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Thursday, May 17, 2018

May Board of Regents meeting

President Kaler presented his recommended FY19 (July 1, 2018 – June 30, 2019) annual operating budget. Here are a few items of interest:
  • Twin Cities: A proposed tuition increase of 2% on the resident undergraduate rate maintains its position in the middle of the Big 10. (Some or all of this $258 increase may be offset for students who qualify for the Minnesota State Grant Program. The Office of Higher Education intends to make formula changes that will benefit students up to $120.) 
    • In addition, the current guidance from the federal government indicates a $175 increase in the maximum Pell grant for the 2018-19 academic year. Pres. Kaler requested a 15% increase in the undergrad non-resident/nonreciprocity (NRNR) tuition rate as approved by the Board of Regents in December. This represents another step in a longer-term strategy to move this rate from the bottom of the Big 10, while maintaining NRNR enrollments.
  • Morris: A proposed tuition increase of 1% ($126) on the undergraduate rates for the Morris campus to recognize both their competitive position for recruiting, but also some of the cost pressure they face related to the American Indian Tuition Waiver requirement.
  • Crookston, Duluth, Rochester: Flat resident undergraduate rates to bolster recruitment and retention opportunities. 
Note: The Regents will host a public input session on May 21 on the Twin Cities campus to gather feedback from the University community on the budget (feedback may also be submitted online through May 29).

Recall that beginning in FY14, President Kaler announced a goal to reduce administrative costs throughout the institution, across all funding sources, by $90 million over six years. FY19 is the final year of that plan. This budget continues to meet that goal to internally reallocate funds for higher spending priorities. In total, it includes $22.3 million of internal reallocations for FY19 across all funds. With the implementation of this budget, the University will have achieved the $90 million goal by reducing $91.3 million in administrative costs as part of the annual budget balancing process over the last six years.

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