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May 21, 2007 - Final Omnibus Higher Education Bill Check


 

Senate Majority Research

651-296-4949

May 21, 2007

 

2007 Omnibus Higher Education Bill

 

Summary:

Highlights from the MnSCU section of the bill include appropriations to eliminate nonresident tuition in seven community and technical colleges in the state, the creation of the Textbook Disclosure, Pricing and Access Act to fight against rising textbook prices, and $2 million for vocational education on the Range.  MNSCU will receive $152 million.

The Office of Higher Education will receive $35.857 million in new money for the biennium.  Highlights for the OHE are the GI Bill, additional money for Minitex, $2.5 million for childcare grants, and the introduction of the ACHIEVE program.

The U of M section includes money to create an India center at the U, $25 million for the U of M/Mayo partnership and $4.4 million for tuition banding.  The U of M will receive $174.6 million in new appropriations for the biennium.

The higher education new spending total is $361,488,000 for the biennium.

 

Office of Higher Education

 

  • GI Bill- $12 million for the biennium in ongoing funding
  • ACHIEVE- $10 million for 08-09, and $20 million in 10-11
  • Childcare Grants- $2.5 million for the biennium in ongoing funding
  • Tuition Reciprocity- $2 million for the biennium in ongoing funding
  • Minitex- $2.5 million for the biennium in ongoing funding
  • Learning Network-$1.15 million for the biennium in ongoing funding
  • Campus Compact-$250,000 for the biennium in ongoing funding
  • Washington Center Internships- $50,000 for the biennium in one-time funding
  • Augsburg Step UP Program-$250,000 for the biennium in one-time funding

 

GI Bill

The GI Bill will be used for eligible recipients after the federal Pell Grant, state grant program, and the federal military or veterans education benefits is applied to the students cost of attendance. Eligible students must have served on or after 9/11 in the US armed forces, accumulated 5 or more years in the MN National Guard, or are a surviving spouse or child of a person who died serving in the military on or after 9/11.  Recipients may receive $1,000 per semester, or $2,000 per state fiscal year with a $10,000 lifetime cap.

 

ACHIEVE

The ACHIEVE program will receive $10 million this biennium, and $20 million in the tails.  Students will receive $1,200 to use towards cost of attendants if they receive at least a grade of C for rigorous course work defined in the Federal Competitive Grant (ACG) Program.  Up to $3 million of the biennium funding can be used by the Office of Higher Education to support access to rigorous high school courses and college attendance programs.

 

Eligible students must:

(1) Submit a Free Application for Federal Student Aid (FAFSA);

(2) Take and receive at least a grade of C for courses that comprise a rigorous secondary school program of study in a high school or in a home-school setting, and graduate from high school;

(3) Have a family adjusted gross income in the last complete calendar year prior to the academic year of postsecondary attendance of less than $75,000;

(4) Be a United States citizen or eligible noncitizen, and

(5) Be a Minnesota resident.

 

Credit Card Marketing

Institutions will not be allowed to provide information to companies marketing credit cards to undergraduates.  However that will not apply to graduate students, so that alumni associations will be able to make credit card offers to graduates.

 

Personal Financial Management

During initial student registration, each technical college, community college, or state university shall, and the University of Minnesota is requested to, provide each student information on personal financial management. Students should understand and be able to manage personal finances including, but not limited to, the responsible use of consumer credit. This requirement may be waived for a student who enrolls in a college course providing similar instruction.

 

MNSCU

 

  • MNSCU Initiatives- $151.792 million for the biennium in ongoing funding
  • Eliminating Non-Res Tuition in 2-years- $3.436 million for the biennium in ongoing funding
  • Cook County Higher Education- $80,000 for the biennium in ongoing funding
  • Range Vocational Education- $2 million for the biennium in ongoing funding
  • eFolio Upgrade- $450,000 for the biennium in ongoing funding
  • CBED- $880,000 for the biennium in ongoing funding
  • MNSCU Technology- $6.7 million for the biennium in one-time funding
  • Textbooks- $500,000 for the biennium in one-time funding

Nonresident Tuition

$3.436 million is appropriated to Saint Paul College, Minneapolis Community and Technical College, Rochester Community and Technical College, Inver Hills Community College, St. Cloud Technical College, Century College and Normandale Community College.  The colleges will use the money to eliminate nonresident tuition.  This means a nonresident student will pay the same tuition as a resident student. 

 

CBED

 $880,000 is appropriated for the biennium for community-based energy development pilot projects at Mesabi Range Technical and Community College, the Minnesota West Community and Technical College, Riverland Community College, and Inver Hills Community College. Inver Hills Community College must partner with the city of Inver Grove Heights on a community-based pilot project and each of the other campuses must establish partnerships for community-based energy development pilot projects that involve students and faculty.

 

MnSCU Performance Funding

One percent of the MnSCU funding will be available if they can demonstrate that they:

(1)    Increase by at least 3%, compared to fiscal year 2005, the number of students who take college level courses in science, technology, engineering, and math.

(2)    Increase by at least 2%, compared to fiscal year 2005, enrollment in courses at the four existing center of excellence programs.

(3)    Increase by at least 700, compared to fiscal year 2007, the number of students trained on the use of electronic medical record technology.

(4)    Increase by at least 10%, compared to fiscal year 2007, the number of students taking online courses of the number of online courses offered.

(5)    Expand by at least 10%, compared to calendar year 2006, the use of “awards of excellence” or other initiatives that reward member institutions, faculty, administrators, or staff for innovations designed to advance excellence and efficiency.

 

Textbooks

$500,000 is appropriated to MNSCU for the Textbook Disclosure, Pricing and Access Act.  The bill will have publishers provide the following information for students:

  • The title, edition, author, and International Standard Book Number (ISBN) or other easily identifiable information for all course materials;
  • The undiscounted price at which the course materials are available to a bookstore;
  • The formats, including bundled and unbundled, in which those course materials are offered and the undiscounted prices of the various components, both sold separately or packaged together;
  • A summary of revisions between current and previous editions of course materials; and
  • The return policy for course material, including any penalties or conditions for returns.

The bill also requires the Office of Higher Education to identify methods to compile and distribute information on entities that sell course material for class room use.  Instructors are required to tell bookstores what materials they are considering, and the bookstores are required to get information from publishers regarding pricing, content changes, and bundling.  A textbook strategy report is due from the University, MnSCU and the Office of Higher Education on March 1, 2008.  Also the cost of textbooks at MnSCU campuses must be added to payment plans or waivers for tuition and fees.

 

U of M

 

  • U of M initiatives- $174.6 million for the biennium in ongoing funding
  • Dakota Language Instruction- $300,000 for the biennium in ongoing funding
  • Ag Special- $3.1 million for the biennium in ongoing funding and $1 million in one-time
  • Tuition Banding- $4.4 million for the biennium in ongoing funding
  • Scholarships (matching)- $5 million for the biennium in ongoing funding
  • Labor Education-$250,000 for the biennium in ongoing funding
  • Transportation Study- $300,000 for the biennium in one-time funding
  • India Center- $150,000 for the biennium in one-time funding
  • U of M/Mayo Partnership- $25 million for the biennium in one-time funding
  • Neighborhood Planning- $750,000 for the biennium in one-time funding
  • Performance Funding-$25 million

U of M Regent Selection Process

A joint committee, consisting of the members of the higher education budget and policy divisions from each house of the Legislature, will meet to consider recommendations by the advisory council.  Other than the advisory council, candidates can receive a recommendation to the joint committee by receiving support from at least three House and two Senate members.  The joint committee will recommend candidates to the joint convention by giving candidates a majority of the vote from both houses.  The Governor and his office are no longer involved in the selection process.

 

U of M Performance Funding

One percent of the U of M funding will be available if they can demonstrate at least 3 categories:

(1)   Increase financial support to pay the cost of attendance for students demonstrating financial need.

(2)   Maintain or improve the U of M’s rank in its national share of total research and development expenditures reported to the National Science Foundation over the 2007 ranking.

(3)   Increase by at least 5%, compared to fiscal year 2007, the number of degrees awarded in science, technology, engineering, math, and health science disciplines.

(4)   Increase by at least 5%, compared to fiscal year 2007, the amount of financial support from key funding sources for renewable energy research.

(5)   Increase and improve interaction and research activity beneficial to businesses and industry.

 

India Center

$150,000 in appropriated to the U of M to establish an India Center to improve and promote relations with India and Southeast Asia.  The center will partner with public and private organizations in Minnesota to:

  • foster an understanding of the history, culture, and values of India;
  • serve as a resource and catalyst to promote economic, governmental, and academic pursuits involving India; and
  • facilitate educational and business exchanges and partnerships, collaborative research, and teaching and training activities for Minnesota students and teachers.

Controversial?

This bill should be a good compromise for the Governor.  Several changes were made in response to his veto letter.

The changes were:

  • This bill is reduced by $20 million in 2010 and 2011. 
  • The GI bill has been increased by $2 million and now includes graduate students.
  • The ASPIRE/ICAP has been eliminated and ACHIEVE will receive $10 million in funding for the biennium.
  • 1% performance funding for MnSCU and the U of M are included in the bill.
  • The DEED Commissioner language has been removed from the MnSCU board and the Senate language has been inserted.

Even with these changes, tuition increases should not be affected for the 2008 and 2009 school years.   

 

Researcher: Daniel Hicks 296-5561