Members of the Executive Appropriations Committee pressed staff and higher education representatives on May 20 about how House Bill 265 will be implemented, how faculty are being involved in campus decisions and whether cost reallocations will lower tuition.

Committee staff summarized HB265 as requiring each degree-granting institution to create a strategic reinvestment plan and to reallocate funding from certain programs to others within the same institution, phased over three years. Joseph (staff) told the committee institutions are required to report to the Board of Higher Education by June, to the Higher Education Appropriations Subcommittee in August and to the Executive Appropriations Committee in September in 2025 and again in the two following years.

Senator Kwan asked whether faculty voice had been required in the institutions' processes. Joseph said institutions used different approaches: "Some had more involvement of faculty than others...I don't think it was ever explicitly stated, at any point by the board," he said, describing the Board of Higher Education's guidance as general rather than prescriptive.

Speaker Schultz and others said presidents and the board will make final decisions after institutions develop plans. "Ultimately...it's the president's decision, as they move through forward through the process on what is presented to the board," Schultz said, while adding that presidents and the board should and often have engaged faculty and staff in planning.

Representative Daley Provo asked whether the changes will make college more affordable and whether tuition will be reduced. Committee staff and other members noted that the statutory directive is reallocative, not a mandated tuition cut. "Just a reminder, there's no tuition cut here," the chair said. Staff said institutions have discretion over how they use funds returned to them and that the Legislature will review plans and could make appropriations changes in base budget bills based on the September presentation.

Questions at the meeting also reflected concerns about speed and process. Some legislators described faculty and staff anxiety about rapid changes and urged that the board ensure adequate consultation and protections for employees and academic quality during the three-year transition.

Ending: Staff committed to continued reporting to the Higher Education Appropriations Subcommittee in August and the Executive Appropriations Committee in September as institutions present initial plans and implementation timelines.