7/29/2019 Mr. Michael McNabb's letter on University of Minnesota Finances

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From: Michael McNabb

Subject: U of M Cost of Administration

At the January 28, 2013 hearing of the House higher education committee the chair

remarked:

Where it [U of M] appears to have great difficulty is showing us where it's had to

make tough choices.

The reason is that the U of M administration has not made really tough choices--despite a

reduction in state appropriations. In fiscal year 2002 the total operating expenses for the

University were $2,005,138,000. In fiscal year 2012 the total operating expenses were

$2,948,366,000.

The fuel for this billion dollar explosion was skyrocketing tuition. In fiscal year 2002 the

administration collected a net amount (after scholarships and grants) of $293,127,000 in

tuition and fees. In fiscal year 2012 the net amount of tuition and fees collected was

$696,278,000.

The senior administrators and the Regents have shown no mercy to the students (and their

parents). This skyrocketing tuition far exceeded the reduction in state appropriations. In

fiscal year 2002 the University received $643,088,000 in state appropriations. In fiscal

year 2012 the amount was $572,075,000.

See pp. 17-18 of the 2002 U of M annual financial report at

http://www.finsys.umn.edu/controller/um_annualrpt2002.pdfand pp. 14-15 of the 2012 U

of M annual financial report at

http://www.finsys.umn.edu/controller/um_annualrpt2012.pdf.

The U of M chief financial officer testified that the administration has cut $228 million

since 2006. See the January 31 Star Tribune report on House Asks U Big Questions onBudget at http://startribune.com/politics/statelocal/189107281.html. From fiscal year

2007 through fiscal year 2012 the total operating expenses for the University were just

under $17 billion. See the U of M annual financial reports at

http://www.finsys.umn.edu/controller/annualreports.html. So the cuts amount to 1.3% of

the total operating expenses. Does the administration view this as making tough choices?

http://www.finsys.umn.edu/controller/um_annualrpt2002.pdfhttp://www.finsys.umn.edu/controller/um_annualrpt2012.pdfhttp://startribune.com/politics/statelocal/189107281.htmlhttp://www.finsys.umn.edu/controller/annualreports.htmlhttp://www.finsys.umn.edu/controller/annualreports.htmlhttp://www.finsys.umn.edu/controller/um_annualrpt2002.pdfhttp://www.finsys.umn.edu/controller/um_annualrpt2012.pdfhttp://startribune.com/politics/statelocal/189107281.htmlhttp://www.finsys.umn.edu/controller/annualreports.html

7/29/2019 Mr. Michael McNabb's letter on University of Minnesota Finances

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Or making a serious effort to contol costs and tuition?

The U of M administration has made some terrible choices, including:

(1) Spending hundreds of millions of dollars on itselfeach year. See On The Cost of

Administration Part III athttp://ptable.blogspot.com/2012/10/when-i-use-word-humpty-

dumpty-said-in.html#links and The Cost of "Top Talent" at

http://ptable.blogspot.com/2012/03/cost-of-top-talent-state-legislators.html#links.

(2) Allowing many of the academic facilities to deteriorate. See Crumbling Academic

Infrastructure at http://ptable.blogspot.com/2013/02/crumbling-academic-infrastructure-

in.html#links.

(3) Displacing the agricultural research at UMore Park that has produced hundreds of

millions of dollars for the economy of Minnesota. See section 3 ofThe Rest of the

Story at http://ptable.blogspot.com/2012/04/rest-of-story-president-kaler-was.html#links

and More on MoreU Parkat http://ptable.blogspot.com/2011/05/for-record-more-on-

moreu-park-senate.html#links.

(4) Cutting academic programs and replacing professors with part-time instructors. See

section (1) of$tate of the University--A Parent's Perspective at

http://ptable.blogspot.com/2011/07/tate-of-u-parents-perspective.html#links.

(5) Spending millions of dollars on advertising. See Million$ More For Advertising at

http://ptable.blogspot.com/2013/01/million-more-advertising-from-april.html#links.

Our family has seen first hand the effects of these choices. Four of our children have

received their undergraduate or professional degrees (medicine, law, dentistry) or both

from the University since 2003. Major changes are necessary. See State (and) University

Part II at http://ptable.blogspot.com/2013/01/state-and-university-part-ii-state.html#links .

Michael W. McNabb

University of Minnesota B.A. 1971; J.D. 1974

University of Minnesota Alumni Association life member

http://ptable.blogspot.com/2012/10/when-i-use-word-humpty-dumpty-said-in.html#linkshttp://ptable.blogspot.com/2012/10/when-i-use-word-humpty-dumpty-said-in.html#linkshttp://ptable.blogspot.com/2012/10/when-i-use-word-humpty-dumpty-said-in.html#linkshttp://ptable.blogspot.com/2012/03/cost-of-top-talent-state-legislators.html#linkshttp://ptable.blogspot.com/2012/03/cost-of-top-talent-state-legislators.html#linkshttp://ptable.blogspot.com/2013/02/crumbling-academic-infrastructure-in.html#linkshttp://ptable.blogspot.com/2013/02/crumbling-academic-infrastructure-in.html#linkshttp://ptable.blogspot.com/2012/04/rest-of-story-president-kaler-was.html#linkshttp://ptable.blogspot.com/2011/05/for-record-more-on-moreu-park-senate.html#linkshttp://ptable.blogspot.com/2011/05/for-record-more-on-moreu-park-senate.html#linkshttp://ptable.blogspot.com/2011/05/for-record-more-on-moreu-park-senate.html#linkshttp://ptable.blogspot.com/2011/07/tate-of-u-parents-perspective.html#linkshttp://ptable.blogspot.com/2013/01/million-more-advertising-from-april.html#linkshttp://ptable.blogspot.com/2013/01/state-and-university-part-ii-state.html#linkshttp://ptable.blogspot.com/2012/10/when-i-use-word-humpty-dumpty-said-in.html#linkshttp://ptable.blogspot.com/2012/10/when-i-use-word-humpty-dumpty-said-in.html#linkshttp://ptable.blogspot.com/2012/03/cost-of-top-talent-state-legislators.html#linkshttp://ptable.blogspot.com/2013/02/crumbling-academic-infrastructure-in.html#linkshttp://ptable.blogspot.com/2013/02/crumbling-academic-infrastructure-in.html#linkshttp://ptable.blogspot.com/2012/04/rest-of-story-president-kaler-was.html#linkshttp://ptable.blogspot.com/2011/05/for-record-more-on-moreu-park-senate.html#linkshttp://ptable.blogspot.com/2011/05/for-record-more-on-moreu-park-senate.html#linkshttp://ptable.blogspot.com/2011/07/tate-of-u-parents-perspective.html#linkshttp://ptable.blogspot.com/2013/01/million-more-advertising-from-april.html#linkshttp://ptable.blogspot.com/2013/01/state-and-university-part-ii-state.html#links