The Omnibus Higher Education Funding Bill increased funding for higher education by approximately 14 percent over the previous biennium. Key provisions included the following:

Student Financial Aid, Libraries, and Technology

Funding for student financial aid, libraries, and technology was increased by approximately 15 percent over the previous biennium. Specific provisions were:

• The proportion of a student's living expenses that are recognized in the calculation of a student's state grant was increased by 7 percent in FY 1998 and 9 percent in FY 1999;

• The calculation of the amount of money an independent student receives under the state grant program was modified to compensate for the reduction in the grant to these students that occurred following changes in federal legislation;

• The Higher Education Services Office was directed to provide information on how to maximize financial aid when establishing student fees;

• The appropriation for work-study was increased. In addition, the pool of employers who can participate in the work-study program was expanded by allowing a postsecondary institution to use up to 30 percent of its work-study allocation for student internships with private, for-profit employers. Campuses participating in the state work-study program are encouraged to cooperate with their local public schools to place college work-study students in school activities such as tutoring;

• Money was included for the National Service Scholars program;
• The maximum non-AFDC child care grant was increased from $1,700 to $2,000;

• Two programs were established to encourage individuals to save for college: Edvest and Gopher State Bonds.

  The Edvest program: (1) provides a qualified state tuition program under federal tax law; (2) provides matching grants for contributions to the program by low- and middle-income families; and (3) encourages individuals, foundations, and businesses to provide additional grants to participating students.

  The Gopher State Bonds program encourages individuals to save for higher education by investing in state general obligation bonds;

• $12 million was appropriated to expand the abilities of libraries statewide to electronically share books and other materials;
• Approximately $2.6 million was appropriated to provide on-line access to science and technology periodicals; and
• Money was included for improvements in the statewide electronic network that connects postsecondary education institutions.

The money will be used to:

(1) integrate new technologies that will combine data, voice, and video into the current system which uses interactive television technology;

(2) expand the capacity of the network so more distance education classes can be offered;

(3) increase access to other networks; and

(4) assist the University of Minnesota-Twin Cities' participation in the National Internet Two initiative.

University of Minnesota

Funding for the University of Minnesota was increased by 16 percent over the previous biennium.

• $40 million was included for a faculty recruitment and retention pool; and approx-imately $89.8 million was appropriated for investments in technology, facilities, and programs;
• Money was included for initiatives to sustain Minnesota's renewable natural resource-based industries;
• Funding for agriculture and extension services was increased by 7 percent;
• Money was included for agriculture education grants, and to improve recruitment and collaborative efforts at the College of Agriculture, Food, and Environmental Sciences;
• Money was appropriated for indigent patients, the rural physicians associates program, the veterinary diagnostic lab, health sciences research, dental care, the biomedical engineering center, technology transfer, research and public service, and the biomedical engineering center endowment; and
• Additional money was appropriated for general research, student loans, industrial relations education, the National Resources Research Institute, the Center for Urban and Regional Affairs, the Bell Museum of Natural History, the geological survey, the talented youth mathematics program, the Humphrey exhibit, and a multisheet ice arena.

Minnesota State Colleges and Universities

Funding for the Minnesota State Colleges and Universities (MnSCU) increased by approximately 12 percent over the previous biennium.

• Approximately $55.6 million was appropriated for educational enhancements, including improvements in programs, student services, student advising, library acquisitions, and class size and availability;
• $22.5 million was appropriated for instruc-tional technology and equipment;
• $10.5 million was appropriated to deliver academic programs and courses statewide via interactive television, to develop multimedia instructional technology, to develop automated student services available on-line and through the Internet, to expand staff development, and for grants for innovative technology applications;
• $15 million was appropriated to develop and implement a common student information system and central data management system, and to upgrade the management information systems network;
• $4 million was appropriated for building repairs and improvements;
• $1.5 million was included to respond to snow and flood disasters;


• The manner in which the state appropriation should be allocated to campuses in FY 1998 was delineated. The system must report to the Legislature on its progress in developing a new allocation formula by February 1, 1998;
• The board of trustees was directed to increase the percentage of total General Fund expenditures for direct instruction. The board must report to the Legislature the percentage of total General Fund expenditures for direct instruction and administrative support; and
• The trade, purchase, and sale of land at a number of MnSCU campuses were authorized.

Miscellaneous Provisions

Other key provisions included:

• The University of Minnesota and MnSCU were directed to correct technical college credit transfer problems. The systems also are directed to submit a brief progress report to the Legislature on their efforts in this area; the report must include an assessment of the feasibility of common course numbering;
• The University of Minnesota and MnSCU were directed to prepare a report that provides a detailed review of current and planned expenditures on information technology. The report must specify the goals and objectives of the systems and their campuses in their use of technology and demonstrate how these goals and objectives will serve the state's interest in higher education;
• Approximately $2.4 million was appropriated to the Mayo Medical Foundation for medical students who are residents of Minnesota, students in the Family Practice and Graduate Residency Program, and resident physicians participating in the Mayo Family Practice Residency Program at St. Cloud Hospital; and
• $1 million was appropriated for the develop-ment and implementation of the Minnesota career and education planning system in partnership with the University of Minnesota; the Department of Children, Families, and Learning; and the Office of Technology.

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