Advocacy Blog from July, 2011

The following information was sent via e-mail on July 20, 2011 from Elaine Keefe, MLA/MEMO Lobbyist.  Additional linked information included.

The special session adjourned at about 4:30am this morning (July 20, 2011).  Governor Dayton has signed the twelve budget bills that were passed during the special session, thereby bringing an end to the state government shutdown. 

Last night (July 19, 2011) I reported on what was included in the omnibus Higher Education bill and the Legacy bill, as well as what was rumored to be included in the Tax bill.  Below is a report on the actual contents of the Tax bill as well as the library provisions in other bills.

Tax Bill

• The omnibus tax bill keeps aid to cities and counties at the level provided in calendar year 2010 for 2011 and future years.  The phase-out of aid to Minneapolis, St. Paul and Duluth that was in the tax bill that was vetoed is not in the final bill that was passed last night. 
• Levy limits are eliminated.
• Library maintenance of effort and the minimum level of local support are set at 90% of 2011 levels for 2012 and future years.  Libraries were not singled out -- all MOE provisions were treated in the same manner. 
• Cooperation and Consolidation Grants were not funded. 

K-12 Education Bill

• The education payment shift was increased from 70/30 to 60/40.  This means that an additional 10% of education funding will be held back by the state in FY 2012.  While not technically a cut in funding, it will cause cash flow problems for some school districts and libraries. 
• No cuts were made in appropriations for Regional Library Basic System Support, Regional Library Telecom Aid, Multitypes, ELM or Telecommunications Equity Aid.  The general education formula was increased by $50 per pupil from $5,124 to $5,174 in FY 2012 and by an additional $50 per pupil to $5,224 in FY 2013.  The Department of Education's operating budget was cut by 5%.

Bonding Bill

The bonding bill spends a total of $498 million.  Two higher education library projects that had been vetoed in 2010 by Governor Pawlenty were included in the bill:

• Hennepin Technical College received $10.566 million for library projects at the Eden Prairie and Brooklyn Park Campuses
• Minnesota State University - Moorhead received $14.901 million for the Livingston Lord Library and Information Center

Funding for the Minneapolis Planetarium, which had been authorized several years ago but has not been used, was cancelled.  The planetarium was to have been housed in the Minneapolis Central Library. 

The following information was sent via e-mail on July 19, 2011 from Elaine Keefe, MLA/MEMO Lobbyist.  Additional linked information included.

Governor Dayton has called the Legislature into a special session beginning at 3pm today (July 19, 2011.)  Budget bills are being posted at http://www.senate.mn/2011_first_special_session_bills/index.php as they are completed. 

Note:  They are also being posted on the Minnesota House of Representatives Special Session Budget Bill Information page. 

Since my report last night, where I reported on the Legacy bill, the omnibus higher education bill has been posted.  As expected, the higher ed bill make no change in the appropriations for Minitex and MnLINK from the higher ed bill passed and vetoed during the regular session.  Minitex is cut by 7.2% and MnLINK is cut by 5%.  The cuts for the University and MnSCU have been reduced somewhat, but will still be painful.  The University of Minnesota is reduced by 15% (down from a cut of 19% in the bill that was vetoed) and MnSCU is reduced by 13.5% (down from a cut of 14.3% in the bill that was vetoed). 

Neither the K-12 Bill nor the Tax bill has been posted yet.  However, I have it on good authority that the Tax bill contains the following provisions:

• Reduces library MOE to 90% of the 2011 level for 2012 and 2013.  I believe this applies to the minimum level of local support as well, but won't know for sure until the bill language is posted (this was the Senate proposal going into conference committee during the regular session). 
• Funds LGA (for cities) and CPA (for counties) at 2010 levels for 2011 and 2012.
• Eliminates levy limits for cities and counties.

At around 11:00 AM today (July 19, 2011), Governor Mark Dayton has called for a special session of the Minnesota Legislature to convene at 3:00 PM.  Here are a few items to check out regarding this Special Session:

• 2011 Special Session Budget Bill Information page on the Minnesota House of Representative website shows the bills to be considered during the special session (at the time of this posting, 6 bills had been posted.)
• House Television Web Schedule page links to the Minnesota House of Representatives live coverage of the 2011 Special Session that can be viewed on a computer.
• The Minnesota Senate Media Services will also have live coverage of the 2011 Special Session that can be viewed on a computer.

Stay tuned for further updates!

The following information was sent via e-mail on July 18, 2011 from Elaine Keefe, MLA/MEMO Lobbyist.  Additional linked information included.

After negotiating throughout the weekend on the details of the budget, Republican legislators and Governor Dayton have reached agreement on several budget bills.  As of this writing (July 18, 2011), final versions of the omnibus legacy, environment, transportation and public safety bills have been posted here.

The library appropriations in the legacy bill are unchanged from the agreement that was reached by the conference committee in the regular session.  They include $3 million per year for regional public libraries and $250,000 per year for the Minnesota Digital Library. 

As the final versions of other bills are made available I will report on provisions that affect libraries. 

It is still unclear exactly when a special session will be called, but it is likely to be later this week. 

The omnibus budget bills for the special session are starting to be posted.  You can find them online on the Minnesota House of Representative website as they become public.

The following information was sent via e-mail on July 14, 2011 from Elaine Keefe, MLA/MEMO Lobbyist.

After meeting for 3 hours this afternoon (July 14. 2011), Governor Dayton, Speaker Zeller and Senate Majority Leader Koch announced that they have reached a budget agreement.  The Republicans accepted the offer made by Governor Dayton this morning.  Many details will need to be negotiated over the next few days.  As soon as the bills are finalized, a special session will be held, probably early next week.  I will keep you apprised.

The following information was sent via e-mail on July 14, 2011 from Elaine Keefe, MLA/MEMO Lobbyist.  Additional linked information included.

This morning (July 14, 2011) Governor Dayton sent a letter to Speaker Zellers and Senator Koch offering to accept their June 30, 2011 budget offer.  That offer included increasing the education payment shift to 60/40 and to borrow $700 million by issuing bonds against future tobacco revenue.  Dayton attached 3 conditions to his offer:

1. Drop the policy issues from the June 29 GOP proposal
2. Drop the 15% reduction in state employees
3. Pass a $500 million bonding bill

Here is a link to the Governor's letter.  At this writing Governor Dayton and the Republican legislative leaders are meeting.  If an agreement is announced, I will send a further update.

There are a number of reliable resources offering information and adding news about the state government shutdown, as it becomes available.  If you are interested in more details, consider checking:

• 2011 State Government Contingency Planning provides information about the state government shutdown as organized by Minnesota Management and Budget. It's part of the agency's BeReadyMN website.

• The Minnesota Legislative Reference Library is maintaining a list of Resources on Minnesota Issues State Government Shutdown.

• The League of Minnesota Cities website offers a host of general information for cities from local government innovation to risk management.  The LMC has gathered many resources to help cities through the shutdown.  Likewise, the Association of Minnesota Counties (AMC) offers a list of shutdown resources.

• Minnesota Public Radio provides coverage of the budget negotiations and shutdown information on its news page, as well as offering a shutdown blog.

• Representing a wide range of interests, many of which are negatively affected by the government shutdown, the Minnesota Council of Nonprofits shares shutdown information with the nonprofit community.

Where are you going for your shutdown information?  Leave a comment to share your favorite and frequently used sources.

WARNING:  Post is full of lots of dates, so read carefully! :-)

Just a friendly reminder that the 2011 Legislative Forum is one week (July 13, 2011) from today (July 6, 2011) and free registration for MLA & MEMO members ends at 10:00 AM.  After 10:00 AM, members pay the same price as non-members:  $25 and all registrations need to be done by 10 AM on Monday, July 11, 2011.  To register, go here.  Hope to see all of you in St. Cloud!

Rochester Common Grounds Event When Taxes = Spending: Do your Tax Breaks Increase My Taxes?    Tuesday, July 12, 2011    Doors Open 6:30pm | Program 7:00pm - 8:30pm    Heintz Center Commons at University Center    1926 Collegeview Road, Rochester

REGISTER NOW

Tax spending, officially called tax expenditures, made up 42 percent of the most recent state budget, yet discussions on tax expenditures are rare. Join us Tuesday, July 12th for a discussion with former state finance commissioners Jay Kiedrowski and Ward Einess about tax expenditures and the state budget.

Participants will learn about this $24.3 billion part of the state budget, who is benefiting from tax spending, and why its important tax spending is a part of any discussion on the state budget.  Every Minnesota taxpayer is affected by tax expenditures, come and learn how and why!

To learn more about the Tax Expenditures and the Citizens League's position  Click here.