ITEM 112-103-R0701 Use of Interest Earnings
THAT: Interest earned on current unrestricted and current designated funds are retained by the campuses and must be included as part of the operating budgets approved by the Regents each fiscal year.
EXPLANATION: The Board of Regents at the September 1997 board meeting approved Item 96-003-R0997. This item required that interest earnings on current unrestricted and designated funds over a specified level must be designated for MTAP (Baker Grants). This action was taken in recognition of the importance of providing adequate funding for MTAP. At that point no state funding was available for MTAP and the program was funded at only $65,000 per year generated from savings on biennial audit costs. For the 2002-2003 biennium, approximately $4,000,000 in state funding is available for MTAP. Campuses that have earned less than the specified amount one year of the biennium and more that the specified amount the other year of the biennium have been required to reduce operating budget one year and then transfer the earnings over the specified amount to MTAP the other year.