2016-2017 Biennial Request Campus Conversations

1. 2016-2017 Biennial Request Campus Conversations Spring 2014

2. 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

3. 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

4. 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

5. Some facts as background

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

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

8. Tuition Trends

9. Total expenses per FYE MnSCU student

10. Minnesota State Colleges and Universities:Minnesota’s Most Affordable Higher Education Option 2013-14 Tuition and Required Fees College/University Source: Chronicle of Higher Education, October 23, 2013

11. Headcount enrollment growth 18%+

12. FYE enrollment grew rapidly but has fallen since its peak in 2011

13. 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

14. 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

15. Possible tuition and state support scenarios to cover inflationary increases (no new initiatives) Biennial Yearly $ Increase in % increase Total new state support in tuition resources $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

16. 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

17. 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

18. 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