The Minnesota State Colleges and Universities system is an Equal Opportunity employer and educator.

Minnesota State Colleges and Universities

2016-2017 Biennial Request Campus Conversations

Spring 2014

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Goal of today’s discussion

Get your ideas about the FY2016-FY2017 biennial legislative request that the Board of Trustees will submit in November 2014

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What is the biennial legislative request? The Board of Trustees’ formal request to

the legislature for two years of state operating funds for the Minnesota State Colleges and Universities

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How important is state support? State appropriation and student tuition are the two primary sources

of funding for colleges and universities The Legislature may also have a say in tuition rates State appropriation sets constraints on available resources for:

Compensation Program support and growth Student support services Technology and equipment Solutions to challenges campuses are trying to address New initiatives and investments New partnerships Innovations

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Some facts as background

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Minnesota State Colleges and Universities FY2013 General Fund– Revenues(in millions)

Tuition86557%

State Appropriation55337%

Other916%

Total = $1,509 M

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Minnesota State Colleges and Universities FY2013 General Fund Expense

(in millions)

Salaries and Fringe Benefits

$1,140 75%

Other37925%

Total = $1,519 M

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Tuition Trends

FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014* FY2015*0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

33.7%

44.7%47.4% 48.6%

55.2%60.1%

58.3% 57.6%

66.3%

55.3%52.6% 51.4%

44.8%39.9%

41.7% 42.4%

Higher tuition, cuts, reallocations, and salary freezes have made up for the loss of state support

Tuition Appropriation

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Total expenses per FYE MnSCU student

FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 $8,000

$8,500

$9,000

$9,500

$10,000

$10,500

$11,000

$11,500

$12,000

$12,500

$13,000

$10,483 $10,205

$10,421

$11,170

$11,583

$12,135 $12,286

$11,598 $11,648

$11,454

$12,222

$10,277 $10,249

$9,719 $9,599 $9,967 $10,052 $10,145

$10,313

$9,582 $9,325

$8,984

$9,445

Expenses per FYE have mostly declined or stayed constant when adjusted for inflation.

Expenses Per FYE Inflated Expenses Per FYE

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Minnesota State Colleges and Universities:Minnesota’s Most Affordable Higher Education Option

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$10,000

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$30,000

$35,000

$40,000

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Private colleges and universities; University of Minnesota

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Source: Chronicle of Higher Education, October 23, 2013

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Headcount enrollment growth 18%+

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013340,000

350,000

360,000

370,000

380,000

390,000

400,000

410,000

420,000

430,000

440,000

365,095369,374

372,880368,791

373,831

381,459389,545

423,190

433,554

420,918

431,342

435,625

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FYE enrollment grew rapidly but has fallen since its peak in 2011

Actual FY2003

Actual FY2004

Actual FY2005

Actual FY2006

Actual FY2007

Actual FY2008

Actual FY2009

Actual FY2010

Actual FY2011

Actual FY2012

Actual FY2013

Projected FY2014 (Feb 14)

Projected FY2015

(Feb 14)

Projected FY2016

(Feb 14)

125,000

130,000

135,000

140,000

145,000

150,000

155,000

160,000

132,586

135,819135,494

134,220135,839

139,885

143,924

155,422

157,903

153,447

149,905

144,759

143,451 143,551

FYE

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If tuition is frozen again in FY2016 and FY2017…

….an additional $142 million in state support will be required to cover modest increases in compensation and inflationary costs in the next biennium

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Additional resources needed in the next biennium to cover inflationary costs ( no new initiatives)

For example, 3% salary increases

(plus fringe benefits) = $106 million

For example, 3% inflationary increases

in operating costs = $ 36 million

Total required:

$142 million

Increase in resources needed for the

biennium

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Possible tuition and state support scenarios to cover inflationary increases (no new initiatives)

Biennial Yearly $ Increase in % increase

Total newstate support in tuitionresources

$142 million 0%$142 million

$118 million 1% ($ 24M)$142 million

$ 93 million 2% ($ 49M)$142 million

$ 68 million 3% ($ 74M)$142 million

$ 43 million 4% ($ 99M)$142 million

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What new investments might we ask the state to make in our colleges and universities?

For example: Affordability: investments to make higher education more

affordable Extraordinary Education: investments to provide faculty and

staff with the tools and resources they need to deliver an excellent education to our students

Student Success: investment to ensure student success, particularly among those who have been traditionally under-served by higher education

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continued….

Careers: investments that will better prepare more graduates with the skills and abilities required for the jobs and careers Minnesota needs to be globally competitive

Address current challenges: meet our commitment to serve communities across our state in light

of population shifts meet our commitment to serve communities that have traditionally

been underserved by higher education invest in new educational technologies

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2016-2017 proposed development timeline

March – May 2014: campus conversations March – May 2014: conversations with statewide faculty,

staff and student leadership groups Summer 2014: Review of ideas and suggestions Summer 2014: Leadership Council discussions Fall 2014: Broad discussion of draft proposal October/November 2014: Board consideration and adoption

of 2016-2017 biennial legislative request November 2014: Submission to the Executive Branch