February 2010
Feature:State Grant program forecast worsens
Update: Additional State Grant cuts included in Pawlenty’s Feb. 15 budget
Taking action: Face-to-face advocacy and Facebook
National news: Student aid supported in new federal budget proposal
Worth noting: State Demographer Tom Gillaspy
Editor’s note
This education policy e-newsletter is sent to members of the Minnesota Private College Council Legislative Action Network. View Legislative Update archive
FEATURE
State Grant program forecast worsens
This legislative session, the Minnesota Private College Council is calling on policymakers to preserve the core of the State Grant program as both the program and state government face massive deficits. The forecasted deficit in the State Grant program of $42 million will result in significant statutory reductions in grant size and eligibility for the next academic year. More than 9,000 students statewide will lose grants and the size of the average grants that remain will drop 18.5%.
At our member colleges and universities, with 10,000 students receiving State Grants, students will see the value of their awards drop anywhere from $400 to $1,800, based on family income. This means that budgets will be stretched — for our students and our institutions — and retention will be threatened.
The best option would be for the state to fully fund awards. But given Minnesota’s $1.2 billion deficit, this may be unlikely. In that case, our agenda calls on policymakers to preserve the core State Grant program by limiting responses to these one-time reductions. This will allow the State Grant program to return to its current size and scope in subsequent years as additional federal and state resources become available. The Council will also encourage policymakers to reduce the current program deficit by delaying recent program enhancements (such as the summer transition grants and the ninth semester funding) and by retaining the program’s existing federal funding that may otherwise be diverted — thereby softening the deficit’s impact on all students.
Read more about our 2010 legislative agenda.
UPDATE
Additional State Grant cuts included in Pawlenty’s Feb. 15 budget
Gov. Tim Pawlenty’s administration has proposed a series of cuts to health care, local government aid, higher education and other areas to address the $1.2 billion state budget deficit. His supplemental budget for the remainder of the biennium, which ends June 2011, was submitted Feb. 15.
The State Grant shortfall that is already estimated at $42 million for this biennium would grow to $44.3 million under the administration’s $2.3 million proposed cut. Other important support for college students would also be cut, including the work study program and grants for providing child care to college students. (Elsewhere in higher education, the public system would be cut as well; The University of Minnesota would lose $36 million and the Minnesota State Colleges and Universities would lose $10.5 million.)
The governor’s proposal also relies heavily on expected federal stimulus money; if those funds do not come through, cuts could need to be deeper.
Legislators in the DFL-dominated House and Senate are expected to have their own views on how to address the deficit; debate on this issue will be the dominant topic this session.
The Minnesota Private College Council will continue to urge policymakers to protect college students from additional budget cuts to the State Grant program.
TAKING ACTION
Face-to-face advocacy and Facebook
Hundreds of college students will be coming to the Capitol this year to meet with their legislators to share the impact of the State Grant program. This is a key ingredient to helping policymakers understand the importance of preserving State Grant funding. The first of four Days at the Capitol will be held Feb. 24, with students from Augsburg College, Carleton College, College of St. Scholastica and Concordia University, St. Paul.
If you aren’t able to make it to the Capitol, consider becoming a fan of our Facebook page, Support Aid for Minnesota College Students. Join more than 250 students and supporters and keep up with the latest on need-based aid.
NATIONAL NEWS
Student aid supported in new federal budget proposal
On the federal front, President Barack Obama’s proposed federal budget includes a request to make the Pell Grant an entitlement that receives an automatic budget allocation each year. That change would help ensure that the value of these grants for low-income students keeps up with inflation. The president’s proposal would also increase Pell Grant maximums (by inflation plus 1 percent annually) and improve repayment options for students taking on federally subsidized loans.
WORTH NOTING
State Demographer Tom Gillaspy
Star Tribune columnist Lori Sturdevant and Twin Cities Business magazine share insights from state demographer Tom Gillaspy, who says investing in education and increasing productivity are key to meeting the state’s challenges. Visit the LearnmoreMN resource to read these and other examples of what others say about the challenges.