Capitol Update 5 2/8/2013 This week at the Capitol, the building was buzzing with activity.

The Governors State of the State address on Wednesday was a highlight. While this event may have gotten the most press, there were certainly many other noteworthy occurrences. For instance, my suitemate, Senator Roger Reinert introduced his Sunday Liquor Sales bill. On Thursday, students from the University of Minnesota held their Day on the hill. I was proud to be asked to speak at their rally in the Rotunda. This same day, in the Higher Education/Workforce Development committee, we heard from student representatives across the state pleading the case for reduced tuition. I will share my thoughts on these activities and look forward to hearing from you. Additionally, I have included my thoughts on these activities in a brief video. State of the State: On Wednesday, all eyes were on the Governor as he delivered his annual State of the State address in front of the Senate, House, and thousands of viewers across the state. The Governor delivered a powerful and moving speech, which demonstrated the deep commitment he has to his vision for a better Minnesota. The address clearly reflected the Governors values; chief among them is an unprecedented investment in education. As Chair of the Higher Education/Workforce Development committee, I was pleased to hear his steadfastness in this investment. I believe that money alone will not solve our educational challenges (many of you have written in to remind

me of that); we must pay close attention to how we spend our dollars to ensure this investment pays off.

(VIDEO) Governor Mark Dayton delivers the 89th annual State of the State Address. Click here to watch

As I have previously discussed, I do not agree with everything the Governor put forth in his address while being very appreciative of his commitment to each and every Minnesotan. As I have stated before, I do not believe that the creation of a fourth tier income tax bracket is the smartest policy for Minnesota. Nor do I believe that the service tax should extend to business-to-business services. The beauty of the legislative process is that we have the time to gather input, do research and have the checks and balances to put forward our best thinking. I am doing my best to present the approach that I think gives us the greatest chance for economic strength and overall well-being. In the coming months, my colleagues and I will have the opportunity to engage in a healthy debate over specific policies. Student Debt: You may have read my op-ed in the Star Tribune that came out on Thursday in which I addressed the necessity to curb out of control student debt. I wont recap the article here, but I will say that in my short time as Chair of the Committee on Higher Education/Workforce Development, I have seen the facts and figures of the average student debt, $29,000. Additionally, I have heard testimony from students who describe horror stories of exiting college with upwards of $100,000 in debt. This is simply unacceptable and unsustainable.

http://projectonstudentdebt.org/state_by_state-view2012.php?area=MN

Some of you have expressed that you believe the students should be held accountable for taking on so many loans without a clear plan of how to pay them back. Yet I am concerned about the toll this debt is taking on our overall ability to recover from this recession and our young peoples ability to have the basic things we look forward to in adult life, a house, a car, and of course most importantly, a family. I have been discussing ideas with my fellow committee members and staff on what the state can do to address this epidemic. One idea we have considered is to encourage our business leaders to get more involved in our post-secondary institutions through mentoring and internships. This partnership will provide students with more information about what degree among their interests may result in the best economic opportunity post-college, speed up the time it takes for them to decide on a major, and ultimately graduate with a relevant degree. A related topic that has come up is setting up a loan forgiveness program. One initiative in particular that I am working on is proposing to move the small decrease the Governor proposed from the business unemployment insurance tax to a fund for student debt relief. Of course, the students would have to earn this relief; it would not be a hand out. This idea is preliminary. I invite you to join this dialogue. Please take a moment to respond to this one-question poll: Do you favor establishing a program that helps alleviate student debt? Click here to respond.

Senator Bonoff speaking to students at University of Minnesotas Day on the hill.

Around the Capitol: Gun-control bills began to be heard in House committees this week. The committee rooms were packed with testifiers and other interested parties, so much so that even the rooms set up for overflow seating were full. The Health Insurance Exchange bill has already made its way through three committees: Commerce; Health, Human Services, and Housing; and Taxes. I am engaged in how we might make this exchange proposal less costly and its design reflective of our best thinking from industry experts. I think we have some distance to go. Next week the 494 bill will be heard in committee. I will keep you updated. Thanks for staying connected. Wishing you and your families a Happy Valentines Day. Best Regards,

Terri Bonoff