Governor proposes more than 12 percent hike in higher education funding

Gov. Tim Walz is often seen wearing a University of Minnesota cap when he’s out and about, but his proposed higher education budget would give a bit more to the Minnesota State system of colleges and universities.

Well, “a bit” is a relative term, for his administration’s proposed outlay for Minnesota State is $877 million in fiscal year 2024 and $877.2 million in fiscal year 2025, while its suggested University of Minnesota appropriation is $752.4 million for each of those years. And the Office of Higher Education, which administers the state’s financial aid programs, would get $343.6 million in fiscal year 2024 and $334.4 million in fiscal year 2025.

Those are the big numbers in HF2073, which, as amended, would provide $3.94 billion in funding for higher education during the next biennium, a 12.3% increase over base. The bill is sponsored by Rep. Gene Pelowski, Jr. (DFL-Winona).

He chairs the House Higher Education Finance and Policy Committee, which laid the bill over on Tuesday.

[MORE: View a spreadsheet of the governor’s proposal]

Among the governor’s proposed higher education appropriations, here are what you might call the "Sweet 16” of big-ticket items for fiscal year 2024:

• $838.5 million for Minnesota State operations and maintenance;
• $681.8 million for University of Minnesota operations and maintenance;
• $247.7 million for state grants;
• $42.9 million for the University of Minnesota agriculture and extension service;
• $34.4 million for Minnesota State’s central office and shared services unit;
• $14.5 million for the state work-study program;
• $9.2 million for University of Minnesota health sciences programs;
• $8.5 million for the Office of Higher Education’s interstate tuition reciprocity program;
• $8.5 million for an American Indian Scholars program, split between the University of Minnesota and Minnesota State systems;
• $8 million for the University of Minnesota and Mayo Foundation Partnership;
• $7.2 million for the University of Minnesota’s Natural Resources Research Institute, Labor Education Service, Center for Urban and Regional Affairs, Bell Museum of Natural History, and Humphrey exhibit;
• $6.9 million for a student parent support initiative;
• $6.7 million for child care grants;
• $6.6 million for the MnLINK Gateway and Minitex systems;
• $6.5 million for Office of Higher Education agency administration; and
• $6 million for scholarships for students transferring from Minnesota State colleges to its universities.

The bill would establish a direct admissions program to automatically offer conditional admission into Minnesota public colleges and universities to Minnesota high school seniors. It also calls for a new American Indian Scholars grant program, a student-parent support initiative for expectant and parenting college students, and a tribal college supplemental grant assistance program.

Both Rep. Greg Davids (R-Preston) and Rep. Peggy Scott (R-Andover) questioned whether the increased appropriations were appropriate while enrollments in the Minnesota State and University of Minnesota systems are declining. Rep. Joe McDonald (R-Delano) suggested that “the appropriation is a wee bit too much,” and asked if it was doing enough for trade school programs.

Higher Education Commissioner Dennis Olson replied that the increase was necessary.

“We’re digging out of a deep disinvestment hole,” he said, adding that funding for two-year associate degree programs is “all over the bill.”