Text: Reaching into a bag of Cheetos for another crunchy, orange, cheese-coated morsel, Sen. Kathy Sheran, DFL-Mankato nodded in agreement as her counterpart, North Mankato Rep. Clark Johnson, talked about the state's budget surplus. The tone of the post-legislative luncheon, held June 11 and hosted by the St. Peter Area Chamber of Commerce's public affairs committee, was casual. Sheran and Johnson, seated at the front of the room, munched away on chips and cookies while talking to the audience about their recent work at the capitol. "I really hope no one else wanted Cheetos," Sheran said, shaking the nearly-empty bag before picking up where Johnson left off. She picked up a sheet of paper and began to talk Minnesota finance, answering a question posed by local resident and Region 9 Development Commission member Terry Genelin. "Hasn't the surplus been committed?" Genelin said, asking if any of the nearly $1.2 billion surplus would be left after a round of state investments. Johnson said it is projected that Minnesota will build up another $600 million surplus before its next budget cycle, which he thought was a "comfortable cushion," while Sheran said she hoped the state's economic growth continues. "But if economic growth slows at all that $600 [million] disappears," Genelin said. If that happens, the Legislature will have to rethink a few things, said Sheran. "When you talk about the budget, you are going to talk about the growth and demand for state services and if you're going to provide them," she said. "The only other option is not providing them." Other questions raised by business owners related to student loan refinancing. Legislation that allows Minnesota students to refinance their college loans through the state Office of Higher Education was included in recently passed supplemental budget bill. The bills guarantees lower interest rates, allowing the students to refinance loans with interest rates ranging from 9 to 12 percent, down to 3 or 4 percent. Nicollet County Bank's Lisa Gault said customers have already come in and asked how to begin refinancing their children's loans and asked what the bank should tell them. Sheran said they could contact the Minnesota Office of Education for help, adding that the bill is a positive investment and shifts the focus from investing heavily in higher education facilities themselves, and onto investing in students who have demonstrated they can succeed in college and have earned degrees. "We're going to pay if somebody actually achieves, she said. The group also briefly talked about the 5% Campaign, which raised state reimbursement rates for home- and community-based services providers, as well as intermediate care facilities by 5 percent. Linda Nelson, CEO of St. Peter's Benedictine Living Community, said she appreciated the 5% Campaign, but that more work needed to done. Benedictine still operates at a $30 per day reimbursement deficit, she said, and does not receive enough money from Medicare and Medicaid to make up the difference. Johnson said it will likely take a while to get the state's nursing homes back in the black. "The challenge at the nursing homes is long term," Johnson said. "It's not going to be solved immediately." Sheran said the goal is to get nursing homes to the level of funding they received before the state's budget crises. After reimbursement rates level out, additional steps can be taken. The same goal applies to higher education and Minnesota's K-12 schools, she said. The state once borrowed money from both, as well as its Health and Human Services Department, to close its budget deficit. Now it's time to give it back, she said. Once original funding levels are restored, the state can move forward and direct surplus money to where it's needed. "We need to get back to zero," Sheran said. "We need to get those funding levels back to where they were before."