MnSCU fears more budget cuts

Eliminating more programs, reducing more staff and higher tuition are all possibilities as officials from the Minnesota State Colleges and Universities system seek solutions to a likely reduction in state funding.

In his biennial budget proposal, Gov. Mark Dayton proposes a 6 percent reduction, a $75.6 million base cut. MnSCU officials are requesting to keep their biennial base level of funding at $1.26 billion.

“With that we’d be below fiscal year 2003 funding, even though we’re serving 37,600 more students than we were in 2003,” Chancellor James McCormick told the House Higher Education Policy and Finance Committee at a Feb. 24 informational hearing.

McCormick said that while system enrollment is up for the fifth straight year — to about 158,000 — the state appropriation continues to shrink. “State spending per student has declined from $4,877 per student in 2001 to $3,832 in 2011. During that time we’ve been forced to increase tuition to make up some of that loss.”

CFO Laura King said many colleges and universities have already taken budget reduction action. For example, 27 have announced position reductions; 17 have implemented early retirement plans; and

14 have announced the planned discontinuation of 81 programs.

“We had to go with a worst-case scenario: plan for the worst and hope for the best,” said Richard Davenport, president of Minnesota State University, Mankato.

System leaders have been asked to look at what a 15 percent and a 20 percent base funding reduction could mean.

“If we chose only one method to make the reduction, here’s what the impact would be: staff reductions of almost 1,000 full-time equivalents — more than 15 percent of our total staff — faculty reductions of 880 — almost 10 percent of the total faculty,” McCormick said. “This would mean 9,200 fewer course sections, a reduction of 166,000 credit registrations and a decreased enrollment of more than 16,000 students. Another approach would be a tuition increase of 12 percent.” Tuition has increased almost 5 percent each of the last two years.

Clarence Hightower, vice chairman of the MnSCU Board of Trustees, told the committee that the board is committed to keeping tuition down. “But to do that we’re going to absolutely need your help and support.”