House Higher Education Finance and Policy Division 3/27/19


I CALL THE MEETING TO ORDER. THERE IS A QUORUM PRESENT. MAY I HAVE A MOTION TO APPROVE THE MINUTES>>SO MOVED.>>THANK YOU. IS THERE ANY DISCUSSION? ALL THOSE IN FAVOR? THOSE OPPOSED? THE MOTION PREVAILS AND THE MINUTES ARE APPROVED. THANK YOU FOR COMING AND WE WILL START WITH MINNESOTA STATE. ARE YOU GOING — ARE YOU RETIRING?>>I AM.>>WAS I NOT SUPPOSED TO SAY THAT?>>IT IS PUBLIC.>>BEST WISHES TO YOU. WHEN IS THAT?>>END OF JUNE.>>WELCOME. WE’RE HERE TO DISCUSS THE UPDATED VERSION OF THE GOVERNOR’S BUDGET. ANSWER ANY QUESTIONS ABOUT THE BUDGET. WE HAVE LAURA KING WHO WILL GO MORE IN DEPTH. THANK YOU.>>I’M LAURA KING. ON THIS BEAUTIFUL DAY THAT HELPS US FORGET THE WINTER THAT WE JUST HAD. THANK YOU FOR AN OPPORTUNITY TO START FIRST BY THANKING YOU AND YOUR COLLEAGUES FOR YOUR STRONG TARGET. WE KNOW THAT THERE ARE COMPETING INTERESTS. APPRECIATE YOUR LEADERSHIP ON BE HALF OF THE HIGHER EDUCATION COMMITTEE. WE LOOK FORWARD TO WORKING IN THE COMING MONTHS. WE ALSO APPRECIATE THE TIME THAT COMMITTEE HAS SPENT THIS PAST MONTH ALLOWING US AN OPPORTUNITY TO PROVIDE AN OVERVIEW OF OUR SYSTEM AND A CHANCE TO– OUR BUDGET REQUEST. WE PROVIDE OPPORTUNITY; 54 CAMPUSES AND EACH ONE PROVIDES OPPORTUNITY; ACCESS AND IN MANY CASES THE ONLY HIGHER EDUCATION PROVIDER AVAILABLE TO THEM. THE GOVERNORS BUDGET THAT WAS PRESENTED WITH HIS REVISIONS LAST WEEK DOES NOT COVER THE COST OF — WHILE OUR REQUEST THERE WAS SUB STANLEY HIGHER WE APPRECIATE THE RECOGNITION OF THIS WORK. I DO WANT TO EXTEND OUR APPRECIATION OF THE RECOGNITION; WE’RE NOWHERE NEAR THE SUPPORT THAT WE WERE HOPING. BUT IT IS CLEAR THAT HE MADE — IN OTHER AREAS FOR RESOURCES ON OUR CAMPUSES. SO WE’RE GRATEFUL. YOU WILL FIND IN YOUR PACKET INFORMATION THAT WILL GIVE YOU A SENSE OF THE REVENUE RELATIONSHIP IN OUR TUITION APPROACH. AS WE SHARED LAST MONTH OUR COLLEGES AND UNIVERSITIES ARE — FOR THE STATES SUPPORT. ONLY HALF OF OUR REVENUE COMES FROM YOU. WITH YOUR HELP OVER THE PAST SIX YEARS WE HAVE BEEN ABLE TO AVOID OR HOLD DOWN TUITION INCREASES. CAMPUSES NEED RESOURCES TO PROTECT THE QUALITY OF OUR PROGRAMS; ENSURE THAT STUDENTS HAVE COURSE AVAILABLE TEE. CON — BEFORE ANY CON ACCESS AND AFFORDABILITY. I’M CONFIDENT THAT THERE IS GREAT WORK — I ALSO KNOW THAT YOU CAN AND YOUR MEMBERS UNDERSTAND THE PORNO — I REPRESENT THE SAINT CLOUD STATE. AND I’M REALLY GRATEFUL TO THE STAFF THAT WORK WITH THOSE INSTITUTIONS. THEY ARE THE CUTTING EDGE OF WHAT MAKES US — THE TIME THAT THEY PUT IN THEIR TEACHING. I WOULD LIKE FOR YOU TO SPEAK ABOUT HOW MUCH OF THIS BUDGET REQUEST WILL GO AND HOW IT WILL IMPROVE THE BENEFITS FOR STAFF AND –>>THE RESOURCES IN THAT PART OF THE BUDGET ALL GO OUT TO THE CAMPUS. AND WE WOULD EXPECT THAT THEY WOULD BE USED FOR SALARY NEGOTIATIONSES AND PAYING THE COST OF OPERATING EXPENSES THAT GO UP YEAR TO YEAR. IT ALL GOES OUT TO THE CAMPUSES. IT IS BENEFIT TO ALL COLLEGES AND UNIVERSITY. WE WOULD VIEW THAT AS ALSO BEING ENTIRELY TO THE BENEFIT OF THE CAMPUS. BECAUSE CAMPUSES USE THE RECORD SIS THANK YOU VERY — SYSTEM. ALL OF THAT HAPPENS IN THE RECORDS SYSTEM AND THAT HAPPENS ON THE CAMPUS. THANK YOU.>>SO WHEN YOU ARE RECEIVING SIGNIFICANTLY LESS; IF WE FOLLOW THE GOVERNORS BUDGET AND YOU HAVE A REQUEST OF 246 MILLION; HOW DO YOU SET YOUR PRIORITIES? HOW DO YOU — DO YOU JUST ELIMINATE THE GRANT PROGRAMS? HOW DO YOU SET YOUR PRIORITIES FOR WHAT WILL BE FUNDED.>>IT WILL STARTED WITH WHAT THE BILL SAYS. THE RESOURCES ARE AVAILABLE FOR. PART OF THAT IS IN YOUR HAND. IF THE FINAL APPROPRIATION GIVES US GUIDANCE ON HOW THE NEW RESOURCES ARE DESIRED TO BE SPENT WE WOULD FOLLOW THAT. THE BUDGET REQUEST IS OUR PRIORITY. IT IS SUPPORT FOR THE E R P. SO IT WOULD DEPEND ON WHAT THE FINANCIAL BILL TOLD US. FUNDAMENTALLY IF OUR RESOURCES AREN’T SUFFICIENT THEN WE’RE CLOSING PROGRAMS. WE’RE ELIMINATING STAFF LINES. WE’RE SLOWING DOWN OUR REPAIR AND — AS LONG AS WE HAVE BEEN DOING THE HIGHER ED BUDGET. WE AVERAGE ABOUT $35 MILLION A YEAR IN REALLOCATION. AND OVER THE LAST 4 OR 5 YEARS WE HAVE REALLOCATED. IT HAS DIRECT EFFECT TO WHAT PROGRAMS — HOW DO THEY SERVE THE COMMUNITIES; WHAT IS THE HEALTH OF THERE RELATIONSHIP IN BUSINESS AND INDUSTRY. IT GOES BACK TO THEIR ABILITY TO DO THOSE THINGS.>>SO WHAT PERCENT AGE OF YOUR COEVALITY OF OPERATIONS ARE EMPLOYEES?>>IT IS ABOUT 75 PERCENT ACROSS THE WHOLE OPERATION. IN OUR GENERAL FUND IT IS CLOSER TO 80. ONCE YOU BRING IN OUR PACKING PROGRAMS; OUR FOOD PROGRAMS; THE NUMBER COMES DOWN A BIT. ON AVERAGE 75 PERCENT OVERALL.>>I HEARD YOU SAY THAT THE MONEY WILL GO TO CAMPUSES. I JUST HAVE A QUESTION; I KNOW THAT IN THE PAST IT HAS BEEN SOME TIME A SITUATION WHERE THE SYSTEM OFFICE WILL DO SOMETHING THAT THEN REQUEST MONEY FROM CAMPUSES TO PAY FOR SOMETHING OR SUPPORT SOMETHING. I JUST WANT TO MAKE IT CLEAR THAT THIS MONEY IS TO GO TO CAMPUSES BUT THERE WON’T BE ANY — THAT MONEY WILL COME BACK AFTER CAMPUSES RECEIVE MONEY?>>IT IS TOO EARLY TO ANSWER THAT QUESTION. WE HAVE A PLAN IN PROCESS WITH OUR PRESIDENTS THAT HAPPY — HAPPEN; EVERY YEAR. TO THE EXTENT THAT THERE IS INTEREST IN THE CAMPUSES AND SERVICES WE TALK ABOUT HOW TO PAY FOR THOSE SERVICES.>>SO I CAN’T MAKE ANY — AT THIS POINT.>>TO SPEAK TO THAT FURTHER THE CAMPUSES ARE WHERE THE MONEY IS MADE. THE STUDENTS ARE BRINGING IN THE TUITION DOLLARS. THAT’S WHERE THE FACULTY AND STAFF ARE — THAT’S HOW THE SYSTEM WORKS. I KNOW SOME TIMES THE PRESIDENTS MAY BE THINKING ABOUT THINGS THAT THEY WANT BUT WE NEED TO BE MINDFUL THAT THE WORK GETS DONE AT THE CAMPUS LEVEL. THANK YOU.>>OKAY.>>THANK YOU. IT WILL COME TO YOU AS NO SURPRISE THAT I’M GOING TO ASK THE STATE GRANT PROGRAM. SEEING HOW EVERYTHING THAT IS BROKEN DOWN BY DIFFERENT CAMPUSES; I’M WONDERING COLLECTIVELY HOW MUCH OF YOUR REVENUE COMES FROM STATE GRANTS?>>I DON’T KNOW THE ANSWER TO THAT. I DO KNOW THAT STATE AND FEDERAL GRANTS COMBINED; ABOUT 60 PERCENT OF OUR STUDENTS RECEIVE ONE OR BOTH. A STATE AND FEDERAL GRANT. AND I KNOW THAT OVERALL ABOUT 400 MILLION IN FINANCIAL ED IS EMBEDDED IN OUR TUITION REVENUE. I CAN GET YOU THE NUMBER BUT I CAN’T BREAK DOWN TO YOU THE STATE VERSUS THE FEDERAL.>>MAY I ASK ONE MORE FOLLOW UP? I’M CURIOUS WITH THE GOVERNORS PROPROPOSAL; HOW DO YOU THINK THAT WILL IMPACT YOUR REVENUE AND BUDGET PLANNING?>>IT WORKS A COUPLE OF DIFFERENT WAYS. IT DEPENDS ON WHETHER IT IS AN INCREASE ON A STATE GRANT VERSUS THE LIVING AND MAINTENANCE ALLOWMENT. I KNOW THAT THE OFFICE OF HIGHER ED HAS DONE THAT MODELLING AND WE TRACK THOSE CONCLUSIONS. FOR OUR STUDENTS TO THE EXTENT WE HAVE STEWENTS WHO ARE FULLY STATE GRANT ELIGIBLE. ALL OF THE STUDENTS ARE — (INAUDIBLE).>>THANK YOU VERY MUCH.>>THANK YOU. PERHAPS; I DON’T KNOW IF YOU REFERENCED ENROLLMENT. THE TREND AND IS THAT PART; IT THE GOVERNOR RESPONDING AT ALL?>>CERTAINLY. OUR ENROLLMENT HAS BEEN AN INTERESTING JOURNEY FOR US. IT IS VERY PREDICTABLE THAT TWO YEAR COLLEGE ENROLLMENT WILL MOVE IN RELATION TO THE UNEMPLOYMENT RATE. WE SAW THAT AS THE ECONOMY WAS SLOWING DOWN IN THE EARLY PART OF THIS DECADE. AND WE DID NOT COME TO YOU WITH A REQUEST FOR SUPPORT TO PAY THOSE COSTS. WE DID NOT COME TO THE GOVERNOR. THERE IS NOTHING IN THE STATE FUNDING FORMULA THAT IS TIED TO ENROLLMENT. AS IT SURGED OUR CAMPUSES MANAGED THAT EXPANSION WITH EXISTING RESOURCES. AS OUR ENROLLMENT HAS COME BACK DOWN; WE HAVE NOT ASKED THE STATE TO HELP US BRIDGE THAT LOSS IN REVENUE; NOR DID WE ASK THE GOVERNOR. SO NOTHING SEEKS ASSISTANCE TO HELP WITH THE REVENUE LOSS. THEY HAVE MANAGED THAT WITH THEIR OWN BUDGET REDUCTION EXERCISE DOES.>>SO ON THE SPENDING PART OF THE BUDGET WITH YOUR STUDENTS; WHAT HAS BEEN HAPPENING ON THAT SIDE AND IF THERE — WHAT WOULD BE THE COST?>>IF STAFF CAN FIND THE MATERIALS THAT WE HAVE WITH YOU; THERE ARE A COUPLE OF SLIDES IN THERE THAT I WOULD DRAW TO YOUR ATTENTION. ONE ILLUSTRATES THAT I THINK SINCE 2008; I BELIEVE; OUR SPENDING ADJUSTED FOR INFLATION IS BROUGHT UP ABOUT 1/10 A YEAR. SO THE SIZE OF OUR BUDGET IS ABOUT THE SAME AS IT WAS TEN YEARS AGO. SO OVERTIME OUR SPENDING IS FLAT. COSTS DO GO DOWN; THEY DON’T GO DOWN IN A STRAIGHT LINE BECAUSE YOU HAVE ONEFACULTY. WE HAVE ALSO SEEN A SUBSTANTIAL PROGRAM REDESIGN. NEW PROGRAM ADDITIONS. OUR HEAD COUNT IS DOWN ABOUT TEN PERCENT IN THE LAST SIX YEARS. SO WE HAVE REDUCED STAFF AS THE ENROLLMENT NUMBERS HAVE GONE DOWN.>>LOOKING AT WHAT YOU PROVIDED TO US HERE AND UTILIZING DATA IN THE BOOK; BETWEEN THE 14/15 BUDGET AND WHAT IS REFLECTED IN THE 2021 BUDGET; THE DOLLAR PER STUDENT IN THE REQUEST IS UP 230 PERCENT INCREASE. I’M TRYING TO UNDERSTAND WHY OVER TWO TIMES THE REQUEST PER STUDENTS — THIS WILL BE THE 4TH BUDGET ON THIS SHEET.>>IT IS REALLY NOT APPLES TO APPLES. IT HAS COMPONENTS IN IT THAT WEREN’T IN THE 14/15 REQUEST. IT WAS; AS I REALLY — I DON’T REMEMBER WHAT WE HAD IN THE REQUEST FOR TUITION. OUR SORT OF COST OF DOING BUSINESS INFLATION NUMBER IS THE SAME AS ITS BEEN. WE WILL ALSO HAVE OTHER THINGS THAT WE DIDN’T HAVE.>>WELL LET’S GO BACK TO; IS THERE STUFF THAT IS IN THE 2021 REQUEST THAT WASN’T IN THE 18/19 REQUEST?>>I WONDER IF IT WOULD BE HELPFUL TO DO A SIDE BY SIDE. WE CAN BUILD A LITTLE COMPARATIVE OF WHAT WAS IN THESE OLD REQUESTS.>>THE REQUESTS ACTUALLY; THE INCREASE BY OVER 200 PERCENT YOU HIT THAT AND IT WOULD BE NICE TO UNDERSTAND WHERE THE HUGE BUMP; THERE WAS SOMETHING THAT WASN’T INITIATED BECAUSE WHEN YOU’RE TALKING ABOUT THESE QUANTITIES THEY WOULD HAVE TO BE SOMEBODY SUBSTANTIAL THAT KICKED IN THOSE THREE YEARS BETWEEN THOSE TWO BUDGETS.>>I’M LOOKING AT THE 14/15 NUMBER; I SEE YOUR POINT. I NEED TO DO A LITTLE STAFF WORK.>>YOU CAN GET BACK TO US ON THAT; THAT WOULD BE HELPFUL.>>I THINK I HAD — THE 75 PERCENT GOING TO INSTRUCTION OF STAFF; WHAT PORTION OF THAT IS ACTION CLASSROOM; INSTRUCTION TO TEACHER TO STUDENT?>>WE DO NATIONAL REPORTING OF SPENDING DATA INTO A NATIONAL DATABASE. AND THEN WE LOOK AT THOSE RESULTS AND EVALUATE WHETHER OR NOT WE HAVE TREND IN OUR SPENDING BY TYPE. WE HAVE BEEN INTENTIONAL TO MAINTAIN THE PERCENTAGE OF OUR BUDGET THAT WAS OUT AS CONSTRUCTION AND ACADEMIC SUPPORT. IN THE CLASSROOM; IN THE COUNSELING CENTERS. AS LONG THAT I HAVE BEEN WATCHING IT HAS RANGED FROM 63 TO 62 PERCENT OF OUR SPENDING. THAT IS UP AND DOWN THROUGH ENROLLMENT LEVELS. SO WE PAY ATTENTION TO THAT. THAT IS ALL OF OUR STAR; NOT JUST OUR TEACHING STAFF. THAT NUMBER IS GOING TO BE FIVE PERCENT. A PORTION OF OUR BUDGET THAT IS SPENT ON INSTRUCTION AND ACADEMIC SUPPORT IS ABOUT 65 PERCENT.>>THANK YOU. I’M GOING TO PIGGY BACK ON WHAT MY COLLEAGUES HAVE SAID. LOOKING AT SALARIES AND BENEFITS.>>THAT NUMBER SOUNDS RIGHT.>>I’M WONDERING; THAT DOESN’T GIVE US A BREAKDOWN.>>YOU ALL GOT/COPY OF WHAT WE WHAT WE CALL A DATA BOOK; IF YOU BIG IN THERE YOU WILL FIND A COUPLE OF TABLES THAT FIND OF OUR 17;000 EMPLOYEES HOW MANY ARE FACULTY — THERE IS A TABLE IN THERE THAT DESCRIBES THAT FOR YOU.>>SECTION H; PAGE ONE YOU CAN SEE WHERE SALARY AND BENEFITS EXPENDITURES BY TYPE. WHAT I’M ASKING FOR IS A (INAUDIBLE) OF THE ACTUAL ADMINISTRATION AND WHAT THOSE SALARIES ARE.>>COSTS ARE NOT GOING UP. OUR ADMINISTRATION SPENDING IS GOING DOWN. IF THERE IS INTEREST IN ADMINISTRATION; WHAT IS IN ADMINISTRATION; THAT IS REALLY A CAMPUS BY CAMPUS QUESTION. IF THERE IS INTEREST IN THE ROSTER THAT GIVES YOU THE (INAUDIBLE) OF 17;000 EMPLOYEES THAT WILL TAKE A WHILE. I’M NOT SURE HOW TO GET AT THE QUESTION. IF THE QUESTION IS WHAT IS OUR ADMINISTRATIVE SPENDING; I’D BE HAPPY TO HAVE THAT CONVERSATION BUT I’M NOT PREPARED TODAY.>>THANK YOU. APPRECIATE IT. I’D LIKE TO ASK YOU ABOUT A COUPLE DIFFERENT ISSUES. I S R S SUPPORT. THE GOVERNOR HAD A RECOMMENDATION OF $8 MILLION. WHAT IS THE ABSOLUTE ALLOWANCE THAT YOU NEED TO KEEP THAT PROCESS? KNOWING THAT IF YOU ARE GIVEN THE EIGHT MILLION DLN; WHAT ARE YOU GOING TO DO? WILL THAT FALL ON THE INDIVIDUAL CAMPUSES IF THERE IS A SHORT AGE THERE.>>THANK YOU. THIS HAS BEEN KIND OF A JOURNEY FOR US. WE STARTED WITH THE LEGISLATURE WITH A PROPOSAL FOR A 50/60 FINANCE PLAN. THE CAMPUS AND SYSTEM OFFICE WOULD PROVIDE THE OTHER 12 AND A HALF MILLION A YEAR. WITH YOUR SUPPORT WE RECEIVE 4 MILLION A YEAR FROM THE LEGISLATURE; THIS BIENNIUM. THEN WE CAME BACK IN THE SUPPLEMENTAL SEASON. THAT DID NOT PROCEED LAST SESSION AND SO THIS YEAR WE BROUGHT YOU A PROPOSAL THAT WOULD ENABLE US TO NOT TURN TO THE CAMPUSES OR THE SYSTEM FOR SUPPORT. AND INSTEAD ASK YOUR SUPPORT FOR WHAT WOULD HAVE AMOUNTED TO $25 MILLION A YEAR WHICH IS A REQUIREMENT THAT WE HAVE TO MOVE THE PROJECT FORWARD OVER THE NEXT 4 TO 6 YEARS. THE GOVERNORS SUPPORT IS HELPFUL AND APPRECIATED. WE ARE HOPING THAT WE CAN SIMILARRY SEE SUPPORT HERE IN THE HOUSE. WHAT I WOULD EXPECT TO HAPPEN IS THAT WE’LL COME TO THE END OF THE LEGISLATIVE SESSION AND WE’LL TALK TO THE BOARD AND TALK ABOUT HOW TO FINANCE THE WORK. THE GOVERNORS NUMBER HERE AS A DOWN PAYMENT AND I WOULD EXPECT THAT WE WOULD COME BACK NEXT YEAR TO CONTINUE A CONVERSATION ABOUT HOW TO FINANCE THE WORK. WE PROCEED THIS SUMMER WITH SOMETHING. AND WE WOULD FINANCE IT WHILE WE CONTINUE TO WORK WITH THE LEGISLATURE FOR THE SERVICES.>>SO THEN I’M GOING TO MAKE AN ASSUMPTION THAT IF THAT FALL — SOME OF IT WOULD; AT LEAST THAT WOULD BE AN POPULATION THAT — OVERRULED>>WE WOULD LOOK INTERNALLY FOR A FINANCE PLAN AND COME BACK NEXT YEAR FOR A PERMANENT FINANCE PLAN. WE THINK IT IS IMPORTANT ENOUGH.>>I’M GOING TO MAKE ANOTHER ASSUMPTION THAT THE $169 MILLION NUMBER THAT YOU GAVE TO US TO FUND INFLATIONARY COSTS; THE SYSTEM WOULD THEN IMPLEMENT A TUITION — FOR THE NEXT TWO YEARS.>>I’M A LITTLE BIT AT A DISADVANTAGE HERE BECAUSE WE HAVEN’T HAD A FORWARD DISCUSSION SINCE THIS CAME OUT. BACK IN NOVEMBER IT WAS A COMMITMENT — IF THE FULL REQUEST WAS FUNDED. WE’RE NOW RUNNING AT LESS THAN THE FULL REQUEST. WE HAVE NOT HAD ANOTHER FOR FORWARD DISCUSSION ABOUT TUITION. I’M A LITTLE BIT DISADVANTAGED.>>I THINK IT IS SAFE AT LEAST FOR US NOW TO MOVE FORWARD WITH THE UNDERSTANDING THAT THE 169 IS WHAT THE SYSTEM WOULD NEED IN ORDER TO KEEP TUITION FLAT FOR THE NEXT TWO YEARS THEN. TO FUND THE THREE PERCENT INFLATIONARY COSTS FOR THE NEXT TWO YEARS. I’LL LEAVE THAT AS A COMMENT AND YOU CAN ANSWER TO THAT OR NOT.>>I APPRECIATE THAT AND THE I APPRECIATE THE LINE OF THINKING. I’M JUST A LITTLE BIT WITHOUT MORE AUTHORITY AT THIS — TO ANSWER THAT.>>IF YOU LOOK AT THE BUSINESS MOLL HE WILL THERE ARE TWO SORTS OF REVENUE TUITION AND MONEY FROM THE STATE. SO WE KNOW THAT THERE IS AN INCENTIVE TO HAVE STUDENTS TAKE LONGER TO GRADUATE — GRADUATATION RATES THAT ARE ON TIME.>>THAT IS A REALLY TERRIFIC QUESTION. I DON’T THINK THAT ANYBODY WOULD ENDORSE THAT THEY’RE ENCOURAGING LONGER TIME FOR COM PLUGSPLETION. EVERYBODY ON OUR CAMPUSES WORK EVERY DAY TO GET STUDENTS TO GRADUATION. THERE HAS BEEN TREMENDOUS EFFORT PUT INTO THAT AROUND IMPROVING FIRST YEAR EXPERIENCE AND ADVISING; THE WAY THAT CURRICULUM IS DELIVERED. IT IS OUR JOB TO GET THEM GRADUATED. WE HAVE ALL KINDS OF EFFORTS AROUND THAT. WE’RE NOT ALL THAT BIG ON FINANCIAL INCENTIVES. PART OF IT BECAUSE THERE IS SUCH INTEREST IN ALL OF THE MONEY LEAVING SAINT PAUL. WE’RE LIMITED AT THE MONEY THAT WE CAN USE. THERE IS A LOT OF TENSION BETWEEN THE CHANCELLOR AND PRESIDENTS AROUND PERFORMANCE. BUT WE DON’T HAVE ANYTHING IN THE NATURE OF INSTITUTIONAL FINANCIAL INCENTIVES.>>WE HAVE ONE LAST PERSON ON OUR LIST TO ASK QUESTIONS.>>I WANT TO GO BACK TO THE R S SYSTEM. WHEN I WAS THINKING ABOUT THE GOVERNORS DOWN PAYMENT; I WAS WONDERING IF WE LOSING EFFICIENCY IN A PEACE MEAL WAY? WHEN YOU NEGOTIATE A LARGE CONTRACTOR NEGOTIATE TIME LINES THERE ARE GREAT EFFICIENCIES. THINGS TEND TO BE DONE IN A MORE COHESIVE MANNER.>>AS WE SHARED WITH YOU WHEN WE HAD PROJECT LEADERSHIP BEFORE YOU THERE IS NO WAY TO DO THIS IN PHASES. IT IS NOT LIKE YOU — AND YOU COME BACK AND REDO THE KITCHEN AND FIX THE GARAGE. THIS REALLY HAS TO HAPPEN ALL AT ONCE. SO WE WOULDN’T IMAGINE — ACTIONS THIS SPRING THAT APPROVE ONLY PART OF THE PLAN. SO THAT WE CAN COME BACK NEXT YEAR SO THAT WE CAN CONTINUE TO TALK ABOUT THE RESOURCES AND THE BALANCE OF RESOURCES.>>SO I JUST WANT TO MAKE SURE THAT WE’RE CLEAR. IS IT MORE EXPENSIVE TO DO IT IN THIS MANNER OR WOULD IT BE LESS EXPENSIVE TO DO IT IN A MORE COHESIVE MANNER?>>IT WOULD BE MUCH MORE EXPENSIVE TO DO IT IN PHASES; IF IT COULD EVEN BE DONE. BECAUSE THIS IS OUR ENTIRE OPERATING ENVIRONMENT. IT HAS TO BE KEPT ALIVE AND MAINTAINED AND WE HAVE DUPLICATE RECORDS AND DUPLICATE INTERFACES. SO WE’RE JUST NOT PURSUING THAT KIND OF — THIS IS CONTEMPLATED AS SERVICE. IT IS NOT — LIKE IN THE OLD DAYS LIKE WHEN YOU JUST REPLACE THE ACCOUNTING SYSTEMS; THIS IS A WHOLE REPLACEMENT. IF IT WAS POSSIBLE TO DO IT IN THE PHASES THE RISK WOULD BE EVERY NORM MOUSENORMOUS.>>THEY ASK ME WERE THERE PLANS IN PLACE WHEN PUTTING THIS BUDGET TOGETHER TO MAKE SURE THAT ALL OF THE DATA WERE WE WILL CLEANED AND SCRUBBED IN TRYING TO IMPLEMENT THE SYSTEM?>>THAT IS A BIG PART OF THE WORK THAT IS GOING ON RIGHT NOW. IN THE DETAILS PROJECT BUDGET WE HAVE SOMETHING CALLED THE DATA HUB. WE SPENT THE LAST YEAR BUILDING UP SORT OF AN AGNOSTIC PLACE FOR THE DATA TO LIVE SO THAT WHEN THE NEW PRODUCT IS AVAILABLE WE CAN PUT THAT DATA IN. OUR CAMPUSES; USERS ARE SCRUBING THE DATA BEFORE WE PUT IT IN. WE HAVE ABOUT 3 MILLION UNIQUE USERS IN THE SYSTEM BECAUSE WE HAVE RECORDS FOR EVERY ONE WHOEVER REGISTERED FOR ANYTHING. ALL OF THAT IS GETTING CLEANED UP BEFORE WE MAKE THE TRANSITION.>>THANK YOU FOR YOUR TESTIMONY. DO YOU HAVE ANY CLOSING REMARKS?>>THANK YOU FOR YOUR STRONG TARGETS AND YOUR STRONG SUPPORT FOR THE WORK OF OUR COLLEGES AND UNIVERSITY.>>THANK YOU VERY MUCH.>>WELCOME BACK TO OUR COMMITTEE. WE HAVE UNIVERSITY OF MINNESOTA HERE WE’LL DISCUSS THE PROPOSAL. THE GOVERNORS PROPOSAL A BIT BUT LOOKING TO THE MEMBERS THAT HAVE QUESTIONS ABOUT YOUR BUDGET AS WE PUT OUR BUDGET TOGETHER. THANK YOU. WELCOME BACK.>>THANK YOU. IT IS A PLEASURE TO BE HERE. I’D ALSO LIKE TO NOTE FOR THE COMMITTEE AND WELCOME TWO OF OUR BOARD OF REGIONS — I APPRECIATE THEIR INTEREST. WE WOULD LIKE TO EXPRESS OUR GRATITUDE. WE ARE ESPECIALLY APPRECIATE TIFB OF THE 11 POINT $11.2 MILLION INCREASE IN THE BUDGET LAST WEEK. WE WOULD LIKE TO THANK THE STUDENTS; FACULTY ACROSS OUR SYSTEM WHO WEIGHED IN OVER THE LAST FEW WEEKS IN SUPPORT OF THEIR UNIVERSITY. WE FEEL STRONGLY THAT THE INVESTMENT RECOMMENDED FOR THE UNIVERSITY IS AN IMPORTANT FIRST STEP IN HELPING US MOVE AND CONTINUING — SUPPORTING EDUCATION TOTAL FUNDING. AS YOU KNOW THE STATE HAS MOVE AD WAY FROM THIS COMMITMENT AND WE SHARE YOUR GOAL IN BALANCING BETWEEN STATE APPROPRIATIONS. THIS REQUEST WAS — MEETING OUR CORE NEEDS AND MAINTAIN THE WORK. THE BOARD BELIEVES AS PRESIDENT — DOES THAT WE MUST HAVE A TRANSPARENT CONVERSATION WITH THE LEGISLATURE TO MAINTAIN AND ENHANCE THE QUALITY OF EDUCATION THAT WE PROVIDE OUR STUDENTS. WHILE THE 51 MILLION WILL GOOD A LONG WAY IN HELPING OUR CORE NEEDS IT REMAINS BELOW THE — THAT WE NEED. THE UNIVERSITY WILL HAVE TO MAKE DIFFICULT DECISIONS TO BALANCE THE BUDGET. FURTHER IT WILL BE CHALLENGING TO PROVIDE A COST OF LIVING ADJUSTMENT NECESSARY FOR FACULTY AND STAFF. TO CLOSE THE GAP WE WOULD BE FORCED TO — CONSIDER RESIDENT INCREASE TUITION. THIS LEVEL IS JUST IN SUFFICIENT TO (INAUDIBLE) AS WE (INAUDIBLE). WE WOULD ALSO HAVE TO REALLOCATE; MAKE MORE CUTS. TO POPULATION THE UNIVERSITIES BUDGET. THIS WILL RESULT IN A LOSS OF STAFF AND FACULTY POSITIONS. THIS WILL HAVE A NEGATIVE IMPACT ON SERVICE TO OUR STUDENTS IN SOME CASES COULD AFFECT THE RANKING OF SOME OF OUR DEPARTMENTS. THE CAPACITY FOR US TO SUPPORT STUDENTS IN GROWING DEMAND AREAS; THE GAP IN FUNDING WILL FORCE US TO DELAY OR ELIMINATE THESE TYPES OF INVESTMENTS WHICH WILL STUNT OUR GROWTH. WE ARE GRATEFUL FOR YOUR AD — THAT MATCHES OUR AND AGAIN WE ARE VERY GRATEFUL TO THE GOVERNOR — SO THANK YOU.>>THANK YOU VERY MUCH. DO WE HAVE QUESTIONS BY MEMBERS?>>THANK YOU. SO I WILL ASK YOU ABOUT GRADUATION RATES.>>WE HAVE DIFFERENT — RATES ACROSS. I — NOT 20 O 25 YEARS AGO THE RATE WAS 20 PERCENT. THAT SO IS TREMENDOUS PROGRESS. IT IS A LESSER FOUR-YEAR DEGREE BUT THOSE ARE SCORE CARD — THAT LOOK AT. WE TOTALLY UNDERSTAND THAT GETTING THEM OUT IN FOUR YEARS IS ONE OF GOOD ECONOMIC VALUE TO THE STUDENT. IT ALSO FREES UP ROOM FOR ANOTHER STUDENT TO COME IN. IT IS VERY MUCH TOP OF THE LINE FOR ALL OF OUR LEADERSHIP ON CAMPUSES.>>SO THE — WE KNOW THAT THE TWIN CITIES CAMPUSES IS MOST COMPETITIVE TO GAIN ENTRY TO. THE OTHER CAMPUSES; WHAT IS THEIR FOUR YEAR GRADUATION RATE? SOME OF THOSE STUDENTS ARE IN AS MUCH NEED GRAD YOU ATE.>>MANY ARE TRENDING UP IN THE RIGHT DIRECTION. FOR A COUPLE OF CAMPUSES WHO HAVE HAD CHALLENGES; BACK TO WHERE WE PUT FUNDS IN ADVICING AND MAKING SURE THAT THEY GET OUT IN FOUR YEARS. WE’LL GET THAT DATA FOR YOU. THEY ARE NOT — THEY’RE ON PAR WITH THE PEERS WHO WE COMPARE THOSE CAMPUSES TOO.>>THANK YOU. SO AS A NEW LEGISLATURE; YOU MAY REALLY THAT WHEN PRESIDENT CAME I ASKED IF THE REQUEST THAT HE WAS MAKING AT THAT TIME WAS SUFFICIENT. IT FELT LOW TO ME TO BEGIN WITH. NOW TODAY YOU HAVE MENTIONED THAT YOU WERE GOING TO DO A REALLOCATION. TODAY YOU CALLED THAT A CUT. WHICH I THINK IS A BETTER TERM TO USE. YOU ARE USING THOSE DOLLARS IN A DIFFERENT WAY. THOSE ARE ACTUAL CUTS. AS I’M LOOKING AT THE AMOUNT OF NUMBER THAT WE’RE SPENDING IN THE STATE GRANT PROGRAM. I’M ASKING EVERY ONE HOW DOES THE STATE GRANT PROGRAMS BENEFIT THE UNIVERSITY OF MINNESOTA STUDENT AND WHAT SHARE OF THOSE STATE GRANTS DO YOU BELIEVE THAT YOU’RE GETTING; AS FAR AS MEETING THE NEEDS OF YOUR STUDENTS? THE NUMBER THAT I WAS JUST GIVEN — DO YOU KNOW THE FINANCIAL IMPACT OF THE STATE GRANT PROGRAM TO THE UNIVERSITY AS THE WHOLE SYSTEM?>>IT IS ABOUT 45 TO 50 MILLION DOLLARS. $50 MILLION. 55 MILLION ALL FIVE CAMPUSES COMES TO SUPPORT THE STUDENTS IN THOSE AREAS. MUCH LIKE MINNESOTA STATE DOES; WE TAKE STUDENTS — ELIGIBLE. WE HAVE OUR PRO-MS. FOR STUDENTS IN CERTAIN INCOME CATEGORIES. DEPENDING ON THE FASFA AND — SO THERE IS A COMBINATION. INSIDE OF OUR TUITION IS ABOUT 55 MILLION THAT COMES FROM THE STATE GRANT.>>AND THEN WHAT I HAVE LOOKING AT; SECTION SIX. IT IS IN THE MIDDLE. I SEE THAT THE UNIVERSITY HAS BEEN DOING A TWO PERCENT INCREASE INTUITION. HAS THAT BEEN SOMETHING GOING ON YEAR OVER YEAR. HOW LONG HAS THAT BEEN HAPPENING?>>THIS CHART THAT WE DID SHOW ; THEY HAVE BEEN RELATIVELY STABLE. HAS BEEN AN EFFORT. TWO OF THOSE YEARS HAVE GIVEN NUMBER TO THE UNIVERSITY. SO I WOULD SAY THERE IS A LOT OF CREDIT. THE AVERAGE OVER THE LAST SEVEN YEARS IS — 2 .1 PERCENT. IT HAS BEEN A COMBINATION OF MAKING REALLOCATIONS; ADDITIONAL — THAT WE CAN GAIN AND ALSO ADDITIONAL INVESTMENTS.>>IF WE RECEIVE THE MONEY THAT IS PROPOSED IN THE GOVERNORS BUDGET WHERE DO YOU SEE YOURSELF IN THAT TUITION RANGE?>>OUR BOARD HAS TO MAKE A DECISION ABOUT WHERE IT FEELS THAT IT NEEDS TO BE. THEY’RE SENSITIVE ABOUT THE COAST FOR MINNESOTA RESIDENTS. I DON’T SEE US — WE HAVE BEEN MOVING FROM A POLICY PERSPECTIVE TO THE (INAUDIBLE) FROM OUT OF STATE. SO THE BOARD HAS ALREADY VOTED ON A TEN PERCENT INCREASE. THAT IS GOING TO — WE’RE ACTUALLY IF YOU FLIP THE PAGE WE HAVE A GOAL TO BE IN THE MIDDLE OF A BIG TEN. WE’RE GOING TO BE THE MIDDLE OF THE BIG TEN WE SHOULD BE THE MIDDLE — SO WE HAVE TO WORK AT THAT BECAUSE THAT CAN ALSO HAVE — EFFECTS. IT IS A BALANCING ACT.>>MY CONCERN; BECAUSE WHEN YOU LOOK AT THE LIST AND YOU HAVE WISCONSIN; PURDUE; — I WANT TO MAKE SURE THAT WE HOLD OUR TUITION IN A GOOD PLACE SO THAT THE RESIDENTS WHO LIVE IN OUR STATE HAVE AN OPPORTUNITY TO BE EDUCATED HERE FOR A GOOD VALUE BUT ALSO REMAIN IN OUR STATE. KEEPING UNIVERSITIES STRONG AT THE SAME TIME.>>I WILL TELL YOU THAT I BELIEVE THAT OUR BOARD OF — FEEL EXACTLY THE SAME WAY THAT YOU DO. WE WANT TO BE THE FIRST CHOICE. SO WE’RE VERY SENSITIVE ABOUT THAT. EVEN IF WE DON’T GET THE REQUEST THAT WE ASKED; WE’RE GOING TO BE VERY THOUGHTFUL. WHILE THE GOVERNORS INCREASE WAS VERY HELPFUL TO US IT IS STILL A BIG GAP FOR US TO COVER.>>THANK YOU.>>THANK YOU.>>I WAS JUST THINKING THAT OVER THE YEARS I HAVE BEEN IN HIGHER ED I DON’T REMEMBER THAT WE EVER AS FAR AS REQUESTS GO BEEN ABLE TO SAY THAT WE’RE GOING TO MEET YOU THERE. SO IN A WAY IT IS APOLOGIZING FOR NEVER LIVING UP TO THE EXPECTATION THAT THE UNIVERSITY HAS; AS FAR AS FUNDING; BUT WE’RE GETTING CLOSER. THE ONLY COMMENT THAT I HAVE SEVERAL PRESIDENTS AGO WHEN HE WOULD COME TO THE COMMITTEE HE WOULD SAY WE’RE ON THE BRING; I DON’T HEAR THAT ANYMORE.>>IF I CAN COMMENT; I WOULD SAY THAT WE’RE VERY REALISTIC ABOUT THE CHALLENGES THAT YOU FACE. THAT IS WHY WE BROUGHT A REQUEST THAT WE THOUGHT WAS AFFORDABLE. WE HAVE LEADERS THAT HAVE TO MANAGE IN (INAUDIBLE) AND THAT IS JUST THE NEW NORMAL. SO WE GOT A LOT OF CREATIVE PEOPLE. AT THE END OF THE DAY WHEN YOU EXPECT OUT OF US IS TO DO TREMENDOUS RESEARCH AND EDUCATE STUDENTS. I THINK IT IS JUST A SPIRIT THAT I SEE WORKING WITH THE LEADERS ON OUR CAMPUSES THAT THEY KNOW THAT THERE ARE CHALLENGES HERE. SO WE APPRECIATE THE TOUGH CHOICES THAT YOU HAVE TO MAKE.>>THANK YOU. IT WAS MENTION THAT HAD COMPETITION WISE; WHAT CAMPUSES IN THE SYSTEM HAVE MORE — THAN SLOTS.>>THE OTHER FOUR CAMPUSES HAVE AVAILABLE SPOTS. THEY ARE CONTINUE TO GO WORK ON THEIR ENROLLMENT. OUR — I WOULD SAY THERE IS CAPACITY ON JUST ABOUT ALL OF OUR CAMPUSES. THERE IS ROOM — AND JUST A MATTER OF US GETTING THOSE STUDENTS TO ENROLL. SO WE HAVE OPPORTUNITIES FOR STUDENTS TO GO TO (INAUDIBLE) THEY –>>YOU MENTIONED THREE BUT MY UNDERSTANDING IS THAT — DOES RECEIVE MORE APPLICANTS THAN SLOTS AND HAVE TO TURN AWAY. I THOUGHT FROM DISCUSSIONS WITH — THAT THERE WAS AN EFFORT TO WHERE ANY STUDENTS ACCEPTED INTO ONE OF THE CAMPUSES WOULD HAVE A LETTER WHICH WOULD INDICATE OPTIONS FOR THE OTHER CAMPUSES. AND THAT IS INITIATED; SHIFTING FROM ONE CAMPUS TO ANOTHER.>>I WOULD LIKE TO ASK (INAUDIBLE) WHAT I WOULD SAY IS THAT REPRESENTATIVE IS NOT AT WHERE THEY WERE. THEY HAVE BEEN DOWN A LITTLE BIT. I KNOW THAT WE HAVE SEEN — TRY TO GO COME BACK UP IN ENROLLMENT FROM WHERE THEY WERE. I DON’T KNOW ABOUT THEM TURNING FOLKS AWAY.>>SO THE ANSWER TO YOUR QUESTION IS WE HAVE TWO MECHANISMS TO DISTRIBUTE STUDENTS TO CAMPUSES. WHEN A STUDENT APPLIES TO THE TWIN CAMPUSES. THEY GET A LETTER AND ASKING IF THEY WOULD CONSIDER OTHER CAMPUSES. IF THEY SAY YES WE PUSH THEIR APPLICATION OUT. THERE ARE A CERTIFICATE — PERCENTAGE OF STUDENTS WHO DO THACHLT THERE IS ALSO A MECHANISM WHERE THE TWIN CITIES — A STUDENT WE SENT THEIR APPLICATION TO ANOTHER CAMPUSES. WE HAVE TO BE SURE THAT WE BLEND OUR — SO THERE ARE A SERIES OF MECHANISMS THAT THE APPLICATIONS ARE DISPERSED.>>NOT EVERY CAMPUS HAS THE SAME PORTFOLIO. COURSE WORK AND DEGREES. HOW MUCH INTELLIGENCE IS IN THE PUSH OUT TO LOOK AT TLAR APPLYING TO THIS. AND THEN THE INTELLIGENCE OF; WHAT ARE THEY PURSUING. MAYBE IF THE REASON WAS SOME OTHER ACADEMIC OR THOSE TYPES OF CONSIDERATION. HOW INTELLIGENT IS THE SYSTEM TO MATCH THAT REFERRAL?>>THE WAY THAT WORKS IS THAT THE SYSTEM CAMPUSES WILL THEN DETERMINE WHO ARE ADMISSIBLE. IF THEY’RE DENIED THAT APPLICATION WILL BE SENT WITH THE OTHERS TO — WHERE THEY CAN SAY WELL THE STUDENT SAID ENGINEERING BUT THEY MIGHT BE INTERESTED IN ANOTHER AREA. TRY TO PER SUE THAT. IT MAY BE THAT THE STUDENT SAYS THAT I WANT TO BE A MECHANICAL ENGINEER AND NOTHING ELSE.>>SO THERE IS A MISSION MATCH THAT GOES ON IN THE PROCESS? WHAT IS THE QUANTITY OF STUDENTS IN THE LAST FEW YEARS THAT HAVE BEEN SHIFTED?>>I DON’T HAVE THAT NUMBER AT THE TOP OF MY HEAD. IT IS NOT A LARGE NUMBER OF STUDENTS WHO TAKE ADVANTAGE OF SHARE MY APP. OFTEN BY THAT POINT IN TIME THEY MADE UP THEIR MIND TO GO SOMEPLACE ELSE. WE CAN GET YOU THE NUMBER CAMPUS BY CAMPUS. AND THE NUMBER OF APPLICATIONS THAT ARE ACCEPTED.>>YOU GOT TWO THINGS DECIDING ONE IS DEMAND OF INCOMING; THE OTHER IS DEMAND EMPLOYERS; IN THE JOB MARKET. DO YOU HAVE DISCUSSION OF HOW YOU USE — YOU MAY BE LOOKING AT HAVING SOME JOINT; DISTANCE LEARNING ON OTHER CAMPUSES; EXPAND THE PORTFOLIO?>>WE DO IN FACT LOOK CAREFULLY AT WORKFORCE NEEDS. SO WE’RE GROWING OUR CAMPUS ENROLLMENT BY ABOUT 3;000 STUDENTS TO ACCOMMODATE THE NEEDS; THE ENVIRONMENT; AGRICULTURE; BUSINESS. THERE IS ALSO A VERY STRONG ONLINE SET OF PROGRAMS. THEY ARE MINDFUL OF WORKFORCE NEEDS AND DEVELOPED CERTAIN PROGRAMS TO AT THAT POINT INTO THAT. I THINK ONLINE IS A PLACE THAT THE UNIVERSITY NEEDS TO EXTEND THE CAPACITY.>>I WANT A CLARIFICATION ON A LINE OF INFORMATION. BY DISTANCE LEARNING; WHAT I WAS LOOKING AT; SOME DECADES AGO SEVERAL LARGE CORPORATIONS HAVE EQUIPMENT SO THAT THEY CAN HAVE TELEVISED — LEARNING I WAS WONDERING IF THERE HAS BEEN — TO PROVIDE DIFFERENT COURSE WORK AND FILL OUT SOME AREAS THAT THEY MIGHT HAVE — BUT YOU HAVE A DISTANCE LEARNING CLASS IT IS NOT AN ONLINE CLASS BECAUSE THEY WOULD BE ON CAMPUS BUT JUST A DIFFERENT CAMPUS SITE. IS THERE ANY INFORMATION THAT YOU CAN GIVE THERE?>>THERE ARE FEW EXAMPLES OF THAT. NURSING BETWEEN THE TWINE CITIES AND — THROUGH I T V THE TWIN CITIES DOES OFFER COURSES WHERE THEY DON’T HAVE THE EX PART TEAS OR RESOURCES TO DO THAT. SO IT IS RELATIVELY LIMITED. I COULD PROBABLY COME UP WITH SOME ADDITIONAL EXAMPLES.>>THANK YOU. I GET A STATISTIC ABOUT A WEEK OR TWO AGO. 71 PERCENT OF MINNESOTA UNDERGRADS — IF ALL. MINNESOTA RESIDENT STUDENTS THAT WE ADMIT ALSO ENROLLED THE NUMBER WOULD INCREASE TO 81 PERCENT.>>IN YOUR OPENING COMMENTS; I THOUGHT THAT I HEARD YOU REFERENCE THAT THERE WAS AN ADDITIONAL 30 MILLION DOLLARS $30 MILLION OF REALLOCATIONS? WAS THAT CORRECT?>>AS PART OF PUTTING OUR PLAN TOGETHER; WE PLAN ON LEVEL OF REALLOCATION TO HELP FUND COST INCREASES. OVER THE BIENNIUM WHAT WE SUBMITTED TO YOU WE WERE PLANNING AROUND 30 MILL WHY NOT FOR EACH OF THE NEXT TWO FISCAL YEARS. IF WE DON’T GET THE 87 MILLION THAT NUMBER MIGHT GO UP. WE WILL BALANCE THIS BUDGET. THOSE ARE THE KINDS OF CHOICES; BUT WE WEREN’T COMING IN — WE FELT WAS A MODEST AND AFFORDABLE REQUEST. WE WERE GOING TO BE MAKING CUTS.>>IS THAT MONEY THEN INCLUDED WITH THE $90 MILLION THAT YOU HAVE PLANNED OVER THESE SIX YEARS OR IS THAT ADDITIONAL MONEY ON TOP OF THE 90?>>IT IS ON TOP OF THE 87 MILLION THAT WE ASKED FOR. IT IS A BIG NUMBER TO HIT. SO WE NEED THAT 87 MILLION PLUS THE INTERNAL REALLOCATIONS THAT WE’RE GOING TO DO. THAT WHOLE PACKAGE TOGETHER TO DO THE INVESTMENTS. THANK YOU.>>OKAY. I GUESS I WAS REFERRING NOT TO YOUR BUDGET REQUEST BUT TO THE $90 MILLION IN REALLOCATIONS THAT YOU HAVE GONE OVER IN THE LAST SIX YEARS. IS THAT INCLUDED OR ON TOP OF IT. HOW MUCH MORE IS ON TOP? THAT’S ON TOP OF THE 90. SO THAT’S 90 PLUS ANOTHER 30 OVER THE NEXT TWO YEARS.>>THAT MAKES SENSE THEN. THANK YOU. I HAVE A NOTE HERE IT IS MY OWN NOTE. SO I APOLOGIZE. I HAD A NOTE HERE THAT IT IS 87 MILLION FOR THE BIANNUAL REQUEST. DO YOU KNOW EXACTLY WHAT THAT NUMBER WOULD BE COMING FROM AM I WAY OFF BASE HERE? THAT REQUEST CAME FROM US TO ASK YOU HOW MUCH IT WOULD COST. YOU CAN ASK THE QUESTION.>>THE 87 MILLION DID NOT CONTEMPLATE TESTIMONY — WOULD FUND OUR REQUEST PLUS ALLOW US TO NOT MOVE FORWARD WITH THE RESIDENT TUITION INCREASE. SUBJECT TO THE BOARD OF — APPROVAL. THAT HASN’T BEEN DECIDED AT THIS POINT.>>THANK YOU. AND YOU CAN — I’M GOING TO JUST MAKE A COMMENT. IT SEEMS TO ME THAT IF YOU ARE ASKING FOR THE 87 AND DOING ANOTHER $30 MILLION THAT ADDITIONAL ALLOCATION WOULD — YOU WOULD BE ABLE TO OLD TUITION FLAT THEN. WE’RE TALKING ABOUT AN EXTRA $4 MILLION THERE. IT SEEMS TO ME THAT YOU BE ABLE TO HOLD TUITION FLAT THERE. WE CAN TALK OFFLINE. BUT AGAIN; THAT’S JUST A COMMENT BASED ON MY UNDERSTANDING. AND YOU CAN CERTAINLY ADDRESS IT IF YOU LIKE. THANK YOU.>>THANK YOU. AND WE HAVE A VERY EAGER REPRESENTATIVE THAT WANTS TO ASK A QUESTION.>>THANK YOU. I VALUE YOUR HONEST AND STRAIGHTFORWARD ANSWERS. HAVING QUALITY STAFF HELPS TO MAKE A QUALITY PRODUCT. AS A MEMBER EYE SUPPORT THAT VERY MUCH AND VALUE YOUR STAFF. I THINK THAT IS AN IMPORTANT COMPONENT. MY SON JUST WENT THROUGH AND IT’S AMAZING THE PROFEZ ORS WHO ARE IN THAT ONE AREA. I DO HAVE A QUESTION — WHEN A STUDENT GETS ACCEPTED; THERE IS A FEE. IT IS LIKE 280 OR SOMETHING TO SAY WE WANT YOU TO COME AND IT IS GOING TO COST THEM 280 TO ACCEPT THAT. THERE MUST BE A WAY THAT WE COULD WORK AROUND OR SOME RICH PERSON THAT COULD FUND THAT. IT JUST SEEMS LIKE IT IS SAD. I IMAGINE BEING A FAMILY THAT IS STRUGGLING; TO PAY FOR THE 280 THAT IS OUT OF THEIR POCKET. THAT’S BEFORE THEY KNOW WHAT THEIR GRANTS ARE. HAS THERE BEEN EFFORT TO WORK ON THAT?>>I DON’T KNOW WHAT THE FANCY NAME IS BUT THAT SOUNDS GOOD.>>THERE ARE A SERIES OF FEES. ONE IS THE APPLICATION FEE. THE OTHER IS THE CONFIRMED FEE. WITH THE APPLICATION FEE; WE WILL WAIVE THAT FOR STUDENTS WHO ARE LOW INCOME IN THE PROCESS. SO THEY HAVE TO DOCUMENT THAT. SO THERE IS A BIT OF A BREAK THERE. FOR THE CONFIRMED FEE THAT HELPS SUPPORT THE FIRST YEAR PROGRAM. SO THE BUDGET IN LARGE PART IS BASED ON THAT FEE. THE OTHER ASPECT OF THIS; ALTHOUGH THE FEE SEEMS A BIT HIGH; WHEN WE CONFIRM A STUDENT; WE WANT TO MAKE SURE THAT THEY’RE GOING TO COME. A HIGHER FEE; IS PRETTY MUCH ON PAR WITH THAT. SO IF IT WAS VERY LOW IT WOULD BE EASY FOR A STUDY DENT TO SAY — I’M GOING TO GO TO WISCONSIN INSTEAD>>THANK YOU I APPRECIATE YOUR HONEST ANSWERS. I’M JUST ENVISIONING A POOR FAMILY THAT IS STRUGGLING. HOW DO THEY — I GET WHAT YOU’RE TRYING TO DO; LOCK THEM IN. I HOPE THAT YOU CAN CONSIDER. THERE MUST BE A WAY THAT WE CAN TAKE IT OUT OF — PAY OR SOMETHING. I DON’T KNOW. SEEMS LIKE WE CAN FIGURE OUT SOMETHING. THANK YOU. I’M CURIOUS; ARE YOU MAKING MONEY AT THE — FOOTBALL STADIUM?>>WE’RE STARTING TO TURN NET REVENUE. BUT WE ARE STARTING TO MAKE SOME NET REVENUE THERE AND THE OTHER BIG THING THAT SCHOOLS ARE LOOKING AT; IT IS CUT DOWN ON PREGAME — DRINKING. SO FAR; YOU KNOW; WE DON’T HAVE BEER SOLD NEAR THE STUDENT SECTIONS. BUT IT HAS BEEN POPULAR WITH OUR FANS. FROM A POLICE PERSPECTIVE IT HAS BEEN A GOOD THING AND LESS OF AN IMPACT.>>THANK YOU. WE HAVE TWO MORE MEMBERS.>>THANK YOU. I’M JUST GOING TO ASK YOU TO ENDURE THESE QUESTIONS. WHEN REPRESENTATIVE — SAID THAT WE THE LEGISLATURE; WE HAVE NOT — HE COULD NOT REALLY US FULFILLING THE REQUEST. I WENT CAREFULLY THROUGH THIS BOOK. I RAN OUT OF PAGES TO MARK FOR TODAY. WHEN I LOOK AT YOUR BONDING REQUEST IN THE BACK; WE HAVE — THOSE ARE BEEN IN ADEQUATE. YOU RECEIVED HALF OF WHAT YOU REQUESTED. AS A NEW LEGISLATURE ONE OF THE THINGS THAT STARTLED ME WAS HOW MUCH DEFERRED MAINTENANCE THERE IS. NO ONE IS TALKING ABOUT THAT AS A PLAN. I’M LOOKING AT THIS 4 POINT $4.5 BILLION; I THOUGHT — WAS GOING THERE WHEN HE WAS ASKING ABOUT THE REALLOCATION; I CAN’T REMEMBER THE — BUT IT WAS MORE THAN THE 14 MILLION IN 2017; THE 33 MILLION THAT YOU HAVE PLANNED NOW. THESE ARE STAGGERING NUMBERS. WE ARE TALKING ABOUT OUR FLAGSHIP INSTITUTION AND SYSTEM. EXACTLY; HOW DEEP ARE WE GOING TO GO INTO THE REAL STRUCTURE WITH CUTS AND LETTING TEACHERS GO AND LETTING OUR BUILDINGS ROT BEFORE WE HAVE AN HONEST CONVERSATION. ABOUT HOW MUCH IT COSTS TO RUN A HIGH QUALITY INSTITUTION AND GIVE STUDENTS THE VALUE THAT THEY PAY FOR WITHOUT ASKING OUR STUDENTS TO GIVE AWAY THEIR FUTURE INCOME FOR DECADES. WE NEED TO HAVE THAT REAL HONEST CONVERSATION. I’M HEARING A LOT OF NICE; BUT WE’RE NOT TALKING ABOUT REAL NEEDS. IF WE’RE GOING TO SET REAL BUDGETS WITH REAL PLANS WE HAVE TO CK WILLING TO SAY THIS NEEDS TO BE ADDRESSED. I’M INVITING YOU TO THAT CONVERSATION. OFFLINE OR WHENEVER. BUT THESE ARE REAL MEMBERS. WE HAVE TO SAY HERE IS THE BIG PICTURE. HOW ARE WE TOGETHER GOING TO SUSTAIN THE SYSTEMS THAT PEOPLE BEFORE US DID REALLY INVEST IN. WE OVERRULED IT TO THE PAST AND WE CERTAIN LEO IT TO THE FUTURE. I’M ASKING FOR THAT CONVERSATION. WITH THAT I’LL GIVE UP MY TIME. THANK YOU.>>WE WOULD AGREE. IT IS A BIG CHALLENGE. IT IS WHY WE DIDN’T BRING YOU ANY NEW BUILDINGS. WE ASK FOR 200 MILLION — AS OUR TOP PRIORITY. I DO THINK THAT WE HAVE TO HAVE AN HONEST CONVERSATION. WE’RE GOING TO HAVE TO LOOK AT SOME DIFFERENT STRATEGIES HERE. WE DID NOT BRING YOU ANY NEW BUILDINGS THROUGH THE PROCESS — AND 2 00 MILLION TO TAKE CARE OF OUR BUILDINGS. SO WE AGREE WITH YOU BUT YOU CAN GIVE US 450 MILLION A YEAR AND WE CAN CATCH UP IN TEN YEARS. SOMETHING THAT WAS AFFORDABLE; WE WOULD TAKE SERIOUSLY. BUT THERE IS NO QUESTION; WE HAVE CATCH UP TO DO AND I THINK THAT IS VERY TRUE.>>AND I HOPE YOU DON’T MIND I WOULD LIKE — TO ASK HER QUESTIONS. WE’RE GOING OVER. IF YOU DO HAVE TO LEAVE GOOD AHEAD BUT I WOULD LIKE TO MAKE SURE THAT WE HAVE ALL OF OUR MEMBERS.>>IN YOUR QUESTION ABOUT REALLOCATING FUNDS. I’M LOOKING AT THE DETAIL; I UNDER STOOD THAT YOU WERE GOING TO EXPAND THE ENGINEERING AREA. PERHAPS IT IS NOT A REFLECTION OF WHAT YOU’RE ADDING. WHERE DO WE FUND OUR HIGHER SPENDING? WE WILL BE HAPPY TO REPORT BACK TO THIS COMMITTEE; PARTED OF IT DEPENDS ON WHERE OUR BUDGET — WHAT IS THE STATE APPROPRIATION LOOK LIKE. WE HAVE A PLAN TO EXPAND THE COLLEGE OF SCIENCE ENGINEERING. WE HAVE TREMENDOUS DEMAND THERE. WE DID ONE STRATEGY WHERE THERE IS A FEE — WE WILL ADD MORE SLOTS BUT IT WILL BE DONE WITHOUT ADDITIONAL HELP. IT IS A WAY TO GET MORE STUDENTS IN THE COLLEGE OF SCIENCES NEXT YEAR. IT TAKES MORE INCURRING MONEY TO TURN OUT THE ENGINEERS AND THE QUALITY. SO WE WOULD BE HAPPY TO TELL YOU WHERE THE INVESTMENTS GO ONCE WE KNOW THE NUMBER.>>DO YOU HAVE ANY CLOSING REMARKS?>>ONE THING I THAT WANTED TO KNOW IN THE OVERALL BUDGET; YOU MENTIONED MENTAL HEALTH. WE CAN DO THIS LATER. ARE THERE THINGS IN THERE THAT YOU’RE PLANNING ON SPENDING OR EXPANDING THAT PROVIDES BETTER SERVICE. I’D LIKE TO KNOW WHAT THOSE ARE. I CAN JUST TELL YOU THAT YES; ON OUR LIST ARE ENHANCING MENTAL HEALTH SERVICES ON ALL FIVE CAMPUSES. IT IS VERY HIGH ON OUR PRIORITY LIST. IT IS A RESOURCE QUESTION BUT IT IS HIGH ON OUR LIST. I WOULD JUST SAY WITH RESPECT TO CLOSING COMMENT WE ARE APPRECIATIVE TO YOU FOR THE STRONG SUPPORT; WE ARE IN PART THE ECONOMIC ENGINE WHETHER WE TURN OUT THE FABULOUS GRADUATES THAT WE HAVE. THEY’RE IN EVERY BUSINESS IN THE STATE. SO WE THINK WE’RE A GREAT INVESTMENT. WE APPRECIATE THE OPPORTUNITY. THANK YOU.>>THANK YOU FOR BEING HERE TODAY. OUR MEETING IS ADJOURNED.

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