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Senator Putnam proposes tax on endowment growth to fund Minnesota state grants
Summary
Sen. Putnam introduced Senate File 3194 to create an excise tax on annual asset growth at wealthy higher‑education institutions to finance the state grant program; witnesses warned language and definitions need work and constitutionality questions were raised.
Senator Mark Putnam introduced Senate File 3194, proposing a new excise tax on the increase in higher‑education institutions' assets above set thresholds to create a dedicated revenue stream for Minnesota's state grant program.
The legislation would create a special revenue fund and impose a tax on asset growth at institutions whose endowments exceed $100 million, with graduated rates tied to endowment-per-student. "The state grant needs its own source of dedicated and stable funding," Putnam told the committee.
Supporters framed the bill as a response to a reported $211 million shortfall in the state grant this past year and to long‑term declines in higher education funding as a share of the state budget. Putnam said the tax would apply to the…
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