Below is a summary of the St. Cloud State financial-recovery plan. The University is one of 19 MnSCU institutions facing major financial challenges.
St. Cloud State fiscal year 2017 (FY’17) budget efforts efforts have been focused on structurally balancing revenues and expenses to close a $7 million operating deficit, as well as replenishing our general fund reserves by $3 million.
The University has developed a successful plan that calls for the following:
- $5.7 million in personnel reductions, predominantly as a result of the flexible hiring freeze, retirements, elimination of positions as they become vacant, and reductions in fixed-term appointments and adjunct faculty positions. Meetings have been scheduled for early next week with bargaining units affected by layoffs called for in the plan. The administration has remained diligent in minimizing the number and impact of layoffs necessary.
- $1.5 million in revenue generation through base enrollment driven tuition increases.
- $600,000 in revenues from new programs and improvements in student retention and credit-taking behavior efforts. ($1.4 million in actual revenues, which offsets an $800,000 reduction in state appropriation.)
- $400,000 in added revenue from various other revenue sources.
- $1.9 million in non-personnel cuts.
The following principles have guided the university’s work in developing the plan for a balanced FY’17 budget:
- Maintain the integrity of our commitment to students and their success
- Achieve on-going alignment between programs and student support services
- Enable directing our human and fiscal resources toward existing and new programs
- Use of an All Funds approach
- Careful attention to impact on St. Cloud State’s future competitiveness
- Use Innovative approaches to enable self-sustainable revenue generation
The budget deficit communicated in January was $6 million. The additional $1 million is a result of the University forgoing the opportunity to make an early commitment for renewal with the Wedum Foundation for Coborn Plaza Apartments. In doing so, St. Cloud State will forgo incentives associated with making an early commitment. This means a loss of about $1 million in incentives per year for the next four years, which the University can help mitigate through increased occupancy.
The University will continue to have conversations over the next four years about the future of Coborn Plaza Apartments with the Wedum Foundation while continuing to work to increase our rate of occupancy and the value of the facility to the University.
While cost reductions are necessary, it is growth that will bring long-term sustainable growth to the University. The program portfolio review and the development of new programs will help make sure the University has a portfolio of programs and offerings to meet the needs and demands of current and prospective students.
“Our competitive environment is ever-changing and we as a university need to remain adaptive to ensure that our students are getting the best experience. This work will position St. Cloud State to be more responsive and focused for the future,” said President Earl H. Potter III. “We need everyone’s energy focused on student success if we are to thrive into the future. We will continue to meet the needs and demands of our students by remaining affordable and offering a quality applied learning experience that prepares graduates for the 21st Century workforce.”
Renovations in Atwood Memorial Center and other areas of campus as part of the transition to Chartwells as our new dining services are funded with capital money from the vendor as part of the new contract and will not burden the university’s operating budget.
The University is successfully delivering on its various plans throughout campus that contribute to a balanced budget including innovative revenue generation and cost saving efforts. Notably, the Athletics reorganization resulted in reductions toward right-sizing their budget.
Residential Life’s strategy for balancing their budget has included increased occupancy in Coborn Plaza Apartments and a marketing plan that will continue to grow occupancy through the next four years.
Parking program changes for 2016-17 will help St. Cloud State Parking and Transportation cover the cost of repairs and improvements needed for campus lots, estimated at an additional $150,000 annually.
The demolition of Holes Hall per the Comprehensive Facilities Plan is a step toward ensuring a reduction of the overall campus footprint to a more manageable level while meeting the student need for more campus green space
