The Minnesota State Colleges and Universities system is an Equal Opportunity employer and educator. Minnesota State Colleges and Universities Biennial Request Campus Conversations Spring 2014

Goal of today’s discussion  Get your ideas about the FY2016-FY2017 biennial legislative request that the Board of Trustees will submit in November

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 3

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 4

Some facts as background 5

6 Minnesota State Colleges and Universities FY2013 General Fund– Revenues (in millions) Total = $1,509 M

Minnesota State Colleges and Universities FY2013 General Fund Expense (in millions) 7 Total = $1,519 M

Tuition Trends 8

Total expenses per FYE MnSCU student 9

Minnesota State Colleges and Universities: Minnesota’s Most Affordable Higher Education Option College/University Tuition and Required Fees Source: Chronicle of Higher Education, October 23,

Headcount enrollment growth 18%+ 11

FYE enrollment grew rapidly but has fallen since its peak in

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 13

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 14

Possible tuition and state support scenarios to cover inflationary increases (no new initiatives) BiennialYearly $ Increase in % increase Total new state support in tuitionresources $142 million0%$142 million $118 million1%($ 24M)$142 million $ 93 million2%($ 49M)$142 million $ 68 million3%($ 74M)$142 million $ 43 million 4%($ 99M)$142 million 15

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 16

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 17

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 biennial legislative request  November 2014: Submission to the Executive Branch 18