Higher Education Appropriations Subcommittee

The Higher Education Appropriations Subcommittee (HEAS) convened its first meeting of the 2025 General Session on Thursday, January 23. The subcommittee heard multiple presentations from the Office of the Commissioner of Higher Education, including:

An overview of the data and methodologies the Utah System of Higher Education will use to analyze programs, courses, and other operational efficiencies in instruction and administrative functions as the System engages in the exercise of strategic reinvestment.

An overview of the System’s progress over the past year on statutory directives and initiatives within the Board’s Strategic Plan. Highlights included the adoption of the Board’s new strategic plan and resulting reorganization of the Commissioner’s office, advances in shared services, the creation of Admit Utah, the implementation of a new, rigorous tuition and fee setting process, developments in commercialization through The Point Innovation District, and more. This presentation also highlighted the First Credential Initiative as a collaboration between the Legislature, the Governor’s Office, Utah’s public education system, and USHE.

A presentation of the Board’s 2025 General Session Consensus Operating and Capital Budget Requests. In the interest of transparency, the subcommittee was also provided with a list of the budget requests that were not recommended by the Board.

The subcommittee also heard presentations from the Office of the Legislative Fiscal Analyst regarding the higher education base budget, strategic reinvestment funding, and LFA’s budget recommendations. The Office of the Legislative Auditor General also presented to HEAS regarding the recent Performance Audit of the Utah System of Higher Education.

Upcoming HEAS Meetings:

• January 27
• January 29
• January 31 – SLCC President Peterson will present
• February 4
• February 6

Legislation of Interest

HB 1 — Higher Education Base Budget (Representative Karen Peterson, Senator Ann Millner): Provides appropriations for the use and support of higher education agencies and institutions and for other purposes as described (appropriates $147,689,300 in operating capital budgets for FY 25, appropriates $7,397,000 in restricted fund and account transfers for FY 25, appropriates $2,868,144,100 in operating and capital budgets for FY 26, and appropriates $57,779,000 in restricted fund and account transfers for FY 26). Provides an estimate of the total budgets for higher education institutions and provides intent language.

HB 131 — Talent Ready Utah Program Amendments (Representative Val Peterson): Clarifies that an advisory council under the Talent Board shall have a minimum of four members. Clarifies that engineering and computer technology are included in the list of talent advisory councils. This bill received a favorable recommendation from the House Economic Development and Workforce Services Committee on January 23.

HB 142 — Service Member and Veteran Amendments (Representative Jordan Teuscher): Removes residency requirement for in-state tuition at a state institution of higher education for active military members, veterans, and their families.

HB 157 — Energy Education Amendments (Representative Colin Jack, Senator Derrin Owens): Requires the Department of Energy to develop energy-related workforce development programs and facilitate collaboration among higher education institutions, elementary schools, secondary schools, and industry.

HB 265 — Higher Education Strategic Reinvestment (Representative Karen Peterson, Senator Ann Millner):

• Performance Funding: Requires the Board of Higher Education and the Higher Education Appropriations Subcommittee to collaborate on a redesign of the performance funding model starting in the 2025 interim.
• Strategic Reinvestment: Requires the Board of Higher Ed to establish standards for institutional strategic reinvestment plans and to provide guidance to the institutions on metrics and evaluative processes for the institutions to use in analyzing programs and budgets to develop their strategic reinvestment plans. Criteria for analysis must include demonstrated enrollment data, completion rate and timely completion, discipline-related professional outcomes (including placement, employment, licensure, and wage outcomes), current and future localized and statewide workforce demands, program-level costs, and the institution’s mission and role within the statewide system.
• Credit Hour Requirements: Codifies that a degree-granting institution may not offer a bachelor’s degree with a credit-hour requirement, comprising general education and degree-specific requirements, that exceeds 120 total credit hours. Allows the Board of Higher Ed to authorize a degree-granting institution to exceed the credit-hour limit to no more than 126 credit hours if the institution demonstrates to the Board that a professional licensing or accrediting body requires additional coursework or credit hours in excess of the limit. Requires the Board to develop a process to grant conditional approval of accelerated three-year degrees to allow for the implementation of an accelerated degree upon accreditation.
• Program Review: Moves the Board's program review requirements to a 5-year cycle instead of a 7-year cycle. Requires the Board to develop and use qualitative and quantitative standards for program review. During program review, if the Board finds a program to be underperforming (as the Board defines), requires that the Board shall modify, consolidate, or terminate the program of instruction, and the Board may require an institution to develop a performance improvement plan and annually report back to the Board regarding the plan.

SB 17, 1st Substitute — Services for Department of Defense Civilian Employees (Senator Ann Millner, Representative Val Peterson): Provides in-state residency for tuition purposes at a state institution of higher education for a United States Department of Defense employee and the employee’s family. Provides for coordination of technical changes between this bill and HB 142: Service Member and Veteran Amendments.

Appropriations Subcommittees

The Higher Education Appropriations Subcommittee (HEAS) began hearing presentations on Monday, January 27, from USHE's Talent Ready Utah, which included an overview from Representative Val Peterson about HB 260, First Credential Program.

Institutional presentations during week two at HEAS included Salt Lake Community College. The Office of the Legislative Fiscal Analyst provided headcount and budget details for each institution, and each institutional president presented their respective institution’s response to LFA-presented data, updates on performance metrics, data on student financial aid and scholarships, student job placement data, updates on previous years’ funding items, and 2025 General Session budget requests as approved by the Utah Board of Higher Education.

On January 30 and February 3, the Transportation and Infrastructure Appropriations Subcommittee heard proposals for capital project at Salt Lake Community.

Legislation of Interest

HB 1 — Higher Education Base Budget (Representative Karen Peterson, Senator Ann Millner): Provides appropriations for the use and support of higher education agencies and institutions and for other purposes as described (appropriates $147,689,300 in operating capital budgets for FY 25, appropriates $7,397,000 in restricted fund and account transfers for FY 25, appropriates $2,868,144,100 in operating and capital budgets for FY 26, and appropriates $57,779,000 in restricted fund and account transfers for FY 26). Provides an estimate of the total budgets for higher education institutions and provides intent language.

HB 131 — Talent Ready Utah Program Amendments (Representative Val Peterson): Clarifies that an advisory council under the Talent Board shall have a minimum of four members. Clarifies that engineering and computer technology are included in the list of talent advisory councils. This bill received a favorable recommendation from the House Economic Development and Workforce Services Committee on January 23.

HB 142 — Service Member and Veteran Amendments (Representative Jordan Teuscher): Removes residency requirement for in-state tuition at a state institution of higher education for active military members, veterans, and their families.

HB 157 — Energy Education Amendments (Representative Colin Jack, Senator Derrin Owens): Requires the Department of Energy to develop energy-related workforce development programs and facilitate collaboration among higher education institutions, elementary schools, secondary schools, and industry.

HB 265 — Higher Education Strategic Reinvestment (Representative Karen Peterson, Senator Ann Millner):

• Performance Funding: Requires the Board of Higher Education and the Higher Education Appropriations Subcommittee to collaborate on a redesign of the performance funding model starting in the 2025 interim.
• Strategic Reinvestment: Requires the Board of Higher Ed to establish standards for institutional strategic reinvestment plans and to provide guidance to the institutions on metrics and evaluative processes for the institutions to use in analyzing programs and budgets to develop their strategic reinvestment plans. Criteria for analysis must include demonstrated enrollment data, completion rate and timely completion, discipline-related professional outcomes (including placement, employment, licensure, and wage outcomes), current and future localized and statewide workforce demands, program-level costs, and the institution’s mission and role within the statewide system.
• Credit Hour Requirements: Codifies that a degree-granting institution may not offer a bachelor’s degree with a credit-hour requirement, comprising general education and degree-specific requirements, that exceeds 120 total credit hours. Allows the Board of Higher Ed to authorize a degree-granting institution to exceed the credit-hour limit to no more than 126 credit hours if the institution demonstrates to the Board that a professional licensing or accrediting body requires additional coursework or credit hours in excess of the limit. Requires the Board to develop a process to grant conditional approval of accelerated three-year degrees to allow for the implementation of an accelerated degree upon accreditation.
• Program Review: Moves the Board's program review requirements to a 5-year cycle instead of a 7-year cycle. Requires the Board to develop and use qualitative and quantitative standards for program review. During program review, if the Board finds a program to be underperforming (as the Board defines), requires that the Board shall modify, consolidate, or terminate the program of instruction, and the Board may require an institution to develop a performance improvement plan and annually report back to the Board regarding the plan.

SB 17, 1st Substitute — Services for Department of Defense Civilian Employees (Senator Ann Millner, Representative Val Peterson): Provides in-state residency for tuition purposes at a state institution of higher education for a United States Department of Defense employee and the employee’s family. Provides for coordination of technical changes between this bill and HB 142: Service Member and Veteran Amendments.

SB 162 — Workforce Development Amendments (Senator Ann Millner): Major provisions include creating a statewide talent portal for high-demand jobs in Utah and establishing a cooperative education pilot program in the life sciences sector. See bill for full details.

Appropriations Subcomittees

The Higher Education Appropriations Subcommittee (HEAS) heard institutional presentations and on Thursday, LFA presented the Higher Education Accountable Budget Process for 2025-2029, and HEAS heard the Office of the State Auditor's Annual Financial Audit Presentation. The HEAS will meet on February 12 to vote on final budget recommendations to the Executive Appropriation committee.

Legislation of Interest

HB 1 — Higher Education Base Budget (Representative Karen Peterson, Senator Ann Millner): Provides appropriations for the use and support of higher education agencies and institutions and for other purposes as described (appropriates $147,689,300 in operating capital budgets for FY 25, appropriates $7,397,000 in restricted fund and account transfers for FY 25, appropriates $2,868,144,100 in operating and capital budgets for FY 26, and appropriates $57,779,000 in restricted fund and account transfers for FY 26). Provides an estimate of the total budgets for higher education institutions and provides intent language. This bill has passed both houses.

HB 131 — Talent Ready Utah Program Amendments (Representative Val Peterson, Senator Ann Millner): Clarifies that an advisory council under the Talent Board shall have a minimum of four members. Clarifies that engineering and computer technology are included in the list of talent advisory councils. This bill has passed the House and received from the Senate Economic Development and Workforce Services Committee a favorable recommendation for the Senate consent calendar.

HB 142 — Service Member and Veteran Amendments (Representative Jordan Teuscher): Removes residency requirement for in-state tuition at a state institution of higher education for active military members, veterans, and their families.

HB 157 — Energy Education Amendments (Representative Colin Jack, Senator Derrin Owens): Requires the Department of Energy to develop energy-related workforce development programs and facilitate collaboration among higher education institutions, elementary schools, secondary schools, and industry. This bill passed in the House.

Appropriations Subcomittees

In the final week of Higher Education Appropriations Subcommittee prioritization and voting took place in the final HEAS meeting on Wednesday, Feb. 12, with summary recommendations as follows:

• $20 million in new ongoing performance funding to the System. Over $5 million in new ongoing growth funding for qualifying technical colleges and degree-granting institutions.
• $4 million in new ongoing funding for the Talent Ready Utah Engineering and Computer Science Initiative.
• $52 million in one-time funding from the Public Education Economic Stabilization Account for the First Credential Initiative.
• In sum, roughly $52 million in new one-time funding and nearly $35 million of new ongoing funding was recommended by HEAS for USHE priority funding items.
• The Transportation and Infrastructure Appropriations Subcommittee held its final meeting of the 2025 General Session on Tuesday, Feb. 11. Prioritized items in the final voting packet included:
• Over $86 million in one-time funding and $1.5 million in ongoing funding for dedicated capital projects at degree-granting institutions.
• Legislative funding deliberations will continue with HEAS and TIAS presenting their recommendations to the Executive Appropriations Committee on Feb. 18 and 19, respectively.

Legislation of Interest

HB 1 — Higher Education Base Budget (Representative Karen Peterson, Senator Ann Millner): Provides appropriations for the use and support of higher education agencies and institutions and for other purposes as described (appropriates $147,689,300 in operating capital budgets for FY 25, appropriates $7,397,000 in restricted fund and account transfers for FY 25, appropriates $2,868,144,100 in operating and capital budgets for FY 26, and appropriates $57,779,000 in restricted fund and account transfers for FY 26). Provides an estimate of the total budgets for higher education institutions and provides intent language. This bill has passed both houses.

HB 131 — Talent Ready Utah Program Amendments (Representative Val Peterson, Senator Ann Millner): Clarifies that an advisory council under the Talent Board shall have a minimum of four members. Clarifies that engineering and computer technology are included in the list of talent advisory councils. This bill has passed both chambers and is with Legislative Research and General Counsel for enrolling.

HB 142 — Service Member and Veteran Amendments (Representative Jordan Teuscher): Removes residency requirement for in-state tuition at a state institution of higher education for active military members, veterans, and their families. This bill received a favorable recommendation from the House Economic Development and Workforce Services Committee.

HB 157 — Energy Education Amendments (Representative Colin Jack, Senator Derrin Owens): Requires the Department of Energy to develop energy-related workforce development programs and facilitate collaboration among higher education institutions, elementary schools, secondary schools, and industry. This bill passed in the House.

SB 17, 1st Substitute — Services for Department of Defense Civilian Employees (Senator Ann Millner, Representative Val Peterson): Provides in-state residency for tuition purposes at a state institution of higher education for a United States Department of Defense employee and the employee’s family. Provides for coordination of technical changes between this bill and HB 142: Service Member and Veteran Amendments. This bill has passed both chambers.

SB 162 — Talent Connect (Senator Ann Millner): Major provisions include creating a statewide talent portal for high-demand jobs in Utah and establishing a cooperative education pilot program. See bill for full details. This bill passed in the Senate.

Legislation of Interest

HB 1 — Higher Education Base Budget (Representative Karen Peterson, Senator Ann Millner): Provides appropriations for the use and support of higher education agencies and institutions and for other purposes as described (appropriates $147,689,300 in operating capital budgets for FY 25, appropriates $7,397,000 in restricted fund and account transfers for FY 25, appropriates $2,868,144,100 in operating and capital budgets for FY 26, and appropriates $57,779,000 in restricted fund and account transfers for FY 26). Provides an estimate of the total budgets for higher education institutions and provides intent language. This bill has passed both houses.

HB 131 — Talent Ready Utah Program Amendments (Representative Val Peterson, Senator Ann Millner): Clarifies that an advisory council under the Talent Board shall have a minimum of four members. Clarifies that engineering and computer technology are included in the list of talent advisory councils. This bill has passed both chambers and is with Legislative Research and General Counsel for enrolling.

HB 142 — Service Member and Veteran Amendments (Representative Jordan Teuscher): Removes residency requirement for in-state tuition at a state institution of higher education for active military members, veterans, and their families. This bill passed in the House.

HB 157 — Energy Education Amendments (Representative Colin Jack, Senator Derrin Owens): Requires the Department of Energy to develop energy-related workforce development programs and facilitate collaboration among higher education institutions, elementary schools, secondary schools, and industry. This bill passed in the House.

SB 17, 1st Substitute — Services for Department of Defense Civilian Employees (Senator Ann Millner, Representative Val Peterson): Provides in-state residency for tuition purposes at a state institution of higher education for a United States Department of Defense employee and the employee’s family. Provides for coordination of technical changes between this bill and HB 142: Service Member and Veteran Amendments. This bill has passed both chambers.

SB 162 — Talent Connect (Senator Ann Millner): Major provisions include creating a statewide talent portal for high-demand jobs in Utah and establishing a cooperative education pilot program. See bill for full details. This bill passed in the Senate.

HB 265 — Higher Education Strategic Reinvestment (Representative Karen Peterson, Senator Ann Millner):

Performance Funding: Requires the Board of Higher Education and the Higher Education Appropriations Subcommittee to collaborate on a redesign of the performance funding model starting in the 2025 interim.

Strategic Reinvestment: Requires the Board of Higher Ed to establish standards for institutional strategic reinvestment plans and to provide guidance to the institutions on metrics and evaluative processes for the institutions to use in analyzing programs and budgets to develop their strategic reinvestment plans. Criteria for analysis must include demonstrated enrollment data, completion rate and timely completion, discipline-related professional outcomes (including placement, employment, licensure, and wage outcomes), current and future localized and statewide workforce demands, program-level costs, and the institution’s mission and role within the statewide system.

For FY 27 and FY 28, the Board of Higher Ed may transfer reinvestment funds to institutions if the respective degree-granting institution has submitted a report on their strategic reinvestment plan progress to the Board and the Higher Education Appropriations Subcommittee (in its August interim meetings in the respective years), and Executive Appropriations Committee (in its September interim meetings in the respective years) make a determination that the institution has progressed in executing the institution’s strategic reinvestment plan in accordance with this bill.

For FY 27 and FY 28, the Board of Higher Ed may transfer reinvestment funds to institutions if the respective degree-granting institution has submitted a report on their strategic reinvestment plan progress to the Board and the Higher Education Appropriations Subcommittee (in its August interim meetings in the respective years), and Executive Appropriations Committee (in its September interim meetings in the respective years) make a determination that the institution has progressed in executing the institution’s strategic reinvestment plan in accordance with this bill.

A degree-granting institution may use reinvestment funds for approved strategic investments that include programs, courses, degrees, departments, colleges, or other divisions of the institutions, operational efficiencies, and other components of the institution's instruction and administrative functions, including dean positions and other administrative positions that merit further investment. For the reduced or eliminated items described in Subsection (3)(b)(ii) (line 145 of the bill), the institution may use reinvestment funds only in the following amounts: For FY 2026, no more than 70% of the total of the reinvestment funds dedicated to the institution, for FY 2027, no more than 30% of the total of the reinvestment funds dedicated to the institution, and for FY 2028, 0% of the total of the reinvestment funds.

Specifies that a degree-granting institution may not supplant or supplement the cost of reduced or eliminated items from the reinvestment exercise through a tuition increase or with any state funds, except in the fiscal year 2028 (to the extent necessary to allow a student to complete the student's academic program as outlined in the institution's approved strategic reinvestment plan).

Specifies that if an institution fails to reallocate resources in accordance with its approved reinvestment plan, the Executive Appropriations Committee shall reduce appropriations for the institution's instruction and administration in an amount equal to the amount the institution failed to properly reallocate.

Credit Hour Requirements: Codifies that a degree-granting institution may not offer a bachelor’s degree with a credit-hour requirement, comprising general education and degree-specific requirements, that exceeds 120 total credit hours. Allows the Board of Higher Ed to authorize a degree-granting institution to exceed the credit-hour limit to no more than 126 credit hours if the institution demonstrates to the Board that a professional licensing or accrediting body requires additional coursework or credit hours in excess of the limit. Requires the Board to develop a process to grant conditional approval of accelerated three-year degrees to allow for the implementation of an accelerated degree upon accreditation.

Program Review: Moves the Board's program review requirements to a 5-year cycle instead of a 7-year cycle. Requires the Board to develop and use qualitative and quantitative standards for program review. During program review, if the Board finds a program to be underperforming (as the Board defines), requires that the Board shall modify, consolidate, or terminate the program of instruction, and the Board may require an institution to develop a performance improvement plan and annually report back to the Board regarding the plan.

This bill passed in the House and will be heard by the full Senate.