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Senate seeks to clarify rationing rules and surplus priority; OHE and institutions warn about flexibility tradeoffs
Summary
The Senate inserted statutory language to clarify how Minnesota should ration State Grant awards when appropriations are insufficient and how surplus appropriations should be applied, prompting debate over agency flexibility versus codified procedure.
Conference committee members reviewed competing approaches to rationing — the statutory procedures used when state grant appropriations are insufficient — and to the handling of surplus appropriations when more resources are available than projected demand.
Nonpartisan staff described the two statutory tools historically used to reduce awards when funds are short: (1) add a surcharge to the assigned family responsibility (AFR) percentage and (2) increase the assigned student responsibility (ASR). The Senate offered language clarifying that AFR surcharges may exceed…
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