appropriating funds for the 2008-2009 biennium. The Senate State Government Budget Division heard from the Commissioner of Administration, Dana Badgerow. Badgerow reviewed the Drive to Excellence program, which is a comprehensive government reform effort. She said Minnesotans expect government services to be provided faster, better and more efficiently. Early in the week, lawmakers attended a legislative conference at the Hubert H. Humphrey Institute of Public Affairs to learn more about what they will face this session.

Debt, books and computers

Students from Minnesota's rural two-year community and technical college campuses testified in front of the House Higher Education and Workforce Policy and Finance Committee this week. The main messages were debt, textbooks and technology. Committee members asked many questions about the costs of textbooks and proposed solutions, including whether textbooks could be on reserve in libraries, if old editions could be used and if texts could be made available online. Rep. Frank Moe, DFL-Bemidji, asked Chair Tom Rukavina, DFL-Virginia, if there could be a future hearing on textbooks. Last year, legislation directed the Minnesota Office of Higher Education to convene a task force on textbooks. Findings will be realized later this month.

On the technology side, students explained difficulties they encountered in using online course programs. Specifically, students had trouble uploading assignments, taking timed tests as the system froze and submitting work when the system crashed. These comments were made to help illustrate the need for the technology request. Likewise, the debt testimony projected the need for funding for the Minnesota State Colleges and Universities system.

Governor announces Veterans proposal

Gov. Tim Pawlenty announced a proposal this week that would support Minnesota's veterans and members of the military. The total package, supported by legislators, totals $75 million, of which $30 million would go toward a supplement to the federal GI Bill. The new Minnesota GI Bill would supplement the federal GI Bill by providing eligible veterans or eligible dependents $1,000 per semester for up to five years of higher education. These benefits would be paid to Minnesota veterans after they have received Pell Grants and other state and federal financial aid. Under the program, as many as 7,000 veterans and 600 spouses and dependents could apply to receive educational assistance per semester at any Minnesota college, university or technical school.

Tax bill to benefit higher education students and families

The House passed its first bill this week that would allow many Minnesotans to benefit from tax deductions for 2006. HF8 passed the House floor with a vote of 132-0. The bill Sponsored by Rep. Sandy Wollschlager, DFL-Cannon Falls, conforms Minnesota’s income tax to federal income tax changes enacted since the 2006 House session concluded. The bill increases the tuition expense deduction up to $4,000 for single filers earning less than $65,000 and joint filers with incomes less than $130,000. For single taxpayers with incomes between $65,000 and $80,000 and couples earning between $130,000 and $160,000, the deduction would be up to $2,000. The bill now awaits action by the Senate.

Staff changes in government relations

Please join the government relations team in welcoming Candi Walz, who will assist with legislative communications through the spring. Walz will provide the communication services and take over the responsibilities for Melissa Fahning while she is out on maternity leave in the upcoming weeks. Many of you know Walz through her former role at the Minnesota State College Student Association, where she served as the government relations liaison. She also spent time at the Capitol as a reporter for the Mesabi Daily News and brings excellent skills and knowledge about both our colleges and universities and the legislative arena. Walz can be reached at candi.walz@so.mnscu.edu.

Federal Update

Congress to cut back on earmarks

As reported in the Chronicle of Higher Education, Democrats have placed a moratorium on earmarks for FY2007, which ends in September. This money usually flows to campuses for specific projects, designated by area congressional members. Campuses throughout the nation have used the funding for research and staff. It is likely that Democrats will bring back funding in FY2008.

Reducing interest rates on student loans

The new Democratic majority has made reducing interest rates on student loans a top priority during the 110th Congress. It is expected to be voted on next Wednesday. If passed, the legislation would reduce the interest rates on student loans from 6.8 percent to 3.4 percent over five years. The $5.9 billion proposal would be paid for mostly by reducing the profit margin given to private lenders.