ST. PAUL – The Minnesota House on Monday provided final approval for a higher education budget package (SF1) which eliminates major State Grant Program shortfall through cuts and policy changes.
As chair of the House Higher Education Committee, Rep. Marion Rarick, R-Maple Lake, said she took a deep, top-to-bottom look at the state’s higher education budget to get a clear picture of how taxpayer dollars are being used and assess the returns on those expenditures.
Rarick was a member of the joint conference committee that negotiated the bill for final passage. It is a $4 billion omnibus bill to fund the higher education section of the state’s next two-year budget. Rarick said the final agreement cuts unnecessary or inefficient spending to help fund the state grant program $239 million projected shortfall at a time the legislature is working to resolve a $6 billion shortfall the state faces.
“We asked the tough questions, made some hard choices, and in the end, put together a bill that gets the job done and is worthy of broad support in the legislature,” Rarick said. “We ushered in a new era of oversight, accountability and transparency. The positive results speak for themselves. The finished product is good for Minnesotans.”
The bill eliminates $3.6 million of funding to Mayo Clinic entirely from the Office of Higher Education budget. Rarick said Mayo’s gross revenue was around $18.8 billion in 2024, making state funds unnecessary. The bill also cuts funding to Lutheran Social Services, which tax records indicate has 10 employees making more than the governor and a CEO making $420,000.
In addition to fixing the State Grant Program deficit, Rarick said funding from cuts was reappropriated to three additional areas of high need. This includes doubling the Fostering Independent Grant program that provides scholarships for foster children and Rarick said had been underfunded. Other dollars saved were directed to the U of M & CentraCare medical school in St. Cloud, and to provide full-ride scholarships to peace officers injured in the line of duty, and their children.
The bill passed the House during a special session that was scheduled after the legislature adjourned May 19 without a complete budget for the two-year cycle starting July 1 in place. It passed the Senate and is headed to the governor for signature.