Higher Education
Funding college, grants
The omnibus higher education law provides less funding for 2004-05 than the University of Minnesota and the Minnesota
State Colleges and Universities (MnSCU) system previously allocated, but more for the state grant program.
Totaling nearly $2.56 billion, the law provides nearly $1.11 billion for MnSCU and slightly more than $1.1 billion
for the university. For MnSCU, the dollars are $189 million less than received in the past biennium, and $196 million
less for the university. However, the MnSCU number is $15 million more than recommended by Gov. Tim Pawlenty for fiscal
years 2004-05 and the university allocation is about $13 million higher.
Of the dollars for the MnSCU system, $560.9 million is allocated in the first year and $547.7 million in the second
year. The university will receive $549.4 million in fiscal year 2004 and $552.2 million the following year.
The Mayo Medical Foundation will receive
$2.78 million, under the law. This equates to a 12.3 percent ($492,000)
reduction when compared to fiscal years 2002-03. This funding level provides $1.06 million for the Mayo Family Practice
and Graduate Residency Program, $1.03 million for the Mayo Medical School, and
$692,000 for the St. Cloud Hospital-Mayo Family Practice Residency Program. The
state provides supplemental funding to Minnesota students enrolled in these
programs, which help prepare doctors to practice primary care in rural areas.
Money for the state grant program will increase in 2004-05, under the law.
Of the $175 million the Higher Education Services Office will receive in each fiscal year (an 11 percent biennial
increase), nearly $140.6 million of it is dedicated to the state grant program. By shifting of dollars from work-study
and child-care grants (which the office can now no longer do), $133 million was available for fiscal year 2003, but it
was not enough. The office had to cutoff applications in January 2003 in order to fund what was previously allocated.
The law also makes a number of changes regarding state grants.
The new law removes the asset disregard for program eligibility. Since 1998-99 up to $25,000 in savings and other
assets could be subtracted from the federal calculation of net worth before determining a family contribution.
The calculation of a state grant award is now based on the average tuition and fees charged by the institution
rather than the actual tuition and fees.
To help prevent a program deficit, the
office must prorate grant awards by equally reducing the amounts through an
additional surcharge to the applicant's assigned family responsibility and an
additional percentage added to the student responsibility. The dollar amounts in
each category must be equal.
Eligibility for the state grant program
and child-care grant program is reduced from 10 to eight equivalent semesters.
It was increased to 10 semesters two years ago. Students in two-year programs at
four-year institutions will be limited to the tuition and fee maximums
established in law for two-year institutions.
A student must also now apply within 14 days of the start of a term to receive dollars for that term. Previously
students had until Feb. 15 of the academic year to apply for grants.
The child-care grant maximum is reduced from $2,600 to $2,200 per academic year. It was increased from $2,000 to $2,600
two years prior.
The law also makes a number of other policy changes.
Rep. Doug Stang (R-Cold Spring) and Sen. Sandra Pappas (DFL-St. Paul) sponsored the legislation.
HF772/SF675*/CH133
Other Higher Education stories
Return to today's Session Daily
|