Article 1

Higher Education Appropriations

Section 1, subdivision 1, summarizes appropriations by fund.

Summary by Fund

Subdivision 2 summarizes appropriations by agency.

 Summary by Agency - All Funds

Section 2 contains boiler plate language defining fiscal years.

Section 3, subdivision 1, appropriates $184,220,000 in fiscal year 2012 and $183,970,000 in fiscal year 2013 to the Office of Higher Education.

Subdivision 2 appropriates $147,857,000 in each year 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.

The appropriation in this subdivision includes money for the Public Safety Officer's Survivor program.

Subdivision 3 appropriates $6,684,000 in each year for Child Care grants.

Subdivision 4 appropriates $14,944,000 in each year for the State Work-Study program.

Subdivision 5 appropriates $1,800,000 in each year for the American Indian Scholarship program.  This appropriation includes money to administer the program.

Subdivision 6 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 7 appropriates $95,000 in each year for the Midwest Higher Education Compact.

Subdivision 8 appropriates $467,000 in each year to support up to 18 residents of the United Family Medicine Residency program.

Subdivision 9 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 10 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 11 appropriates $5,480,000 in each year for the MnLINK Gateway and Minitex.

Subdivision 12 appropriates $357,000 in each year, allocated as follows: $125,000 each year for student and parent information, $184,000 each year for Get Ready/Outreach, and $48,000 each year for the Minnesota Minority Education Partnership. 

Subdivision 13 appropriates $2,365,000 in each year for Agency administration.

Subdivision 14 authorizes the use of money not spent in the first year of the biennium, for programs cited in subdivisions 2 through 11, to be used in the second year of the biennium.

Subdivision 15 authorizes the transfer of money among specified financial aid programs after providing notice to the chairs of the Higher Education Finance committees.

Subdivision 16 specifies that work study jobs funded by TANF money do not require employee matching funds.

Section 4, subdivision 1, appropriates $546,827,000 in each year to MnSCU.

Subdivision 2 appropriates $33,074,000 in each year for the Office of the Chancellor and Shared Services Unit.

Subdivision 3 appropriates $509,693,000 in each year for operation and maintenance. $120,000 each year is for the Cook County Higher Education Board to provide educational programs for academic support services.  The appropriation includes money for the compensation of college and university presidents.

Subdivision 4 appropriates $4,060,000 in each year for the Learning Network.

Section 5, subdivision 1, appropriates $522,643,000 in each year to the University of Minnesota.

Subdivisions 2 through 4, appropriate: 

• $459,547,000 in each year for operations and maintenance.  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;
• $43,329,000 in each year for Agriculture and Extension Services;
• $4,374,000 in each year for health sciences;
• $1,150,000 in each year for the Institute of Technology;
• $5,104,000 in each year for System Specials; and
• $6,982,000 in each year for the University of Minnesota and Mayo Foundation Partnership.

Subdivision 5 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 sets a limit on tuition increases for resident undergraduates at MnSCU colleges and universities for the next biennium:  three percent per year at colleges, and four percent per year at state universities.

Section 8 expresses an expectation that the University of Minnesota limit tuition increases for resident undergraduates in the next biennium to four percent per year.

Section 9 provides for the allocation of salary savings accrued by MnSCU in the next biennium due to legislative action limiting MnSCU salaries in any manner.  The savings may only be used for tuition mitigation and for allocation out to MnSCU institutions.

Section 10 provides for a variance from the statutorily prescribed calculation for the state grant program grant reduction when the amount of appropriations is insufficient to make full awards.  For the next biennium, the calculation will include a larger increase in the family share than under current law.  The goal is to protect lower income families.

Section 11 provides for a study of graduate education at for-profit institutions of higher education. 

 Article 2

Higher Education Statutory Changes

Section 1 lowers from 66 to 62 the age at which senior citizens can attend public postsecondary institutions in certain circumstances at free or reduced cost.

Section 2 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.

Sections 3 to 9 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.

Section 10 provides that no state funds or federal funds the state receives for state programs may be used to either support human cloning or to pay for any expenses incidental to human cloning; includes definitions.

Section 11 increases the eligibility for the Public Safety Officer's Survivor higher education grant program to ten semesters from the current nine semesters.

Section 12 repeals the state's match under the college savings plan program.

Section 13 is a July 1, 2012, effective date for the college savings plan amendments.

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