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Minnesota State Colleges and Universities: Board of Trustees
System-Level Accountability Scorecard
Assumptions: Strategy Alignment with External Environment

Economics

[updated April 19, 2005]

Rationale: The state economic outlook - dominated by a large budget deficit - was the primary influence on Minnesota State Colleges and Universities request for the FY2004-2005 biennium. After a contentious legislative session, the Governor signed bills reducing Minnesota State Colleges and Universities' appropriation by 14.8% for the biennium. Although financial indicators are signaling improvement in Minnesota's economy, a deficit is being predicted for the state's revenues in FY2006 and FY2007 according to the Minnesota Department of Finance.

Declining state support and increased enrollments continue to be a challenge for Minnesota State Colleges and Universities. Providing increased access and opportunity, expanding high-quality learning programs, strengthening community development and economic vitality, and fully integrating the system continue to be the guiding principles as the system plans for the next biennium.

Latest Update:

  • The Economic and Financial Environment of Minnesota State Colleges and Universities (April 2005 - Power Point Presentation to the Board of Trustees). The purpose of this annual report is to provide the Board of Trustees with preparatory information as it begins to consider the FY2006-FY2007 Minnesota State Colleges and Universities’ operating budgets and determine the institutional tuition structures. The presentation may also assist in adding context and perspective to the ongoing Board discussion of alternative funding methods.
  • Legislative Update to the Board of Trustees - PDF (March 2005). There was brief update to the State's Economic Forecast contained in the Legislative Update to the Board of Trustees.
  • The Economic and Financial Environment of Minnesota State Colleges and Universities (April 2004 - Power Point Presentation to the Board of Trustees). This presentation provides an overview of the economic issues facing Minnesota State Colleges and Universities as planning begins for the preparation of the FY2006-2007 Biennial Budget Request.

Background: Macro-environmental elements have an impact on the expectations of students and other stakeholders. Some of the considerations for analyzing the Economics Environmental Indicator are as follows:

  • Stability of state tax base
  • Growth of state economy
  • Availability of jobs and unemployment rate
  • Inflation rate
  • Interest rates
  • Labor costs
  • Discretionary income

The condition of each environmental indicator will be reassessed at least annually, following an analytical scan. The condition of an indicator may be changed more frequently, though, when warranted.

For more information contact: Laura King, Vice Chancellor for Finance and Administration.

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