Minnesota State University Moorhead
Flood Preparation and Recovery
First, thank you to everyone for the dedication and hard work that saved this community. This challenge confirmed to me that this is one of the finest communities in the nation. Second, I would like to explain a little about how decisions were made in planning and answer any questions.
Change in demographics here and in the state as a whole suggests that our portion of the appropriation pie will continue to decrease. Although we can work hard to increase enrollment, it is doubtful that we can reverse the shrinkage of our piece of the pie, because of the strong growth rate of the rest of the system. Further, it is unlikely that we will see a return to sizeable state appropriations in the near future.
For the last several years, our credit hour production has decreased. This decrease had an immediate impact on tuition revenue and a delayed impact on our portion of the appropriation. Although the university has cut budgets throughout this time, we still have an infrastructure that is too large to be supported by our current or projected enrollment.
As we discussed in our town meeting on March 11, (see http://web.mnstate.edu/president/Speeches/budget_and_planning_presentations/3_11_2009_budgetpresentation.htm ), 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 and plan.
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 Forward
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 area.
In the future, resource allocation will be much more closely associated with revenue generation, thus decreasing the probability of a structural deficit.
University Mission Statement
Faculty members of the Vision Task Force will present
the revised mission statement along with comments received at town
meetings and through the web