Transcript President’s Recommended FY16 Annual Operating Budget Eric W. Kaler, president Richard Pfutzenreuter, vice president, Finance Board of Regents June 24, 2015

President’s Recommended FY16
Annual Operating Budget
Eric W. Kaler, president
Richard Pfutzenreuter, vice president, Finance
Board of Regents
June 24, 2015
Budget Goals
• Keeps tuition increases for resident students as low
as possible — lowest increase in 15 years.
• Invests in Promise Scholarship to fully offset the
tuition increase for 42% of our resident
undergraduate student body.
• Increases the gap between tuition for resident and
non-resident/non-reciprocity students to have the
lowest impact on retention and enrollment.
• Recognizes that the University needs a strong
partnership with the Legislature.
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State Appropriations Trend: 2006-2017*
Operations & Maintenance/State Specials
($ in millions)
$800.0
$700.0
$600.0
$500.0
$400.0
$300.0
$200.0
$100.0
$0.0
If fully funded, our legislative request would have restored funding to the University
to its 2008 high point by the end of the biennium, not including inflation. Instead, it is
9 percent below our 2008 high point, not including inflation.
To equal 2008’s high point our state appropriation for FY16 would be about
$780 million, if we accounted for inflation.
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
*Excludes Cigarette Tax, MnCare, and nonrecurring project appropriations
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Total Revenue $3.7 billion
Auxiliary
Enterprises
($342.1m)
9%
Gift &
Endowment
($216.2m)
6%
Fed. Appropriations
($16.3m)
0%
Tuition
($898.2m)
25%
Sponsored
Grants
($570.0m)
15%
Grants, contracts,
misc.
($342.3m)
9%
State
Support
($650m)
18%
Sales, fees,
misc.
($330.3m)
9%
Internal
Sales
($221.6m)
6%
ICR
($133m)
4%
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Tuition and Fees – FY16 Highlights
• 1.5% rate increase for resident undergraduates – all campuses
• Increase tuition for nonresident undergraduate students
• $1,350 (7%) increase on the Twin Cities Campus – differential becomes $8,420
• Use revenue to increase Promise Scholarship.
• $461 (3%) increase on the Duluth Campus – differential becomes $3,950
•
• Crookston, Morris and Rochester Campuses - nonresident = resident
Align graduate and professional tuition rates with market conditions and peer institutions
• General resident graduate rate increase of 2.5%; others vary
• Resident rate for professional programs vary from 0% - 3.5% - most 2.5%
• NRNR rate generally increases 3.5%; some vary
• Carlson School of Management tuition surcharge (last year of phase in)
• Minimize campus/collegiate, course and miscellaneous fee increases
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Change in Tuition, Fees and Room & Board – FY16 vs. FY15
Twin Cities Campus, Resident Undergraduate – Residence Hall
FY15
Academic year
Tuition (13-credit band)
FY16
Academic year
$
Increase
Increase
FY16
% of total
%
$12,060
$12,240
$180
1.5
54.3
Student services fee
836
861
25
3.0
3.8
Collegiate fee*
443
460
17
3.8
2.0
Other required fees**
221
229
8
3.6
1.0
13,560
13,790
230
1.7
61.2
8,554
8,744
190
2.2
38.8
$22,114
$22,534
$420
1.9%
100.0%
Subtotal tuition & required
fees
Room & Board
(double room, 14-meal plan)
Total Cost– Twin Cities
* Average of all undergraduate programs, 6+ credits – based on FY14 enrollment
** MN Student Association, Capital Enhancement Fee, Stadium Fee, Transportation Fee
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Proposed Tuition Increase
Resident undergraduate change FY15 v. FY16
Crookston
Duluth
Morris
Rochester
Twin Cities
Tuition
$150
1.5%
$176
1.5%
$176
1.5%
$76
1.5%
$181
1.5%
Fees
$28
6.4%
$54
4.8%
$87
12.7%
0
$50
3.3%
Room and
Board
$156
2.1%
$206
2.2%
$178
2.3%
$172
1.9%
$190
2.2%
Total
$334
1.8%
$442
2.2%
$441
2.2%
$348
1.6%
421
1.9%
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Tuition Increases Offset by Increased Aid for
42% of Minnesota-resident undergrads
FY16 changes in Pell Grant, MN State Grant & U Promise
•
Federal Pell Grant - Increase award by $45 for most recipients; increase
maximum to $5,775 per year
•
Minnesota State Grant Program – Eligible full-time students will receive
award increases between $480 - $550, based on financial need
•
U Promise – Award increases of $180 for students who are unlikely to qualify
for Minnesota State Grant program, with the intent of offsetting the 1.5%
tuition increase for all qualified Minnesota resident undergraduates
– Program is fully funded with awards between $750 - $4,000, based on
financial need, for students from families with up to $100,000 annual
adjusted gross income
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Academic Excellence & Affordability:
Investment Needs
• Competitive compensation at 2% (including
steps)
• Financial aid
• Medical School
• Academic excellence
• Strategic initiatives
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$78.5M New Investments:
Delivering on Budget Goals
Mission Support &
Operations
$6.1m
7.8%
Compensation
$23m
29.3%
Academic
Investments
$48.6m
Student Aid
$.7m
.9%
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Summary: FY16 Recommended
Annual Operating Budget
• Committed to access, affordability and academic
excellence
• Benefits from Operational Excellence
• Accountable to Legislature and taxpayers
• Increases undergraduate tuition for Minnesota residents
1.5 percent
• 42 percent of Minnesota resident undergraduates will see
the increases offset by aid
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