1. Long Term Financial Sustainability Strategy Roadmap Review
October 2017
Long Term Financial Sustainability Strategy Roadmap Review
Board of Trustees

2. Timeline Workgroup final report released in June 2016
Chancellor launched consultation process
Board September 2016 retreat topic and small group discussions
Board study session in November 2016 to hear constituent feedback and discuss recommended strategy roadmap
Joint board and Leadership Council meeting in January to discuss and endorse strategy roadmap
Executive and legislative presentations
Work underway since

3. Workgroup charge
The workgroup was charged with formulating recommendations to the chancellor, the Leadership Council, and the Board of Trustees that will strengthen the long-term financial sustainability of our colleges and universities.

4. Long-term reductions in state revenue have caused more dependence on tuition revenue

5. Long-term reductions in state revenue have caused more dependence on tuition revenue

6. Minnesota State’s share of state budget has declined over time

7. 1% increase in select revenue sources would generate about $19 million

8. Report - Our financial strategies should ensure:
Access to an extraordinary education for all Minnesotans
That we are the partner of choice to meet Minnesota’s workforce and community needs
That we deliver to students, employers, communities, and taxpayers the highest value/most affordable higher education option

9. Report - Our financial strategies should also:
Improve student success
Reduce the educational outcome disparities
Improve educational quality
Increase access and affordability
Deepen collaboration
Respect academic freedom and the faculty’s role in curriculum development and teaching
Strengthen campus – community partnerships
Honor the unique contributions and approaches of our colleges and universities

10. Report - Cost savings strategies:
Improve the efficiency by which we manage the curriculum and academic programs while protecting an appropriate range of student choice and program specialization
Reduce facilities costs
Reduce administrative costs
Hold compensation increases to the increases in new recurring revenue

11. State of Minnesota Responsibilities

12. Minnesota’s funding of higher education has plummeted and trails the U
Minnesota’s funding of higher education has plummeted and trails the U.S. average
Source: SHEEO (2016). SHEF FY 16. Estimates have been adjusted for inflation.

13. State Appropriation Revenue (in $millions)

14. Report - State of Minnesota responsibilities:
Restore state investment in higher education to the national average, at least
Fully fund the recurring cost of compensation increases negotiated by the state
Provide the HEAPR resources needed to maintain our college and university academic facilities
Provide the funds and leadership needed to decommission and demolish facilities that are obsolete, that are no longer needed to meet academic program needs, that cannot be effectively repurposed, and that community organizations do not want to use
Fully fund the direct costs of the Postsecondary Enrollment Options (PSEO) program
Partner with Minnesota State colleges and universities to identify additional sources of public revenue beyond the general fund

15. Report - What we learned
Improvements in student success are central to the financial health of our colleges and universities. We must be more nimble and responsive.
improve persistence and completion
close racial and ethnic opportunity/achievement gaps
make learning environments more culturally, pedagogically, and technologically relevant to students
continue to employ new teaching, learning and curriculum models
The structural mismatch between revenue and expenses is systemic, abiding, and accelerating. New operating revenue will not fill the fiscal hole.
We can and must improve core administrative and academic support functions on campus and at the system level.

16. FY2018 Focus of System Workplan
Student Success
Transfer Pathways
Twin Cities Baccalaureate
Developmental Education Redesign
Scaling of High Impact Practices
Equity and Inclusion
Campus Climate Assessment
Equity Policy Review
Professional Development
Financial Sustainability
Financing Enterprise Administrative Services
Campus Regional Master Planning
Tuition and Fees Policy Modernization

17. Sustainability is a college and university aspiration
How do we know when a college or university is or isn’t sustainable?
What steps does system leadership take?
What steps does college or university leadership take?

18. System brings foundational advantages
Establishes data reporting and performance standards
Facilitates and coordinates flow of information and consultation
Leads foundational reforms: collaboration approaches, allocation framework incentives, regional administrative and planning approaches, infrastructure IT services

19. Each college and university is different
But success always includes:
Clear and articulated strategic direction
Capability, capacity, and culture to execute strategic direction
Strong performance management
Short and long term strategies and tactics

20. College and university performance evaluation
Mission differentiation leads to unique sustainability outlooks
Annual chancellor and president performance report and review
Monthly and quarterly financial monitoring and remediation

21. 24 performance accountability measures tied to:
Student success trends
Affordability trends
Staff and student diversity trends
Completion rates
Financial effectiveness and efficiency

22. Financial accountability measures designed to measure financial health
At least semiannual reporting and monitoring
General fund balance trends
Enrollment trends (weekly and monthly)
Cash trends (monthly)
Annual reporting
Financial statements
CFI calculation and reporting
Repair and replacement and energy improvement spending trends

23. 2018 improvements
System led enrollment forecasting/data improvement project with all colleges and universities
Establishment of new performance goals for each president
Investment in predictive analytics
Collaboration funding program
Identify and scale high impact retention and success strategies