March 22, 2010 - Supplemental Budget Bill S.F. 3223 Bill Check

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Comparison of Senate and Governor's Supplemental Budget Bills

Article 2 – Higher Education

University of Minnesota 2010-11 2012-13

Governor’s Proposal ($36.12 million) ($172.24 million)

Senate’s Bill ($36.12 million) ($46.558 million)

These reductions will cut the U of M’s state funding level to their 2001 level. The funding is taken from the U of M’s operations fund. The legislation allows the U of M to decide the best way to absorb the reductions. The Senate’s budget does not include the Governor’s ongoing unallotments in 2012-13 ($100 million).

MnSCU 2010-11 2012-13

Governor’s Proposal ($10.467 million) ($120.934 million)

Senate’s Bill ($10.467 million) ($46.586 million)

The Senate’s and Governor’s proposals both reduce MnSCU’s funding by $10.467 million. These cuts reduce MnSCU’s state funding to their 2002 level.

The Senate reduces the Central Office funding by $43.749 million, while increasing the operations and maintenance budget by $33.282 million for 2010-11. This is done to give MnSCU more flexibility with their cuts by not having the Central Office funding as a separate line item (the Central Office will still receive funding).

The Senate’s budget does not include the Governor’s ongoing unallotments in 2012-13 ($100 million).

Office of Higher Education (OHE)		Governor	Senate

Administration	2010-11	($141,000)	($141,000)
	2012-13	($162,000)	($162,000)

Fiscal Policy and Research (OHE)	2012-13	($154,000)	$0

Student & Parent Information Program	2010-11	($9,000)	$0
	2012-13	($6,000)	$0

Get Ready Outreach Program	2010-11	($6,000)	$0
	2012-13	($12,000)	$0

MMEP	2010-11	($3,000)	$0
	2012-13	($6,000)	$0

Financial Aid

Eliminate Summer Grant	2010-11	($4.876 million)	$0
	2012-13	($4.8 million)	$0

Eliminate 9^th Semester	2010-11	($4 million)	$0
	2012-13	($8 million)	$0

Child Care Assistance Grants	2010-11	($500,000)	$0
	2012-13	($1 million)	$0

Work Study	2010-11	($2.5 million)	($2.303 million)
	2012-13	($5 million)	($4.606 million)

American Indian Scholarships	2010-11	$0	$0
	2012-13	($240,000)	$0

Technical and Community	2010-11	($150,000)	($150,000)
College Emergency Grants

Other Programs

ICAP	2010-11	($65,000)	$0
	2012-13	($86,000)	$0

Midwest Higher Education Compact	2010-11	($6,000)	$0
	2012-13	($6,000)	$0

United Family Practice	2010-11	($41,000)	($41,000)
	2012-13	($56,000)	($56,000)

MN College Savings Program	2010-11	($72,000)	($72,000)
	2012-13	($100,000)	($100,000)

MINITEX Library Services/MnLINK	2010-11	($457,000)	($457,000)
	2012-13	($724,000)	($724,000)

Achieve Grants

Both the Senate and the Governor’s proposals transfer federal Leveraging Educational Assistance Partnership (LEAP) program and Special Leveraging Educational Assistance Program (SLEAP) funding ($2.66 million in 2011 and $2.66 million in 2012-13) to the Achieve scholarship program.

State Grant Program

There is a deficiency in the State Grant Program due to the increased number of students. To make up for the deficiency, the Senate is proposing to ration the grants. The Senate’s proposal:

· Keeps the 9th semester and summer transition grants (Governor cuts those);

· Increases the Assigned Student Responsibility by 2.25% (from 46% to 48.25%); and

· Creates a 20.5% Assigned Family Responsibility Surcharge.

Controversial? The Higher Education section of this bill should not be controversial. Though we would like to make zero cuts to this area, higher education fares very well compared to other budgets because of maintenance of effort. Because the state used federal stimulus funding, higher education can only be cut to its 2006 funding levels.

Read the full budget comparison