Government Relations
UM Legislative Update Newsletter
February 24, 2006
Higher education scholarship and funding plan introduced in House
Rep. Carl Bearden (R-St. Charles), speaker pro-tem of the House, introduced HB1865 on Thursday, Feb. 23. The bill serves as a blueprint to update the way Missouri’s public higher education institutions are funded and to provide increased support for scholarships. The new legislation is an updated version of last year’s HB742, which generated considerable discussion in the higher education community but did not move out of either chamber.
The new legislation, which is co-sponsored by 34 fellow House members including the Speaker and most of the House majority leadership, includes the following changes to higher education policy:
- Access Missouri Scholarship, a new program that would provide up to $1,000 for the freshman year to Missouri students graduating from high school with a 2.5 or higher GPA who attend a Missouri public or private institution. Students who now receive the A+ scholarship for community colleges would not be eligible. The legislation phases in the scholarship over four years, beginning with $250 in the 2007-2008 academic year, and requires the Department of Higher Education to administer the program.
- Performance measures tied to future increases in operating funds above the high-water FY01 level. Working with the Department of Higher Education, institutions would have to develop a set of performance measures based on their respective missions and would have to meet those measures in order to be eligible for any additional funds.
- Appropriations limits that cap operating funds at 2001 levels for Missouri public higher education institutions until four major scholarship programs are funded at 75 percent of need. The four scholarship programs include Access Missouri (a new program with no current funding); the Missouri Student Grant Program (currently meeting 25 percent of need); the Gallagher Grant Program (currently meeting 25 percent of need); and the Bright Flight Scholarship (currently fully funded). Once the scholarship programs are at 75 percent, the legislature could make a one-time adjustment in operating funds for the public institutions and then the level would again be capped until the scholarship programs are funded at 100 percent.
- Fee-for-service contracts between institutions and the Department of Higher Education for certain programs such as remedial courses that provide state support outside of the normal operating appropriation.
- Establishment of a Joint Committee on Higher Education that would meet regularly to review statewide higher education goals and institution performance and to study financial aid programs and other issues related to postsecondary education.
The bill is expected to be assigned to a House committee for consideration in the next few weeks.
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