Although the state's FY 2010 budget is $1.5 billion less than the previous year, student financial aid is one of a handful of programs that did not experience a reduction in funds. The needed-based Higher Education Tuition Grants and the merit-based Palmetto Fellows, LIFE, HOPE, and Tuition Assistance scholarships, which are exempt from mid-year budget reductions, are funded at levels established at the beginning of the FY 2009 state budget.
 
In spite of the Governor's lawsuit over the use of federal stimulus money (Part III), the bulk of the state budget (Part IA and Part IB) will move forward and become effective on July 1, 2009. Students who qualify for grants and scholarships will receive their awards as scheduled. If the action of the General Assembly withstands the judicial challenge, most of the stimulus funds appropriated by line in Part III will be allocated to the Department of Education, public colleges and universities, and law enforcement agencies. We do not anticipate any material changes to programs that most directly impact independent higher education.
 
Attempts by the higher education community to restore funding for the Partnership Among South Carolina's Academic Libraries (PASCAL) fell short. The consortium is working on an alternative funding plan that will maintain the program at a minimal level while efforts continue to secure State support.
 
State House veterans describe this year's appropriations process as the most difficult in over 30 years as budgets were slashed almost across the board from 15 to 30%. Thanks to the hard work and advocacy of the SCICU Public Policy Committee and Board of Trustees, students, faculty and staff at our 20 members, and the commitment and support of many members of the General Assembly, financial aid to South Carolina students attending one of our SCICU colleges and universities was maintained at a level that avoided reductions in individual student awards.