MnSCU's Talking Points
Governor’s Budget Proposal for FY 2010-11
January 27, 2009 

• The governor’s budget proposal would reduce the system’s appropriation by nearly 11 percent or $146 million.  This is on top of a $20 million cut to the appropriation for the current biennium.    

• This would be a severe cut. Most likely, we would apply a combination of all or most of the following tools if we are required to absorb such a significant reduction. To give you an idea of the impact of this reduction, any one of the following methods would be sufficient to reduce expenses by about 10 percent:

• Staff reductions of more than 1,000 full-time equivalent, more than 15 percent of the total staff FTE.
• Faculty reductions of more than 850 FTE, more than 10 percent of the total faculty. This would likely result in reduction of more than 150,000 credit registrations and a decrease in student full-year equivalent enrollment of more than 14,000. This also would mean that it would take longer for students to get into the courses they need to graduate.
• Using tuition revenue alone to make up the difference would require an increase of 22 percent over the biennium. Or,
• Closing one of the largest universities and one of the largest colleges or at least 10 of the smallest colleges in the system, principally located in greater Minnesota.

• We appreciate the governor’s recommendation to leave tuition decisions to the system’s board of trustees.

• Our board of trustees is committed to keeping tuition as low as possible. Late last year, the board went on record saying it wanted to hold tuition increases to 2 percent at the colleges and 3 percent at the state universities if the Legislature were able to give us a $71.7 million increase.

• We recognize that it is the first step in the legislative process. We will be working with the Legislature to make sure lawmakers understand our situation.

• Whatever the governor and the legislature decide in the end, we will make the necessary reductions in a way that best serves students and the economic development needs of the state and its communities.

• It is important for the state to have the capacity to educate and retrain Minnesota’s workforce during this severe economic downturn. Our system of 32 colleges and universities is the key to economic recovery. We are the place where laid-off workers will turn to learn new skills for new jobs. Our colleges and universities offer everything from short-term programs that can be completed in a year or less to bachelor’s and graduate degree programs.

If asked about the governor’s remarks on duplication:

• In the past two years, our system has introduced 352 new programs, redesigned 563 programs and closed or suspended 362 programs.  As business and industry change, we need to change with them.  But the overall number of career and technical programs offered at our colleges five years ago is almost exactly the same as today.

Enrollment goes up when economy goes down

• We face a real dilemma, however.  History shows that demand for higher education goes up when the economy goes down.  This fall, our system enrolled almost 3 percent more students than the previous fall.  This puts pressure on the system to stretch resources to serve more students. 

• Decisions about spending cuts on system campuses will be made at the local level by our 32 presidents. The chancellor has asked the presidents to carefully scrutinize all hiring and travel decisions.

• Examples of steps already being taken on the campuses include:

• Reducing the number of course sections
• Leaving vacant positions open unless they are critical
• Restructuring staffing assignments to delay hiring additional  staff and to use current staff to fill in for employees on leave
• Pulling back on equipment spending
• Cutting repair and maintenance budgets
• Increasing energy conservation measures and turning down thermostats
• Deferring computer replacements for classrooms
• Examining possible postponement of new start-up programs
• Postponing small construction and remodeling projects that were to be institutionally funded
• Allowing only essential travel
• Reducing the need for travel through greater use of conference calls, interactive television and other methods