This is a quick legislative update on the Friday prior to the end of the MN legislative session. By Charlie Kyte, Ex Director, MASA
The audio podcast is 7 1/2 minutes long. Just click the audio bar above.
BUDGET NEGOTIATIONS ONGOING
Talk, talk, talk.... maneuver, maneuver, maneuver!!! The state budget needs a near $1 billion downward adjustment. We will need to see if an agreement can be reached or if the Governor will need to simply begin the 'unallotment' process. At least the 2 sides are remaining calm and somewhat cordial. Reminds me of some of the contract negotiations I have been involved in over the years.
EDUCATION POLICY BILL
The Governor has vetoed this Bill. There is some talk in the Senate of bringing the less controversial portions back in a separate Bill, but we have indications that the House Education Leadership prefers not to do this. We will wait to see if anything actually happens here.
EDUCATION FINANCE BILL
This Bill provides $51 per pupil unit for one year and uses the excess Q-Comp money as part of the funding to do so. It is likely that the Governor will veto this Bill which he has to do by Saturday. The legislature could then either attempt an override, or they could put a compromise Bill together that provides a bit less funding and protects some of the Q-Comp money so that this program can continue to slowly expand.
We will need to wait and see how this issue is resolved.
STATEWIDE HEALTH INSURANCE
This Bill is on the way to the Governor. It requires that only 'fully insured' companies bid to provide the statewide insurance. This in turn will raise the cost substantially, but it does remove the objections of the MN Department of Commerce. MASA has sent a strong letter to the Governor recommending the 'veto' of this Bill. The Governor has 14 days in which to make a decision on this Bill and it can not be overridden anymore in this legislative session.
We are anticipating that the Governor will veto this Bill.
PENSION BILL
The provision improving pensions for post 1989 hires was removed from the BIll. This is actually a good thing as that provision would have been costly to school districts and would have caused a 'veto' of the Bill. Instead language was inserted to study this issue and that will set up a good possibility of this issue being fixed in 2009. There are some improvements in 403b limits and in retirement earnings limits. There is also the requirement that 403b vendors be a negotiable issue.
It is likely that the Pension Bill will be signed by the Governor.
BEAUTIFUL WEEKEND..... BUT NO SUN BURN FOR LOBBYISTS!
The legislature will meet right through the weekend. As long as there are education related issues 'in play', we will be at the Capitol. My garden won't get planted, but then again, I won't get sunburned.