The House Ways & Means Committee held a marathon executive session. Among the bills moved out of committee this evening were two major pieces of legislation that will impact higher education – House Bill 1795 and House Bill 1981.

Both bills now move to the House floor for consideration.

House Bill 1795
The bill allows  four-year colleges and universities to set tuition for all students for four years, through the 2014-15 academic year. After 2015, tuition for resident undergraduates will be set by the governing boards of the four-year institutions within certain parameters tied to the global challenge states and state funding. For example if state funding for an institution falls below state funding levels for FY 2011, an institution’s governing board may increase tuition so as not to exceed the 60th percentile of the tuition at GCS institutions.

In addition, the bill requires public baccalaureate institutions to increase current funds held for financial aid from 3% of tuition and fees to 5%, freezes the building fee to 2010-11 levels, and requires institutions to mitigate tuition increases for students at 125% or below of the median family income if they exceed tuition levels established in the budget.

Finally the bill contains provisions related to federal tax credits, transfer language, performance and accountability, and regulatory relief for higher education institutions.

House Bill 1981
The bill makes several changes to retirement related policies for higher education employees.  Among the changes is a narrower definition of eligible employees for Higher Education Retirement Plans. Under this bill only faculty and senior academic administrators are eligible for the plan. Senior academic employees are defined as institutional presidents, vice presidents, vice  presidents, deans, directors, chairs, and executive heads of major administrative or academic divsions who hold concurrent faculty appointment with rank.

In addition the bill caps benefits at 6%, alters postretirement employment criteria for employees, and eliminates the supplemental benefit.

Finally the bill was amended in committee to require employers contribute one-half of one percent of salaries into a non-appropriated Higher Education Retirement Plan (HERP) Supplemental Benefit fund beginning January 1, 2012. The dollars deposited into the fund will be managed by the State Investment Board.