The third meeting of the Student Senate for 2008-09 was convened in Studio C, Rarig Center, Minneapolis campus, on Thursday, March 5, 2009, at 11:30 a.m. Coordinate campuses were linked by telephone. Checking or signing the roll as present were 39 student members. Chair Ryan Kennedy presided.

That the Student Senate approve the appointment of the following Twin Cities student senators:

Kathryn Holahan – College of Liberal Arts

Kisa Pearson – College of Liberal Arts

Kenny Smith – College of Liberal Arts

Chelsea Stein - College of Food, Agricultural, and Natural Resource Sciences

With no discussion a vote was taken and the motion was approved.

Donna Peterson, Associate Vice President in the Office of University Relations, joined the meeting to provide updates on the 2008 biennial budget request to the legislature since the Student Senate’s December meeting. The legislative session began in January with the release of the Governor’s budget. He reduced the University’s budget by $75 million per year for the biennium. This is in additional to a $2 million reduction in the previous session and on-going University costs of $55 million. This amounts to a $130 million challenge.

This week Tuesday, the February budget forecast was released by the state’s economist, Tom Stinson. It provides a snapshot of expenses and revenues for the state based on current law for the next two years. This forecast predicted a shortfall of $6.393 billion, which is an increase over the November forecast.

Affecting this amount is funding from the federal stimulus package in the amount of $1.8 billion to the state in the area of medical assistance. This will lower the state’s budget shortfall to $4.567 billion. While the federal stimulus funding is great for helping deal with the downturn in the economy, it is only one-time funds.

Additionally in the federal stimulus package, there are dollars labeled “state fiscal stabilization fund,” which come to the state for the purpose of K-12 and higher education. This is one-time money again, used to substitute for state cuts in funding, so the University needs to determine how to budget not using these funds for permanent, on-going costs. These funds contain guidelines on how the funds are allocated, how much K-12 or higher education could be cut, and what is the maximum amount permissible from this fund.

At a meeting last night of the joint House Ways and Means Finance Committee, Tom Stinson presented the budget forecast, along with some other information. One is that the state’s job level is equivalent to the level of 2001. In the projection for coming out of the recession, the state will not regain its pre-recession job-level until late 2010.

In other years with these downturns, there was a belief that funding would be available in the next biennium. Most people at the capital are concerned that the forecast will not improve in two years, and might even be worse.

At the state, the next step is the Governor issuing a revised budget in 10-14 days. This will show how he projects the use of the stabilization funds. The President had a conversation with the Governor yesterday and asked him to think about lowering the $75 million cut. While the University should not be exempt from all cuts, the President reminded the Governor that the University is part of the economic solution of the state. If funds are not available to fill faculty research positions, at a time when the federal government is putting more funds into research grants, then the University cannot compete for these funds. Then the University and the state lose out on these funds.

The next step will be the legislatures preparing their budgets, sometime in early April. Most legislators are talking about finding other sources of income for the state and that this shortfall cannot be done entirely through cuts. Additionally, they want to balance the budget through the next biennium as well.

There is speculation that this year’s budget will take longer than May 20 to come to an agreement, since the Governor does not believe in raising taxes. He did propose shifting a K-12 education payment from this biennium into the next and selling bonds that would be paid with tobacco income funds. He is concerned about how deep cuts can go, but he and the legislature will need to find middle ground to solve this shortfall. Whatever decision is made, it will affect everyone in the state.

Q: What can students do the help lobby legislators?

A: The Legislative Certificate Program advocates have helped in testifying and attending hearings. Student Lobby Day was also terrific since it was a way for students to contact their legislators. Emails and letters, to legislators from students and their parents, can influence these decisions since legislators remember the students’ personal stories.

Q: The roadblock this years seems to be the Governor. What can be done to persuade him?

A: Individual legislators with strong feelings, and a relationship with the Governor, can influence his decisions.

Q: In the last six years, has the Governor lowered taxes or kept them stable?

A: State taxes have remained stable, although some fees have been introduced. This year, the legislative focus seems to be on raising income taxes on the top tier or expanding the sales tax to cover more items. The sales tax shift is a way to look ahead to see where dollars are being spent, which appear to be on services and clothing, and provide more revenue for the state in the future.

In closing, Donna Peterson said that for more information, a document on the economy of the state is available on the Minnesota Management and Budget Office website.

Pamela Stenhjem, Chair of the Council of Academic Professionals and Administrators (CAPA), reminded senators that academic professional (P&A) employees are a classification between faculty and civil service/bargaining unit employees who do faculty-like work. The University is the only institution to have both P&A and civil service employees on its University Senate.

The biggest item facing all employees is a proposed changed to the Regents Scholarship benefit. This scholarship allows employees to take courses for free and receive a degree. Because of budget constraints, there will be a 25 percent to this benefit. The program costs the University $9 million per year, and the proposed cut will be permanent.

The problem is that the larger user group of this benefit are civil service and bargaining unit employees, who are also the lowest paid employees and working on an initial bachelors degree. This cut will disproportionately affect these two groups, but there has also been an outcry from P&A employees. A faction of constituents have put together letters to the President and are organizing petitions.

Pam Stenhjem stated that employees know that it costs students more each year to attend the University, but under the proposed plan, those costs will also be passed onto employees. The fear is that the increased costs will prohibit employees from being able to take classes and receive their degrees. She is hoping that a compromise can be found on how to enact this change, such as a waiver for first undergraduate degree users. Otherwise this will be a factor in retention and attraction of employees, since many take a lower salary in exchange for these types of benefits.

Q: How long has this program been in place and how many employees use the benefit?

A: She did not have this information with her, but suggested that senators review the last set of Faculty Affairs minutes. Vice President Carol Carrier joined the meeting to discuss the benefit.

She said that the University is the biggest employer in the state and is thriving in this recession. Being one of few businesses in the state that is thriving, making cuts jeopardizes the future success of the University and the state.

Ryan Kennedy, Chair of the Student Senate/Student Senate Consultative Committee (SSCC), thanked senators for being active and involved in discussion this year. A topic he is exploring is students becoming more of a force at the legislature. He has been at the capitol frequently this session, and has been able to interact with the other state-wide student associations. These groups have a legislative presence representing and lobbying on behalf of the views of students. He reminded senators that the Student Legislative Coalition (SLC) was started within the Student Senate.

Crookston – Marshall Johnson said that Crookston had 81 students at Support the U Day. Yesterday was spring convocation with 350 students and faculty. The speaker was state auditor, Rebecca Otto, who talked about sustainability and women’s history. CSA is working on guidelines for this year’s transition process. The student fee budget was just passed, with only a $4.00 increase over last year’s fee. Research is being done on tray-less dining, although students are not fond of the idea.

Duluth – Katie Best said that UMDSA’s smoking policy survey was sent Monday and has already received over 2600 responses. Duluth also had 30 students at Support the U Day.

Morris – Kathy Julik-Heine said that Morris had 70 students at Support the U Day and is trying to maintain momentum by writing to legislatures. MCSA had a constitutional review committee working the past year and students are now voting on the revisions. This past weekend, the $143,000 technology fee was allocated. The Morris Assembly is revising the mission statement in light of strategic planning.

Graduate and Professional Student Assembly – Jeffrey Anderson reported that GAPSA’s energy has been spent on the proposal to close the Graduate School. As this will also affect Duluth, a contact person on that campus is being sought. Elections will be held in April.

Minnesota Student Association - Mark Lewandowski noted that 150 students were at Support the U Day. MSA’s projects include a grant program, a student concern forum, April’s Lend a Hand, Hear the Band event, and a free tax preparation program. Item 8 on today’s agenda was approved by MSA on Tuesday.

The Student Consultative Committee, less its stipend-receiving members, shall review the performance of duties of all stipend-receiving members and vote on the approval, reduction, or withholding of the portion of their stipends allocated for spring semester. A two-thirds affirmative vote by the Student Consultative Committee is required for modification of stipend disbursement.

The Student Consultative Committee recommendation shall be presented to the Student Senate for approval at or before the Student Senate's last regular meeting of spring semester. Stipend receiving persons have a right to answer questions about or speak regarding the Student Consultative Committee's findings at this meeting if they so chose. A two-thirds vote of the Student Senate is required to modify the Student Consultative Committee recommendation.

The Student Senate Stipend Review Committee has reviewed the performance of the following stipend-receiving students: Ryan Kennedy, SSCC/Student Senate Chair; and, Marshall Johnson, SSCC/Student Senate Vice Chair. The recommendation from the committee is that:

The Review Committee felt that both students fulfilled the duties associated with their positions and therefore should receive the full spring semester portion of their respective stipends.

With no discussion a vote was taken and the motion was approved.

Whereas during these difficult economic times the University of Minnesota is going to have to make difficult decisions to accommodate budget restrictions, and

Whereas the announcement regarding the dissolution of the Graduate School at the University of Minnesota occurred in a manner with little transparency or discussion with faculty, students, and staff, and

Whereas large changes to structure without transparency and discussion leads to mistrust in the administration, decreased morale, and greater possibility for inefficient changes to occur;

Therefore be it resolved that the University of Minnesota leadership take renewed diligence to consult with faculty, students, and staff regarding substantial changes to the University of Minnesota’s graduate, professional, and undergraduate programs and services,

Be it further resolved that the administration release a report detailing the University's financial goals and the ways that restructuring processes will meet and exceed those goals.

Authored by: Peter Gloviczki, Geoff Hart, Boyd Cothran and Kristi Kremers

Q: What will happen to this resolution if it is approved today?

A: All items passes by the Student Senate are sent to the administration for a response. Approval today would also show solidarity with MSA and GAPSA, who have approved this resolution.

Q: Is there a timeframe for a response?

A: In the case of the Graduate School, the decision has already been made and a report is due April 17 from the implementation task force. Public consultation will then be solicited. This resolution does not ask for a response separate from the normal one received.

A senator remarked that students are being asked to lobby on behalf of the University for the state, but then students are not being involved in the decisions that are made.

Q: How will the task force report be distributed?

A: It will be available on the Provost’s website after April 17.

With no further discussion a vote was taken and the motion was approved.

Whereas, it is important for University of Minnesota students at all campuses to come together and work collectively on legislation that benefits all students; and

Whereas, the Minnesota State University Student Association and the Minnesota State College Student Association are already supporting this legislation; and

Whereas, two-thirds of Minnesota students graduate with debt, and that debt averages $21,000[1]; and

Whereas, by offering a tax credit for college loan repayments, “Opportunity Minnesota” allows college graduates to contribute more to the state’s economy earlier in their post-college lives; therefore be it

RESOLVED that the University of Minnesota Student Senate endorses the “Opportunity Minnesota” legislation.

What is the problem?
Increasing tuition costs, combined with a struggling economy, have left more and more students with a rising amount of debt when they graduate from college. As of 2006, over two-thirds of seniors graduating from Minnesota’s public universities have student loan debt, with that debt averaging $21,000.2 Our state’s economic growth is slowing and unemployment rates are rising, creating fewer jobs that have the ability to revitalize our economy.

What is the solution?
Decreasing student debt relieves an unnecessary burden on Minnesota’s youth and their families. By finding a comprehensive solution that can lower debt for graduating college seniors, jumpstart our state’s economy, and help insulate Minnesota’s economy from national recessions in the future, we can take great steps towards turning recent trends around.

What is Opportunity Minnesota?
Opportunity Minnesota is an innovative piece of legislation based off of a bill that passed Maine’s legislature overwhelmingly in 2007. It relieves student loan debts for Minnesota residents that have graduated from a Minnesota higher education institution and continue to work in the state following graduation. This is designed to remove a large barrier that prevents many Minnesotans from attending college and also retains a strong work force for the state.

How can we pay for it?
Starting the program will require some upfront costs that can be paid for through a variety of methods: the state’s higher education budget, alternative revenue sources, the nonprofit community, and others. After just a few years after the implementation of Opportunity Minnesota, the economic benefits of the program will outweigh the costs to operate it. At this point, the state could choose to start paying for the program or examine alternative funding sources that could continue the program.

Ryan Kennedy, Chair of the Student Senate/Student Senate Consultative Committee (SSCC), said that this resolution addresses the advocacy role he discussed in his report. This legislation has been endorsed by MSA, UMDSA, the Minnesota State University Student Association (MSUSA), and the Minnesota State College Student Association (MSCSA). If this resolution is approved, all of the public institutions in the state would work together to lobby for its support.

Q: Would graduates of private colleges be included?

A: Yes, but their tuition repayment would be capped.

Q: Is there a cap for all colleges?

A: Yes, the cap would be similar to the tuition rate for the Twin Cities campus. It would cover repayment of subsidized loans.

Q: What are the files numbers and authors?

A: For the House, it is file number 51 and the author is Representative Thissen. The Senate bill is waiting for an economic analysis, so the file number will be available next week, but Senator Tomassoni will be the author.

Q: Is Minnesota residency a stipulation of the bill?

A: Yes.

Q: What is the cost to the state for this program,?

A: The economic analysis will be out at the end of next week. Using Maine’s calculations, the program will cost about $10 million for the first year.

Q: How is the tax credit calculated? Is it a percentage of a student’s debt or a set amount across all students?

A: The tax credit would cover loan repayment for Stafford, Perkin’s and Direct loans.

Q: What is the timeline for these bills?

A: It is unlikely that the legislation will be passed this year, due to the economic forecast, but the hope is to get hearings this year and form a coalition for passage next year.

Q: Is the payback rate based on the current tuition rate or the tuition rate when a student was in school?

A: It would be in relation to the cost of tuition when the student was in school.

Q: Is it based on each year’s tuition versus a single dollar amount?

A: Yes, it is based on each year’s tuition, in reference to state statute.

A senator commented that the bill should probably be labeled as a tax cut to receive the Governor’s support.

Q: In Maine, funding was public and private. Would this be an option?

A: Yes. Maine sought support in the form of endorsements. The Maine program is designed to pay for itself in three years and has recouped the start-up cost by the seventh year.

With no further discussion a vote was taken and the motion was approved.

The Student Senate was adjourned at 12:39 p.m.

[1] Minnesota Measures 2008, Minnesota Office of Higher Education