The legislative session continues to slog along as they reach the point in the session where budget targets are set, and the House and Senate each pass their budget and policy bills before starting negotiations in conference committees. The State is sitting on a $9B “surplus,” but because a two-year budget was passed last year, there is no requirement that any bill passes for the government to continue operating. It seems most likely that any substantial supplemental budget package will get passed this election year. Next week, the legislature will take an Easter/Passover break and return with a deadline to finish their work by May 23, 2022.

The House and Senate have released their respective versions of a higher education supplemental budget bill, and both included base budget increases for MinnState. The contract has passed the house and awaits action in the Senate. The Pension Commission has wildly different ideas for managing the state’s pensions. More details are below.

Contract Ratification:

The House passed HF 3346, the contract ratification bill, 107-24. In addition to the IFO, the Minnesota Law Enforcement Association, AFSCME, MAPE, MSUAASF, MMA, State Residential Schools Education Association, Minnesota Nurses Association, and the Minnesota State Administrators Personnel Plan are included in the plan.

The bill was amended to add some managerial plans. Bill author Rep. Leon Lillie (DFL-North St. Paul) said there are a couple of contracts still outstanding, and if they’re finalized before the end of the session, they may be added to the bill. One of the outstanding contracts is for MN State College Faculty (MSCF).

Minnesota House Higher Education Supplemental Budget Details:

The House Higher Education Committee released their supplemental budget bill yesterday evening. The bill includes $100 million in ongoing supplemental funds in FY23 and increases funding by $150 million in the next biennium.

MinnState Base Increase:

The bill includes a $10 million base increase for MinnState; $6 million for campus support (line 6.31), $2 million for mental health resources (line 7.3), $1 million in the base for basic student needs (line 7.13), and $1 million in one-time funding for a Career and Technical Educator pilot expansion (line 7.29). This funding would be appropriated to three or more state university and college partnerships to expand the career and technical educator pilot program.

Tuition-Free College Grant Program

The House bill also includes $29.7 million in FY23 and $32 million moving forward for the Tuition-Free College Grant program (line 20.16). The funding for this program would award grant dollars to income-qualifying students attending a state college to pay their remaining financial needs after Pell Grant and State Grants are awarded.

The IFO voiced concerns about limiting this program to colleges in a letter sent to the Chair and committee members. Click here to read the letter.

The committee is scheduled to consider amendments and vote on the bill during a hearing on Wednesday.

Additional funding or policy changes:

Grants to Underrepresented Student Teachers: The bill appropriates $1.5 million for grants to student teachers in shortage areas. This is an initiative the IFO supports.
Student-Parent Support Initiative: The bill appropriates $6.9 million for a program to award grants intended to address the needs and support the educational goals of expectant and parenting college students across Minnesota.
Operating Expenses of Tribal Colleges: The bill appropriates $3 million for Leech Lake Tribal College, White Earth Tribal College, and Red Lake Nation Tribal College for the Tribal colleges’ general operations and maintenance expenses.
State Grant Program: The bill adds $9.3 million in base funding to the State Grant program. Modifications include decreasing the assigned student responsibility from 50 to 48 percent of the cost of attending an institution.
Teacher Shortage Loan Repayment: The bill appropriates $700,000 for the program and increases the annual amount of teacher shortage loan repayment from $1,000 to $2,000.
Emergency Assistance for Post-secondary Students: The bill appropriates $731,000 to the program’s base to provide additional grants intended to meet immediate student needs, including, but not limited to emergency housing, food, and transportation.
Hunger-Free Campus Grants: The bill appropriates an additional $200,000 to the program and expands those eligible to receive grants to non-profit private post-secondary institutions.
American Indian Scholarships: The bill appropriates $3.24 million to the American Indian Scholarship program and doubles the maximum award for an undergraduate and graduate student to $8,000 per academic year.
Inclusive Higher Education: The bill appropriates $750,000 to establish the Inclusive Higher Education Technical Assistance Center to increase access to self-sustaining post-secondary education options across Minnesota for students with intellectual disabilities.
MN Reconnect Program: The bill appropriates $1 million to the MN Reconnect Program.
Aspiring Teachers of Color Scholarship Pilot Program: The bill appropriates $3 million in one-time funding for the aspiring teachers of color scholarship program to support students preparing to become teachers who have demonstrated financial need and belong to racial or ethnic groups underrepresented in the state's teacher workforce. The IFO supports this language.
Social Work Scholarship Program: The bill appropriates $5 million in one-time funds to a social work scholarship program for eligible students preparing to become licensed social workers in Minnesota.
Campus sexual assault policies: The language in this bill would require current policies to include an affirmative consent standard.

MN Senate Higher Education Supplemental Budget Details:

The Senate Higher Education Finance and Policy Committee has passed their omnibus bill. The bill will be heard next in the Senate Finance Committee on Thursday. The bill spends $19.1 million in supplemental funding in FY2023 and $23.9 million next biennium.

MinnState Base Increase:

MinnState receives a $10.673 million base increase in supplemental funding; $10 million for an increase in the Workforce Development Scholarship program, and $673,000 in one-time funding for campus support. Although the $673,000 is laughably low, it is an important marker to be included in the bill as the process moves forward to the conference committee. If both the House and Senate bills have base funding for MinnState, it is more likely an appropriation will be made – if a final deal is agreed upon.

Below are links to the Senate bill and spreadsheet:

In addition to the $10.673 million for Minnesota State, below are some other provisions included in the bill.

Grants to Students Pursuing Law Enforcement. The bill appropriates $3.761 million for grants for students pursuing a degree in law enforcement. The annual grant is $3,000, with a lifetime limit depending on the education the student is pursuing. Eligible students must be enrolled in a law enforcement program as defined in the peace officer chapter of law.
Skills Path Grant Program. The bill appropriates $500,000 in the base for grants to eligible institutions. It establishes the skills path program that provides secondary students with a pathway from high school to careers in skilled work and trades. The commissioner of higher education must develop an application for which eligible institutions may apply for grants.
Owatonna Learn to Earn Coalition. The bill appropriates $1 million for a grant to the Owatonna Learn to Earn Coalition to help the Owatonna and Steele County region grow and retain a talented workforce.
Grants to Underrepresented Student Teachers. The bill appropriates an additional $250,000 for this program, which provides grants to student teachers in shortage areas.
Workforce Development Scholarships. $7.5 million of the $10 million added to the program must be used for scholarships to students enrolled in law enforcement programs. Language in the bill expands the programs of study under the scholarship program to include law enforcement and construction. The bill also specifies that the annual scholarship award for law enforcement students is $5,000, with a lifetime limit for students in law enforcement at $15,000. For all other programs, the annual scholarship award is $2,500 with a lifetime limit of $7,500.
Developmental Education. There is language in the bill that requires a college or university to determine whether an individual’s performance on a standardized test exempts the individual from a developmental course. A college or university must use multiple measures to determine if a student needs dev ed. The term “remedial” is changed to “developmental” throughout this section of law.

As a reminder, the Governor has proposed increasing MinnState’s base funding by $24 million.

IRAP Employer Contribution Increase:

Sen. Frentz (DFL-Mankato) and Rep. Frederick (DFL-Mankato) introduced SF2734, a bill to increase the IRAP employer contribution to match the TRA employer amount. A contentious House version of a pension omnibus bill has been released and did not include a change in the employer contribution but did reduce the employee contribution by .25%.

Campus Gun Safety Bill:

The IFO Faculty of Color Safety Workgroup worked with the Government Relations Committee to find language that closes a loophole in the law that does not allow campuses to restrict visitors from carrying firearms on campus. We drafted a bill (SF3232), authored by Sen. Jason Isaacson (DFL-Shoreview), that mirrors the law allowing private businesses to post a sign restricting patrons from carrying firearms on their premises. Unfortunately, the bill did not get a hearing this session.