Fiscal Year 2013 Operating
Budget
Presented to the Finance and Facilities Committee
Board of Trustees
May 15, 2012
The Minnesota State Colleges and Universities system is an Equal Opportunity employer and educator.
FY 2013 Operating Budget Overview
• Budget Principles
• Trends & Analysis
• Cost of Education
• FY 2013 All Funds Budget
Slide 2
FY 2013 Budget Objectives
• Align the budget with the Strategic
Framework
• Reallocate to meet highest and emerging
priorities
• Keep tuition increases modest
• Improve efficiency and productivity
• Mitigate risks
• Budget with a multi-year perspective
Slide 3
Align Resources with the Strategic
Framework
• Ensure access to an extraordinary
education
• Be the partner of choice to meet workforce
and community needs
• Deliver the highest value / most affordable
higher education option
Slide 4
Over $76 Million Reallocated
2012-13 Biennium
Slide 5
State Support per MnSCU Student
Down 45% in Constant Dollars
$5,000
$4,811
$4,742
$4,500
$4,562
$4,181
$4,000
$3,823
$3,756
$3,809
$3,683
$3,698
$3,556
$3,500
$3,121
$3,000
$2,939
$2,638
$2,500
FY2000 FY2001 FY2002 FY2003 FY2004
Slide 6
FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012
As State Support Falls, Reliance on
Tuition Increases
80.0%
67.4%
66.3%
70.0%
58.9%
60.1%
60.0%
60.9%
55.2%
51.7%
50.2%
50.0%
48.3%
40.0%
49.8%
44.8%
41.1%
39.9%
30.0%
32.6%
33.7%
20.0%
10.0%
0.0%
Appropriation
Slide 7
Tuition
39.1%
Cost of Educating a MnSCU Student
Is Down 10% (Constant Dollars)
$8,000
$7,855
$7,800
$7,600
$7,400
$7,200
$7,107
$7,000
$6,800
$6,600
2000
Slide 8
2011
Keeping Tuition Affordable
• Average proposed tuition increase at
colleges:
 $171 (3.7%)
• Average proposed tuition increase at
universities:
 $285 (4.4%)
• Tuition Structure
Slide 9
Minnesota State Colleges and
Universities Continue to Offer the
Highest Value / Most Affordable
Option
MnSCU Colleges
MnSCU State Universities
University of Minnesota
Private 4-Year Colleges*
FY 2012
Tuition
$
4,644
$
6,497
$ 11,650
$ 32,349
*Includes tuition and fees for private 4-year colleges
Slide 10
Est. Annual
Increase
$
171
$
285
$
410
$
1,466
FY 2013
Tuition
$
4,815
$
6,782
$ 12,060
$ 33,815
Tuition and Fee Increases
Partially Offset by State Grant
• Lower income college students on
average will see their tuition & fees
increase by an estimated $126*
• Lower income university students on
average will see their tuition & fees
increase by an estimated $208*
*Estimated increase for full year/full time degree seeking students
Slide 11
All Funds Operating Budget
($ in millions)
FY 2013
Proposed
Budget
$
Change
%
Change
Revenues
$1,965.6
$2,001.5
$35.9
1.8%
Expenses
$1,953.6
$1,992.1
$38.5
2.0%
$12.0
$9.4
Budget balance
Slide 12
FY 2012
Current
Budget
Revenue Fund Budget
($ in millions)
FY 2013
Proposed
Budget
$ Change
% Change
Revenues
$108.4
$107.6
($0.8)
(0.7%)
Expenses
$104.0
$95.7
($8.3)
(8.0%)
$4.4
$11.9
Net Income
Slide 13
FY 2012
Current
Budget
New and Reallocated Resources
New tuition revenue $25.4M (43%)
Slide 14
New state support
$ 0.0M (0%)
Other revenues
$10.4M (18%)
Reallocated funds
$22.9M (39%)
Total
$58.7M
New Academic Program and
Student Services Investments
Slide 15
New programs and services
$23.9M
Compensation increases
$28.0M
Facilities and equipment
$ 6.8M
Total
$58.7M
Recommended Motion
• Adopt all funds budget
• Approve tuition structure
• Approve Revenue Fund rates/fees
Slide 16
Planning for the Future:
FY2014-2015 Outlook
• Advance the Strategic Framework
• Reinvigorate state partnership
• Acknowledge state budget challenges
Slide 17