The week the Minnesota House and Senate higher education committees both released and approved their committee’s omnibus bill. The committee has to work with a budget increase of $650 million, of which $450 million is ongoing in the base.

The below summary starts with the House bill, followed by the Senate bill.

House funded student priorities:

  • Tuition Freeze: $25 million in FY2024 and $50 million in FY2025 for student tuition relief. The $50 million from FY2025 is in the base, so there is $100 million in FY2026-2027 ($50 million each year). The Board of Trustees may not set tuition rates in any undergraduate degree-granting program for the 2023-2024 and 2024-2025 academic years at a rate greater than the 2022-2023 academic year rates.
  • Z-Degree Textbook Program/Open Educational Resources: $1 million in one-time additional funds each year of the biennium for a total of $2 million to reduce students’ out-of-pocket costs by expanding free offerings in course materials and resources, including through open educational resources, open textbooks, and implementation of Z-Degrees. There is $50,000 in the base moving forward.
  • Student Support: $26 million in FY2024-2025, which is $13 million each year of the biennium, to expand student support services. The funding is for campuses to address basic needs insecurity, mental health and other high-need student support serves by increasing the amount of available resources to students. In addition, this funding provides systemwide resources and coordination. Of the $13 million in FY2025, $2 million is ongoing in the base.
  • Workforce Development Scholarships: $12.5 million in one-time funding in FY2024-2025, which is $6.25 million each year of the biennium, is added to the workforce development scholarship program. The current base for this program is $4.5 million, so that base funding will stay the same. The $6.25 million appropriated in FY2025 is to be matched with cash or in-kind contributions from non-state sources. The program is amended to add construction, education and public safety as eligible programs of study. The program is also amended to increase the total lifetime award from $7,500 to $12,000
  • Emergency Assistance for Students: $2.854 in FY2024 and FY2025 in additional funding for emergency assistance grants is provided to meet emergency needs of students including emergency housing, food and transportation. The base amount for this program is $2.926 million.
  • Base funding of $102,000 each year of the biennium for the Hunger-Free Campus Grant program for institutions that meet and maintain requirements.
  • State Grant LME: The bill includes an increase in the living and miscellaneous expense allowance (LME) in the State Grant program of $12 million in FY2024 and $9.1 million in FY2025, which is ongoing funding in the base. The bill increases the LME from 109% to 115% of the federal poverty guidelines when calculating the LME.
  • State Grant Simplification and Federal Conformity: The bill includes $12.7 million in FY2024 and $5 million in FY2025 to conform the State Grant program with changes to the federal needs analysis and Pell Grant calculation that were passed by Congress in December 2021 and are currently scheduled to be implemented for the 2024-2025 aid year (July 1, 2024, fiscal year 2025). These changes will have a significant impact on State Grant administration and spending. The changes impact two key areas – the calculation of the student and family contributions or EFC, and the calculation of and eligibility for the Pell Grant award. The $5 million in FY2025 is ongoing.
  • Student Parent Support Initiative: The bill includes $4.425 million in FY2024 and $4 million in FY2025 for grants to support student parents. The base amount going forward in FY2026 and later is $3.5 million. In order to address the needs and support the educational goals of expectant and parenting college students across Minnesota, grants will be awarded by OHE, and services will be provided to assist parents.
  • $5.7 million each year for supplemental aid to non-metro colleges
  • $40,000 each year to implement sexual assault policies.

The House bill includes $331.351 million in FY2024-2025 in new money for Minnesota State, of which $203.395 million is ongoing base funding. Of that total, the House funds the following for Minnesota State:

  • Minnesota State Stabilization: $122 million in FY2024-2025, which is $61 million each year of the biennium, for an increase in funding for college and university operations and maintenance. Of the $61 million in FY2025, $46.9 million is ongoing in the base.
  • Campus One-Time Support: $50 million of one-time funding in FY2024 for campus support. The Board of Trustees is to allocate the one-time funding to all colleges and universities based upon each institution’s estimated tuition revenue loss due to declines in enrollment from FY2019 to FY2023.
  • NextGen/ISRS: $3 million in FY2024-2025, which is $1.5 million each year of new money over the biennium, for enterprise-wide technology. This brings the amount for upgrading the Integrated Statewide Record System and maintaining enterprise-wide technology services to $9.5 million each year of the biennium, with $9.1 million ongoing in the base.

Senate funded student priorities:

  • Minnesota Commitment to Higher Education: The bill appropriates $496,000 in FY2024 and $177.105 million in FY2025, with a base moving forward of $49.30 million, for a new program that provides for student scholarships beginning in the 2024-2025 academic year for eligible students in an amount not to exceed 100% of tuition and fees after grants and other scholarships are deducted. An eligible student is a resident student enrolled in any public postsecondary education institution or Tribal college. Conditions for eligibility includes an adjusted gross household income below $80,000, student has not earned a baccalaureate degree at the time the scholarship is awarded, has completed the FAFSA, is enrolled in at least one credit per fall, spring or summer semester, and meeting satisfactory academic progress. (Not in the House bill).
  • Hunger-Free Campus Grants: $1.4 million in FY2024 and $900,000 in FY2025 for the Hunger-Free Campus grant program. The base amount for this program is $900,000. (No new money in the House bill). The program is expanded to include non-profit private postsecondary institutions and increases the maximum awards.
  • Postsecondary Student Basic Needs Working Group: $44,000 in FY2024 is to administer a postsecondary student basic needs working group to review, assess, and make specific recommendations on strategies to meet the basic needs of higher education students. (Not in the House bill).
  • Z-Degree Textbook Program/Open Educational Resources: $1 million in one-time additional funds each year of the biennium for a total of $2 million for open educational resources. There is $50,000 in the base moving forward. (House bill funds the textbook request the same as the Senate).
  • Workforce Development Scholarships: $1.5 million in one-time funding in FY2024-2025, which is $750,000 each year of the biennium, is added to the workforce development scholarship program. The current base for this program is $4.5 million, so that base funding will stay the same. (House bill includes $12.5 million in one-time funding).
  • Student Support: $26 million in FY2024-2025, which is $13 million each year of the biennium, to expand student support services. Of the $13 million in FY2025, $5 million is ongoing in the base. (House bill funds $26 million, with $2 million in the base).
  • Emergency Assistance for Students: $7.231 million in FY2024 and FY2025 in base funding for emergency assistance grants to meet emergency needs of students is included in the Senate bill. Of that funding, $5 million each year of the biennium is for direct emergency grants to students at Minnesota State. (House bill appropriates to the current program at OHE $2.854 in FY2024 and FY2025 in additional funding with a base of $2.926 million).
  • State Grant LME: The bill includes an increase in the living and miscellaneous expense allowance (LME) in the State Grant program of $13.98 million in FY2024 and FY2025, with $10 million ongoing in the base. The bill increases the LME from 109% to 115% of the federal poverty guidelines when calculating the LME. (Same proposal as the House, but different funding).
  • State Grant Simplification and Federal Conformity: The bill includes $12.7 million in FY2024 and $5 million in FY2025 to conform the State Grant program with changes to the federal needs analysis and Pell Grant calculation that were passed by Congress in December 2021 and are currently scheduled to be implemented for the 2024-2025 aid year (July 1, 2024, fiscal year 2025). These changes will have a significant impact on State Grant administration and spending. The changes impact two key areas – the calculation of the student and family contributions or EFC, and the calculation of and eligibility for the Pell Grant award. The $5 million in FY2025 is ongoing. (House bill funds the program the same as the Senate).
  • Student Parent Support Initiative: The bill includes $6.6 million in FY2024 and $6.1 million in FY2025 for grants to support student parents. The base amount going forward in FY2026 and later is $338,000. In order to address the needs and support the educational goals of expectant and parenting college students across Minnesota, grants will be awarded by OHE, and services will be provided to assist parents. (Same proposal as the House, but different funding).
  • $5.7 million each year for supplemental aid to non-metro colleges.
  • $40,000 each year to implement sexual assault policies.

The Senate higher education omnibus bill includes $258.285 million in FY2024-2025 in new money for Minnesota State, of which $181.809 million is ongoing base funding. Of that total, the House funds the following for Minnesota State. Included by each item is the House bill status of that item.

  • Minnesota State Stabilization: $125 million in FY2024-2025, $40 million in FY2024 and $85 million in FY2025. The $85 million is ongoing in the base. (House bill includes $122 million in FY2024-2025, which is $61 million each year of the biennium, with $46.9 million in the base).
  • Campus One-Time Support: $74 million of one-time funding in FY2024 for campus support. The Board of Trustees is to allocate the one-time funding to all colleges and universities based upon each institution’s estimated tuition revenue loss due to declines in enrollment from FY2019 to FY2023. (House bill includes $50 million one-time funding).
  • Menstrual Products: $482,000 in FY2024 and $282,000 in FY2025 and ongoing is appropriated for Minnesota State campuses to provide menstrual products in campus restrooms free of charge. (Not in House bill)
  • $8 million in the base for ISRS/NextGen.

Thank you to the Minnesota State Government Relations staff for assembling all this information.