Yes, you can expect the Legislature to adjourn on May 23, as the state's constitution requires. But just about everything else at the Capitol remains uncertain. That's because leaders of the House and Senate, who are Republicans, and Gov. Mark Dayton, a Democrat, have widely differing views about how to build the state's next budget.

Without an agreement, state government will not be funded after June 30, when the next two-year budget cycle begins. For higher education, the lack of a budget agreement has made it difficult for institutions. For example, without clarity on State Grant funding, it has been hard for both public and private institutions to accurately inform students about the amount of state financial aid they will be eligible to receive.

House and Senate agreement on higher education
One necessary step was reached last week when members of the Higher Education Finance Conference Committee reached an agreement on how to reconcile the differences between the two chambers' budget proposals.

The agreement would cut $411 million from the projected general fund base spending for higher education. This proposal will be the legislative position on higher education in negotiations with the administration.

• Funding for the Minnesota State Colleges and Universities (MnSCU) system would be reduced 14%, or $180 million. Tuition increases would be capped at 5% the first year and 4% the second year for four-year institutions and 3% for two-year institutions.
• Funding for the University of Minnesota would be reduced 19%, or $243.6 million. The legislature lacks the authority to place tuition caps at the U of M but the conference committee report includes language encouraging the system to keep tuition increases to 5% the first year and 4% the second year.
• Funding for the State Grant program would increase $21 million, a 7% increase to $309 million per biennium. Given growing demand, that appropriation would still leave a shortfall of more than $7 million in the State Grant program for the next two fiscal years. That kind of shortfall would require ongoing rationing of awards over the next two academic years.

What happens next
While the Legislature is expected to pass a budget before it is required to adjourn, that certainly doesn't mean the governor will be willing to sign it into law. Without an agreement on overall tax and spending levels for the next budget, the governor may be likely to veto all or most budget bills. The governor can then call legislators back for a special session, at a time of his choosing. If the two sides remain unable to reach an agreement, any state budget items not funded by June 30 will shut down as of July 1, when the state's new fiscal year begins without a budget in place.