Budget update: Nov. 11, 2020
November 11, 2020
β by Dan White, chancellor
The Board of Regents (BOR) held a full board meeting on Thursday and Friday of last
week. On the BOR agenda was ±«΄‘Ήσβs request for differentiated tuition. The board approved
the request for next academic year (2021-2022).
±«΄‘Ήσβs request for differentiated tuition will increase upper-division tuition by 2.5%
and graduate-level tuition by 5%, holding lower-division tuition flat. This is an
important step for keeping Community and Technical College tuition rates affordable,
maintaining academic excellence, and getting ±«΄‘Ήσβs research university tuition more
in line with our peers. Allowing for the decoupling of the two tuition rates is a
critical step for ΣΠΑΟΊΠΧΣΚΣΖ΅ as we distinguish ourselves by the value proposition. The research
university experience and the outstanding quality of world-class faculty support tuition
differentiation. It is also key to our enrollment strategy of increasing financial
aid and scholarship opportunities for students both at the research university and
at the community campuses. At the same time, we want a tuition at our Community and
Technical College that provides an entry into postsecondary education and critical
training for the jobs that make our community run.
ΣΠΑΟΊΠΧΣΚΣΖ΅ is leading in understanding the market and adjusting our packaging and pricing
to support students, whether they are on the community college track or the research
university. The Nanook Pledge, military pricing, , , targeted surcharges for high-demand programs in the School of Management and the
College of Engineering and Mines, and other initiatives are all part of this strategy.
±«΄‘Ήσβs and have provided guidance as we shape our tuition approach moving forward. I should
note that the strategic planning groups whose work was suspended during the discussion
of systemwide consolidation have resumed their work. The ΣΠΑΟΊΠΧΣΚΣΖ΅ strategic planning and
strategic enrollment planning teams are made up of faculty, staff and students. My
appreciation to them for their work!
Along the same lines of budget, some years ago I served on a small team formed by
then Chancellor Rogers to look at budget reduction and potential revenue options.
At that time the charge was to identify $30 million worth of reductions for consideration
in anticipation of state budget reductions. At the time, the university was not facing
such a significant budget drop but the goal was a thought process around how these
issues would be addressed and to understand the implications and collateral effects
of cuts. It was a good lesson that demonstrated that there are no silver bullets and
no unit unaffected in major reductions. Every bit is a challenge, and every thing
we do serves an important role and has a constituency.
Another lesson learned was that once you take fixed costs, such as debt service and
heat and power, off the table, the βbudget optionsβ are considerably reduced and revenues
take time to cultivate and show an ROI. We have been pursuing several new revenue
and enrollment strategies in the last few years that I know will help contribute to
a diverse ΣΠΑΟΊΠΧΣΚΣΖ΅ budget; however, reductions are still needed and critical to adapting
to a new more constrained fiscal situation.
As we move forward through FY21 and prepare for FY22, I will be putting together a
Budget Options Task Force that I will charge to do some thinking around budget reduction
options.
Options outlined by the group will be included in considerations of the Planning and
Budget Committee, for consideration by deans and directors, or vice chancellors, as
they work through their own budget options.
The Budget Options Task Force will be structured similarly to other budget planning
groups. The group will be made up of seven to nine members by nomination from the
provost and vice chancellors. Members will be selected from areas specific to administration,
strategic planning, students, and faculty (academics and research) from across ΣΠΑΟΊΠΧΣΚΣΖ΅.
Please look for additional information on the Budget Options Task Force in the coming
weeks. I plan to have the group commence their work by early December with final recommendations
by March.