Minnesota Governor Cuts $40 Million From State Colleges and Universities

ST. PAUL, Minn. — Gov. Tim Pawlenty says he will cut $40 million in appropriations to the University of Minnesota and to Minnesota State colleges and universities as part of an attempt to cover state budget shortfalls totaling nearly $5 billion.

State funds will be reduced evenly for the two school systems. For the remainder of the current two-year budget cycle, which ends in June 2009, the reductions represent 5 percent of the unspent general fund appropriation for each system, according to the governor’s office.

“Families and businesses across the country are tightening their belts and government needs to do the same thing,” Pawlenty says. “These reductions in state spending reflect our priorities to protect funding for K-12 education, public safety, military and veterans.”

Pawlenty also ordered state agencies to cut 10 percent of unspent operating funds to fill the gaps in the current deficit. Minnesota law requires the state to balance the budget at the end of every two-year period.

“These reductions present a challenge, but the availability of reserves and unspent state appropriations at these institutions should allow them to respond without dramatic impact on students,” Pawlenty says.

The MSCU system has approximately $70.8 million in reserves across all campuses and about $7 million in central reserves. The University of Minnesota has $15 million in central reserves and $50 million of unspent state appropriations not needed to cover binding obligations, according to the governor’s office. Tuition rates are locked in place through the next semester.

However, University of Minnesota President Robert Bruininks disagrees with Pawlenty on the effect cuts will have on the university.

“The University of Minnesota fully understands the seriousness of the budget challenge facing the state, and we’re willing to do our part to address it,” Bruininks says. “But the $20 million cut made by Gov. Pawlenty to the general operating budget will greatly impact this institution.”

Bruininks says cuts in higher education funding could have a direct negative effect on the state’s economy.

“As we move ahead to the larger budget challenges facing us in the next biennium, we will continue to explain to policymakers and all Minnesotans that dramatic cuts to the university erode the quality of the education our students receive and slow the creation of jobs and economic growth for the state by shutting off our human capital and innovation pipelines,” Bruininks says.