Gary Rhodes, Riverland President

Recently, the office of the chancellor received word from the state commissioner of finance asking Minnesota State Colleges and Universities (MnSCU) and other state budget participants to prepare options for possible budget cuts of five percent and ten percent, which for MnSCU means $32 million and $64 million, for the remainder of the current biennium that ends June 30, 2003.

Monday, December 10, 2001

Recently, the office of the chancellor received word from the state commissioner of finance asking Minnesota State Colleges and Universities (MnSCU) and other state budget participants to prepare options for possible budget cuts of five percent and ten percent, which for MnSCU means $32 million and $64 million, for the remainder of the current biennium that ends June 30, 2003.

Everyone shares the concern about the state’s dire economic situation and the revenue downturn. At the same time, the prospect of budget cuts in this biennium is very troubling.

MnSCU wants to be responsive to the state’s difficult economic picture. But it is particularly challenging for us because in times of economic stress and layoffs, increasing numbers of people turn to our institutions for affordable training and education. Enrollment at the 34 Minnesota State Colleges and Universities is at an all-time high this fall, with 162,000 students taking credit courses. Riverland has seen a 15 percent increase in enrollment over last year.

While we are excited by this surge in enrollment, it puts a certain amount of financial strain on our resources. More students mean the need for more supplies, more instructors, more overhead, in general. The extra revenues generated from increased enrollment only partially offset the cost of running the added classes.

The college is also subject to an interesting dynamic in fund allocation involving enrollment. Each year, the college provides enrollment projections to the state to determine our budget allocation. Historically, if we fall short of our projection, the legislature dictates that we return a portion of our funds. However, when we exceed our enrollment projection, we don’t usually receive additional funds. This is the situation we face currently.

Riverland will work with the office of the chancellor to make every effort to identify scenarios that would meet the requested reduction levels, however difficult the process may be. It likely will take a combination of responses to meet possible budget reductions. Those could include reducing workforce, increasing class sizes, reducing non-payroll expenses and increasing tuition. New and necessary initiatives may have to be put on hold.

The MnSCU Leadership Council, made up of presidents of the 34 institutions and the executive staff of the office of the chancellor, will meet in the coming weeks to recommend responses for consideration by the board of trustees.

I believe it’s important to reiterate the economic importance of the MnSCU system. Our 53 campuses are located across the state. Each year our colleges and universities produce 27,000 graduates – about four times as many as the University of Minnesota. More than 80 percent of our graduates stay in Minnesota to work or continue their education.

On an annual basis we serve 216,000 students in credit courses. Statewide, one of every two students attending college in Minnesota attends a MnSCU institution. In addition, we provide training to 6,000 businesses and 148,000 employees around the state. When you add in another 100,000 or so students in continuing education, it means that close to a half million people per year benefit from MnSCU programs.

We are confident the state administration will set priorities for making these tough budget decisions and recognize that an investment in educating people is one of the best ways to strengthen an ailing economy.

Dr. Gary Rhodes is president of Riverland Community College, which has campuses in Albert Lea, Austin and Owatonna.