Minnesota’s economic interests led state chamber to focus on need-based aid
The Minnesota Chamber of Commerce has identified need-based aid for college students as its top priority for higher education during this legislative session. Representing businesses of all sizes and in all corners of the state, the chamber has voiced support for an increase in funding for Minnesota’s State Grant program, which targets about 80,000 low- and middle-income students.
The chamber announced its strong support for the State Grant program at its annual Session Priorities event in early January. The chamber’s view is that State Grant investment is required to alleviate the financial barriers that students face when pursuing higher education.
“The $281 million in State Grant money that follows the student not only makes the institutions sensitive to the more immediate needs of students and the economy but also improves accessibility. From the business community's perspective, that's a good mix of meeting immediate needs and preparing for the future,” the chamber stated.
This position was driven by a focus on how we best maintain a strong economy in our state. “As the baby boomer generation enters retirement, it is clear that policymakers need to anticipate the change in demographics by acknowledging that an increasing percentage of the workforce will need a postsecondary education,” the chamber stated.
One of the best returns on investment of any state budget expenditure, based on how it targets limited state dollars, the State Grant will be especially important in ensuring access to higher education for students given the current economic conditions. Most of the recipients are from families earning less than $40,000 a year.
The business case for need-based aid was also recently highlighted at Minnesota 2020, the policy group, by one of the Minnesota Private College Council’s board members. Tim Morin, executive vice president for Four51 Inc., noted that “our state's employers recognize the importance of high quality human capital development to compete globally and create jobs in Minnesota. If we do not have an educated workforce we cannot be successful.” His piece noted some recent successes as well as room for improvement.
Meanwhile, given the $5.2 billion state budget deficit, significant cuts will be required during this legislative session. What is unclear is how strategic investments in the state’s long-term future — like the State Grant — will be protected from those cuts, including when the administration’s budget proposal is made by the end of the month.
Read more about the chamber's agenda, including strengthening the state’s ACHIEVE scholarship program, or the Council’s agenda.