2. State Budget Outlook February 2013 MMB Forecast a zero
balance after $295 million of the school shift is paid back FY
2014-2015 projected $627 million shortfall, however $2.1 in revenue
increases during legislative session will cover the deficit MNs
economy ranked 5th fastest growing in 2012
3. New Revenue $2.1 billion in new taxes from last session
Cigarette tax: $1.60/pack Expanded sales tax Income tax: 9.85% for
gross income above $250,000 for couples and above $150,000 for
individuals
4. Tuition and the State In state statue, the legislature pays
2/3 the cost of higher education through appropriations and tuition
makes up 1/3 of the cost The FY 13 MnSCU budget, tuition is 60.9%,
shows a complete reversal of 2000 budgeting when state
appropriation was 67.4% of revenue
5. State Funding and MnSCU Prior to last session, MnSCU was cut
10% in the last biennium, $60 million each year State funding for
the MnSCU system was down 45% from per student since FY 2000, as
shown in FY 2013 Operating Budget Until last session, MnSCU faced
over a decade of decreasing appropriations
6. 1 Minnesota State Colleges and Universities State
Appropriation vs. Tuition Relationship Fiscal Years 2002-2015
100.0% 90.0% 80.0% 66.3% 55.3% 70.0% 52.6% 60.0% 50.0% 33.7% 44.7%
40.0% 47.4% 30.0% 20.0% 10.0% 0.0% Tuition 60.1% 51.4% 55.2% 48.6%
44.8% 39.9% Appropriation 58.8% 58.1% 41.2% 41.9%
7. MnSCU Appropriations FY 15: $605 million FY 14: $588 million
FY 13: $545 million FY 11: $605 million FY 08: $671 million FY 05:
$551 million FY 00: $554 million
8. State Legislature
9. Legislative Basics Biennial cycle: first year is a
budget/appropriations year, second year is bonding bill 67
Senators, 134 Representatives Higher Education committee members in
House and Senate are the main focus of our work, Capital Investment
committee is also important, especially in bonding years
10. Current Legislative Composition House of Representatives
DFL: 73 R: 61 Senate DFL: 39 R: 28 DFL Governor
11. Major Topics from Last Session New funding for MnSCU
Part-time pilot Dream Act Workforce Development Initiatives New
internships Leveraged equipment FasTrac
12. New Investment $250 million in new funding for higher
education for FY 2014-2015 $102 million for MnSCU $78 million for
the U of M $70 million for the Minnesota State Grant Program
13. MnSCU Funding $78 million to buy down 3% tuition increase
for each year of the biennium $17 million for faculty retention
(one-time funding) $7.3 for leveraged equipment $50,000 for a
mental health summit 5% of 2015 appropriations dependent on
performance metrics
14. So, whats next at the Capitol? Bonding MnSCU will be asking
for: $110 million in HEAPR funding $20.6 million for demolition
$155.9 million for capital projects and design The request relies
on $58.8 of System financing and $227.7 million in General
Obligation financing If fully funded, this request reduces total
MnSCU square footage by 257,360 feet To pass, the bonding bill
needs a super majority in each legislative body and must be signed
by the Governor
15. Be an Advocate, Share your Story!
http://www.mscsa.org/legislative-stories Why should Stafford Loan
rates be kept at 3.4%? Why is the Pell Grant important?