Prosperity for All
February 24, 2015
Biennial Budget Request
Minnesota House Higher Education Policy and Finance Committee
Minnesota State Colleges and Universities
The Minnesota State Colleges and Universities System is an Equal Opportunity Employer and Educator.
Overview of Today’s Discussion
 Introduction
 MnSCU’s role in Minnesota’s
prosperity
 Math behind the request
 Campus Impact
 Conclusion and Questions
2
Mission / Strategic Framework
Minnesota Colleges and Universities provide an opportunity for all
Minnesotans to create a better future for themselves, for their
families, and for their communities
We play an essential role in growing Minnesota’s economy
and opening the doors of educational opportunity to all
Minnesotans. To that end, we:
 Ensure access to an extraordinary education for all Minnesotans
 Are the partner of choice to meet Minnesota’s workforce and
community needs
 Deliver to students, employers, communities and taxpayers the
highest value/most affordable option
3
Thank You
Sophia Kuusisto
Micheal Esposito
For supporting our students in high-demand programs
$86,000 in leveraged equipment to MCTC; $54,000 in leveraged equipment to HTC
$20,000 in scholarships to MCTC and HTC students like Sophia and Micheal
4
Educating All of Minnesota
410,000 STUDENTS
ATTEND ONE OF OUR 31 COLLEGES
OR UNIVERSITIES
264,000 in credit classes
146,000 in non-credit programs
7STATE UNIVERSITIES
offer BACCALAURATE AND
POST-GRADUATE PROGRAMS
24
STATE COMMUNITY
COLLEGES, TECHNICAL
COLLEGES AND
COMPREHENSIVE COLLEGES
offer CERTIFICATES AND TWOYEAR ASSOCIATES PROGRAMS
5
We arrived here via consultation
 Consultation with all bargaining units and student
associations multiple times
 Consultation with the presidents of our 31 colleges
and universities
 We all stand in support of this request
6
Our Students
Heather Christopher
Current student in
Normandale Community College
nursing program
Mother of six boys, two of them
adopted and dealing with physical
special needs
“There was a time when I
believed that I was not intelligent
enough to go to college. My time
at Normandale has blown the
doors off of that old perception!”
8
Ivan Martinez
Served in the army and is now in the
army reserves
Received the Truman and Woods
Scholarship to attend Minnesota State
University, Mankato
Studying international relations and
hoping to attend Mankato’s public
relations graduate program
President of the Chicano LatinAmerican Student Association last year.
Current Vice President of Latino Student
Wellness Groups 2014-2015
His two younger brothers are now
students at MSU, Mankato, as well
9
Challenges Facing Minnesota
 Demographic changes
• Baby Boom retirement
• Dip in high school graduates
• Population shifts
• Growing diversity
 An educated workforce prepared for the jobs of the future
• By 2020, 74% of jobs in Minnesota will require postsecondary credentials
 Access to affordable higher education
10
Prosperity for All
 We have a shared responsibility to provide
Minnesota with an educated citizenry and a
skilled workforce
 We must protect affordability and the quality
programs that are essential to serving
students and communities across Minnesota
11
Move state support toward 50:50
Investing to cover inflationary costs will keep
college affordable
100%
90%
80%
70%
66.3%
55.3%
60%
52.6%
50.2%
44.7%
47.4%
49.8%
2004
2006
50%
40%
30%
20%
60.4%
57.1%
42.9%
56.1% 54.3%
52.5%
39.6%
43.9%
33.7%
47.5%
45.7%
10%
0%
2002
12
12
2008
Tuition
2010
2012
Appropriation
2014
2016 est
Math Behind the Request
Additional resources needed in the next biennium
to cover inflationary costs
Increase in resources
needed for the biennium
3% compensation increase
=
$108 million
3% inflationary increases in operating costs =
$ 34 million
Total required:
$142 million
State funds are not being requested to fund new initiatives. We will fund new
investments internally by prioritization based on the needs of the students.
13
Total revenue per FYE
Including state support and tuition, total revenue
is down 5% from 2009
$11,000
$10,000
$9,000
$8,000
$7,000
$7,756
$7,586
$7,187
$7,368
$7,280
$7,091
$6,992
$6,000
$5,000
2002
2003
2004
2005
2006
2007
2008
Constant Dollars
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2009
2010
2011
2012
2013
2014
State support per FYE student
has begun to improve in constant dollars, but is
still 32% below 2002 levels
$6,000
$5,000
$4,766
$4,368
$3,994
$4,000
$3,863
$3,924
$3,000
$3,980
$3,715
$3,079 $3,247
$3,847
$3,261
$3,070
$2,787 $2,813
$2,000
$1,000
$2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
est
est
15
Tuition & Fees as % of Median Income
Tuition & Fees
16
as a Percent of Median Income
40%
33.2%
30%
27.7%
28.0%
28.9%
34.4%
36.9%
35.5%
35.0%
14.3%
14.4%
15.0%
29.1%
20%
10.7% 10.9%
10%
11.2%
11.6%
12.8%
13.6%
6.4%
6.4%
6.7%
6.8%
7.3%
7.5%
7.7%
7.7%
8.1%
4.9%
4.9%
5.1%
5.1%
5.4%
5.6%
5.7%
5.7%
5.9%
2006
2007
2008
2009
2010
2011
2012
2013
0%
2005
37.0%
14.8%
8.0%
5.8%
2014
State Colleges
State Universities
University of Minnesota
Private Colleges and Universities
Anoka-Ramsey CC
Pine Technical
Lake Superior College
Hennepin Technical
Fond du Lac Tribal&CC
Inver Hills CC
Mesabi Range CC
Hibbing CC
St. Cloud T&CC
Itasca CC
Vermillion CC
Rainy River CC
Minneapolis C and TC
MN State C&TC
Century College
South Central College
Central Lakes College
Alexandria T&CC
Ridgewater College
North Hennepin CC
Saint Paul College
Northwest Technical
Northland C&TC
Riverland CC
Anoka Technical
MN State -SE Technical
Rochester C&TC
MN West C&TC
Dakota County TC
Normandale CC
Metropolitan State
St. Cloud State
MSU, Mankato
Winona State
MSU Moorhead
Southwest MN State
Bemidji State
U of M Crookston
NW Health Sciences
Martin Luther
U of M Morris
U of M Duluth
U of M Rochester
U of M Twin Cities
Rasmussen College
Walden
Mpls Business College
Capella
Crossroads
Oak Hills
Duluth Business
Argosy, Twin Cities
Globe
MN School of Business
North Central
Dunwoody
Concordia, St. Paul
Institute of Production & Recording
Crown
Art Institutes, MN
Bethany
Northwestern
St. Mary's
St. Scholastica
Bethel
Concordia, Moorhead
Mpls Art & Design
Augsburg
St. Catherine
Hamline
St. Thomas
St. John's
St. Benedict
Gustavus
St. Olaf
Macalaster
Carleton
2013-14 Tuition and Required Fees
Minnesota’s Most Affordable Higher
Education Option
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Minnesota State
Colleges and Universities
Source: Chronicle of Higher Education, October 23, 2013
Most Expensive
Private colleges and universities;
University of Minnesota
Least Expensive
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
Vermont
District of Columbia
New York
New Hampshire
Alaska
Delaware
Connecticut
Maryland
New Jersey
Iowa
Wyoming
Rhode Island
Alabama
North Dakota
Montana
Pennsylvania
West Virginia
Illinois
Massachusetts
Oregon
Ohio
Kentucky
Kansas
Nebraska
South Dakota
Indiana
Louisiana
Wisconsin
Georgia
Utah
Arkansas
Mississippi
Maine
North Carolina
California
Virginia
South Carolina
MnSCU
Nevada
Florida
Michigan
New Mexico
Oklahoma
Texas
Missouri
Idaho
Hawaii
Arizona
Washington
Tennessee
Colorado
Administrative spending per fye
MnSCU is ranked 38th out of 50 states
and DC in administrative spending per FYE
$4,000
$3,500
18
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$0
Two revenue sources
Dedicated to faculty and staff support
FY2014 General Fund
Revenues
100%
Other
100%
90%
90%
Distribution of Employee FTE
100%
Other
90%
80%
80%
70%
70%
60%
60%
60%
50%
50%
50%
40%
40%
30%
30%
80%
70%
19
FY2014 General Fund
Expenses
State
Appropri
ation
Tuition
Other Faculty
Salaries
and
benefits
40%
30%
Other
MMA
Administrators
MSUAASF
MAPE
AFSCME
IFO
MSCF
20%
20%
20%
10%
10%
10%
0%
0%
0%
This request impacts all campuses
At Minnesota West Community and
Technical College state funding means…
 Targeted programming in manufacturing,
industrial technology, healthcare, and STEM
 Liberal arts and science transfer curriculum
 Addressing the skills gap and serving diverse
populations in the region
 Avoiding program closures and position
reductions
“The skills, and
preparation in the
education I received,
especially crossculturally, has created
my passion and
excitement for nursing.”
Lacey Dirks
Minnesota West Nursing Alumna
Barbara McDonald, Interim President
20
This requests impacts all campuses
At Minnesota State University Moorhead
state funding means…
 Remaining competitive with North Dakota higher
education options
 Offering new high-demand programs like an MBA
in healthcare management and an M.S. in
accounting and finance
 Meeting demands of regional employers
 Avoiding program closures and position
reductions
Among 283 students
from across the nation
selected to receive
Barry M. Goldwater
Scholarship
Evangeline Holley
MSUM student
Anne Blackhurst, President
21
Our commitment
 Protect programs on our campuses so we can continue to
serve students and meet the workforce needs of
Minnesota
 Protect our ability to deliver these programs
 Protect affordability to ensure access for all Minnesotans
22
Prosperity for All
 We have a shared responsibility to provide
Minnesota with an educated citizenry and a
skilled workforce
 We must protect affordability and the quality
programs that are essential to serving
students and communities across Minnesota
23