Affordability is Centerpiece of MnSCU's FY2014 Budget

Posted: June 19, 2013

Contact: Doug Anderson,, 651-201-1426

Operating budget approved by the Board of Trustees includes first of a two-year tuition freeze; Capital budget prioritizes deferred maintenance and repair of existing facilities

The Board of Trustees of the Minnesota State Colleges and Universities (MnSCU) today approved an operating budget for fiscal 2014 that freezes undergraduate tuition at fiscal 2013 levels. This is the first of a two-year tuition freeze made possible by a $78 million appropriation by the state legislature during the 2013 session.

“The operating budget approved today will help deliver on our commitment to ensure access to an extraordinary education for all Minnesotans,” said MnSCU Chancellor Steven Rosenstone. “Affordable tuition, together with grants to address unmet financial need, will help open the door to educational opportunity for students from all backgrounds. With this budget, we remain the state’s highest value, most affordable higher education option by significant margins.”

Changes in the State Grant program will result in substantially more MnSCU college students (approximately 7,700) and MnSCU university students (approximately 760) receiving grants in the 2013-14 academic year. The largest increases in the numbers of state grant recipients (35 percent at the colleges and 21 percent at the universities) are projected to occur among part-time students.

Estimated net student tuition cost in FY2014

2013-14 tuition rate for full-time students (30 credits - 15 per term)
minus estimated state and Pell grants
MnSCU College Students MnSCU University Students
Income Levels for State Grant Recipients Average 2013-14 Student Cost Income Levels for State Grant Recipients Average 2013-14 Student Cost
Less than $20,000 $737 Less than $20,000 $989
$20,000 to $39,999 $1,453 $20,000 to $39,999 $1,614
$40,000 to $59,000 $2,288 $40,000 to $59,000 $3,153
$60,000 and above $3,399 $60,000 and above $4,664
Average for all state grant recipients $1,421 Average for all state grant recipients $2,285
Non-state grant recipients $4,816 Non-state grant recipients $6,782

Other features of the MnSCU FY2014 operating budget include $22 million in efficiencies and cost controls (the first half of a $44 million commitment for the FY2014-2015 biennium).

The Board also approved a capital budget request that will be submitted for consideration by Governor Dayton and the legislature during the 2014 legislative session. The recommended 2014 capital program delivers on Chancellor Rosenstone’s commitment to financial sustainability and greater efficiency in the system’s facilities. The approved capital budget request includes:

Deferred maintenance and repair (HEAPR)
Demolition of obsolete facilities
Capital projects
$110.0 million
$20.6 million
$155.9 million
Total $286.5 million

The $285.6 million 2014 capital program is supported by $58.8 million in campus contributions, resulting in a state request of $227.7 million. MnSCU college and university academic facilities represent approximately one-third of Minnesota’s state-owned real estate.

“The Board’s top priority is taking care of our existing facilities,” said Hightower. “That is why HEAPR is a major component of this proposal, representing 109 projects on 47 campuses. New construction is focused on STEM, allied health and technical projects designed to meet Minnesota’s workforce needs. Including the demolition of obsolete space, the 2014 capital budget request results in a net reduction in total square footage, reflecting the Board’s commitment to financial sustainability and greater efficiency in the system’s facilities.”