Subd. 1. Determination of appropriation.

The direct appropriation to each board for instructional services shall equal 67 percent of the estimated total cost of instruction for the University of Minnesota, the state universities, and the community colleges, and, for technical colleges, at least 67 percent of the estimated total cost of instruction.

Subd. 2. Appropriations for certain enrollments.

The state share of the estimated expenditures for instruction shall vary for some categories of students, as designated in this subdivision.

1. (a) The state must provide at least 67 percent of the estimated expenditures for:

   1. (1) students who resided in the state for at least one calendar year prior to applying for admission or dependent students whose parent or legal guardian resides in Minnesota at the time the student applies;
   2. (2) Minnesota residents who can demonstrate that they were temporarily absent from the state without establishing residency elsewhere;
   3. (3) residents of other states or provinces who are attending a Minnesota institution under a tuition reciprocity agreement;
   4. (4) students who have been in Minnesota as migrant farmworkers, as defined in the Code of Federal Regulations, title 20, section 633.104, over a period of at least two years immediately before admission or readmission to a Minnesota public postsecondary institution, or students who are dependents of such migrant farmworkers; and
   5. (5) persons who: (i) were employed full time and were relocated to the state by the person's current employer, or (ii) moved to the state for employment purposes and, before moving and before applying for admission to a public postsecondary institution, accepted a job in the state, or students who are spouses or dependents of such persons.

2. (b) The definition of full year equivalent for purposes of the formula calculations in this chapter is twice the normal value for the following enrollments:

   1. (1) students who are concurrently enrolled in a public secondary school and for whom the institution is receiving any compensation under the Postsecondary Enrollment Options Act; and
   2. (2) students enrolled under the student exchange program of the Midwest Compact.

Subd. 3. Determination of instructional services base.

The instructional services base for each public postsecondary system is the sum of: (1) the state share; and (2) the legislatively estimated tuition for the second year of the most recent biennium; and (3) performance as calculated in subdivision 5.

Subd. 4. Enrollments for budgeting.

For all purposes where student enrollment is used for budgeting purposes, student enrollment shall be measured in full-year equivalents and shall include only enrollments in courses that award credit or otherwise satisfy any of the requirements of an academic or vocational program.

Subd. 5. Adjustment for performance.

Each public postsecondary system's instructional services base shall be adjusted, up to one percent, if the system meets the performance standards established by the system's governing board as part of the biennial budget document.

Subd. 6. Adjustment for change items.

The instructional services base may be adjusted for change items as determined by the governor and the legislature after adjustments for inflation, enrollments, and performance.

Subd. 7. Reports.

Instructional expenditure and enrollment data for each instructional category shall be submitted in the biennial budget document.