Bill Positions

Bill Number: HB 470

Bill Title: Higher Education Investment Fund - Tuition Stabilization and Funding

Bill Sponsor(s): Speaker (Admin)

Subject: Budget & Taxation

Committee: APP

Bill Summary: This bill makes permanent the dedication of 6% of corporate income tax revenues to the Higher Education Investment Fund and authorizes the deposit of funds into a Tuition Stabilization Trust Account in years that corporate income tax revenues increase. The bill also makes it a state goal that any increase in undergraduate tuition and academic fees at senior institutions of public higher education be limited to the 3-year rolling average of the state's median family income. Finally, the bill sets as a state goal that the state achieve 100% of the funding guidelines of the MD Higher Education Commission.

History: The Higher Education Investment Fund was created during the 2007 special session by dedicating 6% of corporate income taxes to a special fund, and increasing the corporate income tax rate from 7 to 8.25%. The dedication of funds will expire after FY 10. In 2009 the Chamber supported a permanent dedication of the funds, but SB 275 and HB 308 failed in committee. In 2010 HB 470 was enacted as Chapter 193.

Chamber Position: Support

Position Summary: The availability of a well-educated workforce is an essential component of Maryland's economy. The quality of, and access to, higher education is a vital concern to Maryland's business community due to its impact on job renention and creation. The Chamber supports the continued funding of the Higher Education Investment Fund as a means of supporting the needs of higher education in Maryland.

Position Statement: To view the Chamber's complete position statement, click here (pdf).

Chamber Staff: Ronald Wineholt

General Assembly: Click here to view the bill on the Maryland General Assembly's website.