Minnesota's college grant program short $13 million

Higher enrollment drained aid, but "all commitments made to students" for this year will be met, official says.

By JENNA ROSS, Star Tribune

Last update: November 5, 2009 - 8:53 PM

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Booming college enrollment has maxed out the Minnesota State Grant Program, which provides aid for low- to middle-income families. The program faces a $12.9 million shortfall for this fiscal year, according to a report released Thursday.

The Minnesota Office of Higher Education, which runs the grant program, will fill that gap with funds intended for the following year.

"All commitments made to students for this academic year would be met," said Barb Schlaefer, spokeswoman for the office. "No student, no family will be caught off guard."

Minnesota students who attend private and public colleges in the state and meet certain criteria are entitled to the grants. Nearly 85,000 received grants last year.

Projecting the program's costs -- based on enrollment, tuition and families' financial need -- is always "a tricky business," Schlaefer said. This year was more difficult because of the number of students flocking to the state's two-year schools.

Colleges in the Minnesota State Colleges and Universities system projected that enrollment would be up 1.6 percent over last year. But it was up 8 percent, according to the report. The system's four-year universities also saw bigger growth than expected.

With more students, the program will spend $158.4 million for fiscal year 2010 -- more than the $145.5 million it has, according to the report. Nearly all the program's funding comes from state appropriations.

Moving money from the second year of the program's two-year appropriation solves this year's problem but not next year's.

To do that, either the Legislature would approve funding to fill the hole, or the amount or number of awards next year will be reduced.

A spokesman for Gov. Tim Pawlenty indicated the governor would not include more appropriations for the program in budget recommendations to the Legislature.

"The State Grant Program will need to stay within its biennial appropriation," Brian McClung said by e-mail.

Jenna Ross • 612-673-7168

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