Higher-education budget hearing puts Sellinger formula cuts at center of debate

The Education and Economic Development Subcommittee heard competing proposals on the future of the Sellinger funding formula and other higher-education budget changes during a Maryland Higher Education Commission (MHEC) budget briefing and panel of university and association representatives.

The Department of Legislative Services (DLS) analyst Sarah Baker summarized fiscal recommendations and data, saying the DLS recommended reducing Sellinger-related funding by 50% and restricting the remaining $36,700,000 for a grant program to be administered by MHEC; DLS also recommended amending statute to permanently eliminate the Sellinger formula and replace it with a competitive grant program (DLS presentation, transcript blocks starting at 748.485). MHEC Secretary Sanjay Rai and multiple independent-college leaders opposed the recommended change.

Why it matters: Sellinger funding has historically provided an annual, predictable allocation to independent nonprofit institutions in Maryland and is frequently used by those institutions to provide student financial aid. Speakers said steep cuts or a shift to a competitive, needs-based grant would reduce predictable aid for Maryland students, force institutions to carve into other operating areas, and could weaken smaller campuses critical to local…