BLOG: Budget Update Shows Big Turnaround, Hiring Vets, "LIFO"

 Budget Update

The Minnesota Department of Management and Budget released its February state budget forecast update on Wednesday, showing a dramatic turnaround from the $6.2 billion budget deficit in the November 2010 forecast. The numbers show a positive balance of $323 million, following an $876 million positive forecast last November.

The turnaround assures Minnesota taxpayers that the $1 billion cash flow and budget reserves required by law are replenished and the state can now pay almost half of the school shift created by the last budget compromise. This dramatic 15-month turnaround validates the fiscal discipline conservatives applied during last year's budgeting session, including reducing projected state spending for the biennium from 22 percent down to six percent. Minnesota is beginning to recover and we will work to keep it on the right track by encouraging job creation and reforms that make government more affordable for taxpayers.

 Allowing Veterans Hiring Preferences

On Thursday the Senate unanimously approved a Senate File 1599, which I am chief author. This bill will allow Minnesota companies to put in place their own veterans hiring programs where previously the federal government had prohibited hiring preference for veterans. The measure gives protections and allows, but does not mandate that private companies take steps to help solve our state’s veteran employment crisis. In the years since 9/11 and the war on terrorism, U.S. veterans are experiencing unemployment at rates more the twice the general population and this rate is even higher in Minnesota where our Reserve Force has very high rates of volunteerism and deployment. The legislation will simplify the hiring process for veterans so that we can capitalize upon the range of talents and professional values that service members bring.

 Reforming Teacher Layoff Process

This week the Senate passed a bill that will end Minnesota’s strict “Last In, First Out” (LIFO) standard for layoffs of teachers that addresses only seniority and not performance. The change made by this bill would authorize schools to base layoff decisions on effectiveness before seniority, letting them keep quality teachers in the classroom. Current law grants “continuing contract” or tenure rights to teachers who have taught more than three years in a school district or one if the teacher was already tenured in another district and has transferred. Minnesota is one of only 11 states that base layoffs on seniority, without consideration for teacher effectiveness.

This important piece of legislation, which I co-authored, builds on the teacher evaluation system passed into law last year requiring regular teacher evaluations using student academic growth as a factor. To provide time to school districts and teachers for planning and negotiating, the evaluations are not required to begin until the 2014-15 school year and the new LIFO reform provisions would not take effect until 2016-17 if signed. It is currently in joint conference committee to work out differences in the Senate and House versions.

 Moving in Senate Committees

SF1577 to allow Minnesotans to decide whether to amend the state constitution to require voters to show identification in elections was advanced by the Senate Finance committee and will be sent to the Senate floor.

HF1766 will prevent unions from taking taxpayer dollars intended for the care of children, whether as union dues or “fair share” fees. The measure had a successful hearing in the House and is moving to the floor.

Find more at http://www.senate.mn and click “Bills”

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