Senate Counsel, Research
and Fiscal Analysis
Minnesota Senate Bldg.
95 University Avenue W. Suite 3300
St. Paul, MN 55155
(651) 296-4791
Alexis C. Stangl
Director
   Senate   
State of Minnesota
 
 
 
 
 
S.F. No. 5 - Higher Education Omnibus Bill (First Special Session - 2011)
 
Author: Senator Michelle L. Fischbach and Representative Bud Nornes
 
Prepared By:
 
Date: July 19, 2011



 

Article 1

Higher Education Appropriations

Section 1, subdivision 1, summarizes appropriations by fund.

 Summary by Fund

 

2012

2013

Total

General

$1,282,884,000

$1,282,633,000

$2,565,517,000

Health Care Access

$2,157,000

$2,157,000

$4,314,000

Total

$1,285,041,000

$1,284,790,000

$2,569,831,000

 

 

Subdivision 2 summarizes appropriations by agency.

Summary by Agency - All Funds

 

2012

2013

Total

Minnesota Office of Higher Education

$190,823,000

$190,573,000

$381,396,000

Mayo Medical Foundation

$1,351,000

$1,351,000

$2,702,000

Board of Trustees of the Minnesota State Colleges and Universities

$545,366,000

$545,365,000 

$1,090,731,000 

 Board of Regents of the University of Minnesota

$547,501,000 

$547,501,000 

$1,095,002,000

Total

$1,285,041,000

$1,284,790,000

$2,569,831,000

 

 

Section 2 contains boiler plate language defining fiscal years.

Section 3, subdivision 1, appropriates $190,823,000 in fiscal year 2012 and $190,573,000 in fiscal year 2013 to the Office of Higher Education.

Subdivision 2 appropriates $154,624,000 in fiscal year 2012 and $154,625,000 in fiscal year 2013 for the state grant program. 

For the biennium, the tuition maximum is $10,488 each year for students in four-year programs and $5,808 in each year for students in two-year programs.

Sets the living and miscellaneous expense allowance at $7,000 each year.

Authorizes the transfer of program funds between fiscal years.

Subdivision 3 appropriates $100,000 in each year for the Public Safety Officers' Survivor Program. 

Subdivision 4 appropriates $6,684,000 in each year for Child Care grants.

Subdivision 5 appropriates $14,502,000 in each year for the State Work-Study program.

Subdivision 6 appropriates $1,850,000 in each year for the American Indian Scholarship program.  This appropriation includes money to administer the program.

Subdivision 7 appropriates $671,000 in each year for the Intervention for College Attendance Program.  Up to $50,000 of this appropriation in each year may be used for administrative expenses.

Subdivision 8 appropriates $95,000 in each year for the Midwest Higher Education Compact.

Subdivision 9 appropriates $351,000 in each year to support up to 18 residents of the United Family Medicine Residency program.

Subdivision 10 appropriates $3,150,000 in fiscal year 2012 and $3,250,000 in fiscal year 2013 for tuition reciprocity.  If the appropriation for either year is insufficient, the appropriation for the other year is available to meet reciprocity agreement obligations.

Subdivision 11 appropriates $350,000 in fiscal year 2012 for matching grants available to income-eligible participants in the Minnesota College Savings program.  Beginning in fiscal year 2013, matching grants will no longer be available to program participants.

Subdivision 12 appropriates $5,605,000 in each year for the MnLINK Gateway and Minitex.

Subdivision 13 appropriates $122,000 in each year for student and parent information. 

Subdivision 14 appropriates $180,000 in each year for Get Ready.

Subdivision 15 appropriates $45,000 in each year for the Minnesota Minority Partnership.

Subdivision 16 appropriates $2,494,000 in fiscal year 2012 and $2,493,000 in fiscal year 2013 for Agency administration.

Subdivision 17 authorizes the use of money not spent in the first year of the biennium, for programs cited in subdivisions 2 through 16, to be used in the second year of the biennium.

Subdivision 18 authorizes the transfer of money among specified financial aid programs after providing notice to the chairs of the Higher Education Finance committees.

Section 4, subdivision 1, appropriates $545,366,000 in fiscal year 2012 and $545,365,000 in fiscal year 2013 to MnSCU.

Subdivision 2 appropriates $33,074,000 in each year for the Office of the Chancellor and Shared Services Unit. Reductions in this appropriation must not be allocated or charged back to any campus or institution.

Subdivision 3 appropriates $508,177,000 in fiscal year 2012 and $508,176,000 in fiscal year 2013 for operations and maintenance. $102,000 each year is for the Cook County Higher Education Board to provide educational programs and academic support services.

Sets aside one percent of the FY 2013 appropriation, for release when MnSCU has met three of five performance goals that include:

(1) increasing the percentage of graduates; or degrees, diplomas, and certificates conferred;

(2) increasing the number of students of color;

(3) increasing the number of students taking online or blended courses, or the number of online and blended sections;

(4) increasing student persistence and completion rates; and

(5) decreasing energy consumption.

Establishes a process for determining that the goals have been met, and requires a report to the Legislature describing progress towards meeting each goal.

Subdivision 4 appropriates $4,115,000 in each year for the Learning Network.

Subdivision 5 directs the MnSCU Board of Trustees to place the highest priority on meeting the needs of Minnesota employers for a skilled workforce.  The board must deliver their educational programs and services as efficiently as possible.

Section 5, subdivision 1, appropriates $547,501,000 in each year to the University of Minnesota.

Subdivisions 2 through 5 appropriate: 

·    $483,881,000 in each year for operations and maintenance.  Includes  money for the Veterinary Diagnostic Laboratory.  Encourages the Board of Regents to at least proportionally reduce spending for administration relative to spending reductions in other budget areas;

·    $2,157,000, from the health care access fund, in each year, for primary care education initiatives;

·    $42,922,000 in each year for Agriculture and Extension Services;

·    $4,854,000 in each year for health sciences;

·    $1,140,000 in each year for the Institute of Technology;

·    $5,056,000 in each year for System Specials; and

·    $7,491,000 in each year for the University of Minnesota and Mayo Foundation Partnership.

Sets aside one percent of the FY 2013 appropriation for release when the University of Minnesota has met three of five performance goals that include:

(1) increasing the amount of student financial aid;

(2) producing at least 13,500 total degrees systemwide in FY 2012;

(3) increasing the four- and six-year undergraduate graduation rates on the Twin Cities campus;

(4) increasing total research and development expenditures; and

(5) increasing sponsored funding from business and industry.

Establishes a process for determining that the goals have been met, and requires a report to the Legislature describing progress towards meeting each goal.

Encourages the Board of Regents of the University of Minnesota to place the highest priority on meeting the needs of Minnesota employers for a skilled workforce.  The board must deliver their educational programs and services as efficiently as possible.

Subdivision 6 appropriates $22,250,000, each year, from the proceeds of the cigarette tax, to the Academic Health Center.

Section 6, subdivision 1, appropriates $1,351,000 in each year to the Mayo Medical Foundation.

Subdivision 2 appropriates $665,000 in each year to the Mayo Medical School to support the education of medical students who are Minnesota residents.

Subdivision 3 appropriates $686,000 in each year to support  up to 27 family practice residents.

Section 7 specifies that the maximum tuition rate increase for resident undergraduates at MnSCU colleges must not exceed four percent for the fiscal year ending June 30, 2013.  

Section 8 specifies that this section is effective retroactively from July 1, 2011, and supersedes and replaces funding authorized by order of the Second Judicial District Court in Case No. 62-CV-11-5203.

 

 Article 2

Related Higher Education Provisions

Section 1 lowers from 66 to 62 the age at which senior citizens can attend public postsecondary institutions in certain circumstances at a reduced cost.  This section is effective the day after final enactment for terms beginning after August 15, 2011.

Section 2 amends statutory language defining the cost of attendance used in calculating the state grant award.   This section is effective retroactively from July 1, 2011.

Section 3 clarifies the obligation of the Office of Higher Education and the Governor to take certain actions regarding the financial condition of the SELF loan capital fund.  This fund is used to pay the principal and interest of bonds issued to fund the state SELF loan program.  These bonds are not a general obligation of the state but the amendments clarify what is referred to as the “moral” obligation of the state with regard to these bonds.  This section is effective retroactively from July 1, 2011.

Section 4 encourages the MnSCU Board of Trustees to offer entering students a plan providing stable tuition.  This section is effective retroactively from July 1, 2011.

Sections 5 to 11 are technical amendments to accommodate the repeal of the state’s match of contributions to a college savings plan under section 529 of the Internal Revenue Code.  The sections are effective July 1, 2012.

Section 12 encourages the Board of Regents of the University of Minnesota to offer entering students a guaranteed tuition plan.  This section is effective retroactively from July 1, 2011.

Section 13 provides for a study of graduate education at for-profit institutions of higher education.  This section is effective retroactively from July 1, 2011.

Section 14 directs the MnSCU Board of Trustees to, in the report required by Laws 2010, chapter 364, section 38, include information about various transfer issues.  Requires a study of mechanisms for effective transfer in other states.  This section is effective retroactively from July 1, 2011.

Section 15 repeals:  Paragraph (a) statutory language pertaining to the sale of American-made clothing (effective retroactively from July 1, 2011);  paragraph (b) the state's match under the college savings plan program (effective July 2, 2012); and paragraph (c) Achieve scholarship award language (effective retroactively from July 1, 2011).

 
Check on the status of this bill
 
Back to Senate Counsel and Research Bill Summaries page
 

 
This page is maintained by the Office of Senate Counsel, Research, and Fiscal Analysis for the Minnesota Senate.
 
Last review or update: 07/19/2011
 
If you see any errors on this page, please e-mail us at webmaster@senate.mn