In odd-numbered years, Minnesota lawmakers approve a two-year state budget, including funding for Minnesota’s system of state colleges and universities. In even-numbered years, the higher education system typically asks for a little bit more, and that will be the case once again in 2024.
Leaders of the Minnesota State system — made up of the 28 public colleges that are not affiliated with the University of Minnesota — are recommending a request of an extra $61 million a year above the $923.2 million already allocated for fiscal year 2025.
Student groups and others in the Minnesota State system wanted system leaders to bring a more ambitious funding request to the 2024 state Legislature, said Bill Maki, vice chancellor for finance and facilities.
“The need that we have in the long term is more than $61 million,” Maki said during a meeting of the Board of Trustees, which was conducting this month’s business at Minnesota State University on Tuesday and Wednesday.
That was clear in the feedback from students and staff, who suggested seeking more state funding for a variety of support services for students and to deal with budget adjustments at some campuses where enrollment is declining.
“All of those needs are critically important,” Maki said.
At the same time, the Democratic-controlled Legislature and DFL Gov. Tim Walz this spring provided $159 million in new funding to the system for the current fiscal year above the $790 million in base funding. The added funding next year is nearly $134 million.
And the state colleges and universities will be seeking more than $500 million for construction projects across the system during the legislative session in 2024 — an even-numbered year when the Legislature traditionally focuses on construction work funded through bond sales.
“So this is a very aggressive request (politically),” Maki said.
It’s aggressive historically, as well, a point made through a question from Board of Trustees Chair Roger Moe. Having spent 22 years as Senate majority leader before joining the board, Moe has more than a little familiarity with the Legislature, but he asked Maki to recap the system’s batting average in seeking supplemental appropriations in even-numbered years in the last decade.
Maki said the system received $17 million in 2014 and nothing since.
“It’s been about 10 years since we received any supplemental operating dollars,” Maki said.
The $61 million figure represents the estimated gap between projected expenses and projected revenue across the 28 colleges and universities — a gap created by inflationary pressures and compensation adjustments for staff. The legislative request, if approved, would be an addition to the system’s base budget, meaning there would be a legislative expectation it would continue in future years.
Funding from the Legislature is one of the two primary sources of revenue for public institutions of higher learning, the other being tuition. The large funding jump approved by lawmakers in May, which totaled $650 million over two years when the University of Minnesota system was included, came with provisions that will preclude filling any budget gaps through tuition hikes. For the Minnesota State system, there’s a two-year freeze in tuition. There’s also a new program starting in 2024 providing free tuition at the system’s schools for students from families with incomes of less than $80,000.