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Home > Dean's Office > CLA Budget : Frequently Asked Questions

Frequently Asked Questions

Why the problem with the University of Minnesota's budget?

The University of Minnesota is planning for potential changes in its overall revenue sources in light of global, national, and state economic conditions. A dramatic decline in State of Minnesota revenues is anticipated. Given the state's financial predicament, the University may not receive any new incremental funding from the state. In fact, the University may experience a cut in the base funding it receives from the state.

What is the state's financial picture?

It is too early to have exact information. At this time, it is anticipated that the state could run a deficit of $3 million to $5 million.

How will this affect the University's funding from the state?

With the information we have at this time, the best case scenario for the University is that it will receive no incremental monies from the state. In other words, the money the University would receive from the state would remain flat. However, what we are being told is that there is likely to be a cut to the University's base budget.

When will we have a better idea of the state's financial picture?

We will learn more about the state's financial picture when, by early December, the state issues its revenue forecast. Additional clarity about the University's financial position and the level of financial support it may receive from the state will be provided in mid- to late-January 2009 when Governor Pawlenty announces his recommendations on overall state spending.

Are other colleges and universities being affected?

Yes. The U of M is not alone. Public and private universities and colleges across the United States and the world face serious fiscal challenges. MnSCU has revised its budget request of the state from a 9.3 percent increase to _____________________.

What is the amount of CLA's budget?

The college's O & M budget is about $226 million. When discussing budget reductions, it is important to remember that for every 1% equals about $2.62 million.

What is the University's request?

What was approved by the Board of Regents in October may change given the anticipated state shortfall. In October, the Board approved a $142 million increase and a 9 percent tuition increase over the biennium (4.5% each year) to be requested of the state. Again, this may be revised.

How are the University and CLA planning for revenue reductions?

The University and its colleges and other units are being proactive by planning and preparing for anticipated budget challenges. The President has directed each college to create budget models based on 3%, 5%, and 7% revenue reductions.

In addition, President Bruininks enacted a pause in all hiring. As part of the hiring pause, the college is to prepare a hiring plan for the Provost presenting the college's overall strategy for retaining excellence while reducing costs. The Provost's office will individually approve every single position included in the college's hiring plan.

How is the college preparing its hiring plan?

The college is being thoughtful and deliberative in determining its hiring plan. We are developing the hiring plan in two stages. The first stage will concentrate on spring appointments. The second stage will focus on longer-range issues. The Dean and others are consulting broadly with members of the college community. The hiring pause provides an opportunity to the college to put forward our highest priorities to the Provost.

What is the timing for the hiring plan?

We are planning on submitting the first stage of the hiring plan to the Provost by early December. We are hoping for a quick response. We are not yet certain about the timing for the plan's second stage.

Is there an estimate of what searches will be approved?

It is anticipated that less than half of the searches will be authorized.

Will there be layoffs?

We do not know at this time.

How do we ask questions or submit ideas?

The college is in the process of consulting with department and center chairs, CLA's Budget Advisory Council, the Council of Chairs, department administrators, P/A, the CLA Assembly, and others to answer questions and to develop strategies for budget planning and to meet the University's requests.

Your participation is encouraged. If you have suggestions for efficiencies, please email cladean@umn.edu.