Conference committee debates cutting negative SAI, warns of outsized losses for lowest-income students

At a Minnesota Legislature conference committee meeting, members reviewed the House's second offer on higher education finance, focusing on changes to the state grant program including a proposal to recode the negative Student Aid Index (SAI) to zero.

The discussion centered on how the change would redistribute about $87.7 million in savings and who would bear that reduction. University and college financial aid staff and system leaders warned the proposal would concentrate cuts on the lowest-income students, while members discussed trade-offs among tuition caps, program consolidations and one-time appropriations.

Why it matters: The committee is negotiating how to close a projected shortfall in the state grant program. Testimony from higher-education officials said one parameter change under consideration would shift a large share of the required savings onto students with the lowest family incomes, potentially reducing awards used for books, supplies and other non-tuition costs.

Savory, Hopkins summarize House offer

Committee staff walked members through the House's "offer 2" spreadsheet. Staff member Savory said the House adds $51,958,000 above base for the state grant program in fiscal 2026-27 and made several one-time and program-specific adjustments, including a $500,000 one-time appropriation for fast remediation at Lake Superior College and a $500,000 one-time carve-out for workforce development scholarships…