Chair Pelowski, members of the committee.
My name is Bruce Svingen. I am the Faculty Association president at Winona State University. On behalf of our faculty I thank you for hearing our concerns.
With a $7 billion state deficit spread evenly across all state agencies, WSU would be facing at minimum a $6.2 million cut to base funding, this includes an expected enrollment increase by 200, a 4% tuition increase and the faculty’s proposal for a “no across the board” salary increases for the next two years.
At a $6.2 million deficit, the impacts are catastrophic:
1. The first impact is not filling positions needed to teach courses. If we took the $6.2 million entirely out of faculty positions, this would be a loss of 83 faculty and as much as 332 courses per semester, leaving all of our students a course short of a full load each semester. This would delay their graduation by one year at the same time we see a record high demand for our courses.
2. Secondly, as total course offerings decrease, departments will be driven to increase the number of lower division, less costly, courses in relation to upper division courses. If we’re not able to offer enough upper division classes, juniors and seniors will face further delays to graduation and entering the workforce. This uncertain sustainability of programs will jeopardize the University’s ability to recruit and retain students. Combined with the loss of $3 in tuition and fee revenue for every $1 in cuts under the projected deficit, this programmatic instability takes us toward the “death spiral” of the University.
3. The third impact is that higher tuition will limit accessibility and affordability at exactly the time our economy needs higher education to help rebuild our economy. Students have already faced an 85% tuition increases since 2001 and their average debt load upon graduation has blossomed to $24,000. With about 80% of our students staying in MN, burdening these students with more debt is another yoke on the state economy. According to Wilder and Associates, the positive regional economic impact of WSU is $194 million per year. This regional economic impact is now at great risk.
4. The fourth impact of large and destabilizing cuts will be more control over academic programs by the MnSCU System Office. This will not be guided by the academic needs of our students, but by the initiatives of the System Office and the Governor. We do not need trendy fixes, temporary reorganizations, or mandates for on-line education to create a student market – we already have a student demand for what we do. What we don’t need is a System Office spending $136 million/year that does not directly sustain the mission of the campuses, while spending only 40% of their budget on instructional support.
· We can sustain our mission without $20 million plus in System Office technology.
· We can sustain our mission without $20 million plus in the Chancellor’s office.
· We can sustain our mission without $20 million plus in administrative services.
· And we can sustain our campuses without 400 System Office employees.
We know this because we've done it before.
In closing, we are willing to make sacrifices. We have sacrificed wage increases for two years, we are pulling back operating budgets, and we are sacrificing positions.
But cuts alone may not be enough. We hope you will also consider “revenue enhancement” to help the campuses and other essential state services – one source of revenue to soften the blow to the campuses may be found in the MnSCU System Office. We would also ask that you consider tax reform as part of the solution. Coupled with this, we would suggest using one-time federal stimulus money to help soften the blow. And finally we suggest using the savings that come to the state via the PELL grant increases to reduce the cuts to public higher education. And if not that please uncouple the PELL grants from the state grant program so that are students can benefit directly from in the increased support.
Sincerely,
Bruce A. Svingen
President, WSUFA