This document discusses several policy issues facing Minnesota higher education including credit transfer, affordability, college readiness, workforce needs, and the state legislative and budget outlooks. It also provides federal legislative context regarding budget challenges, sequestration cuts, and a divided federal government. Key topics covered are tuition increases, scholarship campaigns, aligning K-12 assessments with college placement exams, bonding requests for capital projects, and the "Unsession" aimed at repealing outdated state legislation.