Challenges and Opportunities
Presentation to Minnesota Management and Budget
February 10, 2016
MnSCU is the answer to the two biggest
challenges facing Minnesota:
 Racial and economic disparities
 Talent development
1
MnSCU serves more racially and economically
diverse students than all other higher education
providers combined
 62,800 students of color
 50,000 first-generation college students
 92,000 low-income students
 95,000 students 25 years or older
 10,500 veterans
2
Completion rates vary by
academic preparation and financial need
Minnesota State Colleges
Students Entering in Fall 2004 through Fall 2010
Completion Rates at Third
Less
Moderately
Highly
Spring After Entry
Prepared Prepared Prepared
Low Financial Need
49%
56%
57%
Moderate Financial Need
44%
52%
54%
High Financial Need
35%
41%
42%
Minnesota State Universities
Students Entering in Fall 2002 through Fall 2006
Completion Rates at
Sixth Spring After Entry
Low Financial Need
Less
Moderately
Highly
Prepared Prepared Prepared
51%
53%
57%
Moderate Financial Need
45%
49%
56%
High Financial Need
40%
45%
51%
Source: System Office Research – Academic and Student Affairs
Talent: MnSCU is the partner of choice in
developing our state’s workforce
 Business partnerships
 Real-Time Talent
 K-12 collaborations
4
The importance of public-private partnerships
in our communities
Our region is blessed to have two affordable schools for local talent – St. Cloud
Technical and Community College and St. Cloud State University. Both are deeply
invested in the business community, partnering to ensure curriculum matches up with
the needs of our employers.
– Teresa Bohnen, St. Cloud Area Chamber of Commerce President
We need quality people who can do mechanical work, welding and
electronics. Riverland Community College is a great partner in training the talent we
need, but it’s not sufficient to meet the current needs.
– Dale Wicks, Human Resources Director, Quality Pork Processors, Inc
Ridgewater College is a vital part of our community; they deliver graduates who have the
high tech skills that are in demand by many of the employers here in Willmar. Their
engagement in our organization and others helps them understand the immediate needs
and allows them to assist us in keeping our community moving forward through
partnerships and collaborative efforts. It’s a win/win atmosphere for all.
– Ken Warner, Willmar Lakes Area Chamber of Commerce President
5
What a $21 million investment will yield
for Minnesota and its citizens
 Critical, high demand programs protected
 Counselors and advisors serving students
 Workforce training development
6
Legislative outcome fell short, funding gap
needs to be fixed
FY2016-2017 legislative session outcome
$ in millions
New Revenues
State support
Tuition
Total New Revenues
100
21
121
Total Inflationary Expenses
142
Gap
(21)
7
President Joyce Ester
Normandale Community College
 14,573 credit students (20% growth since 2006)
 33.5% students of color
(compared to 23% in 2006)
 62% of our students are first generation,
students of color, and/or Pell eligible
(compared to 43% in 2006)
Finish Line students
8
Outlook significantly worsens if the
structural imbalance is not addressed
$s in millions
FY2016
FY2017
Total
FY2018
FY2019
Total
State Appropriation and Tuition Support
50.0
50.0
100.0
50.0
50.0
100.0
University (Tuition Revenue)
12.7
12.7
25.4
12.7
12.7
25.4
0.0
(4.3)
(4.3)
(4.3)
(4.3)
(8.6)
62.7
58.4
121.1
58.4
58.4
116.8
Compensation
36.0
72.0
108.0
72.0
72.0
144.0
Other Operating Costs
11.0
23.0
34.0
23.0
23.0
46.0
Total Estimated Expenses
47.0
95.0
142.0
95.0
95.0
190.0
Revenues over/(under) estimated expenses
15.7
(36.6)
(20.9)
(36.6)
(36.6)
(73.2)
State Appropriation and Tuition Support
College (Tuition Revenue)
Total State Appropriation and Tuition Support
Estimated Expenses
9
Additional state support helps restore the
balance between tuition and state appropriation
100%
90%
80%
70%
66%
55%
60%
57%
53%
30%
45%
50%
47%
43%
34%
10%
0%
Tuition
Appropriation
53%
53%
47%
47%
40%
44%
20%
10
56%
50%
50%
40%
60%
19 of our colleges and universities in communities
across Minnesota are under financial recovery plans
11
Financial outlook tied to enrollment and
tuition assumptions
$2,600,000,000
$2,500,000,000
$2,400,000,000
$66 Million Shortfall
$2,300,000,000
$2,200,000,000
$475 Million Shortfall
$2,100,000,000
$2,000,000,000
$1,900,000,000
FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025
Case A Revenue
Case A Expenses
Case B Revenue
Case B Expenses
12
We are the answer to the two biggest challenges
facing Minnesota
 Racial and economic disparities
 Talent development
13
30 7th St. E., Suite 350, St. Paul, MN 55101-7804
(651) 201-1800 | (800) 456-8519 | +1 (651) 556-0596
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