Updates
State Legislative Update
May 22, 2008
Last night, slightly before midnight, the Legislature adjourned
the 85th Legislative Session.
In addition to legislation that was had been previously passed,
the leadership spent the weekend negotiating a deal with governor
and both parties.
The Legislature made the following adjustment to the University’s
appropriations:
The Fiscal Year 2008 appropriation reduction is $6,150,000. This
is a one-time (non-recurring) budget reduction. The University
has the discretion to apply this cut between general operations
and maintenance funds and restricted state specials.
The Fiscal Year 2009 appropriation reduction is $6,150,000. This
is a recurring budget reduction. The University has the discretion
to apply this cut between general operations and maintenance funds
and restricted state specials. This reduction reduces our base
starting point for the next biennium.
The Legislature added an additional $2,550,000 base reduction
beginning in Fiscal Year 2010. The total base reduction amounts
to the $6,150,000 in Fiscal Year 2009, with the additional base
reduction of $2,550,000 to a lower overall base budget of $8,700,000
to begin in Fiscal Year 2010. The Legislature did not apportion
this reduction to the base budget between general operations and
maintenance funds and restricted state specials. The University
will need to discuss this with the Department of Finance.
The Legislature also included the following language regarding
tuition: “The Board of Regents must not increase student tuition
or fees beyond the amount currently planned for the 2008-2009 academic
year.” The legislation does not define the term “beyond the amount
currently planned”.
MNSCU was reduced $1,000,000 the first year and $7,600,000 the
second year. The MNSCU base appropriation beginning in Fiscal year
2010 was reduced by $7,700,000.
The Legislature also passed bills covering increased health insurance
coverage, more funding for nursing homes and public schools, Central
Corridor Light Rail Line, a new state park and $25 M in property
tax relief was part of a $60 M package funding local services.
Additionally, eight legislators announced they will not seek reelection
including:
Republicans:
Rep. Bud Heidgerken, Freeport.
Rep. John Berns, Wayzata.
Rep. Chris DeLaForest, Andover.
Rep. Brad Finstad, Comfrey.
Rep. Dennis Ozment, Rosemount.
Rep. Erik Paulsen, Eden Prairie.
Rep. Connie Ruth, Owatonna.
Rep. Dean Simpson, Perham.
Rep. Kathy Tingelstad, Andover.
DFLers:
Rep. Scott Kranz, Blaine.
Rep. Frank Moe, Bemidji.
Rep. Aaron Peterson, Appleton.
Rep. Neva Walker, Minneapolis.
Here are some articles that appeared in today's
news regarding
session, and the happenings over the weekend.
Legislature
adjourns after budget deal reached
With
Minnesota Legislature's budget deal, funding set for Central
Corridor rail line
May 9, 2008
Constitutionally, the State legislature cannot meet after May
20th, nor can they exceed 120 biennial legislative days. As such,
the House and Senate have only six (legislative) days left to meet,
and must be done passing bills by May 19th at midnight.
While there has been many pieces of legislation that has been
passed and many bills signed, there is still major work to complete
in the next week.
One of the most significant issues that remains unresolved is
the supplemental budget bill. This bill is an effort to resolve
the budget shortfall, and the House and Senate conference committee
has completed their work on the bill. While legislative leadership
continues to negotiate in an attempt to have a bill that is accepted
by the Governor, there are major differences in how to solve the
state's budget deficit. One of the major differences in this bill
is in identifying which areas to reduce.
The legislative agreement on the budget deficit bill has a $5.15
M reduction to the University for this year and $4.65 M in reductions
for next year. If you recall, the Governor's budget recommendation
had a $27 million reduction for the University.
To complicate the negotiations, they have agreed on several revenue
raising measures that are currently in the tax bill, however there
are other components of the that bill that have not been mutually
settled upon.
If there is an agreement with the Governor on the tax bill and
the budget bill, it is likely there also be $70 M in bonding for
the Central Corridor Light Rail Transit line that was vetoed by
the Governor earlier this session. Without these agreements, we
assume the Central Corridor will not receive state funding this
session.
In addition to the budget bills and the (previously passed and
signed) bonding bill, there have been more than 4000 bills introduced
during this biennial session and of these bills, our office has
been tracking over 150 pieces of legislation that could have an
impact on the University.
Below is a brief summary of the other major items that
effect the University:
Bonding
This years capital
bonding bill appropriated $105.2 M for University infrastructure
needs, including the construction of new buildings system-wide
and repair and betterment of existing spaces. More information is
available here.
Mesothelioma/Iron Range Worker Health Study
Governor Pawlenty has signed into law a bill that would fund $4.9
M for a comprehensive study of Iron Range workers health. The
legislation was precipitated by the high incidence of mesothelioma
among iron mineworkers, which is thought to be caused by asbestos
or asbestos-like fibers, which become airborne during the mining
process. This study will be led by the University of Minnesota
School of Public Health, with assistance from National Resources
Research Institute, the Minnesota Department of Health, the Minnesota
Department of Natural Resources, the Minnesota Pollution Control
Agency, business and industry, local health providers and organizations,
other affected groups, and other state, federal and local agencies.
At a minimum, these studies must include industry-specific worker
mortality and morbidity studies, clinical disease studies, exposure
assessments, case-control screening of current and former workers,
and environmental studies that assess the health impacts on workers
and communities. The School of Public Health is required to annually
report their findings to the legislature until the conclusion
of these studies. Each annual report must present the preliminary
findings of the workers’ health studies and recommendations based
on those findings.
Stem Cell Research
Both the House and Senate have passed bills that would allow the
University of Minnesota to use state funds for embryonic stem
cell research. However, there is a pending veto threat from the
Governor and the parties are holding off on sending the bill
to him for action until a possible compromise can be reached.
Oral Health Practitioner
The Omnibus Higher Education Policy Bill, currently awaiting action
by the Governor, contains a provision setting up an Oral Health
Practioner in Minnesota. This new dental provider will be trained
in programs to be determined by a work group led by the Department
of Health in consultation with the Board of Dentistry. This work
group is charged with the development of recommendations and
proposed legislation for the education and regulation of oral
health practitioners. The work group will consist of representatives
of the University of Minnesota School of Dentistry; MnSCU; Board
of Dentistry; Minnesota Dental Association; Minnesota Dental
Hygienists Association; safety net dental providers; Minnesota
Association of Pediatric Dentists; Department of Health; and
the Department of Human Services. This work group is charged
with developing these program recommendations in time for the
2009 Legislative Session.
Bovine Tuberculosis
The legislature has passed, and the Governor has signed, a bill
that will provide $2.7 M to the Board of Animal Health to combat
bovine tuberculosis in Northwestern Minnesota. This bill includes
$150,000 for a study of best practices for bovine management
at the Grand Rapids Research and Outreach Center. The bill also
adds $80,000 to the base budget of the Grand Rapids Research
and Outreach Center for support of the beef research at that
facility. This is a state effort to eradicate this potentially
devastating disease for the beef industry in the State of Minnesota.
Energy
The legislature has been spending a significant amount of time
discussing and passing several pieces of legislation to address
the energy crisis that our country is facing. The legislature
is investigating a carbon cap and trade program. In this legislation
is a study that will utilize the College of Design and other
collegiate units here at the University. The legislature has
also passed a new bio-diesel mandate that will eventually require
a 20 percent blend of bio-diesel in each gallon of diesel fuel
sold in Minnesota. There is also a $500,000 grant to support
a study that uses algae to produce bio-diesel that is currently
funded through IREE.
This continues to be an area of extreme interest for the legislature
and an area in which the legislature depends heavily on the University
of Minnesota’s expertise.
Center for Transportation Studies
The center will be receiving an additional $400,000 in base funding
from the Minnesota Department of Transportation because we were
able to increase the cap on their funding from $800,000 to $1.2
million per year. They will also be receiving $325,000 to conduct
a study on the impact of light rail transit lines through urban
neighborhoods.
Biomedical Science Research Facilities Program
Perhaps the hallmark of this year’s bonding bill was the University’s
research program. The Minnesota Biomedical Research Program was
established to provide appropriations to the Board of Regents
of the University of Minnesota for up to 75 percent of the project
costs for each of four projects approved by the Board of Regents.
The University will issue the bonds for the entire cost of these
projects, and the state contribution has been capped at $219.0
million. The University’s share will be $73 million for total
construction costs of $292 million. The state will make an annual
appropriation to the University to pay for the state’s debt service
on its $219 million share of the total cost.
Our office will be sending out further information on this session
upon its recession, expected within the next week. Provided budget
resolutions are agreed upon and passed, the chance of a special
session is not likely, but without this, it is probable that the
Governor will ask the legislature to stay until the budget can
be fixed.
April 3, 2008
Bill Passage
The 2008 bonding bill has passed out of the House (90-42) and Senate
(57-10). It will now be presented to the governor, who has three
days to act on the bill.
During the debate on the Senate floor, Senator Langseth (Capital
Investment Chairman) noted the large investment in higher education,
and stated that the hallmark of the bill is the U of M's Biomedical
Research Program.
April 2, 2008
Conference Committee
The conferees passed the conference committee report,
and we expect the bill to be voted on on Wednesday. Provided it
passes both bodies, it will be sent to the Governor.
It is similar to the House bill (HF380) only there is $5M less
in HEAPR money.
It includes:
HEAPR: $35 M
STSS: $48.333 M
Bell Museum: $24 M
Civil Engineering (Duluth): $10 M
Community Services Building (Morris): $5 M
ROC: $3.5 M
Classroom Renewal: $2 M
Lab Renovation: $3.333 M
Total: $131.166 M
March 7, 2008
Conference Committee
The capital investment bill has passed out of their respective
bodies yesterday evening. The Senate passed it 63 - 2. The House
and Senate will now go into conference committee, co chaired
by Senator Langseth and Rep. Hausman. Other conferees are Senators
Koering, Pappas, Tomassoni, Scheid and Representatives Scalze,
Solberg, Tingelstad, Wagenius.
March 6, 2008
House Voted
Just recently, the House of Representatives voted to pass the 2008
Capital Investment Bill, HF380, on a vote of 99-34.
It is expected that the Senate will now take up their bill, and
provided passage in that body, the committees will then go into
conference.
Feb. 29, 2008
Senate to Vote on 2008 U of M Capital Request
On February 26th the Minnesota Senate Capital Investment Committee
released its 2008 bonding proposal. The $1.08 billion package
contains $133.99 million in support for University facilities,
including $40 million for University asset preservation and replacement.
It also fully funds the following University project requests:
- Science Teaching and Student Services ($48.3 M—Twin Cities)
- Civil Engineering building ($10 M—Duluth)
- Gateway Center ($5 M—Morris)
- Bell Museum ($24 M—Twin Cities)
- Classroom renovations ($2 M—systemwide)
The package also provides partial funding for laboratory renovations
($3.33 M–systemwide) and research and outreach centers ($1.33
M—Crookston).
It is expected that the full Senate will vote on the proposal
on March 5th.
Senate Funds Central Corridor Light Rail Request
The Senate bill provides $70 million to the Metropolitan Council
to fund the Central Corridor line. For more information on the
Central Corridor project, visit http://www.lightrail.umn.edu/.
Senate and House Review: Minnesota Biomedical Research Program
The Senate bonding proposal also includes language to establish
the Minnesota Biomedical Research Program, a five-year, $292
million initiative that will create four new biomedical science
buildings. The University expects this program will reaffirm
Minnesota’s standing as one of the world leaders in biomedical
research. The construction costs will be split between the state
(80 percent) and the University (20 percent).
The House Capital Investment Committee held a hearing on the MBRP
on Feb. 28. More than 100 U of M faculty, staff and alumni came
to the hearing to support the initiative, which was well received
by committee members. It is expected that the House will include
the program in its bonding package. |
