Conferees begin work to bridge higher education funding divide

The House and Senate are about $148 million apart on proposed funding for higher education with the major difference being where each body’s plan draws the line on providing tuition freeze assistance to students.  

The conference committee on the omnibus higher education finance bill (HF845/SF5*) met for the first time Tuesday with an overview of the spending and language provisions each side is bringing to the table. No action was taken.

Rep. Bud Nornes

Rep. Bud Nornes (R-Fergus Falls) and Sen. Terri Bonoff (DFL-Minnetonka) sponsor the bills.

The House plan includes $2.95 billion in 2016-17 biennial spending which amounts to a nearly $56.8 million increase from the forecasted base. Most of that increase would be dedicated to covering a partial tuition freeze for students attending colleges and universities in the Minnesota State Colleges and Universities system. Students attending two-year state colleges would receive a tuition freeze in the first year of biennium and receive a 1 percent reduction in tuition for the second year. Students attending four-year MnSCU schools would receive a tuition relief in the second year only.

The House would dedicate nearly $396 million to the Office of Higher Education, while $1.35 billion would be appropriated to MnSCU (a $105.31 million increase) and $1.2 billion for the University of Minnesota (a $2.9 million increase). Under the House plan, the university would not receive the $65.2 million in state funding officials say it needs to ensure a tuition freeze for students at all five of its campuses.

The Senate plan includes $3.1 billion in total spending over the next two years with $504.2 million for the Office of Higher Education, $1.3 billion for MnSCU and $1.29 billion for the university. The plan would appropriate $60 million for university tuition relief and provide free tuition to many technical college students who maintain at least a 2.5 grade-point average and participate in a mentor program.

Gov. Mark Dayton’s higher education proposed funding budget calls for nearly $3.1 billion in upcoming biennial spending, which he said would cover full tuition freezes for both systems.

Difference in state grant program spending

While the House bill would reallocate $53 million in existing state grant program funds to help cover the cost of a tuition freeze for MnSCU students, the Senate would provide nearly $20 million in additional state grant dollars, which are available to all college students attending accredited post-secondary programs in Minnesota.

Other policies and/or provisions proposed by the House that are not in the Senate bill include:

• $1.1 million for creation of a “Teacher Shortage Loan Forgiveness” program, which would appropriate funds to the Office of Higher Education to administer the program that would be available for up to five years to newly licensed teachers and teachers adding a licensure field who are teaching in an identified teacher shortage area;
• creation of a year-long student teaching program that combines clinical opportunities with academic coursework and in-depth student teaching experiences to offer students ongoing mentorship, coaching and assessment, help to prepare a professional development plan and structured learning experiences;
• $1.5 million to reinstate and support the agricultural education program and to enhance the health science program at the university’s Crookston campus; and
• $1.4 million in renovations and improvements at the university’s Morris campus.

Changes proposed by the Senate that are not in the House bill include:

• $25 million for University of Minnesota’s Medical School to recruit and hire up to 50 more medical researchers;
• creation of a grant program that would award grants to institutions for research into spinal cord injuries and traumatic brain injuries; and
• creation of an incentive program for promotion of Office of Higher Education services in order to promote various programs administered by the office. The annual total expenditures for such incentive programs shall not exceed $10,000.