About the President
Points of Pride
A Special Place
Dille Fund for Excellence
President's Remarks & Updates
Vision Task Force
University Reaccreditation 2007
Office of the President
203 Owens Hall
1104 Seventh Ave. S.
Moorhead, MN 56563
Minnesota State University Moorhead
President’s Budget Presentation to MSUM IFO Meet & Confer
April 9, 2009
Plan for a four year rather than two year cycle.
Note that this is necessary because the stimulus funds are only one
time funds and cannot be used to sustain base operations.
Use stimulus dollars for only one time costs.
Balance the budget.
Note that the President takes full responsibility
for this budget planning process. She has consulted with the Vice
Chancellor and others to assure the soundness of the plan.
MSUM has had declining student credit hour
production for over 5 years. This translates to declining tuition
revenue and a declining share of the state appropriation.
Over the last 5 years, we built up a structural
deficit that resulted from declining tuition revenue and actual
expenditures exceeding actual revenue. As a result, we have needed
to cut each year. This is not sustainable. The total of our current
structural deficit and tuition revenue shortfall is $4.2M. It may
increase once we calculate this year’s tuition revenue shortfall.
More conservative projections should keep this from happening in the
Tax revenue funds state appropriations. Thus, if
the economy recovers in Year 1, the tax revenue rebounds in Year 2,
and the appropriation would hopefully catch up in Year 3.
The most recent state economic forecast suggests
both a slow recovery and a potential additional problem for the 2012
– 2013 biennium. See
This Year and the Next Four Years
(Definitely Not To Scale)
Plan (From April 7 Town Meeting)
As we discussed in our town meeting on March 11, (see
), our current deficit has two components: our structural deficit, which
is a symptom of infrastructure exceeding revenue, and the decrease in
state appropriations. Further, we are looking at a 4 year plan.
Stimulus money is likely to replace part of the
decrease in state appropriation during the coming biennium. However, it
is only one time and will not continue into the next biennium. Thus,
cuts are still necessary. Fortunately, the stimulus can offset some of
the tails on the reductions. Following is an explanation of our deficit
Current Estimated Total Deficit
$8.2 – $9.2M
Planned Base Budget Correction
$8.2 - $9.2M
Use of Stimulus Dollars (one time)
Building the Revenue Engine and Planning
Even as we decrease our infrastructure, we still must
attend to our revenue engine. Increasing enrollment is critical and may
be somewhat challenging given our recent media coverage of the flood. To
that end, we are planning to invest in a marketing director as well as
additional recruitment activities targeted to the Twin Cities metro
In the future, resource allocation will be much more
closely associated with revenue generation, thus decreasing the
probability of a structural deficit.