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Board Report #01-11

2001-02 Program Reduction Plan



The Higher Educational Aids Board has been asked to develop a plan that would accommodate a 5% reduction in GPR appropriations. Prior to the current biennial period when a similar request was made, HEAB submitted a plan that eliminated smaller programs and held harmless larger programs the agency administered. Applying this approach to 2001-02, leaving in existence the Academic Excellence Scholarship Program, Talent Incentive Program Grant, Wisconsin Higher Education Grant Programs, and the Wisconsin Tuition Grant Program, would reduce the 2001-02 appropriation by $2,573,900 when $3,156,775 is needed. During the last biennial budget request HEAB submitted a plan that cut each program across the board by 5% since each program was considered an equal priority.

Since increases in funding for a number of the smaller programs was included in the request that was submitted in September, 2000 for 2001-03 (with the increases identified as a priority); following a past approach of eliminating smaller programs could not be supported by what has already been submitted for 2001-03 to date. There is also the issue that by eliminating the smaller programs, the necessary 5% reduction would not be met and further reductions would still be needed in the larger programs.

Therefore, I recommend that HEAB submit a plan that includes a possible 5% across the board cut for the reasons stated above and because it would better reflect the board's current program priorities.

The following outlines a possible plan to meet a potential 5% 2001-02 budget reduction:

PROGRAM 2000-01 2001-02
Tuition Grant (B) 21,038,600 19,986,670
Wisconsin Higher Education Grant-WTC (B) 13,201,900 12,541,805
Dental Education Contract (A) 1,167,000 1,108,650
Wisconsin Higher Education Grant-UW (B) 18,900,300 17,955,285
Minority Undergraduate Grant (B) 693,100 658,445
Minority Teacher Loan (A) 240,000 228,000
Handicapped Grant (B) 123,800 117,610
Talent Incentive Grant (B) 4,503,800 4,278,610
Teacher Education Loan (A) 250,000 237,500
Teacher of the Visually Impaired Loan (B) 100,000 95,000
Academic Excellence Scholarship (S) 2,917,000 2,771,150
TOTAL 63,135,500 59,978,725

PLEASE NOTE: This chart reflects a 5% GPR decrease for 2001-02. It does not include the MN-WI Reciprocity Program in which GPR spending is projected to be zero. Nor does this chart include the Indian Student Assistance or the Wisconsin Higher Education Grant-Tribal Programs, which are both funded through gaming funds rather than GPR.

A = Annual appropriation
B = Biennial appropriation
S = Sum Sufficient appropriation


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