Resolves

Chapter 119

S.P. 355 - L.D. 1103

Resolve, To Determine the Impact of Funding for State Higher Education on the Distribution of Higher Education Costs among Families, Taxpayers and Publicly Supported Institutions of Higher Education

Sec. 1. Review of funding for state higher education. Resolved: That the University of Maine System, the Maine Community College System, Maine Maritime Academy and the Finance Authority of Maine, referred to in this resolve as "the review panel," shall collaboratively conduct a review of the impact of funding for publicly supported higher education in the State during the period from fiscal year 2002-03 to fiscal year 2006-07 on the following policy questions.

1. How have Maine finance policies related to the distribution of public subsidies influenced the distribution of student-related higher education costs among parents and students, state taxpayers, federal taxpayers and publicly supported institutions of higher education in the State?

2. As perceived by the review panel, what conclusions and implications can be drawn from the data concerning the degree to which state finance policies related to the distribution of public subsidies have sustained access, advanced equity of higher education opportunity and promoted equitable cost-sharing for all Mainers?

The review panel shall determine the methodology for this review in accordance with section 2; and be it further

Sec. 2. Scope of review; methodology. Resolved: That the review panel shall determine the methodology for this review after consideration of the research literature on higher education finance pertaining to the implications of state appropriations for the operating costs of publicly supported institutions of higher education and pertaining to the distribution of the costs and benefits of higher education for students and their families, state taxpayers, federal taxpayers and the publicly supported institutions of higher education. The data compiled and analyzed must include, but is not limited to, the following:

1. The amounts and levels of state general funds appropriated during each year from fiscal year 2002-03 to fiscal year 2006-07 to support the so-called "educational and general" operational expenditures of the University of Maine System, the Maine Community College System and Maine Maritime Academy;

2. The amounts and levels of state general funds appropriated during each year from fiscal year 2002-03 to fiscal year 2006-07 to the Finance Authority of Maine for awarding need-based grants through the Maine State Grant Program in order to subsidize tuition prices and provide need-based tuition assistance for eligible students to attend publicly supported institutions of higher education in the State;

3. The amounts and levels of state tax support for higher education, including state General Fund appropriations for universities, colleges, community colleges and state higher education agencies compiled by the Grapevine project at the Center for the Study of Education Policy at Illinois State University. The review team shall consider the Grapevine project data reported for the level of state appropriations for higher education as a percentage of the total state appropriations, on a per capita basis, and as a percentage of income. The review team shall also compare these state appropriation trends for Maine, for the New England states and for an appropriate set of comparison states whose demographic profile and higher education systems are reasonably comparable to the system of higher education in Maine;

4. The proportion of state General Fund appropriations as a source of revenue as compared to the total revenues of the University of Maine System, the Maine Community College System and Maine Maritime Academy;

5. The proportion of revenues received from sources other than state General Fund appropriations, including revenues from tuition, mandatory fees and room and board, revenues from the Federal Government and from other philanthropic organizations or individuals, as compared to the total revenues of the University of Maine System, Maine Community College System and Maine Maritime Academy;

6. The amounts and levels of education subsidies, including state and federal student financial assistance, provided to resident students attending the University of Maine System, the Maine Community College System and Maine Maritime Academy as compiled from institutional expenditure data and reported annually to the Integrated Postsecondary Education Data System and from financial aid packaging reports provided to the Finance Authority of Maine;

7. Data compiled by the Finance Authority of Maine on the Maine State Grant Program recipients at publicly supported institutions of higher education in the State reported as full-time equivalent students, including the average amounts of grants awarded and the average levels of unmet need for the prototypical grant recipients at each institution disaggregated by family income quartiles; and

8. State-level and higher education institution data regarding family income, state tax appropriations, institutional finances, enrollments, attendance costs, student aid, and any other relevant data reported to the Integrated Postsecondary Education Data System, the National Center for Education Statistics and the United States Department of Commerce, Bureau of Economic Analysis; and be it further

Sec. 3. Report. Resolved: That the review panel shall present its report, including findings, recommendations and any necessary legislation, to the Joint Standing Committee on Education and Cultural Affairs no later than January 31, 2008. The Joint Standing Committee on Education and Cultural Affairs may submit a bill based on the report presented pursuant to this resolve to the Second Regular Session of the 123rd Legislature.