Higher Ed's Corner of the State Budget

In the fall of 2007, many of us spent time lobbying state legislators and policymakers to establish the first ever dedicated funding source for higher education in the United States.  You may recall emails from the administration or SGA volunteers asking you to contact your legislators to lobby for increased funding for higher education.  And, a number of student leaders participated in a Higher Education Rally in Annapolis during the heart of the 2007 Special Session.  The vehicle for this funding was the Higher Education Investment Fund, or HEIF.

Specifically, the HEIF is funded through a half-percent increase in the corporate income tax.  It is estimated that the state could recieve upwards of $66.5 million this coming year from the fund, according to the 2009 Dept. of Legislative Services Fiscal Briefing.  Originally intended to "supplement" and not "supplant" current funding in higher education, it's unclear whether on not the fund actually brings more money to higher education.  Possibly the fund is more symbolic than anything else, suring up a mandate for higher education, albeit a small fraction of the state's usual support for higher education.

The original passage of HEIF had a sunset clause included for 2009, as an emergency valve if slots did not pass in November 2008.  Slots passed, and so the Governor has proposed to reauthorize the dedicated funding source.  It seems like the bill will pass the legislature.

The real question, though, is whether the HEIF will return to "supplemental" status, as opposed to "supplanting" status, if/when fiscal times looks better.