Governor increases proposed funding for University by $32.5 million in response to forecast
This morning, Minnesota Management and Budget released the February forecast projecting a $1.869 billion surplus for FY 2016-17. This marks an increase of $832 million over the November forecast attributed to higher revenues and lower spending.
In response to the forecast, Governor Dayton released the following remarks: “Affordable higher education is also a crucial investment in our better future. The University of Minnesota has said that an additional $65 million will enable them to freeze tuitions for the next two school years. My present budget proposal would pay for half of it. I'll propose to fund the rest, at an additional cost of $32.5 million. In addition to the $30 million I have proposed to improve the medical school, my proposed additional funding for the University totals $95 million.”
In sum, the governor's new budget proposal increases funding for the University by $32.5 million.
Performance funding measures achieved
On Wednesday, February 25, the House Higher Education Policy and Finance Committee requested the University and MnSCU to present on progress made towards performance funding metrics. As you may recall, five performance funding measures for the University were signed into law in 2013:
- Increase by at least 1% the Twin Cities campus undergraduate four-year, five-year, or six-year graduation rates averaged over three years, for low-income students reported in fall 2014 over fall 2012. The average rate for fall 2012 is calculated with the fall 2010, 2011, and 2012 graduation rates.
- Increase by at least 3% the total number of undergraduate STEM degrees, averaged over three years, conferred by the University of Minnesota Twin Cities campus reported in FY2014 over FY2012. The averaged number for fall 2012 is calculated with the fall 2010, 2011, and 2012 graduation rates.
- Increase by at least 1% the four-year, five-year, or six-year graduation rates, averaged over three years, at the University reported in fall 2014 over fall 2012. The average rate for fall 2012 is calculated with the fall 2010, 2011, and 2012 graduation rates.
- For FY2014, decrease administrative costs by $15 million.
- Increase invention disclosures by 3% for FY2014 over FY2013 (net of student disclosures).
The law required that 5% of the University's state appropriations for FY2015 would only become available when the University has met three out of five of the goals. Richard Pfutzenreuter, vice president and CFO; Julie Tonneson, associate vice president for Budget and Finance; and Robert McMaster, vice provost and dean for undergraduate education provided a presentation showing that all five measures have been achieved. View the presentation.
Today, President Kaler sent a letter to committee members addressing questions asked during the hearing. Read the letter.
Ways and Means
On Monday, February 23, the House Ways and Means Committee requested the University to present on enrollment changes over the last decade, concurrent enrollment in post-secondary enrollment and college in our schools programs, composite financial index and appropriations over the last decade. Richard Pfutzenreuter, vice president and CFO, along with Robert McMaster, vice provost and dean for undergraduate education provided testimony on behalf of the University. View the presentation.
Evening of Discovery
On Monday, February 23, the University hosted an Evening of Discovery, an event for legislators showcasing the research of the Academic Health Center. Students and researchers from the six schools of the AHC and MnDrive's Brain Conditions and Regenerative Medicine initiative discussed their work with legislators and underlined its value for the State of Minnesota. Dr. Brooks concluded the event by requesting the legislators' support the University's 2015 legislative request.