Purpose of the Bill

This bill aims to introduce a financial mechanism for funding higher education in Minnesota by establishing a participation fee on the growth of certain assets held by colleges and universities. The goal is to create a sustainable funding source for the state grant program and ensure that educational institutions contribute to this effort.

Main Provisions

• Participation Fee: The bill requires eligible colleges and universities to pay a fee based on the growth of specific assets. This fee is a condition for the institutions to qualify for state-provided student aid programs.

• Higher Education Assets Growth Account: The legislation establishes a dedicated account within the special revenue fund of the state treasury. This account will collect fees, interest, and other earnings from institutional contributions.

Significant Changes

• State Grant Compliance: The introduction of a new subdivision mandates that institutions must comply with the payment of the participation fee to receive student aid funds. This represents a notable change from current practices, which do not tie student aid eligibility to such fees.

• Funds Management: The bill stipulates that the funds will not revert to the general fund at the fiscal year's end. Instead, they will remain in the account, perpetually available until expended.

Relevant Terms

• Student aid
• Participation fee
• Higher education institutions
• State grant program
• Special revenue fund
• Asset growth