4. Affordability
Tuition set for 2014-2015
Fees increase up to 3%
Credit for Prior Learning
Four-year degrees on two-year
campuses
Scholarship campaigns
8. State Budget Outlook
FY 2014-2015 projected $627 million
shortfall, however $2.1billion in
revenue increases during legislative
session will cover the deficit
MN’s economy ranked 5th fastest
growing in 2012
November Forecast – Surplus of $825
million after K-12 school shifts are paid
back
9. Minnesota State Colleges and Universities
State Appropriation vs. Tuition Relationship
Fiscal Years 2002-2015
100.0%
90.0%
80.0% 66.3%
55.3%
70.0%
60.0%
50.0% 33.7% 44.7%
40.0%
30.0%
20.0%
10.0%
0.0%
60.1%
52.6%
51.4%
55.2%
47.4%
48.6%
44.8%
39.9%
Tuition
Appropriation
58.8% 58.1%
41.2% 41.9%
10. Legislative Basics
Biennial cycle: first year is a
budget/appropriations year, second
year is bonding bill
67 Senators, 134 Representatives
Higher Education committee members
in House and Senate are the main
focus of our work, Capital Investment
committee is also important,
especially in bonding years
11. What’s next at the Capitol?
Bonding
◦ MnSCU will be asking for:
$130.6 million in HEAPR and demolition
$155.9 million for capital projects and design
The request relies on $58.8 of System financing
and $227.7 million in General Obligation
financing
If fully funded, this request reduces total MnSCU
square footage by 257,360 feet
Bonding bill will likely be between $800 and $900
million if passed
12. What’s next at the Capitol?
The Unsession
◦ Governor Dayton has named the 2014
session as the “Unsession”
◦ The goal is to repeal outdated legislation,
streamline and improve government
16. Federal Budget Challenges
Federal Government Shutdown
◦ Deal to end shutdown funds federal
government until January 15, 2014 and
raises debt ceiling through February 7,
2014
◦ Relatively minor impact on higher
education, did not impact federal financial
aid
17. Federal Budget Challenges
Sequestration Cuts
◦ First round occurred last year
◦ Reduced funding for
Supplemental Educational Opportunity Grants
TRiO
Federal work study
Suspension of military tuition assistance
Pell Grant was not impacted
◦ Second round of cuts scheduled for next
year which will be larger than the 2013
cuts
18. Divided Government
U.S. Senate
◦ 51 Democrats
◦ 47 Republicans
◦ 2 Independents
U.S. House
◦ 242 Republicans
◦ 193 Democrats
White House
◦ President Obama, Democrat
Big picture- we faced a lot of financial challenges lately, deficit, things are looking better, higher ed received largest investment in decades, campuses still facing cuts, costs still going upMinnesota management and budget prepare a “forecast” or preview, of the state’s revenue. Nov and Feb. Governor will wait until Feb forecast to make a recommendation. Projected balance is 1.086 billion.
Small increase 13-15
Operate under biennial cycle Bonding- civic centers, transit, higher ed buildings Capital investment commitee
Total that is likely based on what we’ve heard, governor’s proposal on jan 15th.
Unsessionas “cleaning up” state government and statute
Influences decisions
Part-time grant pilot
Kayley* So, pretty much no new funding for higher education programs