2016-2017 biennial request campus conversations
DESCRIPTION
2016-2017 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 2014. What is the biennial legislative request?. - PowerPoint PPT PresentationTRANSCRIPT
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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$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
$50,000
Most Expen-sive
Least Expensive
Minnesota State Colleges and Universities
Private colleges and universities; University of Minnesota
College/University
2013
-14
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Fees
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
Head
coun
t
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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