**This legislative update was written by Elaine Keefe, library lobbyist for the Minnesota Library Association (MLA) /MEMO**
Subject: Governor’s Capital Budget Recommendations, Wednesday, 01/15/14 at 1:54 pm
Today Governor Dayton released his capital budget recommendations. He did not include any funding for Library Accessibility and Improvement Grants in his recommendations. While this is disappointing, it is not a complete surprise. Since the inception of the program in 1994, no governor has included funding for it in his capital budget recommendations, and yet we have consistently been able to persuade the Legislature to include funding in the final bonding bill.
Commissioner of Management and Budget Jim Schowalter noted in his transmittal letter to legislative leaders that competition for funding was fierce. While the Governor is recommending a total of $986 million in capital projects, more than $2.9 billion in requests were submitted.
The only academic library project included in the Governor’s recommendation is on the Wadena campus of Minnesota State Community and Technical College, Fergus Falls and Wadena. It states that “renovations will combine classroom and new library space on the Wadena campus.”
Although the Legislature doesn’t convene until February 25, members of the House were given the opportunity to pre-file bills for introduction. The list was made public last night. Here are bills of interest:
HF 1923 (Newton) Repeals all state aid to nonpublic schools, including telecommunications equity aid.
HF 1978 (Scott) Makes a contract between a government entity and a private vendor unenforceable if it fails to include in the contract a requirement that all of the data created, collected, received, stored, used, maintained or disseminated by the vendor must comply with all state data practices laws as if it were a government entity. It applies to contracts entered into on or after August 1, 2014.
HF 1997 (Gruenhagen) Repeals current exemptions from obscenity laws for public schools and postsecondary institutions. It leaves exemptions in place for public libraries, churches, museums, medical clinics, physicians, hospitals and government sponsored organizations.
HF 2120 (Holberg) Creates a Legislative Commission on Data Practices and Personal Data Privacy.
HF 2126 (Quam) Requires cities and counties to have written procedures for charging and collecting fees and to make those procedures available to the public.
HF 2138 (Holberg) Requires that by January 1, 2020, any database maintained by a government entity that contains private or confidential data must have the capacity, within each individual record, to track the identities of users who access the data, including the date and time the data were accessed and the purpose for which the access occurred.
Elaine Keefe
Capitol Hill Associates
525 Park Street, Suite 310
St. Paul, MN 55103
office 651-293-0229
cell 612-590-1244 elaine@capitolhillassoc.com
**This legislative update was originally written by Elaine Keefe, lobbyist for MLA/MEMO** (Received on December 5, 2013 at 4:07:49 PM )
On Thursday the state economic forecast was released and it contains good news!
The state has a projected surplus of almost $1.1 billion. After the school property tax recognition shift is repaid, along with a loan from the state airport fund, $825 million remains on the bottom line. You can read the forecast documents on the Minnesota Management and Budget website: http://www.mmb.state.mn.us/nov-2013-forecast. I attended a series of news conferences held today by MMB officials, Governor Dayton, and DFL and Republican legislative leaders. All of them cautioned that things could change between now and the next forecast in late February. Here is a summary of their comments: MMB officials pointed out that the money is not yet in the bank, and that we are only 5 months into the current state fiscal year. They also noted that one way to avoid the need for future education funding shifts would be to build a bigger state budget reserve. Governor Dayton said that if the February forecast shows a similar surplus, he will propose a series of tax cuts. He wants to repeal the business sales taxes that were passed last session (on warehouses, equipment repair and telecommunications equipment). The projected cost of repealing those taxes in the current biennium is $315 million. He also wants to cuts taxes for the middle class by conforming with federal law to eliminate the marriage penalty and expand the working family credit. House DFL leaders seemed supportive of Governor Dayton’s tax cut proposals. Senate DFL leaders said that their top priority was to build up a larger state budget reserve. They were non-committal about tax cuts. House and Senate Republican leaders said the large surplus proved that the tax increases passed last session were unnecessary. They support repealing all of them.
Elaine Keefe Capitol Hill Associates
525 Park Street, Suite 310
St. Paul, MN 55103
office 651-293-0229
cell 612-590-1244
elaine@capitolhillassoc.com
Are you starting to think about the upcoming legislative session and what that will mean for libraries and schools? No? Well, that is probably OK since the next session does not begin until February 25, 2014! This year will be a bonding yearrather than a funding year, which usually provides relief from some of the extreme highs and lows that libraries and schools experience around budget issues. For your convenience, here is a recap of the last session written by Elaine Keefe, our MLA/MEMO lobbyist representing our library and school media issues at the State Capitol.
Elaine writes…..below is a summary of the 2013 legislative session. Most of this information has appeared in previous reports.
State Budget Overview: The Legislature and Governor Dayton agreed on a budget for the 2014-15 biennium that erases a projected $627 million deficit and provides additional funding for education and local governments. In order to raise the revenue to accomplish this, income taxes were increased on the top 2% of income tax filers, cigarette taxes were increased by $1.60 per pack and the sales tax was broadened to include some business services. With DFL majorities in both the House and Senate and a DFL governor, the budget negotiations were far less contentious than they were two years ago when most of state government was shut down for 20 days because Governor Dayton and the Republican-controlled Legislature were unable to agree on a budget.
Here is a summary of legislative action affecting libraries:
Education Payment Shift: Repayment of the shift has proceeded much more rapidly than many had expected. Under current law, whenever a state economic forecast projects a budget surplus, the surplus must first be used to replenish the state budget reserve (if necessary) and any remaining surplus must be used to repay the shift until a 90% /10% payment schedule is achieved. Although the November 2012 and February 2013 forecasts both projected a deficit for the 2014-15 biennium, those forecasts also projected surpluses at the close of the current biennium, which ends on June 30. Hence, the shift was reduced by $1.3 billion after the November forecast and by another $290 million after the February forecast, resulting in a current payment schedule of 86.4% / 13.6%. Under the budget deal reached by the Governor and Legislature, if there is a surplus after the close of the current biennium, that amount will be used to repay the shift without waiting for the November forecast. The current estimate is that this will be another $300 million. This should be sufficient to reach a 90/10 payment schedule.
Library Appropriations in the K-12 Budget: Current funding was maintained for Regional Library Basic System Support, Regional Library Telecommunications Aid, Multi-types, ELM and Telecommunications Equity Aid. We also succeeded in getting an amendment included in the omnibus education bill changing the terminology for RLBSS and multi-type funding from “grant” to “aid” to better reflect how these programs are administered.
Homework Help: Our bill to fund an online Homework Help service statewide was introduced in both bodies but did not receive a hearing. There was heavy emphasis this year on providing additional funding for large existing programs, leaving little room in the budget for new initiatives. Our bill was introduced in the Senate by Senator John Hoffman (DFL – Champlin) and in the House by Rep. Kathy Brynaert (DFL – Mankato).
General Education Formula: The general education formula (which is the main source of funding for school media centers) will increase by 1.5% in each year of the biennium. It will rise from the current $5,224 per pupil to $5,302 in FY 2014 and to $5,806 in FY 2015.
Total Operating Capital: MDE included language in its omnibus policy bill that would have prohibited schools from using total operating capital to pay for annual licensing fees for software. I raised a concern about that language on behalf of MEMO. After much negotiation, MDE agreed to amend the language to specifically allow the use of total operating capital for software and annual licensing fees. This passed in the omnibus education bill.
Minitex and MnLINK: Funding for Minitex and MnLINK was increased by $300,000 per year. It is the first increase for Minitex and MnLINK since the 2007 session. Our authors were Senator Kent Eken (DFL – Twin Valley) and Rep. Ryan Winkler (DFL – Golden Valley).
Higher Ed Systems: MnSCU funding was increased by $102 million and the University of Minnesota by $79 million. Most of these funds are earmarked for freezing undergraduate tuition.
Legacy Funding for Regional Public Libraries: Regional Public Library Systems received $3 million per year to provide arts and historical programs. This is the same level of funding provided during the current biennium. The funds will be distributed via a revised formula that replaces the equalization factor with a “qualifying system entities” factor. We had to fight hard to retain this level of funding after the Senate bill proposed to reduce it to $1 million per year in an effort to maximize the funding for the State Arts Board. Many thanks to everyone who contacted their senators and the members of the Legacy conference committee to urge them to maintain the current funding level for regional public libraries. You were definitely heard!
Legacy Funding for the Minnesota Digital Library: The Minnesota Digital Library received $300,000 per year. This is an increase over the current $250,000 per year appropriation. As in the past, this funding is appropriated to the Minnesota Historical Society with a directive to cooperate with Minitex and jointly share the appropriation.
Legacy Percentage to the State Arts Board: The Senate Legacy bill added a provision in statute requiring that 50% of all future appropriations from the Arts and Cultural Heritage Fund would be allocated to the State Arts Board. Senator Cohen insisted that this was the intent when the Legacy Amendment was passed. The final bill requires that 47% go to the State Arts board in the future.
Data Privacy: Our bill to extend current data privacy protection for public library patron records to electronic data stored by a vendor was introduced by Senator Kari Dziedzic (DFL – Minneapolis) and Rep. Steve Simon (DFL – St. Louis Park). It was heard in both bodies and passed out of the House Data Practices Subcommittee before we learned that other provisions in current law already afforded this protection to such data. Our bill became the vehicle for the omnibus data practices bill, but our provision was deleted after we learned it was unnecessary.
Library Accessibility and Improvement Grants: Although it was not a traditional bonding year, the Governor and the House were eager to see a large bonding bill pass. We were encouraged to get a bill introduced to fund Library Accessibility and Improvement Grants, and so a bill to provide $3 million was introduced by Rep. Mary Murphy (DFL – Hermantown) and Senator Alice Johnson (DFL – Spring Lake Park). The House included $1.5 million in the final version of its bonding bill, but the bill failed to get the required supermajority on the House floor. It needed 81 votes and only got 76 votes. The Senate never did produce a major bonding bill. In the end, a very small $176 million bill passed, with most of the funds allocated for renovation of the Capitol. A major bonding bill will be on the agenda for 2014.
Aid to Cities and Counties: Aid to cities was increased by $80 million and aid to counties was increased by $40 million. The trade-off is that levy limits will be in place for 2014. The limits are relatively generous — the city or county’s aid plus levy for either 2012 or 2013, whichever is greater, plus 3%.
Sales Tax on City and County Purchases: Cities and counties will no longer have to pay sales tax on their purchases beginning January 1. The sales tax was imposed on local units of government (except for school districts) in 1992 as a way to solve a budget deficit. There have been repeated attempts to repeal the tax since then, and despite broad agreement that the tax was bad policy, it was difficult to repeal it because of the loss of revenue to the state. This is a great win for cities and counties. Public libraries were partially taxed and partially exempted in 1992 when the tax was first passed. We won a full exemption a few years later, so this will not have a direct effect on public libraries.
Elaine Keefe
Capitol Hill Associates
525 Park Street, Suite 310
St. Paul, MN 55103
office 651-293-0229
fax 651-293-1709
cell 612-590-1244 elaine@capitolhillassoc.com
**This legislative update was originally written by Elaine Keefe, lobbyist for MLA/MEMO, slight modifications by Patricia Post** (Received on Thursday, May 16, 2013 11:08 AM)
The House conferees for the Legacy bill were appointed on Thursday , May 16th.
Legacy Funding Background: The House Legacy bill passed on the floor on Friday (10th). The Senate Legacy bill was unveiled in the Senate Legacy Subcommittee on Thursday (9th). It includes $300,000 per year for the Minnesota Digital Library (the amount requested) and $1 million per year for regional public libraries. This is a huge reduction from the $3 million per year currently allocated to regional public libraries. Senator Dick Cohen, chair of both the Senate Finance Committee and the Legacy Subcommittee of the Senate Finance Committee, has historically opposed Legacy funding for libraries. His position has been that only those who advocated for the constitutional amendment should share in the funds generated. Other recipients can be viewed as interlopers, including libraries. Senator Cohen’s goal has been that 50% of the Arts and Cultural Heritage Fund is to be allocated to the State Arts Board. Currently about 43% is allocated to the State Arts Board. The Senate bill includes a provision requiring that in the future 50% of the Arts and Cultural Heritage Fund shall be allocated to the State Arts Board. The initial version of the Senate Legacy bill distributed the funds to regional public libraries under the RLBSS formula, as has been done the past two biennia. I subsequently spoke with Senator Cohen and he agreed to amend the bill to change the formula in accordance with the MLA/MEMO platform and to require that the funds be distributed in 10 equal payments. That amendment was adopted on Friday (10th) and the bill was passed out of the subcommittee.
Please contact the Conferees and urge them to support the House position on Legacy funding for regional public libraries.
The House maintains the current funding level of $3 million per year, whereas the Senate reduces it to $1 million per year.
Capitol Hill Associates
525 Park Street, Suite 310
St. Paul, MN 55103
office 651-293-0229
fax 651-293-1709
cell 612-590-1244 elaine@capitolhillassoc.com
**This legislative update was originally received in two emails written by Elaine Keefe, lobbyist for MLA/MEMO, slight modifications by Patricia Post** (Received on Sunday, May 12th at 11:57 p.m. & Monday, May 13th at 9:55 a.m.)
It’s crunch time. The Legislature must adjourn on May 20 — one week from Monday!
Budget Deal: Sunday the Governor and legislative leaders announced that they have agreed on a budget deal. The deal includes significant increases for E-12 education ($475 million) and higher education ($250 million) and a smaller cut in health & human services than legislators had proposed (a $50 million cut rather than $150 million). The school funding shift will be repaid. To pay for all of this and cover the $627 million deficit, income taxes will be increased on couples with taxable income of $250,000 and on individuals with taxable income of $150,000. Sales taxes will be expanded to some business services but not to consumer services or clothing. The cigarette tax will be increased. Details will be worked out by the various budget conference committees.
E-12 Education: The conference committee met for the first time on Thursday (9th). They adopted several identical provisions, including two items important to MLA/MEMO.
The change in terminology from “grant” to “aid” for RLBSS and Multi-type funding
Clarification that total operating capital funds can be used for computer hardware, software and annual licensing fees
Higher Education: The conference committee will meet for the first time on Monday (13th). The funding increase for Minitex/MnINK that is included in the Senate higher ed bill but not in the House bill has a better chance now that the agreed-upon target ($250 million) is closer to the Senate target ($260 million) than the House target ($150 million). Our Senate author, Senator Kent Eken (DFL – Twin Valley) is on the conference committee and told me he intends to fight hard for the increase included in the Senate bill. If you haven’t yet contacted the conferees to urge them to support the increase in the Senate bill, please do so.
Legacy:The House Legacy bill passed on the floor on Friday. The Senate Legacy bill was unveiled in the Senate Legacy Subcommittee on Thursday. It includes $300,000 per year for the Minnesota Digital Library (the amount requested) and $1 million per year for regional public libraries. This is a huge reduction from the $3 million per year currently allocated to regional public libraries. Senator Dick Cohen, chair of both the Senate Finance Committee and the Legacy Subcommittee of the Senate Finance Committee, has historically opposed Legacy funding for libraries. His position has been that only those who advocated for the constitutional amendment should share in the funds generated. Other recipients can be viewed as interlopers, including libraries. Senator Cohen’s goal has been that 50% of the Arts and Cultural Heritage Fund is to be allocated to the State Arts Board. Currently about 43% is allocated to the State Arts Board. The Senate bill includes a provision requiring that in the future 50% of the Arts and Cultural Heritage Fund shall be allocated to the State Arts Board. The initial version of the Senate Legacy bill distributed the funds to regional public libraries under the RLBSS formula, as has been done the past two biennia. I subsequently spoke with Senator Cohen and he agreed to amend the bill to change the formula in accordance with the MLAMEMO platform and to require that the funds be distributed in 10 equal payments. That amendment was adopted on Friday and the bill was passed out of the subcomittee. It will be heard in the full Senate Finance Committee on Monday, May 13.
A number of you have contacted me this morning to ask what you can do to respond to the disappointing amount of funding for regional public libraries in the Senate Legacy bill.
Please contact your senators to express concern about this reduction. Ask them to raise the issue with Senator Cohen.
We are not going to change Senator Cohen’s mind. However, if it’s clear that his Senate colleagues are unhappy about the level of funding for libraries it will be more likely that the Senate conferees will agree to the House appropriation when the bill gets to conference committee.
When the conference committee is named later this week, I will send out their contact information and ask you to contact them.
Elaine Keefe
Capitol Hill Associates
525 Park Street, Suite 310
St. Paul, MN 55103
office 651-293-0229
fax 651-293-1709
cell 612-590-1244 elaine@capitolhillassoc.com
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