In releasing his proposed budget for the next two years, Gov. Mark Dayton protected the State Grant program from budget cuts. Noting that the program helps provides access for low- and middle-income families, Dayton recommended level funding.

"State Grant funds help one out of four Minnesota college students, making it possible for them to earn the degrees that will prepare them to contribute to the state's economic success," said Paul Pribbenow, Augsburg College president and board chair at the Minnesota Private College Council. "It is heartening that this program is a priority in the governor's budget."

Released Feb. 15, the budget would fund the State Grant program at the same level as during the last biennium, approximately $288 million ($144 million per year). This is in contrast to many other areas of state government that would see reductions, including within higher education. The governor's budget recommends 6% cuts to funding at the University of Minnesota and the Minnesota State Colleges and Universities (MnSCU) systems. It also would cut or eliminate some smaller financial aid programs, including state funding for work study awards and Achieve scholarships.

Need for additional funding remains
However, even though the State Grant program would not be cut under the administration's budget, level funding is not sufficient to meet the need for all students from low- and middle-income families.

Need is greater than ever — more students have enrolled in college, a larger share of these students need financial aid, and the level of student need has increased. Increased need has been caused by the economic downturn, which has substantially reduced the financial resources of low- and middle-income families.

This academic year, students have already seen the toll that this higher demand can take, with the same dynamic of need for State Grants exceeding available funding. About 18,000 students who would otherwise have received State Grant awards were not able to receive one. The remaining 85,000 students saw their awards reduced in size.

The Minnesota Private College Council's members urge legislators to provide full funding for the State Grant program, to allow it to keep up with the increased needs caused by the recession. That would mean adding $14 million to next year's funding level, up from $145 million.

"Full funding of the State Grant program is made even more critical by the fact that the federal government is seriously considering proposals that would reduce the Pell Grant and other federal need-based financial aid programs for students," said Paul Cerkvenik, Minnesota Private College Council president.

State Grant importance reinforced
Marquita Walker, a junior at Concordia University, St. Paul, spoke about the importance of the State Grant program at a Feb. 15 hearing of the House Higher Education Policy and Finance Committee. She described her own efforts to finance her education, including working three different campus jobs while maintaining a full-time class schedule.

"Currently my oldest sister and my younger brother are also in college, so there is no way [my Mom] can contribute to all of our educations. So without the Pell Grant and the Minnesota State Grant, I would not be in school at this moment."

Majoring in communications studies, Walker noted the importance of earning a college degree in today's economy. "Without it you pretty much can't go anywhere these days; it is almost the equivalent of a high school diploma way back when."

Walker noted that by supporting State Grant funding, legislators "help students like me, who are trying to do something that has never been done in my family — I'll be the first in my family to graduate from college."

Students from other kinds of higher education institutions spoke at the same hearing, including for-profits, the University of Minnesota and MnSCU.

Andrew Spaeth, for example, is a student at Bemidji State University. Spaeth spoke about the impact of the program on the 57,000 students at MnSCU institutions who receive State Grants, including himself. And as the state chair of the Minnesota State University Student Association, Spaeth spoke about the program as a critical investment in human capital.

"I'm here today to voice our students' strong support for the full funding of the State Grant program," Spath said. "This program helps our students and families afford their investment in higher education and ultimately, a brighter future."

Financial aid staff from different institutions also addressed the program's strengths, including representatives from Bethel University, MnSCU and McNally Smith College of Music. Bethel University's Dan Nelson and Jeff Olson shared an overview of how the State Grant is combined with other resources, including institutional aid, to create financial aid packages to help families afford higher education. "The Minnesota State Grant helps make higher education affordable to lower-income Minnesota families, and that's a message you'll hear from all of us today," Nelson said.

From the University of Minnesota, senior analyst Peter Zetterberg noted that 10,500 students there are State Grant recipients, making up one-third of the U of M's undergraduate enrollment of students from Minnesota.

"Most of those students would not be at the University of Minnesota without the State Grant program; its importance can be put as simply as that," Zetterberg said. "This program is extremely important to the University of Minnesota. It is key to our undergraduate educational efforts and without it we would really all be in very serious trouble."