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Fiscal Note 2013-14 Session

Bill #: S0855-0 Complete Date: 03/08/13

Chief Author: SAXHAUG, TOM

Title: TRIBAL COLLEGE SUPPL GRANT AUTH

Fiscal Impact Yes No

State X

Local X

Fee/Departmental Earnings X

Tax Revenue X

Agency Name: Office of Higher Education

This table reflects fiscal impact to state government. Local government impact is reflected in the narrative only.Dollars (in thousands) FY13 FY14 FY15 FY16 FY17

ExpendituresGeneral Fund 343 343

Less Agency Can AbsorbGeneral Fund 25 25

Net ExpendituresGeneral Fund 318 318

Revenues-- No Impact --

Net Cost General Fund 318 318

Total Cost to the State 318 318

FY13 FY14 FY15 FY16 FY17

Full Time EquivalentsGeneral Fund 0.25 0.25

Total FTE 0.25 0.25

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Bill Description

This bill establishes and appropriates funds for a supplemental grant to eligible tribally controlled colleges inMinnesota for educating students who are not enrolled members of a federally recognized tribe.

The bill defines a non-beneficiary student as a student who is not an enrolled member of a federally recognizedtribe.

The bill defines a tribally controlled college as an accredited institution of higher education located in Minnesotathat is formally controlled by or has been formally sanctioned or chartered by the governing body of a federallyrecognized Indian tribe, or a combination of federally recognized Indian tribes. The bill also states that institutionsor campuses subject to the jurisdiction of the Board of Trustees of the Minnesota State Colleges and Universitiesor the Board of Regents of the University of Minnesota are considered tribally controlled colleges.

The bill indicates potentially eligible postsecondary institutions are required to submit an application and annuallyreport to OHE. The annual report is to include:1. An accurate and detailed account of the expenditures of the grant funds; and2. A copy of the college's most recent audit report; and3. Documentation of the enrollment status and ethnic status of each non-beneficiary student

According to the bill, OHE is to distribute supplemental grant funds on a per FTE basis and can prorate the perFTE amount if the appropriation is not sufficient to cover the total amount of grant eligibility.

Assumptions

OHE assumes there are currently two tribally controlled colleges eligible to receive the supplemental grant; LeechLake Tribal College and White Earth Tribal and Community College.

Both of these postsecondary institutions currently receive federal funds from the Bureau of Indian Education forstudents who are enrolled members of federally recognized tribes. Each institution annually receivesapproximately $5,300 per beneficiary student on a full-time-equivalent (FTE) basis. In addition, both currentlyparticipate in and receive federal and state student aid programs for all eligible students. Those student aidprograms include federal Pell Grant, Minnesota State Grant, Minnesota Indian Scholarship Program and federaland state work study.

Based on information provided by the two postsecondary institutions, it is estimated the combined number of non-beneficiary students enrolled per year would be 60 FTE.

It is also assumed the appropriation amount for this bill is based on supplementing eligible postsecondaryinstitutions for non-beneficiary students at the same per FTE rate currently provided by the Bureau of IndianEducation for beneficiary students. According to information provided by tribal colleges, this rate is currently$5,300.

Full-Time Equivalents

OHE would use existing staff to develop application forms, identify eligible postsecondary institutions and allocatefunds. In addition, OHE will use existing staff to collect the required information from eligible institutions to ensurecompliance with the requirements in this bill. Although OHE plans to absorb administrative costs using existing

staff, OHE assumes .25 FTE would be responsible for the administration of the program at the agency level.

Expenditure and/or Revenue Formula

The estimated number of non-beneficiary FTE students (60) is multiplied by the assumed per FTE rate of $5,300which results in an estimated fiscal impact of $318,000 per fiscal year and $636,000 per biennium.

Long-Term Fiscal Considerations

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One additional tribal college may become eligible for the supplemental grant in the near future. Red Lake NationCollege is currently in the process of applying for accreditation by Higher Learning Commission and may gain itsaccreditation in the next three to five years. However, the number of students who would be considered non-beneficiary under this bill currently attending Red Lake Nation College is very low. Thus, it is expected the impactof this college becoming eligible for a supplemental grant under this bill in the future is quite low.

Local Government Costs

N/A

References/Sources

Minnesota Office of Higher Education

I have reviewed the content of this fiscal note and believe it is a reasonable estimate of the expenditures andrevenues associated with this proposed legislation.

Fiscal Note Coordinator Signature: Tricia Grimes Date: March 8, 2013

FN Coord Signature: TRICIA GRIMESDate: 03/08/13 Phone: 651-259-3964

EBO Comments

I have reviewed this Fiscal Note for accuracy and content.

EBO Signature: ELIZABETH CONNORDate: 03/08/13 Phone: 651-201-8041