Subcommittee hears higher‑education budget: $121.1 million general fund increase and tuition‑growth limit proposed

A higher‑education presenter briefed the Senate Finance and Appropriations Committee's Education Subcommittee on the introduced budget's higher‑education provisions. The staff member said the introduced budget proposes approximately $121.1 million in net general‑fund increases and about $2.3 billion in non‑general fund actions for higher education.

The presentation highlighted several line items: $27,500,000 general fund in year one intended to maintain affordability for in‑state undergraduate students; $15,000,000 for undergraduate financial aid; $13,600,000 in the second year for the workforce credential grant program; and $40,000,000 over the biennium for waiver programs serving military survivors. The presenter also noted an item recommending $75,000,000 non‑general fund each year from actuarial surpluses for a VIM step program.

Staff explained recommended language that would limit tuition growth at public higher‑education institutions to 2.5% over the prior fiscal year or inflation as measured by the Consumer Price Index and said it includes expanded reporting requirements for the workforce credential grant program to ensure analysis by occupational fields and compliance with the 25% per‑field cap.

The presenter added that language in the introduced bill asks the governing board to develop a sustainability plan and comprehensive business plan for the New College Institute, with submissions expected later in the summer. There were no substantive questions from subcommittee members following the presentation.