Capital Budget Overview

The State of Minnesota issues general obligation bonds to finance capital construction and remodeling projects for higher education facilities. The Minnesota State Colleges and Universities have statutory authority to issue revenue bonds for construction of student housing, parking, student unions and day care facilities.

The Board of Trustees of the Minnesota State Colleges and Universities issues coordinated, detailed, guidelines for capital budget development to its campuses reflecting the Strategic Plan.

Each campus submits its capital budget request to the Chancellor's office. The Chancellor, in a highly consultative process with the campuses and system office, develops a preliminary budget, which is approved by the Board of Trustees and forwarded to the Governor. The Governor makes recommendations on capital expenditures to the legislature. Unlike state agency budgets, the higher education systems' requests are not subject to edit, but are fully displayed in the budget document, whether or not any receive the Governor's recommendation. The legislature holds hearings. Both the Senate and House of Representatives pass a capital improvement (or bonding) bill, which is negotiated in a conference committee, and then sent to the Governor for signature sometime in April of each even-numbered year. The Governor has line-item veto authority.

Since the early 1990's the legislature has issued general obligation bonds to support allocations to the higher education systems for deferred maintenance. This capital budget appropriations is Higher Education Asset Preservation and Replacement (HEAPR).

In addition, Minnesota State Colleges and Universities allocate funds within their operating budgets for facilities maintenance, and repair and betterment. Minnesota State Colleges and Universities analyzes the campuses annually and reported deferred maintenance needs of $685 million in 2008.

(From NASBO information brief)

If you have questions, comments please e-mail (kathy.kirchoff@minnstate.edu).

The State of Minnesota issues general obligation bonds to finance capital construction and remodeling projects for higher education facilities. The Minnesota State Colleges and Universities have statutory authority to issue revenue bonds for construction of student housing, parking, student unions and day care facilities.

The Board of Trustees of the Minnesota State Colleges and Universities issues coordinated, detailed, guidelines for capital budget development to its campuses reflecting the Strategic Plan.

Each campus submits its capital budget request to the Chancellor's office. The Chancellor, in a highly consultative process with the campuses and system office, develops a preliminary budget, which is approved by the Board of Trustees and forwarded to the Governor. The Governor makes recommendations on capital expenditures to the legislature. Unlike state agency budgets, the higher education systems' requests are not subject to edit, but are fully displayed in the budget document, whether or not any receive the Governor's recommendation. The legislature holds hearings. Both the Senate and House of Representatives pass a capital improvement (or bonding) bill, which is negotiated in a conference committee, and then sent to the Governor for signature sometime in April of each even-numbered year. The Governor has line-item veto authority.

Since the early 1990's the legislature has issued general obligation bonds to support allocations to the higher education systems for deferred maintenance. This capital budget appropriations is Higher Education Asset Preservation and Replacement (HEAPR).

In addition, Minnesota State Colleges and Universities allocate funds within their operating budgets for facilities maintenance, and repair and betterment. Minnesota State Colleges and Universities analyzes the campuses annually and reported deferred maintenance needs of $685 million in 2008.

(From NASBO information brief)

If you have questions, comments please e-mail (kathy.kirchoff@so.mnscu.edu).