0
State Government 101
State Budget Outlook
• February 2013 MMB Forecast a zero balance
after $295 million of the school shift is paid
back
• FY ...
New Revenue
• $2.1 billion in new taxes from last session
• Cigarette tax: $1.60/pack
• Expanded sales tax
• Income tax:
•...
Tuition and the State
• In state statue, the legislature pays 2/3 the
cost of higher education through
appropriations and ...
State Funding and MnSCU
• Prior to last session, MnSCU was cut 10% in
the last biennium, $60 million each year
• State fun...
1

Minnesota State Colleges and Universities
State Appropriation vs. Tuition Relationship
Fiscal Years 2002-2015
100.0%
90...
MnSCU Appropriations
•
•
•
•
•
•
•

FY 15: $605 million
FY 14: $588 million
FY 13: $545 million
FY 11: $605 million
FY 08:...
State Legislature
Legislative Basics
• Biennial cycle: first year is a
budget/appropriations year, second year is
bonding bill
• 67 Senators...
Current Legislative Composition
• House of Representatives
• DFL: 73
• R: 61
• Senate
• DFL: 39
• R: 28
• DFL Governor
Major Topics from Last Session
•
•
•
•

New funding for MnSCU
Part-time pilot
Dream Act
Workforce Development Initiatives
...
New Investment
• $250 million in new funding for higher
education for FY 2014-2015
• $102 million for MnSCU
• $78 million ...
MnSCU Funding
• $78 million to buy down 3% tuition
increase for each year of the biennium
• $17 million for faculty retent...
So, what’s next at the Capitol?
• Bonding
• MnSCU will be asking for:
•
•
•
•

$110 million in HEAPR funding
$20.6 million...
Be an Advocate, Share your Story!
• http://www.mscsa.org/legislative-stories

• Why should Stafford Loan rates be kept at
...
State Gov
Jeopardy!
Higher Ed Potpourri

MnSCU
Bonding

House

Senate

100

100

100

100

100

200

200

200

200

200

300

300

300

300

3...
FINAL
JEOPARDY!
This is the percentage
of the total state
budget that will be
spent on higher
education during the
current biennium.
What is 7.3%?
House members serve a
terms for this many
years.
What is two years?
There are this many
members are in the
House.
What is 134?
The leader of the House
is called this.
Who is the Speaker of
the House?
The new Speaker of the
House.
Who is Representative
Paul Thissen?
This party has the
majority in the House.
What is the DFL?
The Minority Leader.
Who is Representative
Kurt Daudt?
This party has the
majority in the Senate.
What is the DFL party?
Length of Senate terms.
What is four years?
This is the title of the most
powerful member of the
Senate.
What is the Senate
Majority Leader?
This is the President of
the Senate.
Who is Senator Sandy
Pappas?
The Republican leader
in the Senate.
Who Senator David
Hann?
MnSCU received this
much in additional
appropriations last
session.
What is $102 million?
The chair of the Higher
Education Policy and
Finance Committee.
Who is Representative
Pelowski?
Chair of Higher
Education and
Workforce Committee.
Who is Senator Terri
Bonoff?
What was the total
amount of funding for
higher education last
session?
What is $250 million?
The Legislature provides
funding for the U of
M, MnSCU, and this
program.
What is the Minnesota
State Grant Program?
These people have the
authority to write a
bill.
Who are legislators?
This is needed in each
body to pass a bonding
bill.
What is a super
majority?
This person appoints the
Commissioner of the
Office of Higher
Education.
Who is the Governor?
This person is the chair
of the House Capital
Investment Committee.
Who is Alice Hausman?
This is the focus of the
legislature during the
upcoming session.
What is the bonding bill?
The MnSCU bonding
requests asks for this
much in total funding
from the state.
What is $277.7 million?
The MnSCU asks for how
much in HEAPR
funding?
What is $110 million?
The bonding request
asks for this much to
fund demolition.
What is $20. 6 million?
The bonding request
seeks this much in
funding for capital
projects.
What is $155.9 million?
HEAPR stands for this.
What is Higher
Education Asset
Preservation and
Replacement?
Government 101
Government 101
Government 101
Government 101
Government 101
Government 101
Government 101
Government 101
Government 101
Government 101
Government 101
Government 101
Government 101
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Government 101

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Presented by Sarah Clarke
How does state government really work?  Who holds the power?  Who sets the agenda?  Who makes the law and how?  The answers to these questions may not be as simple as you think.  This workshop will move beyond the “Schoolhouse Rock” explanation of the political process to take a reality-based look at how your government operates.  You will learn how to navigate legislative procedures, who the important decision makers at each level are, and how to identify and pursue opportunities for advocacy.

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  • Will fix link and format slide
  • State hand out$5.028 billion deficit for the 2012-2013 bienniumdown from November’s estimate of $1.300 billion. Federal policy unknowns, such as post-election fiscal policy and state policy choices related to the implementation of the Affordable Care Act, have increased the likelihood of significant changes to the 2014-15 budget outlook.
  • Part of cig tax is for vikings stadium
  • Tuition ratio-https://www.revisor.leg.state.mn.us/statutes/?id=135A.01State statute for % of tuition
  • FY 13 Budget 3.7% tuition increase for two-years ($171), and 4.4% for four-years ($285)Tuition Cap at 4% for FY 2012 and FY 2013Tuition vs. Contracts
  • Start at 1:19
  • Transcript of "Government 101"

    1. 1. State Government 101
    2. 2. State Budget Outlook • February 2013 MMB Forecast a zero balance after $295 million of the school shift is paid back • FY 2014-2015 projected $627 million shortfall, however $2.1 in revenue increases during legislative session will cover the deficit • MN’s economy ranked 5th fastest growing in 2012
    3. 3. New Revenue • $2.1 billion in new taxes from last session • Cigarette tax: $1.60/pack • Expanded sales tax • Income tax: • 9.85% for gross income above $250,000 for couples and above $150,000 for individuals
    4. 4. Tuition and the State • In state statue, the legislature pays 2/3 the cost of higher education through appropriations and tuition makes up 1/3 of the cost • The FY 13 MnSCU budget, tuition is 60.9%, shows a complete reversal of 2000 budgeting when state appropriation was 67.4% of revenue
    5. 5. State Funding and MnSCU • Prior to last session, MnSCU was cut 10% in the last biennium, $60 million each year • State funding for the MnSCU system was down 45% from per student since FY 2000, as shown in FY 2013 Operating Budget • Until last session, MnSCU faced over a decade of decreasing appropriations
    6. 6. 1 Minnesota State Colleges and Universities State Appropriation vs. Tuition Relationship Fiscal Years 2002-2015 100.0% 90.0% 80.0% 66.3% 55.3% 70.0% 52.6% 60.0% 50.0% 33.7% 44.7% 40.0% 47.4% 30.0% 20.0% 10.0% 0.0% Tuition 60.1% 51.4% 55.2% 48.6% 44.8% 39.9% Appropriation 58.8% 58.1% 41.2% 41.9%
    7. 7. MnSCU Appropriations • • • • • • • FY 15: $605 million FY 14: $588 million FY 13: $545 million FY 11: $605 million FY 08: $671 million FY 05: $551 million FY 00: $554 million
    8. 8. State Legislature
    9. 9. Legislative Basics • Biennial cycle: first year is a budget/appropriations year, second year is bonding bill • 67 Senators, 134 Representatives • Higher Education committee members in House and Senate are the main focus of our work, Capital Investment committee is also important, especially in bonding years
    10. 10. Current Legislative Composition • House of Representatives • DFL: 73 • R: 61 • Senate • DFL: 39 • R: 28 • DFL Governor
    11. 11. Major Topics from Last Session • • • • New funding for MnSCU Part-time pilot Dream Act Workforce Development Initiatives • New internships • Leveraged equipment • FasTrac
    12. 12. New Investment • $250 million in new funding for higher education for FY 2014-2015 • $102 million for MnSCU • $78 million for the U of M • $70 million for the Minnesota State Grant Program
    13. 13. MnSCU Funding • $78 million to buy down 3% tuition increase for each year of the biennium • $17 million for faculty retention (one-time funding) • $7.3 for leveraged equipment • $50,000 for a mental health summit • 5% of 2015 appropriations dependent on performance metrics
    14. 14. So, what’s next at the Capitol? • Bonding • MnSCU will be asking for: • • • • $110 million in HEAPR funding $20.6 million for demolition $155.9 million for capital projects and design The request relies on $58.8 of System financing and $227.7 million in General Obligation financing • If fully funded, this request reduces total MnSCU square footage by 257,360 feet • To pass, the bonding bill needs a super majority in each legislative body and must be signed by the Governor
    15. 15. Be an Advocate, Share your Story! • http://www.mscsa.org/legislative-stories • Why should Stafford Loan rates be kept at 3.4%? • Why is the Pell Grant important?
    16. 16. State Gov Jeopardy!
    17. 17. Higher Ed Potpourri MnSCU Bonding House Senate 100 100 100 100 100 200 200 200 200 200 300 300 300 300 300 400 400 400 400 400 500 500 500 500 500
    18. 18. FINAL JEOPARDY!
    19. 19. This is the percentage of the total state budget that will be spent on higher education during the current biennium.
    20. 20. What is 7.3%?
    21. 21. House members serve a terms for this many years.
    22. 22. What is two years?
    23. 23. There are this many members are in the House.
    24. 24. What is 134?
    25. 25. The leader of the House is called this.
    26. 26. Who is the Speaker of the House?
    27. 27. The new Speaker of the House.
    28. 28. Who is Representative Paul Thissen?
    29. 29. This party has the majority in the House.
    30. 30. What is the DFL?
    31. 31. The Minority Leader.
    32. 32. Who is Representative Kurt Daudt?
    33. 33. This party has the majority in the Senate.
    34. 34. What is the DFL party?
    35. 35. Length of Senate terms.
    36. 36. What is four years?
    37. 37. This is the title of the most powerful member of the Senate.
    38. 38. What is the Senate Majority Leader?
    39. 39. This is the President of the Senate.
    40. 40. Who is Senator Sandy Pappas?
    41. 41. The Republican leader in the Senate.
    42. 42. Who Senator David Hann?
    43. 43. MnSCU received this much in additional appropriations last session.
    44. 44. What is $102 million?
    45. 45. The chair of the Higher Education Policy and Finance Committee.
    46. 46. Who is Representative Pelowski?
    47. 47. Chair of Higher Education and Workforce Committee.
    48. 48. Who is Senator Terri Bonoff?
    49. 49. What was the total amount of funding for higher education last session?
    50. 50. What is $250 million?
    51. 51. The Legislature provides funding for the U of M, MnSCU, and this program.
    52. 52. What is the Minnesota State Grant Program?
    53. 53. These people have the authority to write a bill.
    54. 54. Who are legislators?
    55. 55. This is needed in each body to pass a bonding bill.
    56. 56. What is a super majority?
    57. 57. This person appoints the Commissioner of the Office of Higher Education.
    58. 58. Who is the Governor?
    59. 59. This person is the chair of the House Capital Investment Committee.
    60. 60. Who is Alice Hausman?
    61. 61. This is the focus of the legislature during the upcoming session.
    62. 62. What is the bonding bill?
    63. 63. The MnSCU bonding requests asks for this much in total funding from the state.
    64. 64. What is $277.7 million?
    65. 65. The MnSCU asks for how much in HEAPR funding?
    66. 66. What is $110 million?
    67. 67. The bonding request asks for this much to fund demolition.
    68. 68. What is $20. 6 million?
    69. 69. The bonding request seeks this much in funding for capital projects.
    70. 70. What is $155.9 million?
    71. 71. HEAPR stands for this.
    72. 72. What is Higher Education Asset Preservation and Replacement?
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