Session Update
The 2007 legislative session is now over. The new higher education omnibus bill passed on Monday and is now awaiting the signature of the Governor. He is expected to sign the bill. The new bill remains much the same as I had described in my previous bill summary. However, there are new funding numbers for the University and there are changes in other provisions that affect the University; the most significant of these are listed below.
Funding
The higher education bill provides $149 million in new funding for the University, almost all of which is permanent ongoing funding. In addition the U/Mayo Partnership receives $25 million in one time funding this biennium and it will receive $8 million per year beginning in 2010.
Tuition
There have been several news reports that the bill contains tuition caps of 3½ percent for the University of Minnesota. This is not correct. The bill does not have any tuition caps. Rather, the bill provides funding for scholarships for undergraduate Minnesota resident students with family income under $150,000 per year. The state dollars must be matched with $1.50 of non-state money for each $1 of state money. For example, this will provide for a tuition buy down on the Twin Cities campus for these students of about 2½ percent each year.
ACHIEVE
ACHIEVE is a program to encourage rigorous high school study and college attendance, proposed by the Governor, that awards scholarships ($1,200) for high school students completing qualifying study who graduate after January 1, 2008. Rigorous high school courses can include College in the Schools courses and Postsecondary Enrollment Options; the student must receive at least a grade of C to be eligible.
Performance measures
One percent of the University’s appropriation is available when 3 of the 5 performance goals have been met. This is an important initiative for the Governor that was added to the bill in an attempt to prevent another veto. The 5 performance goals are:
1. increase financial support to pay the cost of attendance for students with financial need;
2. maintain or improve the University’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 five percent, compared to fiscal year 2007, the number of degrees awarded in science, technology, engineering, mathematics, and health sciences disciplines;
4. increase by at least five percent, compared to fiscal year 2007, the amount of financial support from key funding sources for renewable energy research; and
5. increase and improve interaction and research beneficial to business and industry.
