South Carolina Independent Colleges and Universities

A Voice for Independent Higher Education in South Carolina

SC FY 2018-19 Budget Increases for Independent Higher Ed Programs Secured

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COLUMBIA, SC — On Friday, July 6, Governor Henry McMaster vetoed 42 items in the $8.2 million general fund budget for the fiscal year beginning July 1. None of the vetoes affected the funding increases for student financial aid and other programs appropriated by the General Assembly. The House and the Senate will return to Columbia in September to address the vetoes.

For the higher education community, the final budget was a compromise that balanced little additional funding in the House version with a more robust approach by the Senate.

Programs that significantly impact students attending independent colleges and universities did, in the end, receive House and Senate approval for increased funding over the previous year.

Specific budget items impacting funding for independent higher education include the following:

  • Tuition Grants – Increase of $1,169,992
  • Commission on Higher Education’s need-based grant program – Net additional increase of $1,612,922 of which approximately 16.5% or ($266,122) is designated for Tuition Grants
  • PASCAL (Partnership Among South Carolina Academic Libraries) – $1,500,000
  • SC Merit Scholarship program – Full-funding at over $350 million

The Tuition Grants Commission voted to use the additional $1.44 million to increase the maximum student grant by $100 to $3,300 for the 2018-19 academic year. This is the largest maximum grant available to SC Tuition Grant recipients since the grant became level-funded in 2000.

SCICU thanks it many advocates for their efforts in helping to increase the amount of financial aid that will be awarded to South Carolina students who attend a private non-profit college or university. A more complete report will be provided to the SCICU Public Policy Committee at their next committee meeting on July 17 at 10:00 a.m.

House, Senate Send FY 2019 Budget to Governor

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On the last day of the 2018 legislative session, the House and the Senate adopted the report of the Budget Conference Committee and sent the $8.2 million general fund budget for the fiscal year beginning July 1 to Governor Henry McMaster.

For the higher education community, the final budget was a compromise that balanced little additional funding in the House version with a more robust approach by the Senate.

Programs that significantly impact students attending independent colleges and universities did, in the end, receive House and Senate approval for increased funding over the previous year.

Specific budget items impacting funding for independent higher education include the following:

  • Tuition Grants – Increase of $1,169,992
  • Commission on Higher Education’s need-based grant program – Net additional increase of $1,612,922 of which approximately 16.5% or ($266,122) is designated for Tuition Grants
  • PASCAL (Partnership Among South Carolina Academic Libraries) – $1,500,000
  • SC Merit Scholarship program – Full-funding at over $300 million

Barring any vetoes of these key-line items by Governor McMaster, the Tuition Grants Commission will determine how an additional $1.44 million in FY 2019 can help students attending South Carolina’s independent colleges and universities. Presently, the maximum Tuition Grant award is $3,200 per year.

The Governor will have 5 days (excluding Sunday) to approve the budget or return it to the House with line-item vetoes. The House and Senate separately will review the vetoes. Both chambers must achieve a two-thirds majority to override each line-item veto. Depending on the urgency of the vetoes, the General Assembly may defer returning to Columbia until a later date.

SCICU staff is confident that the hard-fought budget increases will survive any vetoes. SCICU thanks it many advocates for their efforts in helping to increase the amount of financial aid that will be awarded to South Carolina students who attend a private non-profit college or university. A more complete report will be provided to the SCICU Public Policy Committee at their next committee meeting on July 17 at 10:00 a.m.

SC Budget Conference Committee Sends Recommendations to House for Debate

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The Conference Committee considering the FY 2018-19 state budget finished its work late Tuesday night (June 26), and the House is prepared to begin debate on the committee’s recommendations on Thursday, June 28.

Higher education funding recommendations from the Conference Committee include the following:

  • Tuition Grants – Increase of $1,169,992 over previous year (FY 2017-18) funding
  • Commission on Higher Education’s need-based grant program – Net additional increase of $1,612,922 over previous fiscal year funding
  • PASCAL (Partnership Among South Carolina Academic Libraries) – $1,500,000
  • SC Merit Scholarship program – Full-funding

If the Conference Committee budget is adopted, the Tuition Grants Commission will determine how an additional $1.44 million in FY 2019 can help students attending South Carolina’s independent colleges and universities. Presently, the maximum Tuition Grant award is $3,200 per year.

The House and the Senate still must agree on a FY 2018-19 budget to send to Governor McMaster. The Governor will have 10 days to approve the budget or return it to the House with line-item vetoes. The House and Senate separately will review the vetoes. Both chambers must achieve a two-thirds majority to override each veto. If the budget legislative process extends beyond July 1, the state will continue to operate under the spending levels in the FY 2017-18 budget until the FY 2018-19 budget is ratified.

SCICU staff is confident that the hard-fought budget increases will survive the final votes and vetoes. A more complete report will be provided to the SCICU Public Policy Committee once the General Assembly adjourns for the year.

Federal Higher Education Update – May 24, 2018

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Higher Education Reauthorization Act

The House Committee on Education and the Workforce approved a bill to reauthorize the Higher Education Act in December. Committee Chairwomen Virginia Foxx (NC) is trying to secure enough votes to bring the bill to the House floor for a vote.

As adopted by Rep. Foxx’s committee, Promoting Real Opportunity, Success and Prosperity through Education Reform (PROSPER) Act includes some very positive provisions such as creating a $300 Pell Grant bonus for students who take 30 credits during an academic year and repealing regulations on credit hour, state authorization, and state authorization of distance education, and eliminating origination fees on student loans.

It also includes many program changes that have a significant impact on institutions and students. For example, the bill would:

  • Eliminate SEOG and put the money into Federal Work Study through a new distribution formula.
  • Make changes to loan limits, including imposing restrictive new annual loan limits on graduate students and parents.
  • Structure institutional eligibility to Title IV aid on a program-by-program basis based on each program’s loan repayment rate, rather than through broad institutional eligibility that currently exists.

Other major changes include a restructuring of student loan terms and conditions. This includes eliminating all current loan forgiveness and income-based repayment programs for new student borrowers in favor of two options with limitations on the total amount of interest that can accrue.

While the Committee has done some thoughtful work in assembling its bill, the legislation needs serious revisions if it is going to be effective in helping, and not hurting, middle and low income students attend and complete college and to reduce, and not increase, regulatory red tape. In its current form, the bill would drive up the cost of college for students and dramatically increase the regulatory burden on colleges due to the new requirement that each major on campus must go through an annual test to determine if students can use federal loans and grants to major in that field.

In a letter dated May 18, 2018, SCICU asked each member of the SC House delegation to work with us and national organizations such as NAICU to revise the most egregious parts of the PROSPER Act to ensure that the very best interests of students are served to the greatest extent possible.

In the Senate, Health, Education, Labor and Pensions Committee (HELP) Chairman Lamar Alexander (R-TN) and Ranking Member Patty Murray (D-WA) have held a series of four committee hearings to address several HEA themes and ideas, identify a procedural framework for moving forward with a bipartisan bill, and request feedback from higher education community stakeholders. They are hoping to produce a bipartisan bill for release later this year.

FY 2018 Omnibus Budget

In March, Congress finalized FY 2018 spending with an omnibus bill that provides significant increases for the student aid programs and student loan and departmental management issues. Congress rejected the administration’s budget request for the Department of Education by setting the following funding levels for student aid:

  • Pell Grant: $175 increase in the maximum grant, from $5,920 to $6,095.
  • Supplemental Educational Opportunity Grant (SEOG): $107 million increase to $840 million.
  • Federal Work Study: $140 million increase to $1.13 billion.
  • TRIO: $60 million increase to $1.01 billion.
  • GEAR UP: $10 million increase to $350 million.

It is important to point out that the $175 increase in the Pell Grant maximum is a discretionary increase in the maximum grant, meaning it is fully funded by appropriations. This is significant because it raises the baseline for funding the program, making it difficult to cut in future years.

Other programs of interest to private colleges also fared well in the final spending bill. All of the Strengthening Institutions Grants programs were increased, including a $12 million increase for Title III-Part A, to $99 million; a $15 million increase for Hispanic Serving Institutions, to $123 million; a $1.3 million increase for the portion of funding for Historically Black Colleges and Universities (HBCUs) that is funded through appropriations; and a $35 million increase for HBCU graduate institutions, to $280 million. The Work Colleges program was increased by $1.2 million, to $9.6 million.

For an in-depth look at the FY 2018 budget, follow the link to NAICU’s March 23 issue of Washington Update.

FY 2019 Omnibus Budget

On February 12, President Trump submitted his FY 2019 budget to Congress, proposing massive cuts to the federal student aid programs. If enacted, low-income students are going to have a much more difficult time affording a college education. Budget reductions in the area of higher education include:

  • Supplemental Educational Opportunity Grants (SEOG): The budget proposes to eliminate SEOG, a cut of $733 million, arguing the program is duplicative of Pell, and does not target aid to the neediest students.
  • Federal Work Study (FWS): The budget proposes to cut $490 million from FWS, leaving $500 million for a newly restructured focus on job training, not financial aid.
  • TRIO and GEAR UP: The budget proposes to eliminate GEAR UP funding, a cut of $340 million, but incorporate its activities into TRIO, which is level-funded at $950 million for a new state distribution formula.
  • Subsidized Loans: The budget proposes to eliminate the in-school interest on student loans taken out by low-income students.
  • Institutional risk-sharing: The budget mentions support for institutional risk-sharing on loan repayment rates, but does not include any details.

House and Senate committees will continue work on the FY 2019 budget throughout the summer and into fall. Hopefully, the resulting appropriations for higher education programs will resemble those in the FY 2018 budget and not President Trump’s recent executive budget. The 2019 fiscal year begins October 1, 2019.

SC Budget Conferees Need More Time to Reconcile Differences

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In a joint statement released on May 16, Senate Finance Committee Chairman Hugh Leatherman and House Ways and Means Committee Chairman Brian White announced that the differences between the House and Senate versions of the FY 2018-19 state budget are so numerous and complex that House and Senate budget negotiators will not reach a consensus by the time the General Assembly returns to the State House on May 23 and 24. The revised schedule means that legislators will not adopt a budget before the June 12 primaries and any subsequent runoffs, which will be held June 26.

The Budget Conference Committee will continue to meet in the coming weeks in an effort to present a budget recommendation to lawmakers when they return to Columbia a second time on June 27 and 28. It is very likely that the ordinary expenses of state government beginning with the new fiscal year on July 1 will be funded by a Continuing Resolution while lawmakers ratify the budget and address the inevitable line-item vetoes by Governor McMaster.

The Senate members of the Conference Committee are Finance Committee Chairman Sen. Hugh Leatherman (R-Florence), 2018 SCICU Legislative Champion Sen. John Mathews (D-Bowman), and Sen. Sean Bennett (R-Summerville). Ways and Means Chairman Rep. Brian White (R-Anderson), Rep. Durham Cole (R-Spartanburg) and Rep. Bill Clyburn (D-Aiken) represent the House.

There are significant differences between the two budget proposals, especially when it comes to funding higher education. The Senate proposed increased funding for need-based grants— both Tuition Grants for students attending private non-profit colleges and the Commission on Higher Education (CHE) program for public colleges—the academic library consortium (PASCAL), and recurring funds for public colleges and universities. The House proposed no such increases, but agreed with the Senate to fully-fund the Merit Scholarships.

Given the broad differences in the two budgets, SCICU’s advocacy efforts are focused on the Senate’s proposal to increase funding to need-based grants by over $11 million. Under the Senate plan, the Tuition Grants Commission would receive a direct increase of about $1.2 million and an indirect increase of approximately $1.6 million from its share of the almost $10 million increase proposed for the CHE need-based grant program.

Need-based grants are essential for promoting access and affordability to higher education, especially for low income, first generation, and minority students. If the Senate version becomes law, the maximum Tuition Grant could increase more than 6% from $3,200 to $3,400 per year for more than 13,600 Tuition Grant recipients attending independent colleges and universities. Depending on the cost of tuition and fees, more than 16,000 students attending public colleges and universities could see similar increases.

Advocates for student financial aid and independent higher education are encouraged to contact members of the Budget Conference Committee in support of the Senate budget proposal for funding need-based grants. Please refer to the links above for contact information for Budget Conference Committee members.

State Budget Negotiations Extended — Impact on Higher Ed Support

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COLUMBIA, SC — The South Carolina House and Senate agreed to extend the 2018 legislative session beyond the May 10 statutory adjournment date and return to Columbia on May 23 and 24. When the legislators return, their actions will be limited by the Sine Die Resolution to include consideration of the General Appropriations Bill, legislation concerning the V.C. Summer Nuclear units, and other defined matters.

During the recess, the Budget Conference Committee appointed to reconcile the differences in the House and Senate versions of the Appropriations Bill for FY 2018-19 will continue to meet. The Senate is represented by Finance Committee Chairman Sen. Hugh Leatherman (R-Florence), 2018 SCICU Legislative Champion Sen. John Mathews (D-Bowman), and Sen. Sean Bennett (R-Summerville). Ways and Means Chairman Rep. Brian White (R-Anderson), Rep. Durham Cole (R-Spartanburg) and Rep. Bill Clyburn (D-Aiken) represent the House.

There are significant differences between the two budget proposals, especially when it comes to funding higher education. The Senate proposed increased funding for need-based grants— both Tuition Grants for students attending private non-profit colleges and the Commission on Higher Education (CHE) program for public colleges—the academic library consortium (PASCAL), and recurring funds for public colleges and universities. The House proposed no such increases, but agreed with the Senate to fully-fund the Merit Scholarships.

Given the broad differences in the two budgets, SCICU’s advocacy efforts are focused on the Senate’s proposal to increase funding to need-based grants by over $11 million. Under the Senate plan, the Tuition Grants Commission would receive a direct increase of about $1.2 million and an indirect increase of approximately $1.6 million from its share of the almost $10 million increase proposed for the CHE need-based grant program.

Need-based grants are essential for promoting access and affordability to higher education, especially for low income, first generation, and minority students. If the Senate version becomes law, the maximum Tuition Grant could increase more than 6% from $3,200 to $3,400 per year for more than 13,600 Tuition Grant recipients attending independent colleges and universities. Depending on the cost of tuition and fees, more than 16,000 students attending public colleges and universities could see similar increases.

Advocates for student financial aid and independent higher education are encouraged to contact members of the Budget Conference Committee in support of the Senate budget proposal.

Legislative Update 03-29-2018: SC Senate Adopts Education Opportunity Budget

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COLUMBIA, SC — The Senate Finance Committee adopted what one senator calls an “Education Opportunity” budget on March 28 after several days of debate. Unlike the House version of the FY 2018-19 state budget, which all but ignored the needs of higher education institutions and students, the Senate Finance Committee recommended increased funding across-the-board for public colleges and universities, technical colleges, K-12, and student scholarships.

The numbers are still being reconciled, but for independent higher education, in particular, the Finance Committee increased lottery appropriations for the Tuition Grants Commission from last year’s $8,830,008 to $10,000,000, an increase of $1,169,992. The Committee also added $1.5 million in Unclaimed Prizes for PASCAL (Partnership Among South Carolina Academic Libraries). In comparison, the House did not increase funding for either of these programs.

Of significant value for the Tuition Grants program, the Finance Committee increased spending in the state’s need-based grant program managed by the Commission on Higher Education by $10,462,922 to $40 million. Tuition Grants receives roughly 16.5% of funds appropriated to CHE’s need-based program, a figure equal to the percentage of the state’s undergraduates who attend independent colleges and universities. If the additional need-based funds were to stay in the final budget, then Tuition Grants would receive a second appropriation of more than $1.7 million. In total, that is about $3 million more than the House version of next year’s (FY 2018-19) Tuition Grants budget. This year’s request by the Tuition Grants Commission was for an additional $2.1 million to raise the maximum grant from $3,200 to $3,350.

Like the House, the Finance Committee fully funded the Merit Scholarship programs by adding approximately $12 million to cover the second year of the phase-in of the 10 point grading scale. Sen. Harvey Peeler made it very clear in his report that the State cannot continue to fund merit scholarships at the current level of spending. The normal growth of the number of scholarships in the last decade, along with the additional students who now qualify for merit scholarships because of the more liberal 10 point grading scale, has just about exceeded the lottery’s capacity to fund all eligible students.

It is worth mentioning that the 33 public colleges and universities were appropriated $20 million in recurring state funds by the Senate Finance Committee to help slow the rise of tuition for in-state students. The money was apportioned among the higher education institutions and earmarked as “Access and Affordability for In-State Students-Tuition Mitigation Funding.”

The House did not budget recurring funds for public colleges and universities, but did add $50 million in one-time money for deferred maintenance expenses. The Senate Finance Committee’s proposal would keep the $50 million for capital repairs and add $20 million in recurring money.

The Full Senate must approve the Finance Committee’s recommendations, then the budget will undoubtedly go to a Conference Committee of three senators and three representatives. And the Governor will get his shot with his line-item veto. The two versions of the budget will undoubtedly be miles apart, so finding the middle ground needed to reconcile the spending differences will be challenging.

On Wednesday, April 11, more than 100 students from SCICU member colleges and universities will rally at the State House. These students, all Tuition Grant recipients, will meet with their local state legislators and advocate for the Senate Finance Committee’s version of the FY 2018-19 budget. From there, SCICU will turn its attention to educating members of the yet-to-be-named Conference Committee.

House Ways and Means: No Additional Funds Available for Need-Based Grants

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COLUMBIA, SC — The House Ways and Means Committee has completed the first draft of the state’s $8.2 billion general fund budget proposal for the fiscal year that starts July 1. With very little unallocated general fund revenue ($292.9 million) available and over $2 billion in requests, the committee struggled to meet as many of the state’s needs as possible. Unfortunately, higher education was not a priority.

There were no increases recommended for Tuition Grants ($2.1 million request) or CHE need-based grants ($1 million request). Unlike in years past, PASCAL ($1.5 million request) was not included in the budget for lottery funds. Fortunately, the Ways and Means Committee recommended full funding of Merit Scholarships to include an additional $12 million due the increase in eligible students caused by the change in the high school grading scale from a 7-point scale to a 10-point scale.

The Ways and Means Committee recommended a small increase for public colleges and universities to be used for deferred maintenance needs. Fifteen two- and four-year public colleges and universities will share approximately $50 million in non-recurring funds.

The recommendations of the Ways and Means Committee continues a disturbing trend that has seen funding for higher education decrease from 17% of the state’s general fund appropriations to just 7% during the period FY 1979-80 to FY 2017-18.

The House is expected to ratify the budget as presented by the Ways and Means Committee during floor debate the week of March 12. SCICU’s attention will now turn to the Senate Finance Committee. Traditionally, higher education in general and independent colleges in particular, are treated more favorably in the Senate. We are hopeful that more of SCICU’s legislative priorities will be addressed by the Senate in a meaningful way.

Legislative Update: Ways and Means Committee Continues Work on FY 2018-19 State Budget

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COLUMBIA, SC — The second regular session of the 122nd South Carolina General Assembly began on January 9, 2018. One week later, Katie Harrison, executive director of the South Carolina Higher Education Tuition Grants Commission, presented the Commission’s budget request for FY 2018-19 to the House Ways and Means Committee’s Higher Education subcommittee.

Securing an additional $2.13 million for the Tuition Grants Program is the first legislative priority for both the Tuition Grants Commission and SCICU (SCICU’s 2018 Legislative Strategic Plan and 2018 Legislative Priorities and Quick Facts are available on the Advocacy page of SCICU’s website.). Tuition Grants are need-based grants available to South Carolina residents who attend in-state, private non-profit colleges or universities. The South Carolina Tuition Grants Commission requested an additional $2.13 million from the subcommittee in order to increase the maximum individual student award from $3,200 to $3,350 for the academic year beginning in August 2018.

SCICU’s second legislative priority supports full funding for the state’s merit-based scholarship programs (Palmetto Fellows, LIFE, and HOPE). This year the state merit-based scholarship programs cost an estimated $300 million. These programs are funded primarily by the Education Lottery. Unless changes are made to the programs’ eligibility or award criteria, scholarship funding may have to increase by as much as $20.4 million to accommodate an additional 8,000 students who will qualify under the second year phase-in of the high school grading policy which changed to a 10-point scale from a 7-point scale in 2016.

SCICU also supports the Commission on Higher Education’s request for an increase of $1 million in a need-based grant programs for public college students and $1.5 million for the Partnership Among South Carolina’s Academic Libraries (PASCAL)

The Ways and Means Committee has set aside the week of February 20-22 to complete the final committee draft of the FY 2018-19 state budget. A key factor in establishing next year’s spending will be the General Revenue Forecast prepared by the State Revenue and Fiscal Affairs Office, which is due on February 15.

While revenues have generally been up, new revenue will not be enough to cover the growing demand for government services and programs. In addition to outstanding needs identified by state agencies and public colleges and universities, legacy needs like funding for teacher and public employee pay raises, schools in the I-95 corridor, an underfunded state pension system, and the needs of local governments must be addressed. Also outstanding is the potential impact that federal taxes cuts will have on the State’s ability to collect revenue.

SCICU Prepares for 2018 Legislative Session

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cropped-favicon-1.pngCOLUMBIA, SC — The second regular session of the 122nd South Carolina General Assembly will begin on January 9, 2018. SCICU’s Public Policy Committee has prepared the 2018 Legislative Strategic Plan to address issues related to the FY 2018-19 state budget and a long list of pending legislation.

Securing an additional $2.13 million for the Tuition Grants Program is the first legislative priority for SCICU. Tuition Grants are need-based grants available to South Carolina residents who attend in-state, private non-profit colleges or universities. The South Carolina Tuition Grants Commission has requested an additional $2.13 million from the General Assembly in order to increase the maximum individual student award from $3,200 to $3,350 for the academic year beginning in August 2018.

The second legislative priority supports full funding for the state’s merit-based scholarship programs (Palmetto Fellows, LIFE, and HOPE). This year the state merit-based scholarship programs cost an estimated $300 million. These programs are funded primarily by the Education Lottery. Unless changes are made to the programs’ eligibility or award criteria, scholarship funding may have to increase by as much as $20.4 million to accommodate an additional 8,000 students who will qualify under the second year phase-in of the high school grading policy which changed to a 10-point scale from a 7-point scale in 2016.

SCICU also supports the Commission on Higher Education’s request for an increase of $1 million in a need-based grant programs for public college students and $1.5 million for the Partnership Among South Carolina’s Academic Libraries (PASCAL).

The Tuition Grants Commission will present its 2018-19 budget request to the Higher Education Subcommittee of the House Ways and Means Committee on January 9. First-year subcommittee chair Rep. Durham Cole (R-Spartanburg) will be joined by returning subcommittee members Rep. Gilda Cobb-Hunter (D-Orangeburg) and Rep. Mike Sottile (R-Isle of Palms). Rep. Kirkman Findley (R-Columbia) is a new addition to the subcommittee this year.

While revenues have generally been up, new revenue will not be enough to cover the growing demand for government services and programs. In addition to outstanding needs identified by state agencies and public colleges and universities, legacy needs like funding for teacher and public employee pay raises, schools in the I-95 corridor, an underfunded state pension system, and the needs of local governments must be addressed.

Public policy issues competing for legislators’ time and attention include the SCE&G/Santee Cooper nuclear reactor debacle and the on-going investigation into legislator misconduct in office. And in 2018 the Governor and the other Constitutional Offices and all House seats are up for election.

Request for Assistance in Advocacy

SCICU is asking its Trustees and friends of independent higher education to contact their local legislators and solicit support for increased funding for tuition grants and merit scholarships. The 2018 SCICU Legislative Strategic Plan and Priorities and Talking Points are available at https://www.scicu.org/advocacy/.

Student Advocacy

Students at SCICU member colleges and universities also participate in independent higher education advocacy through their annual letter writing campaign and legislative visits to the SC General Assembly on SC Independent Colleges and Universities Day, this year scheduled for April 11. More details on the letter writing campaign and SC Independent Colleges and Universities Day can be read on the SCICU website.

Tracking Bills of Interest

SCICU also tracks specific bills that may impact independent higher education in South Carolina. The latest Bills of Interest list may be viewed here.