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.
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. 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.
5.
6. 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
7. 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
8. 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%
9. MnSCU Appropriations
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•
•
•
•
•
•
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
11. 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
24. Major Topics from Last Session
•
•
•
•
New funding for MnSCU
Part-time pilot
Dream Act
Workforce Development Initiatives
• New internships
• Leveraged equipment
• FasTrac
25. 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
26. 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
27. 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
28. 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?
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