STATE OF MINNESOTA Office of Governor Mark Dayton 130 State Capitol + 75 Rev. Dr. Martin Luther King Jr. Boulevard + nt Paul, MN 55155 May 24,2011 ‘The Honorable Kurt Zellers Speaker ofthe House State Office Building, Room 463 100 Rev. Dr, Martin Lather King,Jr. Blvd St Paul, Minnesota 55155 Dear Mr. Speaker: ‘With this eter. am vetoing and returning Chapter 42, House File 934, the Education Finance Bill. Ido so with the hope that we ean come together to find a compromise: a balanced solution without the damaging euts and harmful policy items ‘contained inthis legislation. Legislators from both parties have worked well with Education Commissioner ‘Cassellus and with me, to find areas of common within ths bill. I thank them for their ‘thoughtful and persistent work. Ensuring an excellent education for all Minnesota students should be ameng our highest budget priorities. Having worked together on the alternative pathways tc licensure bill, I know we can find compromise. Iam encouraged by the potential t find common ground in ths bill in early reading proficiency and recognition of high-actieving schools, 1 am hopeful that we can build on those areas of agreement. Unfortunatly, this Education Finance Bill would have very harmful effects on students, on teachers, end on schools. I will nt sign an education funding bill that pits student against-student or distrit-againstdistrit. Thave consistently stated my intention to inerease education fanding, which is why my original budget included $36 million in new funding for school. Subsequently, in agreement with the Legislature's desire to put ‘addtional money on the per pupil formula, I proposed to increase the formula allowance bby $50 per pupil in eaca fiscal year ofthe biennium, for a total of $164 million in new education investments. By contrast, ths bill cuts school funding by nearly $4 million below current base-funding level. Within those reductions, it unfairly and Aisproportionately shifs funding among sthool districts. The cuts to special education would create significant funding gaps that would foree school districts ta shift funds from general education programs, increase clas sizes, or aise property taxes, just to maintain ther current levels of special education services. Voice: (61) 201-3400 or (800 687-9717 Fax: (651) 797-1850, MN Relay (80) 62 ‘bite ite! /quvemnor state anus An Equal Opportunity EmployerThe Honorable Kurt Zellers May 24, 2011 Page 2 Aaditionaly, the elimination of integration revenue and freezing of compensatory revenue wrongfully harms poor children and children of eolor, which I will not accep. [None of Commissioner Cassllius and my education proposals are contained in this bills most notably, funding for optional all-day Kindergarten and initiatives ineaely childhood education, The bill also contains numerous policies, including school grading, collective bargaining imitations, teacher evaluation, and Common Core prohibitions, ‘which are controversial ae punitive to teachers, and have Kittle research to support theit efficacy in improving student leaming and closing achievement gaps. 1am disappointed thatthe bill erates a private school voucher program, an experiment that has not worked in other states. Until our public schools are funded at adequate and sustainable levels, a diversion of publi dollars to private schools is unwise. ‘The funding cats to the Department of Education were reduced inthis bill, which Leertinly appreciate. However, when combined withthe 15% staff reductions in the State Government bill, the agency would be faced with the loss of at least 30 fulltime employees. Cuts ofthis nature, on top of eight years of cumulative budget reductions, ‘would further hinder the Depariment's already limited capacity to provide technical assistance, support, aed oversight to schools throughout Minnesota. Budgets are about priorities, and priorities are about choices. We ean choose to ‘work together, compromise, and create a budget that fairly spreads the burden we must all shoulder if we are to weather these tough times and position Minnesota for future sucess, 1 know that working together we ean create a reform-minded blueprint for our slate’s K-12 education, of which we ean all be proud, ach of us started our budget proposals by making a choice. I chose a balanced approach to our budget; one that included both significant cuts, but asked the top two peteent of Minnesota to pay more fo ensure our quality of life and the services millions ‘of Minnesotans depend on. My approach chooses nat to balance the budget on the backs of the other ninety-eignt percent of Minnesotans. In the spirit of zompromise, more than one week ago, I cut my proposal in half, in the hopes that an offer to meet inthe middle would spur action towards the balanced solution the people of Minnesota have asked for. Instead, you ehose to present me with an all-cus approach, one that has serious consequences for Minnesotans, and that Ido not believe is in line with our shared commitment to build abetter Minnesota‘The Honorable Kurt Zellers May 24, 2011 Page 3 From the begianing ofthis legislative session, it has been clear that compromise would be necessary tc balance our state's budget. In November, Minnesotans voted for @ divided government, and I believe, in their wisdom, they did so because they want part of what each of us has coffer, and they want us to work together to solve the state's budget crisis and build a better Minnesota, ‘Compromise is never easy, because each person must give up something that is important. Compromise requites us to agree to items that we don't agree with, Thats the only way we will weoncile our differences on the state's budget. 1am returning this bill t0 you withthe hope that you will choose to work with me, to find afar, responsible, ttle lin at Dayton Governor ce: Senator Michelle L. Fischbach, President ofthe Senate Senator Amy T. Koch, Majority Leader Senator Thomas M. Bak, Minority Leader Senator Gen Olson Representative Pan! Thissen, Minority Leader Representative Pal Garafolo ‘The Honorable Mark Ritchie, Scerctary of State Mr. Cal R, Ludeman, Secretary of the Senate ‘Mr. Albin A. Mathiowetz, Chief Clerk ofthe House of RepresentativesSTATE OF MINNESOTA. Office of Governor Mark Dayton 130 State Capitol » 75 Rev. Dr. Martin Luther King Jr. Boulevard ¢ Saint Paul, MN 55155 ‘May 24,2011 “The Honorable Kurt Zilles Speaker ofthe House State Office Building, Room 463 100 Rev. Dr. Martin Lather King, r. Blvd ‘St Paul, Minnesota 55155 ear Mr. Speaker: With this leter. Iam vetoing and returning Chapter 46, House File HF 1010, the Environment, Energy and Natural Resources Finance Bill, Reductions at the levels| proposed inthis bill tothe MPCA, DNR, BWSR and the Department of Commerce ‘would have harmful effets on Minnesotans throughout our state In regard to the MPCA’s budget, the reduction of 67% to the general fund appropriation hits a few key areas especially hard. Some of the cuts will diretly undo ‘the gains made inthe tmely environmental review and permitting of projects my ‘executive order and House File 1 accomplished earlier this year. Specifically, the climinaton of general fund dollars and staff for MPCA's environmental assistance and ‘multimedia programs is estimated to result n 30 to 45 day delays in wastewater permits for industries and muncipalities. MPCA’s clean water activities receive a disproportionate reduction, including support for ambient surface water monitoring, SSTS technical assistance, and Clean Water Partnership grants. Minnesotans wanted more resources to goto these activities ‘when they approved the dedicated funding constitutional amendment, not fewer. ‘The Agency would also find it much harder to respond to the increasing requests for assistance from sitions, busineseee, and its Leal partners. It MPCA stalf regulated partes prefer to tum to, not high-priced consultants when secking help to comply with State and federal regulations. Equally troubling is the elimination of funding forthe environmental health tacking and biomonitoring program, which isa successful, cross- ‘agency collaboration we need to be expanding, not abolishing. Voice: (651) 201-3400 or (800 657 Fax: (651) 797-1850, MN Relay (800) 627-3529, aba: iige//governorstate mn as ‘An Equal Opportunity Employer‘The Honorable Kurt May 24,2011 Page 2 ‘My fiscal concerns elated to MPCA are not limited to funding reductions, 1 also ‘oppose the shifls and caps proposed in the bill. Moving penalties from the environmental fund tothe general fur (coupled with the significant general fund cuts) effectively disconnects the penalty monies from their intended purpose — having the polluter pay for ‘environmental protectin, The reduction in dollars transferred fom the environmental fund tothe remediation fund will extend the time it takes to close the remaining closed landfills and require th program to operate at higher staffing levels longer into the future costing the taxpayers more inthe long run, In regard to the Department of Natural Resources sections ofthe bill, Ihave cconcems about using environment and natural resources trust fund dollars to fund accelerated efforts to prevent future spread of aquatic invasive species; the state needs a long-term and dedicated funding source o build lating programs. 1 urge you to include ‘my Aquatic Invasive Species unding proposal to fund these important programs. General fund reductions to DNR water programs would negatively impact the Departments ability to suppor critical water management activities, including dam salty, shoreland management, climatology, ground water monitoring, and flood programs and damage reduction efforts. Managing the state's water supply is criti © ‘supporting drinking water for two-thirds of the state's population and important industries throughout the state ‘The general fund reductions for DNR forest management programs would reduce the Department's ability to offer approximately 170,000 cords of wood forsale annually (out of an annual target of 800,000 cords). ‘This has the effect of reducing revenue by ‘more than $3 million annually, and would have devastating impacts to forest economies in northem Minnesota. These reductions will hve huge impacts on Minnesota's forest product industries and threaten thousands of jobs in northern Minnesota that depend on the state’s forest econony.. In adltion, the language related tothe State Forest Nursery program is problematic and needs to come out of the bill Reductions to BNR’s Divisions of Lands and Minerals will reslt in reduced technical assistance and mineland reclamation-permitting activities, resulting in reduced. field inspections and monitoring, delays in permitting decisions, and lengthened permit review timeframes. ‘The bill does nct include my recommendation for restructuring of game and fish license fees and related funding initiatives for a conservation officer academy, wildlife,‘The Honorable Kut Zellers May 24, 2011 Page 3 and fisheries programs, This initiative ha the strong support ofthe hunting and angling ‘community, and T urge your consideration ofthis proposal Te proposed reductions tothe Board of Water and Soil Resources (BWSR) come on top of mulple reductions since FY02 that would total 46%. By necessity and ingenuity, BWSR and our local government conservation partners have already implemented many cest-savings and efficiency measures during that time period. There is no capacity to absorb $7M in cuts (26%) in one biennium without compromising the ability of the agency and the local governments to meet the agency's mission and the ‘lean water and conservation goals ofthe stat, The impacts te the core agency operations and loeal government programs seriously jeopardize the ability ofthe state to secure and implement projects with federal ‘conservation funding, which brings in over $100 million to Minnesota per year. USDA ‘economic analysis January 2010) shows that every dollar invested results in $1.28 in total return within Minnesota and that one fulltime job is created or maintained for every $107,250 of project funding. “his it wit ipnitcanty reduce tecnica capacity statewide, resulting it delayed project design and implementation including many agricultural practices such as feedlot water quality projects and soil conservation practice, The Federal Farm bill bring inthe majority of clean water and best management practice fds avaiable in Minnesota. However there is very litle money available forthe tecnica assistance. It isthe reaponsibiity ofthe stat to find technicians and enginers who get the projects done ‘With respect tothe Department of Commerce sections ofthe bil, there will be serious impacts on the Department's ability to fulfill its mission to protect consumers and to ensure equitable commercial and financial transactions and reliable utility services. ‘The Department invesigates and resolves consumer complaints, regulates insurance and banking and business activity in more than 20 other industries, advocates for the public's interest before the Public Utilities Commission, and administers various state and federal programs, ‘The effects of he bill are substantial. The ill contains a significant cut in the Administrative Services Division, which provides department core functions, including the Financial Management, Human Resources and Information Technology. ‘The 31% ‘cut, while offset by increases 1 unclaimed property staf, hurts these core functions.‘The Honorable Kurt Zellers May 24, 2011 Page 4 ‘My budget ccntained an appropriation for three positions forthe Division of Energy Resources, which were not included in the bill. These three positions would help expedite rate ease reviews and other regulator flings thatthe Department must, process. ‘There was no net impact on the General Fund as the eost for these positions Would be assessed tothe regulated utilities. These positions are supported by industry. HF1010 contains $29,707,000 in special revenue fund transfers not contained ia my budget. These funds are paid by businesses and individuals for specifi and limited purposes. Two of the fund transfers ae particularly troubling: ‘The bill transfers $950,000 from the Insurance Fraud Prevention Account, ‘which funds positions in the Department's Insurance Fraud Unit. The transfer ‘would create asevere cash flow gap starting July 1,2013, jeopardizing anti- fraud efforts and severely restricting the units ability to perform its duties. ‘© The ill transfers $1,500,000 from the Auto Theft Prevention Account. Funds from this account are used for grants to law enforcement and local units of ‘government foe auto theft prevention programs. The transfer will significantly ‘custal grant-making while the fund is restored to financial health ‘Two controvessial policy provisions were added tothe bill during the conference committee process. Policy language on restrictions to new coal-fired power was added by the conference committee and i highly controversial. This issue {is moving through the lepslative process on its own and has no place in an omnibus bbudget bill. Additionally, the bill ransfers the Auto Theft Prevention Account from the Deparment of Commerce to the Department of Public Safety. ‘The account is properly located at Commerce, and I object to its transfer. Finally, the interplay between the State Government Finance bill and this bill only ‘compound these already significant impacts to Minnesota's quality of life, economic well-being (especially in rural Minnesota), and the sustainability of Minnesota's valued natural resources. ‘The 15% reduction in staff required by 2015 inthe State Government Finance bill will rub in valuable workers being laid-off, in addition to those released, because of this bill's reductions. Not to mention the addtional eutbacks that each of | them will be required fo take because ofthe Legislature's $95 millon unallocated reduction inthe State Government Finance bill‘The Honorable Kurt Zellers May 24,2011 Page 5 [trust we can work together in the coming weeks to find a mutually agreeable resolution fo these key government services Sify. Mark Dayton Governor «ce: Senator Michelle L. Fischbach, President of the Senate Senator Amy T. Koch, Majority Leader Senator Thomas N. Bak, Minority Leader Senator Bill Ingebrigtsen Representative Paul Thissen, Minority Leader Representative Deany MeNamara ‘The Honorable Mark Ritchie, Secretary of State Mr. Cal R. Ludeman, Secretary of the Senate Mr. Albin A. Mathiowetz, Chief Clerk ofthe House of RepresentativesSTATE OF MINNESOTA Office of Governor Mark Dayton 130 State Capitol + 75 Rev. Dr. Martin Luther King Je. Boulevard « Saint Paul, MN 55155 May 24,2011 ‘The Honorable Michele L. Fischbach President of the Senate 226 State Capit St.Paul, Minnesota $5155 Dear Madam President With this leter, am vetoing and returning Chapter 41, Senate File 760, a bill establishing the Healthand Human Services budget for fiseal years 2012 and 2013, ‘This Health and Human Services bill, passed by the House and Senate, would ‘cause devastating harm: fo many thousands of Minnesotans, which I wil strongly oppose. TTeannot support a $1.8 billion reduction in health and human services spending. reduetion ofthis size jeopardizes the progress Minnesota has made in providing health coverage for the uninsured, supporting our seniors in their communities, offering treatment and commurity support for people with mental illness, and establishing a public health infrastructure that protects all Minnesotans. I understand the need for belt- lightening and I embrace the need for reform. But, Ido not accept that Minnesota must go backward inthe support we provide to our most vulnerable citizens. We are better ‘than that | find it unconseionable that this bill eliminates health care coverage for over 140,000 people. [fall of those losing coverage comprised a new community, it would be the third-largest city in Minnesota, far ahead ofthe populations of Rochester and Duluth. ‘This is accomplished in part by the repeal of the expansion of Medical Assistance to adults without children implemented under my Executive Order. Ihave made it very clear, but I wil repeat t yet again: I will veto any legislation that repeals the expansion of Medical Assistance, ‘This expansion has provided aevees to quality, comprehensive healthcare for 100,000 of Minnesota's poorest and most vulnerable citizens. This expansion leverages S15 billion in federal funds over three years. fail to understand ‘why, ina time of fiscal and human need, we would not take advantage ofthis opportunity | am concemed the bill reinstitutes the Coordinated Care Delivery Systems (CCDS) and creates a rew voucher program to provide health care for a substantial ‘numberof low-income people. The CCDS isa significant step back from the opportunity Voice: (61) 201-400 or (800 657-3717 Fax (651)797-1850 MN Relay (80) 627-3529 obsite: hup.//govemorstatemn.us {An Equal Opportunity Employer‘The Honorable Michelle L. Fischbach May 24,2011 Page 2 provided by the expansion of Medical Assistance. It is also dramatically underfunded for the 125,000 people who would have no access to other care, The voucher approach, with its significant cost-sharing, gamers much of its budget savings because about one-third of the people cannot afford it and will simply go without coverage. Ensuring our etizens have health care coverage is als critical to supporting a strong healthcare infrastructure. This bill puts that infrastructure at risk not only by the dramatic reductions in coverage, but also by making significant reductions to the funding ‘that supports medical education. Minnesota faces major health care workforce shortages as both the population and our current workforce of physicians pharmacists, and others age atthe same time. These shortages are most acute in Minnesota's rural and underserved areas, where vacancies are hardest to fil. These reductions will have a ‘major impact throughcut the state affecting the education, training, and reeraitment of nearly 3,500 health eare jobs critical tothe health and well-being of our citizens and the future of our state, The bill also marks a retreat from our efforts to make Minnesota a healthier state by addressing life style drivers of healthcare ike obesity and tobacco use and closing the gaps ir health outcomes in our communities of color. We lave anaeso much progres in al cate over he Last two dates in ‘Minnesota, I will not allow that progress to be turned back in one yea. also have grave concesns that this bill restricts Minnesota's ability to implement the Affordable Care Act (ACA). This sets Minnesota back in terms of expanding health cate coverage opportunites for families and puts usa risk of non-compliance with Medicaid law, unnecessarily risking billions of dollars in federal revenue. The ACA is a path forward for lower healthcare costs, and Minnesota must be on that path This bill also moves Minnesota inthe wrong direction in the care of seniors and ‘people with disabilities. Minnesota has pursued a decades-long, bipartisan strategy that ‘supports people in their homes and inthe community so they do not need to live in institutions. Yet 98% of the reductions to long-term care are to home and community based services with only 2% to institutions. The bill would force 1,500 people into nursing homes. This is bad public policy; not ony is it much less costly inthe long run te support people in their homes and the community, but this is where seniors and people with disabilities want tp live. We should not move Backward in an area where we have hnad so much success.‘The Honorable Michelle L. Fischbach May 24,2011 Page 3 ‘The bill would also undo much ofthe progress we have made to support people ‘experiencing mental illness, specifically undermining the bipartisan reforms passed in 2007. Reducing community grants that support people with mental iliness and repealing the expansion of Medical Assistance, undermine the successes we have accomplished in ‘keeping people out of institutions. We must not return toa system where too many of our ‘mentally ill citizens end up in jail, emergency rooms, and psychiatric hospitals Lam also dismayed ths bill takes aim at many of our very poorest and most vulnerable citizens. ‘The bill would eliminate the General Assistance program that provides $203 a month to 20,000 Minnesotans who cannot support themselves due to illnes, age, or disability. Without this necessary support, many of these Minnesotans ‘would be a risk of beeoming homeless, and would severely strain the basic safety net our already over-extended counties are striving to maintain. Moreover, the bill makes many shortsighted reductions to services that support vulnerable families and children. For example, the 50% reduction in the home visiting program undermines a proven program that stabilizes low-income families and supports healthy child developrient. Likewise, cutting family planning grants in half severely limits access to primany and reprodctive eae for women, Boll of dese progras have been proven to improve outcomes and lower costs. The bill also reduces funds counties and tribes use to protect children who have been abused or neglected. In each instance, ‘these reductions will result in more deep-end service costs down the road, We must agree that budget bills cannot be vehicles for divisive policy provisions. ‘SF 760 includes several problematic policy provisions. Of particular concern inthis bill ‘+ Prohibition onstem cell research: ‘This provision will halt important, ongoing, and future research into promising treatments for chron diseases, traumatic injuries, and genetic disorders. This prohibition will deeply affect the state's ‘emerging biotechnology industry and reduce jobs inthis important sector of our economy. ‘+ “Freedom of Choice Act": This provision attempts to nullify the Affordable Care ‘Act requirement that all individuals get healthcare coverage by 2014.. Minnesota {does not need to wade into this debate; the courts will determine if this provision of federal law is constitutional. This is in addition to the policy language previously mentioned that would prohibit al state activities in compliance with this enacted federal law.‘The Honorable Michdlle L, Fischbach May 24,2011 Page ‘+ Nursing homerate equalization: This wil lead to a two-tier system of nursing care for our seniors and, overtime, will increase long tem eare costs for thousands of Minnesotans. ‘© Residency requirements: The bill imposes a residency requirement forthe ‘Minnesota Fanily Investment Program. Such requirements are unconstitutional; including it inthe bill, wil only lead to litigation and the associated costs. ‘+ Nurse licensure compact: The Nursing Compact will introduce multi-state licensure and compromise Minnesota's high quality nursing standards by issuing an open invitation to any nurse practicing anywhere in the country, while ignoring ‘our academic and clinical requirements The bill also fils to make necessary investments recommended in my budget. These investments must be part of the health and human services budget to address federal compliance concems and program growl: + Funding must 3e provided forthe growth in the Minnesota Sex Offender program to ensure Minresota meets the treatment needs ofthis population and provides for the safety ofthe public. ‘© Full funding fer growth inthe Adoption Assistance program is necessary 10 ‘support families who adopt abused and neglected children with special needs and to ensure federal compliance and continuation of federal funding, ‘© Compliance wth federal Medicaid law requires we delay implementation of cligibility charges passed in 2009. Failure to pay for this delay could put billions of dollars in federal Medicaid funds at risk. ‘+ Funding must be provided to continue the activites outlined in the bi-partisan ‘2008 health cae reform bill. In passing the 2008 law, policy makers recognized the health care system has unsustainable health care cost growth and uneven quality. The lew provided temporary funding for MDH to collect and report critical information about costs, quality, and overall value of health care services for consumers and purchasers. Continued funding is crucial in controlling the rate of heals care cost growth and promoting quality improvement. The law also established the statewide Health Improvement Program (SHIP) that addresses the leading drivers of health care costs, tobacco use and obesity ‘© We must meetthe challenge of streamlining health care el leveraging federal technology funding. bility processes by am also concerned about the sizeof the reductions o the administrative budgets of the Departments of Health and Human Services. Over the las three years the DHS and MDH operational budget has been reduced over 15%. For DHS, ths bill wll reduce‘The Honorable Michelle L. Fischbach May 24,2011 Page 5 ‘nother $13.9 milliona year, resulting in a loss of 123 fulltime positions. For MDH, the bill will reduce operational budgets per year by another $3 million, of which $2.5 million is general fund. This equates to a reduction of 20 FTEs in MDH. ‘The interactions withthe State Government bill will only exacerbate this impact and extend reductions othe patient care functions ofthe Department. An impact ofthis ‘magnitude, risks public safety, patient care, and program integrity ‘We must continue to move Minnesota's health and human services systems forward. Ido believe we can work together to accomplish that. I understand reductions ‘must be made in the health and human services budget in order to balance the state budget. I note that SF 760 includes many of the reductions to health and human services, which Tnclufed in my budget. While those reductions are painful, Tam ‘encouraged we have found common ground in some areas [am also encouraged we have a common interest in reforming how we pay managed care organizations. We must ensure we are paying only what is necessary to provide people with access to quality healthcare. We also have a common interest in ean aad and imyroving dhe integrity oF our healh ware system, Tulse support initiatives that lead to nore efficiency and coordination among state agencies in our licensing, regulation, end data collection efforts | share your interest in secking flexibility from the federal government so we can improve Minnesota's health care system in a way that meets Minnesota's unique needs, Some aspects of the C4OICE waiver in SF 760 align withthe recent request for information published by the Department of Human Serviees to encourage development ‘of new health care delivery system models. The Request for Proposals being issued later this spring by DHS to develop new models of ear delivery can serve as a foundation for achieving the overarching goals of the waiver. This includes allowing providers and ‘others to mutually benefit by working together to improve health outcomes, improve quality of are, and provide better coondination of care and patient experience, while also reducing the total costof health care. Budgets are about priorities, and priorities are about choices. We can choose to work together, compromise, and create budget that fairly spreads the burden we must all shoulder if we are t» weather these tough times and position Minnesota for future“The Honorable Michele L. Fischbach May 24, 2011 Page 6 ‘Compromise is never easy, because each person must give up something that i important. Comprom se requires us fo agree to items that we don’t agree with. That is the only way we will reconcile our differences on the state's budget. With that in mind, 1 am returning ths bill 10 you with the hope that we can come together to find a balanced solution: one without these deep, damaging cuts, and one which achieves the balance ‘most Minnesotans have said they want in a budget solution Signer) Mark Dayton Governor ‘ce: Senator Michelle L. Fischbach, Present ofthe Senate Senator Amy T. Koch, Majority Leader Senatoe Thomas M. Bak, Minority Leader Senatoe David W. Hann Represantative Paul Tissen, Minority eer Representative Jim Abeler ‘The Honorable Marc Ritchie, Secretary of State Mr. Cal Ludemas, Seortary ofthe Senate Mr. Albin A. Mathiowetz, Chief Clerk of the House of RepresentativesSTATE OF MINNESOTA. Office of Governor Mark Dayton 130 State Capitol « 75 Rev. Dr. Martin Luther King Jz. Boulevard « Saint Paul, MN 55155 May 24,2011 ‘The Honorable Kurt Zellers Speaker ofthe House State Office Building, Room 463 100 Rev. Dr. Martin Luther King, Je. Blvd, St, Paul, Minnesota $5155 Dear Me. Speaker: ‘With this eter, am vetoing and returning Chapter 50, House File 1101, the Higher Education Finance Bill. The deep cuts for the University of Minnesota and Minnesota's State Colleges and Universities would cause hundreds of faculty layotls, tuition inereases, and iewer courses available to students. Minnesota would have a harder time providing employers with employees who have the skills and education they require. When the futare of our state depends on strong institutions of higher education, HLF, 1101 includes, inreal dollars, the deepest cuts to higher education in our state's history ‘The cuts of 19% to the University of Minnesota and 14% to Mn$CU are far too extreme, The total appropriations leave both the University of Minnesota and MaSCU \with substantially lower levels of state funding atthe same time they are serving 50,000 ‘more students. Your bill contains $240 million less than my recommendation and is unaceeptable to me. ‘The combination of reduced funding and tuition caps included in te bill would ‘unwisely limit the systems” abilities to manage the severe funding reductions. The proper entities to make final ition decisions within our two state systems are the University of ‘Minnesota’s Board of Regents and MnSCU’s Board of Trustees. ‘The funding for the Office of Higher Education is also too low. The reductions for administrative support would limit the agency's ability to provide critical services, such as student financial aid: work-study, grants, and loans. The combined effects of ditional cuts proposed inthe State Goverament bill could foree on OHE a 42% reduction in staff funded through the General Fund. Voce: (651) 201-3400 or (800) 657-97 Fae (651) 797-1850, MN Relay (400) 697-3509 ‘Wabaiesbtp://smvemocatate nny ‘An Equal Opportunity EmployerThe Honorable Kurt Zens May 24, 2011 Page 2 ‘Te bill contains a poliey provision that prohibits the use of state or federal funds to support human cloning or to pay for any expenses incidental to human cloning. The definition included in the bill s vague and could threaten further development of stem cell research. Itis imperative for Minnesota's bio-medical future that both the University ‘of Minnesota and the Mayo Clinic approve of any language affecting this vital area of research, which has the potential to bring thousands of jobs to Minnesota and save many ‘thousands more live. ‘The choices we made as leaders are a reflection of our values and priorities. Our colleges and universities, as well as our highly-skilled and educated workforce, are part, of what make Minnesota great, [am returning this bill to you with the hope that we can come together and compromise, and demonstrate our commitment to our students and to higher education in Minnesota, Siggerely, le: Mark Dayton Governor «ce: Senator Michele L. Fischbach, President ofthe Senate ‘Senator Amy T. Kech, Majority Leader ‘Senator Thomas M Bakk, Minority Leader ‘Representative Paul Thissen, Minority Leader Representative Bud Nomes ‘The Honorable Mark Ritchie, Secretary of Sate Mr. Cal R, Ludema, Secretary of the Senate ‘Mr. Albin A. Mathiowetz, Chief Clerk of the House of RepresentativesSTATE OF MINNESOTA Office of Governor Mark Dayton 130 tate Capitol 7 Rev. Dr Matin Luther King Boulevard aint Pal, MN 35155 May 24, 2011 ‘The Honorable Michelle L. Fischbach President of the Senate 226 State Capitol St Paul, Minnesota $5155 Dear Madam Presiden: ‘With this letter, Lam vetoing and retuming Chapter 39, Senate File 887, the Jobs and Economic Development Finance Bill. | appreciate that you have spared the Department of Labor and Industry from significant cus. This Department's work to enforce labor standards, facilitate apprenticeship programs, and to enforee prevailing wage isso important inthis economy. "Nevertheless, your eu in Funding for the Department's Apprenticeship Program ‘would reduce the department's ability to assess employers’ needs and to develop appropriate recruitment and training strategies. And the euts tothe Labor Standards Division may mean the department will not be able to provide critical and timely Regarding the MN Housing Finance Agency, I thank the Conference Committe for ‘adopting my position on three housing programs that serve the most vulnerable populations —the Family Homeless Prevention and Assistance, Bridges, and Housing ‘Trust Fund programs. They are very important programs, and I appreciate that we are all looking out for the very vulnerable people, who use these programs. However, there are cuts to the homebuyer counseling programs that will negatively {impact the nearly 1,200 households that will not oocive homebuycr counacling ata time when the mortgage financing system has become more complicated to navigate. In addition, fewer potential homebuyers will have access to down payment assistance, less neighborhood stabilizaion activities will occur in response to the foreclosure crisis, and {ewer rental housing properties in Greater Minnesota will be rehabilitated. Housing «development and redevelopment programs that help create jobs are reduced in the bill For every $1 million in state investment in affordable housing, 11.8 jobs are reated in Minnesota Voice: (651) 201-340 or (800) 657-3717 Fax (651) 797-1850 MN Relay (600) 627-3509, ‘Wabi: igs! /governoratatemn.y ‘An Equal Opportunity Employer