The 2013 legislative session is well underway. Our state lawmakers are considering policies and financial strategies for supporting our state's quality of life. We believe that investment in higher education is critical to Minnesota's long-term success and must be a priority for funding.
Gov. Mark Dayton has demonstrated his commitment to higher education with his budget proposal, which calls for a $240 million investment. His proposal includes $80 million for Minnesota State Colleges and Universities (MnSCU) and $80 million for the State Grant Program.
We are pleased to support MnSCU's legislative proposal and the priorities advanced in Dayton's budget. The MnSCU budget will help students succeed by ensuring access and affordability, increasing graduation rates and providing students with the skills and experience they need to land a well-paying job and keep Minnesota companies competitive.
The MnSCU budget proposal does not rely on state funding alone, but rather reflects a partnership of shared interest. We are willing to do our part by supporting the modest tuition increase that MnSCU has proposed. Our state colleges and universities will do their part by delivering $44 million dollars in cost reductions and efficiencies.
Minnesota's business community, foundations and friends of our colleges and universities will do their part by funding $20 million in scholarships that will help 16,000 students and by providing $33 million in matching funds for internships and new equipment. Now we are asking the Legislature to do its part by supporting MnSCU's budget proposal.
The Legislature has another important task this session: making a much-needed adjustment to the State Grant Program. This program provides funds directly to low-income students to help them pay for their education — unmet financial need is one of the main reasons students are unable to attend or complete college. The program is good for Minnesota because these students, by earning a degree, become prepared to land well-paying jobs and increase their contribution to the state's economic success by buying homes, paying taxes and frequenting local businesses.
Unfortunately, there is a problem with the way the current state grant formula works: It penalizes low-income students who work out of necessity and attend school part time. As a result, these working part-time students get less support from the State Grant per credit hour than do full-time students or part-time students who do not work.
Addressing the unmet financial needs of part-time students has become a bigger issue for Minnesota as the number of college students attending part time has grown. Between fall 2008 and fall 2012, part-time student head count at MnSCU colleges and universities increased by more than 15,000, a 17.6 percent increase.