July 15, 2010
- Budget & Fiscal Sustainability
- Space Planning/Renovations
- Office Moves
As we have previously discussed, Minnesota has a budget deficit of
over $5B. It is more when adjusted for inflation. Following is a summary
of what is expected at this time.
- For next year, FY 11, our total general fund budget
is projected to be $64.7M with $25.7M coming from the
state allocation and the remaining from tuition. The
percentage covered by the state is 40%, down from 48% in
- It is virtually certain that we will have a
significant cut in our state appropriation coming into
the 2012 biennium. We are projecting from $3.5M to $7M
depending on how much of the deficit is addressed by
budget cuts and how much is addressed by additional
- We can handle the lower end of the range without
layoffs. However, if the cut goes to the upper end of
the range, we will need to eliminate our temporary
positions. Given the budget uncertainty, we have used
temporary positions to serve as a buffer protecting our
long-term employees from layoffs.
- Please be very cautious about spending. We are far
from out of the woods yet for 2012.
- It appears that the Minnesota economy will be much
slower in recovery than was first expected. We expect a
continued decrease of state appropriations for at least
the coming 10 years. The decrease coming into 2012 will
be severe and further decreases are likely to be more
- Tuition increases cannot fully substitute for loss
of appropriation without compromising access and
affordability. Further, it is expected that the Trustees
will continue to regulate the rate of increase.
- Following are some figures to keep in mind as we
brainstorm fiscal sustainability.
- Personnel costs (salary and fringe)
are 80% of our general fund budget.
- A 1% increase in tuition = $379,000.
- A 1% contractual increase (salary
and fringe) = $510,000
At its simplest, fiscal sustainability is creating the set of policies
and practices that will assure that our revenue (tuition, state
allocation, other) is used to produce sufficient new revenue to enable
continued achievement of our mission in the future decade and beyond.
This will enable us to preserve this special place for future
As we plan for fiscal sustainability, it helps to think of our
university as a business.
- Our primary product is student learning.
- Faculty members are in direct production of the
- Admissions and marketing are the sales force.
- Student affairs and academic affairs provide direct
support of production.
- Physical plant and administrative offices provide
the infrastructure for production.
- The president and cabinet provide the direction and
- Customer service (retention) is everyone’s
Given the probability of decreased state funding and caps on tuition
increases, we need to focus on two fronts: return on investment of
current revenue and the creation of new sources of revenue.
Return on Investment of Current Revenue
- What is a reasonable goal for the total
institutional academic cost recovery ratio?
- What additional processes should be examined through
Educational Lean to improve efficiency, quality, and
- What current policies or practices detract from
Creation of New Sources of Revenue
In thinking of new sources of revenue, we need to think about at least a
few questions. The following is a start. We welcome ideas. Please feel
free to email me or to drop by during office hours.
- What can replace lost state funding without diluting
our brand (faculty-student engaged learning) and
straying from our mission? (See Collins, “How the Great
- Once we fill gaping holes, what percentage of each
new tuition dollar should go to production (i.e.,
faculty), and what percentages should go to other parts
of the business?
- For new ventures, how can we create business models
that support themselves, provide additional revenue to
replace state infrastructure funding, and are win-win
solutions for the administration and unions?
Space Planning/Renovations and Office
The following space renovation and office move projects are funded by
capital project, HEAPR, and/or one-time funds. Some projects are
complete, others are underway, and others are in the planning stages.
OW 214 (former Payroll Office)
Payroll re-located to OW 106 Business Office; Fall 2009
Affirmative Action (Barb Seiler) re-located to CMU
Human Resources moved in May 2010
OW 210 (former Human Resources)
used as “swing” space
Diane Solinger, Ginny Bair, Ashley Atteberry, Iris Gill, Connie Forbord,
and Jo Berg
OW 205/206 (Academic & Student Affairs suite)
1st phase remodeling (perimeter offices); complete August 2010
Diane Solinger, Ginny Bair, & Ashley Atteberry will move back and
Admissions staff will temporarily move into OW 210 (former Human
2nd phase remodeling (reception area) will occur later
CMU 111 (CMU storage area across the hall from Career
Services by the NW building entrance)
complete Summer 2010
Career Services student specialists
CMU 114 (S half; formerly Career Services)
Donna Brown & Jered Pigeon
Barb Seiler & Fran Zimmerman until January 2011
Jody Steile’s office will remain in the Native American Center in
CMU 222 (former Multicultural Affairs space)
Office of Student Activities – Sandy Schob, JoDee Anderson
Leadership & Organizations – Becky Boyle Jones
Office of First Year Programs – Veronica Michael
CMU 229 (former Student Activities office)
International Student Affairs – Janet Hohenstein and Ludmi Herath
temporary location; will join Multicultural Affairs in CMU 114 when
Career Services moves to Flora Frick after 3rd phase remodeling is
complete (est. Fall 2011)
BR 250 (Dean of Arts & Humanities suite)
Study Abroad – Janet Haak
temporary location; will move to Flora Frick when 2nd phase remodeling
is complete (est. Spring 2011)
FF 153 (former International Student Affairs)
1st phase Flora Frick remodeling; complete August 2010
Dean, University College – Denise Gorsline
Dean, Graduate Studies & Summer – Richard Adler
OAS Principal – Karla Wenger
OW 215 (current Graduate Studies office)
Veteran’s Affairs – Dave Bellefeuille
temporary location; will move to Flora Frick after 3rd phase Flora Frick
remodeling is complete; Fall 2011
1st floor Library (current Graphic Arts/Photography) and Weld
basement (current Instructional Media)
Darel Paulson & Jody Bendel will re-locate to Weld basement
Bob Schieffer, Mark Sanderson, & Andy Johnson will re-locate to 1st
FF 154 & 156 (current Printing Services & Publications
Derek Lien, Kristi Monson, & Leslie Knudson will move to Weld basement
and be co-located with Graphic Arts/Photography
Jerry Nygard is expected to move to CMU
2nd phase Flora Frick remodeling; complete Spring 2011
area remodeled for ARO, Disability Services, & Study Abroad
FF 151 (current ARO)
3rd phase Flora Frick remodeling; complete Fall 2011
area remodeled for Career Services & Veteran’s Affairs
Campus Post Office will be moving to the current art & supply area;
designed to have 24-hour access; August 2010
full remodel expected to be complete Summer 2011
current Campus Post Office space
Dragon Stop & Café Connection will merge into this space; Spring 2011
current Café Connection area will be used for additional seating
current Dragon Stop will become the storefront for the remodeled
Library window replacement and SW entry is substantially complete.
Campus concrete work along sidewalk spine is complete.
KH 2nd floor classroom renovations (KH 215, 216, 217, and 218) are in
progress and will be completed before Fall Semester.
Lommen Hall capital project is on schedule for substantial completion by
Negotiations continue for the purchase of the Newman Center.
Counseling Center staff will remain in BR 260 until Hendrix Health
Center is able to be remodeled; co-location of staff is still the
Residence halls are full! Approximately 20-40 students will be housed
on 3rd floor Holmquist at the beginning of Fall Semester. Go Dragons!