The 2009 Legislature adjourned at 11:59 on May 18th with no resolution to the budget deficit. And, late last week, the Governor announced “there will be no special session. There will be no government shutdown.” While still hoping that an agreement could be negotiated before Monday’s adjournment, Legislative leaders worked throughout the weekend to reach an agreement. However, no agreement was reached and the Legislature adjourned with no final budget resolution. They did send a budget balance bill to the Governor which included an income tax increase, an alcohol tax increase and school aid and tax recognition shifts. However, there is no reason to believe the Governor would sign this bill.
To achieve his promise, Pawlenty said that he would use his veto pen, suspend payments, and unallot to trim the two-year budget down to $31 billion, if a deal is not reached. Measures such as payment suspensions or unallotment could begin on July 1, 2009. Click here if you are interested in reading more about unallotment. More information will be forwarded as I receive it.
The E-12 Budget bill was signed by the Governor on May 16th. This bill did not include the school payment shifts to help address the budget deficit and did not include any cuts to early childhood or K-12 education. Although he signed the bill, he stated that he was disappointed that several of his reform provisions were not included: pay for performance, QComp, alternative pathways for teachers, and long term solution to the math graduation test. And, he did not line-item any funding provisions in the E-12 bill.
Shared Services: The E-12 budget bill did not include the shared services mandate that Sen. Bonoff was pushing. However, language was included in the State Government budget bill, encouraging municipalities, including school districts, to contract for the purchase of supplies, materials, or equipment by utilizing contracts that are available through the state's cooperative purchasing venture authorized.
Pensions: Late on Monday the Legislature passed the Omnibus Pension Bill. The bill originally included changes to TRA to address the deficiency in the fund and provide benefit enhancements. The enhancements included increasing the formula multiplier and a benefit change for certain employees hired after 1989 -- a modified form of Rule of 90 that will allow long serving TRA members to retire around age 62 with 30 years of service. To fund this proposal, contribution rates for both employees and employers would increase 0.5% per year for four years beginning in FY 2012. As the bill was drafted, the state would cover the increase in the employer share for school districts. This bill was controversial and in order to ensure the other non-TRA pension provisions would pass, the TRA article was removed.
Mandatory Statewide Health Insurance Pool: Legislation mandating school district employee statewide health insurance passed both the House and Senate this year. However, unlike other years, the Legislature failed to act on a conference committee report so no bill was sent to the Governor!
To achieve his promise, Pawlenty said that he would use his veto pen, suspend payments, and unallot to trim the two-year budget down to $31 billion, if a deal is not reached. Measures such as payment suspensions or unallotment could begin on July 1, 2009. Click here if you are interested in reading more about unallotment. More information will be forwarded as I receive it.
The E-12 Budget bill was signed by the Governor on May 16th. This bill did not include the school payment shifts to help address the budget deficit and did not include any cuts to early childhood or K-12 education. Although he signed the bill, he stated that he was disappointed that several of his reform provisions were not included: pay for performance, QComp, alternative pathways for teachers, and long term solution to the math graduation test. And, he did not line-item any funding provisions in the E-12 bill.
Shared Services: The E-12 budget bill did not include the shared services mandate that Sen. Bonoff was pushing. However, language was included in the State Government budget bill, encouraging municipalities, including school districts, to contract for the purchase of supplies, materials, or equipment by utilizing contracts that are available through the state's cooperative purchasing venture authorized.
Pensions: Late on Monday the Legislature passed the Omnibus Pension Bill. The bill originally included changes to TRA to address the deficiency in the fund and provide benefit enhancements. The enhancements included increasing the formula multiplier and a benefit change for certain employees hired after 1989 -- a modified form of Rule of 90 that will allow long serving TRA members to retire around age 62 with 30 years of service. To fund this proposal, contribution rates for both employees and employers would increase 0.5% per year for four years beginning in FY 2012. As the bill was drafted, the state would cover the increase in the employer share for school districts. This bill was controversial and in order to ensure the other non-TRA pension provisions would pass, the TRA article was removed.
Mandatory Statewide Health Insurance Pool: Legislation mandating school district employee statewide health insurance passed both the House and Senate this year. However, unlike other years, the Legislature failed to act on a conference committee report so no bill was sent to the Governor!
By Charlie Kyte, Executive Director, MASA
