Summary - Minnesota State Colleges and Universities by jianghongl


									Minnesota State Colleges and Universities
Financial and Demographic Data
House Higher Education Finance and Policy Committee
February 13, 2013
Table of Contents
System Overview____                                            Tab 1            7.3 Table - College/University Allocation Framework, FY2013
    Locations / map                                                             7.4 Table - Instructional Component of the Allocation
    Student demographics                                                            Framework
    Governance                                                              Budgeting                                                   Tab 8
                                                                               8.1 Table - Revenue, Expenses, Net Assets, FY2006-FY2012
Legal Obligation                                               Tab 2
                                                                               8.2 Table - Expenses by Institution, FY2006-FY2012

State Funding and Enrollment Trends                          Tab 3          Tuition Trends                                                 Tab 9
    3.1 Table - Unduplicated Credit and Non-Credit Headcount                     9.1a Table - Annual Resident Tuition Rates, FY2006-FY2009
         Enrollment, FY2006-FY2012                                               9.1b Table - Annual Resident Tuition Rates, FY2010-FY2012
    3.2 Table - Student FYE Enrollment, FY2006-FY2012                            9.2 Table - Program and Course Tuition by Year, FY2006-FY2012
                                                                            Students Fees                                                  Tab 10
Reduction and Reallocations                                  Tab 4
                                                                                10.1 Table - Board Approved Fee Amounts
   4.1 Table - Closed, New and Active Instructional Programs
                                                                                10.2 Table - Fee Rates by Institution, FY2012-FY2006
   4.2 Table - Summary of Closed Programs
                                                                                10.3 Table - Revenue Fund Fees, FY2012-FY2006
   4.3 Table - Reallocation by Institution, FY2006-FY2012
                                                                                10.4 Exhibit - Board Policy 5.11, Tuition and Fees
Faculty and Students                                           Tab 5            10.5 Exhibit - Board Procedure 5.11.1, Tuition and Fees
                                                                                10.6 Exhibit - Board Policy 2.3, Student Involvement in Decision Making
    5.1 Table - Student to Faculty and Student to Staff
                                                                                10.7 Table - Summary of Consultation Letters, FY2013
Administrative Costs                                           Tab 6        Student Debt                                                  Tab 11
   6.1 Table - Administrator FTE by Institution                                 11.1 Table - Median Student Loan Debt for All Graduates, FY2006-FY2012
   6.2 Table - College/University Administrator Earnings
   6.3 Table - System Office Administrator Earnings                         Reserves and Carry Forwards                                     Tab 12
   6.4 Table - College/University Performance Pay for Administrators            12.1 Table - Composite Financial Index by Institution
         with Employment Contract                                               12.2 Table - MnSCU and State of Minnesota Reserves
   6.5 Table - System Office Performance Pay for Administrators with            12.3 Exhibit - Designation of Unexpended Funds
         Employment Contract                                                    12.4 Table - Unrestricted Net Assets by Institution, FY2006-FY2012
   6.6 Table - System Office and College/University Institutional Support       12.5 Table - Reserve Balances, FY2006-FY2012
         Expenses                                                               12.6 Table - Weeks of Payroll Supported by Reserves, FY2012
   6.7 Table - Size of System Office Pre-Merger (pending)                       12.7 Exhibit - Board Policy 5.10, General Operating Fund Reserve
Allocation of State Support                                    Tab 7        Capital Projects                                              Tab 13
    7.1 Table - Allocation Framework                                            13.1 Table - Debt Service by Institution, FY2006-FY2012
    7.2 Table - Percent Share of Allocation Framework

                                                                                                                  Minnesota State Colleges and Universities
System Overview
Minnesota State Colleges and Universities (MnSCU) is
comprised of 7 state universities and 24 technical and
community colleges, serving 47 communities across the
state (figure 1).

MnSCU serves the majority of Minnesota’s higher
education students – more than 430,000. We provide
accessible, affordable, quality education to anyone with a
high school diploma or GED.

MnSCU serves students from all walks of life, from those
still in high school to adult learners and working
professionals looking to retool or update their skills.

Minnesota State Colleges and Universities serve 58% of
Minnesota’s undergraduate students (figure 2). 88% of
MnSCU students are Minnesota residents, 81% of
graduates get jobs in their field, and 80% stay to work in

MnSCU confers nearly 42,000 post-secondary credentials
each year – 12,000 certificates and diplomas, 16,500
associate degrees, 11,000 baccalaureate degrees and
2,200 graduate certificates and degrees.

MnSCU serves more students of color than any other
higher education provider in Minnesota – nearly 60,000
in 2012 – and the highest number of low income
students (38% of students are Pell-eligible).                         Figure 1
                                                             1 of 2          Minnesota State Colleges and Universities
System Overview – continued
                                                                         Undergraduate Students in Minnesota
MnSCU served 82% of all Post Secondary
Enrollment Option (PSEO) students in the state –
26,636 in 2012.                                                                   For-profit
MnSCU is dedicated to Minnesota’s veterans and                                      12.9%
their families, serving over 10,600 veterans this                       Private Colleges            Minnesota
year, a 57% increase over the past four years.                           & Universities
Veteran friendly policies and support services                                                    State Colleges
exist at every college and university; MnSCU                                                     and Universities
institutions award credit for prior military training                     University                  58.0%
and experience and assists veterans with                                 of Minnesota
transitioning to civilian life.                                             14.7%

MnSCU provides the workforce that is the engine
of Minnesota’s prosperity (figure 3).
                                                                                           Figure 2
MnSCU colleges and universities deliver 16,000
customized training, occupational and
                                                                 Training Minnesota
professional classes to businesses and employers
throughout the state, ensuring more than                         •   36% of new business graduates
120,000 workers each year stay at the leading                    •   49% of new teachers
edge of their professions.                                       •   79% of new construction trades
                                                                 •   80% of STEM certificates, diplomas and AA degrees
MnSCU has also exponentially grown e-                            •   81% of new nurses
education, serving 107,100 students with over                    •   84% of new law enforcement graduates
470 programs and 16,400 blended and online                       •   92% of new mechanics
course selections in the 2011-12 academic year.                  •   17,000 fire fighters and first responders, annually
                                                                                           Figure 3
                                                        2 of 2                               Minnesota State Colleges and Universities
The MnSCU system is governed by a 15-member Board
of Trustees that are appointed by the Governor and
confirmed by the senate. The Board consists of:

    At least one member residing in each
     congressional district.
    One member representing labor.
    Three students.

All trustees are appointed for six-year terms except
students who serve two-year terms.

The Board holds the chancellor and other system
leaders accountable for results by performing many
strategic functions including:
                                                         Front row: Cheryl Dickson, Chair Clarence Hightower,
    Setting policy and conducting system and            Chancellor Steven Rosenstone, Maria Peluso.
     academic planning.
    Overseeing fiscal management, admissions            Second row: Ann Anaya, Vice Chair Thomas Renier, Philip
     requirements, tuition and fees, and rules and       Krinkie, Margaret Anderson Kelliher, Louise Sundin, Alfredo
     regulations.                                        Oliviera.
    Appointing campus and system leadership.
    Approving all major decisions.                      Back row: David Paskach, Duane Benson, Treasurer Michael
    Auditing financials and tracking compliance.        Vekich, Brett Anderson, Dawn Erlandson.
    Engaging in an ongoing dialog with the chancellor
     about his performance and progress on his           Not pictured: Alexander Cirillo.

                                                                                       Minnesota State Colleges and Universities
Governance - continued

                         Minnesota State Colleges and Universities
              State Funding and Enrollment Trends
              Figure 1 shows state support per FYE MnSCU student                                                     State support per MnSCU FYE student is down nearly 45%
              has declined by nearly 45% since FY2000. In FY2012,                                                     $4,811
              MnSCU educated 66,247 more students (+18%) (figure                                                            $4,742
                                                                                                         $4,500                  $4,562
              2) and produced 16,054 more graduates (+62%) than in
              FY2000.                                                                                                                     $4,181
              Minnesota’s total inflation adjusted higher education                                                                                         $3,823    $3,809
                                                                                                                                                 $3,756                     $3,698
              state appropriation per student has declined 48% from                                                                                              $3,683
                                                                                                         $3,500                                       $3,556
              FY 1999, (figure 3, red line) compared to an average
              decline of 23% for the nation (blue line).                                                                                                                                 $3,121
                                                                                                         $3,000                                                                                    $2,938
              Minnesota’s reduction is among the nation’s deepest –
                                                                                                                                                      Figure 1
              in 1999, Minnesota’s higher education appropriation                                                                                                                                   $2,675
              per student was 24% higher than the national average;                                                FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12
              now it is 17% below.
                                                                                                                     MN higher education cuts are deeper than national average
                         MnSCU Enrollment Growth 18%+
        440,000                                                                                                      $10,089
                                                            433,554                                      $10,000
                                                       423,190     431,342
        420,000                                                                                                                $8,961
                                                                           State Appropriation Per FYE

        410,000                                                                                                     $8,148     $8,316
                                                                                  (Constant $)


                                                                                                                                           $7,398                  $7,364
        390,000                                                                                                                                                                $7,016
                                                  389,545                                                                                             $6,875
        380,000                                                                                           $7,000                                                                        $6,532
                               372,880       381,459                                                                                    $7,098                                                   $6,290
        370,000                         373,831                                                                                                                       $6,497
                          369,374 368,791                                                                                                                 $6,382                $6,663    -          -23%
        360,000     365,095                                                                               $6,000
                                       Figure 2                                                           $5,000
                                                                                                                                                     Figure 3                                        -48%
                                                                                                                   1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
                  2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012                                                                            MN     US
                                                                                                                                                     Minnesota State Colleges and Universities
Reductions and Reallocations
A total of 964 programs have been eliminated
since 2006. Budget cuts impacting 2009, 2010 and                 Number of Closed Programs Systemwide by Fiscal Year
2011 hit particularly hard.
                                                         2006       2007         2008    2009     2010        2011     2012         Total
The impact of the Great Recession, most acutely
felt from FY2008 – FY2012, presented a $325               116        123          84     131       187          234        89       964
million dollar challenge: A $120 million cut in                                             Figure 1
state support, $94 million in inflation and the
need for $111 million in new investments
necessary to increase student success and meet
the needs of Minnesota businesses, industry
                                                                        FY2008-FY2012 Challenge & Solution
sectors and local communities (figure 2).
                                                               Challenge                                        Solution
This challenge was addressed through $187
million in budget cuts, reallocations and
efficiencies, which accounted for 58% of the          $111 (34%)         (37%)
                                                                                  $120                                      $138
solution. Tuition rate increases averaging $155 a                                                                               (42%)
year for full-time college students and $261 a year                                                     (58%)
for full-time university students comprised the                   $94
remainder of the solution.

                                                               $325 million                                   $325 million

                                                           Decline in State Support               Tution Rate Revenue Increase
                                                           Operating Inflation                    Budget Cuts, Reallocations, Efficiency
                                                                                            Figure 2

                                                      1 of 2                                    Minnesota State Colleges and Universities
Reductions and Reallocations - continued
                                                                                                                     Reallocation (cuts) trends
Program closures and changes are an on-going process at MnSCU                                                                                                                                                                                                                                                     $53.7
colleges and universities. These adjustments serve to maintain                                                                                                                                                                             $45.0
alignment between the programs being offered, student demand,            $40.0                                                                                                                                                                                                $36.1
and the needs of business, industry, and communities. Annual                                                                                                                                                        $27.1
reallocations are made so that investment in higher-priority areas                  $21.0 $22.7 $22.9
can increase, and expenses associated with lower priority areas          $20.0

are cut.
                                                                                      FY06                                             FY07                                          FY08                              FY09                 FY10                                FY11                                 FY12
As shown in Figure 3, this process typically results in $20 - $30
                                                                                                                                                                                                     Figure 3
million in reallocations per year. However, reallocations for the
last three years have been substantially higher to meet the cuts in
                                                                           Example of program adjustments (FY2012)
state support.
                                                                                                                                                                                                                                 Net Adjustments =
                                                                         10.0                                                        Cuts:                                                                                         -$33.7 million
Figure 4 illustrates the reallocations for FY2012. Of the $53.7                                                                   $53.7 million
million in cuts to lower priority areas, faculty positions,               5.0
admin/staff positions and general operations were impacted the
most.                                                                     0.0

                                                                                 Faculty positions
                                                                                                     Admin/Staff Positions
                                                                                                                             General Operating Budget
                                                                                                                                                        Program suspension
                                                                                                                                                                             Student Services
                                                                                                                                                                                                                                                 Student Services
                                                                                                                                                                                                                                                                    Program start-up
                                                                                                                                                                                                                                                                                                   Admin/Staff Positions
                                                                                                                                                                                                                                                                                                                                        Faculty positions
     151 layoffs (FTE)
     276 vacancies eliminated (FTE)
The cuts to lower priority areas were partially offset by $20 million
in new investments in high demand, high priority areas.
                                                                         -20.0                                                                                                                                                                                      Investments:
The net of these reallocations was a $33.7 million reduction,                                                                                                                                                                                                       $20.0 million

which was needed to adjust for the state’s budget cuts.                  -25.0

                                                                         -30.0                                                                                                                               Figure 4
                                                                2 of 2                                                                                                                   Minnesota State Colleges and Universities
Faculty and Students
Figure 1 shows a 12.4% increase in productivity in terms                            Faculty productivity up 12.4%
of credit hours taught per faculty member. The increase in

                                                                                                                                                   Credit hours per Instructional Faculty
faculty productivity has been a key factor in MnSCU’s                                                                                        644
improved efficiency.                                                                  622
                                                             625                                 623
Faculty have not had an increase in salary in four years.                           611                                          612
                                                                                                       605                 604
MnSCU faculty are doing substantially more while             600
inflation has steadily eroded their income.                                                                         595
                                                                              585                        596
                                                             575        573

                                                                   00    01    02     03    04    05    06     07     08    09    10     11
                                                                                                  Figure 1

                                                                                                   Minnesota State Colleges and Universities
Declining Administrative Costs
                                                                                                                   Reduction in the size of the system office
                                                                                          $45                   3.7%                                                                   3.8%
The inflation adjusted cost of educating a MnSCU                                                                                                           43.5
                                                                                          $43                          3.6%                                                            3.6%
student has declined since 2002.

                                                                                                                                                                                              Percent of General Revenue
                                                                                          $41                                                        41.0

                                                              Appropriation in Millions
                                                                                                                   39.4                     40.5                  39.8                 3.4%
                                                                                          $39                                           39.0
The system office budget has declined 24% since 2009.                                                       38.8                             3.1%                        36.7
System office expenditures as a percentage of general                                     $37                                    37.8 3.1%                  3.0%                       3.0%
                                                                                          $35                             36.7
fund revenue have declined from 3.7% in 2002 to 2.2% in                                                                                             2.9%                        33.1 2.8%
2012 (Figure 1).                                                                          $33                                                                      2.6%
System-wide institutional support spending (president’s                                                                                                                  2.3%          2.4%
office, business office, IT, HR, accounting, etc.) has                                    $27                                                                                          2.2%
declined from a high of 12.4% in 2011 to 11.7% in 2012                                    $25                                                                                          2.0%
(figure 2).                                                                                                FY FY FY FY FY FY FY FY FY FY FY
                                                                                                          2002 2003 2004 20052006 20072008 20092010 2011 2012
Overall administrative spending per student at MnSCU
ranks 37th out of 50 comparable state systems in the U.S.                                                                               Figure 1

                                                                                                                       System-wide Administrative Efficiency

                                                                       Administration as a Percent of

                                                                              Total Expenses

                                                                                                                       12.1%         11.9%                                      11.7%

                                                                                                                   2008          2009        2010          2011           2012
                                                                                                                                         Figure 2
                                                            1 of 2                                                                          Minnesota State Colleges and Universities
Declining Administrative Costs - continued
Increased enrollment and tuition adjustments                                 Total expenditures per FYE student
have not resulted in increased spending.         $10,500
                                                               $10,277                                             $10,313
Operational improvements have enabled            $10,300
                                                                      $10,249                                  $10,145
continued access to students of all              $10,100
backgrounds, as evidenced by growing                                                                    $10,052
                                                                             $9,719            $9,967
enrollment.                                       $9,700
                                                                                      $9,599                             $9,582
Total inflation adjusted spending (state                                                                                          $9,325
appropriation and tuition revenue) per FYE
                                                  $9,100                                                                             $9,009
student declined 12.5% between FY2002 and
FY2012 (figure 3).                                $8,900
                                                           FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012

Over the period 2006-2012, the total number                                  Inflation Adjusted Expenses Per FYE
of FTE employees increased by 952 (7%). Of                                                Figure 3
the total increase, 487 (51%) were faculty and
32 (3%) were administrators. The remaining
increase primarily reflects growth in IT
support and campus student services at our
colleges and universities.

                                                      2 of 2                                       Minnesota State Colleges and Universities
Allocation of State Support
MnSCU allocates state appropriations among the                            Allocation Process
campuses using a formula that has been fully utilized
since 2006. The allocation formula was established          Formula Allocation to Campuses 83% $450 M
using a number of factors including enrollment, the cost
of delivering different types of academic programs and
national peer comparison data. The formula is               Debt Service, Shared Services, 11%          $58 M
structured to reward cost-efficient instruction.            Education/Workforce Initiatives, etc.

    The use of a definitive formula ensures an             Support for Campuses                6%      $33 M
     objective, effective and data-driven process.          From System Office
    The formula allocates state appropriations only                          Figure 1
     (all tuition stays on campus).
    Campuses have total discretion in how to use the
     allocated funding.

As shown in Figure 1, 83% of state appropriations are
distributed to campuses using the formula. 11% of the
funds are used for debt service, shared services (such as
external audit and attorney general services, etc.),
enterprise technology, education innovations,
workforce initiatives, etc. The remaining $33 million
funds the system office and its support of the colleges
and universities.

                                                                                   Minnesota State Colleges and Universities
College and university budgets vary from $183.8 million at      FY2014-FY2015 Biennial Legislative Request Development
large universities to $4.3 million at small community and
technical colleges.                                             June 2013
                                                                Initial framing conversation with college and university
The annual and biennial budgeting processes engage              presidents – context, principles, strategic issues, baseline
students, faculty, staff and other key stakeholders in          financial forecast. Presidents received feedback from
consultation.                                                   campus communities.

At the campus level, consultation on tuition, fees, and         September 2013
priorities is conducted with faculty, students, bargaining      Academic priorities and areas of investment emerged from
units, and the community through meet and confer as well        discussions with presidents, students, faculty and staff.
as listening sessions.
                                                                September – October 2013
The Board of Trustees reviews and approves the state funds      Further consultation with all bargaining units and student
allocations, system-wide revenue and expense goals, and         associations, presidents and trustees.
final annual system, individual college and university, and
system office budgets and biennial budgets.
                                                                October 2013
                                                                Discussion with Board of Trustees.
Development of the biennial legislative request involves
consultation with trustees, presidents, students, staff,        November 2013
faculty, bargaining units, and other key constituents (figure
1). In addition, 55 workforce listening sessions throughout     Final adoption by the Board and submission to the Executive
the state were held this year in collaboration with DEED and    Branch.
the Minnesota Chamber. Nine industry sectors were
covered (manufacturing, health care, IT, engineering, energy,
transportation, agriculture and food production, natural                                    Figure 1
resources and mining, and financial services). More than
1,540 participants and more than 700 business
representatives were engaged.

                                                                                              Minnesota State Colleges and Universities
                                                                                2012 higher education tuition and fees in Minnesota

Tuition Trends
The Board of Trustees is committed to tuition
discipline, and MnSCU remains Minnesota’s
highest value, most affordable higher education
option (Figure 1).

Over the past decade, lower state appropriations
have necessitated cost cutting and tuition
increases to maintain quality (Figure 2).

Despite our increased efficiency, cuts in state
support have shifted the costs of education from                                                      Figure 1
the state to the students and their families.
                                                                                 Higher tuition to make up for the loss of state support
In 2002, the state covered 2/3 of the cost of a
MnSCU education, and the student paid 1/3. By
2013, these ratios have nearly reversed, and
families have had to make up for what was once
clearly understood to be, and was funded as, a
                                                   Cost of Education

critical public good.

                                                                                                     Figure 2
                                                                       1 of 2                                    Minnesota State Colleges and Universities
Tuition Trends – continued
                                                                          Net cost steady as a percentage of median income

Tuition and fees as a percent of Minnesota’s
median income has remained steady since 2005
(Figure 3).

Differential tuition accounts for less than 6% of
total tuition revenue (Figure 4).

Differential tuition is used primarily for online
courses, programs that require the use of
expensive specialized equipment, and courses
requiring high faculty-to-student interaction.

                                                                                                Figure 3

                                                             Differential Tuition Accounts For a Small Percentage of Total Tuition Revenue
                                                                                                                              5.3%       5.3%
                                                    3.0%                    2.9%
                                                           FY2006      FY2007      FY2008       FY2009      FY2010        FY2011     FY2012
                                                                                            Differential Tuition
                                                                                               Figure 4
                                                           2 of 2                                     Minnesota State Colleges and Universities
Student Fees
FY12 fees averaged $17.74 per credit or     In addition to the mandatory fees for parking and student associations, and
$527 per full-time student annually.        optional fees for application, student life, athletics, health services, and
                                            technology, there are personal property and service charges for things such as
In accordance with Minnesota statute,       ID cards, diplomas, special testing, library charges, and course-related travel
the MnSCU Board of Trustees maintains       costs, as well as revenue fund fees for room and board, wellness centers,
affordability of fees by setting maximum    facility rentals, lost keys, damages, and athletic equipment rental.
limits and developing standard policies
for colleges and universities.

Fees have remained a constant
percentage of tuition since 2006 (Figure                              Minnesota State Colleges and Universities
1). Fees account for a small and slightly                               Fees as a Percent of Tuition and Fees
declining share of standard student
costs.                                                                                                   10.6%
                                                              11.0%                                                  10.5%
                                                              10.5%                                                            10.2%     10.2%
There are no “system fees.”                                             10.0%                 10.0%
                                                              10.0%                9.7%
                                               Percent Fees

Students are highly involved in fee                            9.5%
setting decisions through consultation                                   8.8%
                                                               9.0%                                      8.6%
with campus leadership. Students have                          8.5%                8.2%
decision-making authority for student                                                                                 7.9%
                                                               8.0%                                                             7.6%      7.5%
association membership fees.                                   7.5%
                                                                        FY 2006   FY 2007    FY 2008    FY 2009      FY 2010   FY 2011   FY 2012

                                                                                            Colleges         Universites

                                                                      Typical package of fees for full time undergraduate students
                                                                                                  Figure 1

                                                                                                                    Minnesota State Colleges and Universities
Student Debt
Compared to their counterparts at other higher                    FY2012 Debt of MnSCU Graduates
education institutions in Minnesota:
    More MnSCU students graduate with no debt                       MnSCU %     MnSCU %     Median Debt for   Median Debt for
                                                                  with No Debt   with Debt   those with Debt     all graduates
    MnSCU students graduate with less debt

47% of MnSCU certificate or diploma recipients,   Diplomas             47.0%       53.0%           $10,554            $2,712
33.8% of MnSCU associate degree recipients and
27.5% of MnSCU baccalaureate degree recipients
have no debt (figure 1).
                                                  Degrees              33.8%       66.2%           $14,825            $8,536

                                                  Degrees              27.5%       72.5%           $25,128           $18,123
                                                                                 Figure 1

                                                         1 of 2                              Minnesota State Colleges and Universities
                                                                         Minnesota BA Degree Recipient Debt (2007-08, Latest
                                                                                    Comparable Data Available)
Student Debt - continued
Baccalaureate recipients from Minnesota’s public 4-year
universities have less debt than their counterparts
graduating from private, not-for-profit and private, for-
profit intuitions (figure 2).

Figure 3 illustrates that the percent of MnSCU associate
degree recipients with loans is 31 percentage points                                                                                  16
lower than the percent of private, for-profit associate
degree recipients with loans.

Median debt for MnSCU associate degree recipients with
debt is half of the debt load of private, for-profit
associate degree recipients.                                                                        Figure 2

Median debt for all private, for-profit associate degree     Minnesota AA Degree Recipient Debt (2007-08, Latest Comparable Data Available)
recipients is nearly three times the median for all                                    % with         Median debt:              Median debt:
MnSCU associate degree recipients.                                                     loans          Grads with loans          All grads

                                                            MnSCU associate
                                                            degree recipients          68%            $11,000                   $7,480

                                                            Private, for-profit
                                                            associate degree
                                                            recipients                 99%            $22,000                   $21,780

                                                                                                  Figure 3
                                                             The analysis in figure 2 compares median debt loads for all graduates, which is the
                                                             standard adopted by the U.S. Department of Education.

                                                            2 of 2                                     Minnesota State Colleges and Universities
Reserves and Carry Forwards
System fund balances (or carry           The Higher Learning Commission’s accreditation standards require appropriate reserve
forward) are a key component of          levels. Reserve levels affect revenue bond ratings by rating agencies and lower costs.
financial health of our colleges and     Reserves contribute to higher ratings and therefore lower debt service costs.
universities, and are monitored in
                                         Current systemwide reserves are only sufficient to cover two payroll periods (28
accordance with standard financial
                                         days). Campus reserves vary from 1.5 to 2.7 payroll periods. Presidents control these
management practices. Carry
                                         funds and decide when it is prudent to use them.
forward funds are used to cover
encumbrances, long-term planning,                                   Minnesota State Colleges and Universities
strategic innovations, building                                       FY2012 Year End Unexpended Funds
depreciation and demolition,
contractual training, and                                          Enterprise                                Restricted
unpredictable drops in enrollment                                Fund, $82.5M                             expendable, bond
                                                                      13%                                    covenants
and tuition revenue.
                                               Special Revenue                                              $72.6M , 11%
                                              Fund, $22.0M 4%
Campus reserves make up a portion
of fund balances. Reserve levels are                                                                                   expendable,
established in board policy for                                                                                       other $72.3M,
educational institutions. They are set        General Fund                                                                11%
at 5-7% of campus revenue. Colleges             Reserves
                                              $109.3M 17%
and universities have reserves and
other balances for emergencies.

Reserves protect campuses from
                                                                                                                Unrestricted -
unexpected events that could                                                                                    General Fund,
otherwise result in a serious                                                                                   $277.0M , 44%
disruption to campus activities and
potentially hundreds of sudden
layoffs.                                                                        Total: $635.7 Million

                                                                                      Figure 1
                                                                                                   Minnesota State Colleges and Universities
Capital Projects
Campus debt service accounts for less than 1% of campus
                                                                             FY 2012 Approved Investments
general fund revenue and 2.8% of total campus expenses.
For every dollar of tuition, less than 2 cents goes to pay
                                                               $132 million total – rapid execution
capital debt service. A full-time student paid $23.43
                                                               • Essential repairs (HEAPR): $20 million
annually for capital debt service in 2006 and $43.36 in
                                                                     • 34 projects in 26 communities
                                                                     • 180 contracts with A/Es, contractors, and subs
MnSCU capital projects supported approximately 17,000                • 45% of funds encumbered as of Dec. 31, 2012
                                                                              •   Goal: 100% by Sept. 30, 2013, 100% spent by Dec.
construction jobs between 2006-12.                                                30, 2013
                                                               • Workforce/skills gap projects: $112 million
During the 2012 session, the legislature appropriated $132           • All 21 major design and construction projects under
million for college and university capital needs. All $20               contract
million for HEAPER has been deployed by the campuses in               • 250 contracts with A/Es, contractors and subs
the form of 34 projects that employ Minnesotans working
for 180 local contractors and subcontractors. An additional
$112 million funded 21 major capital projects that address
workforce/skills gap needs of business and industry. All are
under contract with 250 local firms.

Systemwide, there has been an increase in the efficiency
with which space is used. Space utilization (student credit
hour per square foot) has increased 18.7% over 10 years
(2001 – 2011).

Over the past two years, energy consumption has been
reduced by 9%.

                                                                                             Minnesota State Colleges and Universities

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