For the 90,000 college students across the state who rely on the Minnesota State Grant program to afford college, the special legislative session held this week brought welcome news. To help address increased demand and a projected shortfall in the program, the Legislature and governor agreed to increase funding by $21 million or 7.3% for the upcoming biennium.

"This is a good outcome for students at all colleges, private and public. The additional funding for the State Grant program will help meet the additional need for student financial aid created by the recession," said Paul Cerkvenik, president of the Minnesota Private College Council.

For the past two years, demand for the State Grant program has exceeded available resources. Last academic year, students saw their awards shrink by 20%. With a more than $30 million program shortfall, students faced a similar outcome for the coming academic year. Thanks to the commitment of the Legislature and the governor to help college students with financial need, returning students will receive more assistance than they would have otherwise — and more than they received in the last academic year.

"At a time when cuts had to be made to so many areas of the state's budget, policymakers wisely chose to increase State Grant funding that helps low- and middle-income students afford college," Cerkvenik said. "This funding is a critical investment in the future workforce; it is a long-term investment in a stronger, more competitive Minnesota economy."

However, State Grant funding will still not fully meet projected need; a shortfall of approximately $10 million will remain. That means that the grants that are awarded the next two academic years will remain smaller than what is called for under state statute.

Hundreds of college students from Minnesota's private colleges came to the Capitol during the session to meet with legislators and make the case for the State Grant program. College presidents and community leaders on the Council's board also advocated for State Grant program funding in meetings with legislators and through testimony at legislative committee hearings.

In addition to their actions on financial aid, policy leaders also approved the state appropriations to the University of Minnesota and the Minnesota State Colleges and Universities (MnSCU). The University of Minnesota's appropriation was cut $194 million or 15%. The special session compromise provided $50 million more than was included in the Legislature's original budget that Gov. Dayton had vetoed. MnSCU's budget was reduced $170 million, or 13.5%. MnSCU also received about $10 million more in the special session compromise than was included in the original legislative recommendation.