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Office of Higher Education seeks clarity on percentage available to administer grants in conference negotiations
Summary
OHE Commissioner Dennis Olson told the conference committee that the agency needs a clear, uniform percentage for grant administration — and prefers flexibility to use only what is necessary to manage awards — amid discussion of a 5% vs. 10% retention in the Senate and House offers.
Dennis Olson, commissioner of the Minnesota Office of Higher Education, told the conference committee on May 16 that the agency appreciates recognition of the need for administrative funds but prefers uniform, predictable language governing the percentage available to retain for administering grants.
"If it's a consideration of 5% or 10%, I guess, you know, my position is I appreciate the fact that we're having that conversation in the first place," Olson said. He described the work the agency must do even for legislatively named grants — pre-award risk assessments, RFP processes, financial review and site visits — and said small admin caps can make it difficult to oversee grants adequately.
Olson said some grant-authority language in law applies only to new programs and that clear, consistent statutory guidance for both competitive and legislatively named grants would make administration more sustainable. Committee members proposed options such as 10% for competitive grants and 5% for noncompetitive grants; Olson said uniform language across categories would be helpful.
Conferees did not adopt final language during the session; staff said they would draft language consistent with the global agreement and return with specifics.
