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House H1 for higher education reported after HFA outlines scholarship deposits and endowment adjustments
Summary
The subcommittee reported the H1 substitute for HB 4,580 after House Fiscal Agency described a package that shifts funds into large one‑time scholarship deposits, restructures university appropriations toward campus investment funds with endowment‑based reductions, and includes tuition‑restraint conditions and DEI restrictions.
The Appropriations Subcommittee reported the H1 substitute for House Bill 4,580 after a detailed House Fiscal Agency presentation that adjusted initial table values and described major structural changes to higher education funding.
Perry Zylak (HFA) said the House H1 contains a corrected gross appropriation number and described a fund swap that increases School Aid Fund deposits into the postsecondary scholarship fund. Zylak said the package results in a gross increase (reported during the hearing as approximately $76.5 million or about a 3.4% increase overall), while reflecting a significant General Fund reduction for university appropriations. He said the House removes about $1.65 billion of ongoing operations grants to universities while adding about $828.1 million in campus investment funds limited to infrastructure, technology, maintenance, safety, and capital debt reduction. Zylak explained the House would apply reductions to campus investment funds for institutions with large endowments (for example, institutions with endowments above $1 billion would face a 50% reduction on certain funds, and higher reductions at larger endowment bands).
Zylak also said the House includes a $1.1 billion SAF one‑time deposit and a $170.6 million General Fund one‑time deposit into the postsecondary scholarship funds, with awards revised to provide up to $5,500 to resident students at four‑year public or private institutions and up to $2,750 to resident students at community colleges, subject to sector caps. He said these scholarship deposits are one‑time funding and that long‑term sustainability will be negotiated.
Representative Longjohn pressed HFA on a mismatch between numbers in the HFA summary and the bill text and said the discrepancy disadvantaged members; HFA acknowledged an error in the summary document. Longjohn asked how long the one‑time scholarship funding could be expected to last; presenters said the deposits are one‑time and sustainability is uncertain and will be negotiated.
The subcommittee recorded the motion to report the H1 substitute as adopted with five yeas and two nays.
