Transcript Slide 1

FY2008 Operating Budget
Including Tuition and Fees
Presented to the Board of Trustees
June 2007
The Minnesota State Colleges and Universities system is an Equal Opportunity employer and educator.
Overview of Discussion
• Update since the May Board meeting
• Legislative overview
• System budget overview
• College and university operating budgets
• Recommended Committee action
Slide 2
Update
• Began with biennial budget request last Fall
• Higher education bill signed by Governor
Pawlenty on May 30, 2007
• Employee contract settlements still unknown
• Public hearings:
– June 6, 2007 (Wells Fargo Place)
– June 12, 2007 (Lake Superior College)
• Board action June 20, 2007
Slide 3
Legislative Overview
Table 1
Minnesota State Colleges and Universities
State Appropriation Funding Levels
FY2008-2009
($ in millions)
Base
Governor’s
Recommendation
Omnibus Higher
Education Bill
Slide 4
FY2008
FY2009
Biennium
Change
Percent
from Prior Change from
Biennial Prior Biennial
Base
Base
$602.2
$602.2
$1,204.4
$664.2
$663.2
$1,327.4
$123.0
10.2%
$666.9
$689.3
$1,356.2
$151.8
12.6%
Legislative Overview - cont.
• Legislative language limiting use of funds
• Funds tied to performance measures
• Eliminates non-resident/non-reciprocity tuition
at seven colleges
• Legislative specials
Slide 5
Legislative Overview – cont.
Performance funding
1. Increase by at least three percent, compared to fiscal
year 2005, the number of students who take college level
courses in science, technology, engineering, and math;
2. Increase by at least two percent, compared to fiscal year
2005, enrollment in courses at the four existing centers
of excellence programs;
3. Increase by at least 700, compared to fiscal year 2007,
the number of students trained on the use of electronic
medical record technology;
Slide 6
Legislative Overview – cont.
Performance funding – cont.
4. Increase by at least ten percent, compared to fiscal year
2007, the number of students taking online courses or
the number of online courses offered; and
5. Expand by at least ten percent, compared to calendar
year 2006, the use of “awards of excellence” or other
initiatives that reward member institutions, faculty,
administrators, or staff for innovations designed to
advance excellence and efficiency.
Slide 7
Legislative Overview – cont.
Table 2
Minnesota State Colleges and Universities
Distribution of New State Resources
($ in millions)
Inflation
FY2009
Biennial Total
$18,666
$38,191
$56,857
$40,089
[$11,000]
[$29,089]
$44,728
[$11,000]
[$33,728]
$84,817
[$22,000]
[$62,817]
Non resident tuition buy down
$2,479
$2,479
$4,958
Legislative specials
$3,455
$1,705
$5,160
$64,689
$87,103
$151,792
Initiatives
- Serving underserved
- Technology
Total
Slide 8
FY2008
System Budget Overview
Table 3
Minnesota State Colleges and Universities
State Funded Expenditure Summary
($ in millions)
Institutional Allocations
- Basic allocations
Slide 9
Actual
Proposed
Forecast
FY2007 % of Total FY2008 % of Total FY2009 % of Total
$546.8
90.3%
$586.1
87.2%
$602.5
86.7%
$523.9
$541.2
$559.4
- Priority allocations
$22.9
$44.9
$43.1
System Wide Set Asides
Office of the Chancellor/
Shared Services
Total
$18.5
3.1%
$43.8
6.5%
$49.0
7.1%
$40.4
$605.7
6.7%
$42.0
$671.9
6.3%
$43.3
$694.8
6.2%
System Budget Overview – cont.
Board initiatives
• Recruitment/retention underrepresented students
• Information technology
• Strategic advancements, critical industries, and
related academic and service initiatives
Slide 10
System Budget Overview – cont.
Recruitment/retention underrepresented students
• $22 million for the biennium ($11 million each year)
• One-third of funds ($3.6 million) for centers that will
focus on exploring bold initiatives targeting holistic
solutions
• Remainder of funds ($7.4 million) to support programs
that include partnerships with K-12 schools and
expansion of programs similar to TRIO
Slide 11
System Budget Overview – cont.
Information technology
• $62.8 million for the biennium ($29.1 million FY2008
and $33.7 million FY2009)
• Support eight key areas contained in Enterprise
Technology Plan approved by the Board in March 2006
- Network and data center modernization
- Security Management
- Identity management
- Retooled administrative systems
- New technology architecture
- Student services and online learning
- Faculty research and development
- Career, business and entrepreneurship
Slide 12
System Budget Overview – cont.
Strategic advancements, critical industries, and
related academic and service initiatives
• $5 million of existing priority funds in FY2008
• Supports the following strategic advancements:
•
•
•
•
•
•
STEM
Health science education
Biosciences
Farm and small business management
College readiness, retention and transitions
21st Century learning innovations, strategic partnership
and improved communications
• Accountability and assessment
Slide 13
College and University Operating Budgets
Graph C
Minnesota State Colleges and Universities
State Support per FYE
FY2000-FY2009
$6,000
$5,000
$4,766
$4,811
$4,452
$4,901
$5,015
$4,475
$4,811
$4,120
$4,562
$4,000
$3,831
$3,756
$3,700
$3,929
$3,955
$3,000
$2,000
$1,000
$0
2000
2001
2002
2003
2004
Actual Dollars
Slide 14
2005
2006
Inflation Adjusted
est 2007 est 2008 est 2009
College and University Operating Budgets –
cont.
Graph D
Minnesota State Colleges and Universities
Compensation Scenarios
FY2008-FY2009
$120,000,000
$100,000,000
$80,000,000
1%
2%
$60,000,000
3%
4%
$40,000,000
$20,000,000
$0
FY2008
Slide 15
FY2009
Biennium
College and University Operating Budgets –
cont.
Table 4
Minnesota State Colleges and Universities
Summary Outlook
All Operating Funds
FY2007-2009
FY2007
Estimated
Budget
$1,831.8
FY2008
Proposed
Budget
$1,952.3
Change
6.6%
FY2009
Outlook
$2,009.6
$1,858.3
$1,964.7
5.7%
$2,022.8
($26.4)
($12.4)
($13.2)
Carry forward
$38.3
$22.9
$21.0
Balance
$11.9
$10.5
$7.8
($ in millions)
Revenues
Expenditures
Balance
Slide 16
College and University Operating Budgets –
cont.
Table 5
Minnesota State Colleges and Universities
Summary Outlook: General Fund
FY2008 Proposed Budget
($ in millions)
FY2007
Estimated
Budget
FY2008
Proposed
Budget
Change
FY2009
Outlook
Revenues
State Support
$602.2
$666.9
10.7%
$689.3
Tuition support
$595.8
$623.1
4.6%
$647.8
Other revenues
$96.3
$105.4
9.4%
$107.1
Carry forward
Budgeted Revenues
$36.5
$22.3
$20.2
$1,330.8
$1,417.7
6.5%
$1,464.4
$959.6
$1,006.3
4.9%
$1,044.1
$362.8
$404.2
11.4%
$416.9
$1322.4
$1,410.5
6.7%
$1,461.0
$8.4
$7.2
Expenditures
Compensation
Other Operating
Budgeted Expenditures
Balance
Slide 17
$3.4
College and University Operating Budgets –
cont.
College and University Priorities
• Access and affordability
• Development/expansion of academic programs
• Alternative program delivery
Slide 18
College and University Operating Budgets –
cont.
Graph E
Minnesota State Colleges and Universities
Total Tuition and Tuition Increase per FYE
FY2008
$6,000
$206
$5,000
$4,000
$133
$3,000
$2,000
$5,193
$3,869
$1,000
$0
Colleges
Universities
Base
Slide 19
FY08 Increase
College and University Operating Budgets –
cont.
Student Fees
• Application fee for doctoral programs
• Room and board
• Student union facilities
Slide 20
College and University Operating Budgets –
cont.
Student Consultation Process
• Process went well
• Number of letters in support of
administration’s recommended increase
• Some mentioned interest in no tuition increase
– would have liked the Legislature to have
stepped forward with additional state
appropriation
Slide 21
Recommended Committee Action
• Adopt FY2008 total operating budget and
general fund budget (tables 4 and 5; pp. 12-13)
• Approve proposed FY2008 tuition structure
recommendations (attachments 5A-5E; pp. 27-39)
• Approve application fee maximum for doctoral
program (attachment 6; pp. 40-41)
Slide 22
• Approve Revenue Fund FY2008 fees for room
and board and student union facilities
(attachments 7A and 7B; pp. 42-43)