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A recent editorial in a Twin Cities newspaper opines that the state legislature should not go home this session without making a down payment of $5 million on the future University of Minnesota in Rochester. A research firm in Pittsburgh has concluded that the $60 million yearly budget that will be needed for the new campus - one that is projected to serve approximately 1,400 students - is a good investment.
Before buying on to the notion that this is a wise investment, let's consider what value are we really getting for that $60 million. As a comparison, in 2005, UM - Duluth spent an average of $10,500 on each of its 10, 496 students; UM-Morris spent $15, 680 on each of its 1,684 students, and UM-Crookston spent $7, 175 for each of the 2,134 students enrolled.
MnSCU schools, which includes Minnesota State University – Mankato, spend an average of $13 thousand per student.
Projections for the UM-Rochester however, show they will spend approximately $44 thousand on every student. It is hard to believe there will be an adequate return on this investment.
To seek further clarification, go to the website that was used for the editorial, http://www.ohe.state.mn.us/rochester/RHEDCFinalReport.pdf. Here's what you will find: by the year 2015, the grand total for operating and facility costs for UM-Rochester is $63.3 million. However, they have only identified funding sources of $36.7 million - leaving a funding gap of almost $27 million. In other words, UM-Rochester is in the red almost from the beginning.
To add to this budgeting dilemma, no new source of money has been identified for higher education. The obvious conclusion to be made is that the UM-Rochester will be paid for at the expense of students at every other college and university in our state.
Are the supporters of a new college in Rochester so dazzled by the idea that they are overlooking the facts? These are big questions that need answering, before any investment of public funds is made in Rochester. Budgeting decisions such as these belong in state budgeting years - not passed as part of a Deficiency and Supplemental Budget Bill as a "good investment" without competing against the other real needs of MnSCU, the University of Minnesota and the private colleges.
In a perfect world, where we spend as much money as we want on our colleges and universities, the UM-Rochester is a good idea. But, we don't live in a perfect world. We live in a world that has significantly cut state funding to higher education since 2003, a world where more and more of our students cannot afford higher education, and those who do, pay double-digit tuition increases and leave with record high debt.
Here is the message to those of you who want a new college in Rochester: we no longer fund wants with regard to higher education in Minnesota. The challenge now is to fund our needs; they are great, and I'm not convinced they include a new University in Rochester.
Rep. Gene Pelowski is the lead Democrat on the Higher Education Finance Committee. He also serves on the Capital Investment and Education Policy and Reform Committees.