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.