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Legislative notes for the week of April 30 - May 4, 2007

Bonding is a no-go

Saying it was four times larger than he wished, Gov. Tim Pawlenty vetoed the capital investment bill Tuesday. The bill included $334 million of funding for state projects. Minnesota State Colleges and Universities was set to receive $30.7 million for repairs and replacement and $3.8 million for property acquisition at Bemidji State University and Fond du Lac Tribal and Community College.

More information on why the bill was vetoed

Higher education conference committee debates attracting students

Will a scholarship help entice high school students to attend college? That was an item of debate Tuesday in the Higher Education Conference Committee. Susan Heegaard, director of the Office of Higher Education, said Gov. Pawlenty wants funding in the first year to set up the Achieve scholarship program, as well as $21 million in ongoing funds. This program would give high school students scholarships to use at Minnesota higher education institutions if they enroll in rigorous high school courses. Conference committee member Sen. Sandy Pappas, DFL-St. Paul, said she worried that this program would not attract new students to higher education but would fund those who already seek postsecondary education. No action was taken.

The size of the Office of the Chancellor, particularly the cut in the office budget made on the House floor, was an item of discussion April 27 in the conference committee. Chancellor James McCormick explained the different services the office provides to campuses, such as a merged technology system, collective bargaining, professional training, legal services and administering federal financial aid. Committee members apologized for the $6 million yearly cut made to this office on the House floor. Conference committee member Rep. Tom Rukavina, DFL-Virginia, said, "I strongly oppose what happened on the floor.It is my intention not to come out with this bill including a cut to your office." Sen. Pappas added that it was not intended to be taken personally and was just a way to hold down tuition.

View the higher education bill and all prepared side-by-sides

Confirmation hearing held

The confirmation of Trustee Dan McElroy was forwarded to the full Senate with no recommendation Friday.

National Science Foundation reauthorized by House

Science received federal support Wednesday in the U.S. House of Representatives. A bill was passed that would allow the National Science Foundation to double its efforts in research over the next 10 years. The legislation also gives more funding for science teacher training and supports doctoral research.

Chairman Miller Opens New Line of Inquiry into Student Loan Industry

Students should have straightforward information on college loans. That was an item of discussion in the House Education and Labor Committee this week. While attending college, students receive letters that claim big savings by using a specific company.

"Every day, millions of students receive marketing letters from private lenders - letters that are often intentionally designed to confuse or mislead students. These tactics are nothing short of predatory lending. No company should be able to get away with using aggressive scare tactics to profit off students who are already taking on enormous amounts of college loan debt," said Chairman George Miller, D-California. "Just like any other group of consumers, students and their families deserve to be protected from any fraudulent or manipulative marketing practices."

The hearing continued an ongoing investigation of student loan lenders. However, this was the first time the committee looked into the marketing practices. It also asked the Federal Trade Commission to investigate the tactics used by lenders. The student loan industry is a yearly $85 billion operation. Other hearings have focused on the potential conflict of interest and financial relationships among lenders, schools and financial aid workers.