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Committee moves to curtail fourth-year innovation pilot, tightens scholarship timeline

Joint Budget Committee
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Summary

The committee approved introduction of a bill to curtail the fourth-year innovation pilot, allow proration of education appropriations, eliminate an evaluation component, and require early graduates in 25-26 to begin postsecondary study by Dec. 31, 2026; the measure passed 6-0.

Amanda Bickle, JBC staff, described a draft bill to curtail and end early the fourth-year innovation pilot that provides incentives for students who graduate early. She explained the bill affects both the Department of Education (allowing proration of existing appropriations if funds are insufficient) and the Department of Higher Education (scholarship payments): "students who graduate early in 2526 need to start by their post secondary by 12/31/2026," and all scholarship-related payments would be wrapped up by fiscal 26-27.

The draft also eliminates the program evaluation and reduces appropriations (staff noted a reduction of about "31,000.3 FTE for 2526" as written in the draft). Representative Taggart raised a scheduling concern about the December 31 start date for postsecondary institutions that begin classes in January; staff clarified the intention was for students to begin in the fall semester where possible. Senator Mobley moved to approve the bill for introduction, and the committee voted 6-0 to advance the draft with permission for staff to make technical changes.

Staff emphasized the bill is intended to constrain future incentive payments and set a clear timeline for scholarship uptake and final payments by 2026-27.