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Coordinating Commission warns proposed $5M transfer from Opportunity Grant fund would force award cuts; asks Legislature to reject sweep
Summary
The Coordinating Commission for Postsecondary Education told the Appropriations Committee that sweeping $5 million from the Nebraska Opportunity Grant Fund into the Education Future Fund would accelerate depletion of grant reserves and necessitate reductions in need‑based awards to thousands of students.
Mike Baumgartner, executive director of the Coordinating Commission for Postsecondary Education, asked the Appropriations Committee to reconsider a proposed $5 million transfer from the Nebraska Opportunity Grant (NOG) Fund to the Education Future Fund and to restore a $1 million general‑fund reduction the commission fears will shrink aid.
Baumgartner said NOG is Nebraska’s only state-administered need‑based aid program, serving undergraduates at 34 public and independent institutions. He said NOG currently serves about 13,507 students with an average award of roughly $1,808 and that more than half of recipients come from families with incomes under $40,000. The commission had requested additional general funds ($1M FY26, $2M FY27) to increase reach; the chair acknowledged funding is constrained, but urged the committee not to reduce the program.
Baumgartner explained the commission has deliberately spent down a fund balance to maintain predictability for institutions and that the proposed $5 million sweep would force faster reductions. Under the commission’s projections, combining a $1M general‑fund cut and the $5M transfer would create a $3M reduction in funds available in fiscal year 2027 — about a 12% cut and enough to eliminate grants for roughly 1,700 students in that year.
Baumgartner cited lottery revenue uncertainty, noting the portion transferred to NOG has fallen from 62% to 58% and the Nebraska Lottery projects a decline in transfers; he warned that expanded gaming and revenue shifts add risk. The commission asked the committee to reject the proposed transfer so it can maintain awards at current levels as long as possible.
Representatives from Doane University and Bryan College of Health Sciences later testified in support of keeping NOG intact and warned that cuts would reduce institutional aid and the state’s ability to retain students.
