The Minnesota State Colleges and Universities system is an Equal Opportunity employer and educator. Presented to the Board of Trustees June 2007 FY2008 Operating Budget Including Tuition and Fees

Slide 2 Update since the May Board meeting Legislative overview System budget overview College and university operating budgets Recommended Committee action Overview of Discussion

Slide 3 Began with biennial budget request last Fall Higher education bill signed by Governor Pawlenty on May 30, 2007 Employee contract settlements still unknown Public hearings: –June 6, 2007 (Wells Fargo Place) –June 12, 2007 (Lake Superior College) Board action June 20, 2007 Update

Slide 4 Legislative Overview Table 1 Minnesota State Colleges and Universities State Appropriation Funding Levels FY

Slide 5 Legislative Overview - cont. Legislative language limiting use of funds Funds tied to performance measures Eliminates non-resident/non-reciprocity tuition at seven colleges Legislative specials

Slide 6 Legislative Overview – cont. Performance funding 1. Increase by at least three percent, compared to fiscal year 2005, the number of students who take college level courses in science, technology, engineering, and math; 2. Increase by at least two percent, compared to fiscal year 2005, enrollment in courses at the four existing centers of excellence programs; 3. Increase by at least 700, compared to fiscal year 2007, the number of students trained on the use of electronic medical record technology;

Slide 7 Legislative Overview – cont. Performance funding – cont. 4. Increase by at least ten percent, compared to fiscal year 2007, the number of students taking online courses or the number of online courses offered; and 5. Expand by at least ten percent, compared to calendar year 2006, the use of “awards of excellence” or other initiatives that reward member institutions, faculty, administrators, or staff for innovations designed to advance excellence and efficiency.

Slide 8 Legislative Overview – cont. Table 2 Minnesota State Colleges and Universities Distribution of New State Resources

Slide 9 System Budget Overview Table 3 Minnesota State Colleges and Universities State Funded Expenditure Summary

Slide 10 System Budget Overview – cont. Board initiatives Recruitment/retention underrepresented students Information technology Strategic advancements, critical industries, and related academic and service initiatives

Slide 11 System Budget Overview – cont. Recruitment/retention underrepresented students $22 million for the biennium ($11 million each year) One-third of funds ($3.6 million) for centers that will focus on exploring bold initiatives targeting holistic solutions Remainder of funds ($7.4 million) to support programs that include partnerships with K-12 schools and expansion of programs similar to TRIO

Slide 12 System Budget Overview – cont. Information technology $62.8 million for the biennium ($29.1 million FY2008 and $33.7 million FY2009) Support eight key areas contained in Enterprise Technology Plan approved by the Board in March Network and data center modernization - Security Management - Identity management - Retooled administrative systems - New technology architecture - Student services and online learning - Faculty research and development - Career, business and entrepreneurship

Slide 13 System Budget Overview – cont. Strategic advancements, critical industries, and related academic and service initiatives $5 million of existing priority funds in FY2008 Supports the following strategic advancements: STEM Health science education Biosciences Farm and small business management College readiness, retention and transitions 21 st Century learning innovations, strategic partnership and improved communications Accountability and assessment

Slide 14 College and University Operating Budgets Graph C Minnesota State Colleges and Universities State Support per FYE FY2000-FY2009

Slide 15 College and University Operating Budgets – cont. Graph D Minnesota State Colleges and Universities Compensation Scenarios FY2008-FY2009

Slide 16 College and University Operating Budgets – cont. Table 4 Minnesota State Colleges and Universities Summary Outlook All Operating Funds FY

Slide 17 College and University Operating Budgets – cont. Table 5 Minnesota State Colleges and Universities Summary Outlook: General Fund FY2008 Proposed Budget

Slide 18 College and University Operating Budgets – cont. College and University Priorities Access and affordability Development/expansion of academic programs Alternative program delivery

Slide 19 College and University Operating Budgets – cont.

Slide 20 College and University Operating Budgets – cont. Student Fees Application fee for doctoral programs Room and board Student union facilities

Slide 21 College and University Operating Budgets – cont. Student Consultation Process Process went well Number of letters in support of administration’s recommended increase Some mentioned interest in no tuition increase – would have liked the Legislature to have stepped forward with additional state appropriation

Slide 22 Recommended Committee Action Adopt FY2008 total operating budget and general fund budget (tables 4 and 5; pp ) Approve proposed FY2008 tuition structure recommendations (attachments 5A-5E; pp ) Approve application fee maximum for doctoral program (attachment 6; pp ) Approve Revenue Fund FY2008 fees for room and board and student union facilities (attachments 7A and 7B; pp )