St. Cloud State Budget Update - 2023

REIMAGINING ST. CLOUD STATE UNIVERSITY

CAMPUS BUDGET UPDATE

Our Bright Future STARTS NOW

The world is changing and so are we. We are taking bold steps at St. Cloud State University as we are building on our strengths and planning for a bright future. We are facing financial challenges head on, just like so many similar institutions across the nation. We are guided by It’s Time – St. Cloud State University’s strategic framework for transforming SCSU into a new kind of university. We are innovating and investing in areas of growth to meet the workforce needs of the region and the state, and to provide a strong portfolio of learning options for current and future Huskies.

TO BE BOLD

TO INNOVATE for a new generation of students

TO FOCUS and turn challenges we face into our opportunities

THE CHALLENGES FACING HIGHER EDUCATION

Higher education is experiencing unprecedented changes – and they are directly impacting St. Cloud State University (SCSU). What we are finding is that what worked just five years ago simply won’t cut it now. Today’s student demands a different approach.

Key among these changes is the reality that there are simply fewer graduating high school seniors. That means that regional comprehensive institutions just like SCSU can’t count on local high school students for enrollment. Meanwhile, more and more prospective students are questioning the value of a higher education degree and opt for a gap year or more. As enrollment becomes more unpredictable, there are fewer state and federal dollars to support campus operations. Old revenue streams are drying up.

Technology is revolutionizing how students pursue their education, as their expectations for when they learn, and what credentials they seek are changing. Online learning environments defy the norms of traditional classrooms and introduce new flexibility. With fewer students and more possibilities to choose from, the competition is heating up in higher education.

Today’s students are entering university at different points in their lives, seeking opportunities to tailor their studies to remain agile and adaptive in the workplace. Never before has higher education needed to shift this aggressively into new and emerging careers pathways to attract diverse learners.

Age of Growth...

Historical trends of higher state and federal funding. High numbers of graduating high school seniors for enrollment.

At SCSU, we kept our eye on these trends. In 2018, we declared a code-red moment and set our new It’s Time framework for the future into action with a strategy to invest in our strengths and transform SCSU into a new kind of university. And it was working. Our applications and enrollment of incoming students was tracking up, along with other revenue streams like on-campus housing deposits and dining plans. And then the pandemic hit, bringing with it a negative impact on enrollment and our finances.

Technology revolutionizing student learning/expectations

Greater competition

2020

Pandemic Hit

2023

Students enter after graduating high school

Fewer choices; mainly in-person, on-campus

The Digital Age starts; 5.8% world population had Internet

State and federal funding levels higher

HIGHER EDUCATION

2000 / vs. / 2023

Students enter at different points in their lives

More choices; multiple delivery methods

Technology at virtually every touch point

Demand for increased revenue streams

Fewer graduating high school seniors

Fewer state and federal funds

FACING OUR CHALLENGES HEAD ON

We are putting a stake in the ground, and facing our challenges head on. We owe it to our students, alumni, and friends to take bold steps to place SCSU in a position of strength as we move forward. We know our work together to adjust for a more competitive SCSU will mean making difficult decisions. Rather than rushing to make big symbolic cuts across the board, we have a strategy... to guide our decisions. We are taking this moment to define what SCSU will be known for by future generations of students. We are focusing on our excellence and deepening our Husky pride for our great institution.

OUR STRAT…GY

» Investing in campus and online programs to extend our reach to learners at different stages of their lives, who are seeking flexibility and content designed for workplace success.

» We are focusing our degree programs to align with student interests and high-demand careers.

» Our focus is firmly set on student success. Whether a student is already excelling or in need of additional preparation, our Huskies are seen, and we are ready to connect them to life-changing experiences.

» We are growing graduate programs to advance new and working professionals. And our supportive environment brings more ease for balancing the responsibilities of work and life.

» We support and advance diversity, equity, and inclusion (D…I) in our program offerings, campus engagements, and efforts to support a welcoming Husky community.

For us, being strategic means that we are careful and intentional in our decision making. We are using data and other relevant information to inform our next steps. And as we appreciate that change can be difficult, we are seeking ways to improve not only our student experience, but the experience of our employees.

FACTORS IMPACTING OUR BUDGET

We are feeling the impact of a decade-long pattern of decreasing enrollment, tuition and housing revenues, and state and federal funding. And while we weathered through COVID 19 as a community, the pandemic accelerated our financial losses by millions ($20.7M for FY2020-2023).

Our revenues simply can’t keep up with instructional costs and other expenses for running a university. And for nearly a decade, we’ve been struggling with an on-going ‘start each year to solving a deficit ’ process with our budget.

Revenues have been persistently less than our expenses and we have not been able to get out from under the deficit. This hurts our ability to compete with other universities for enrollment.

Right now, SCSU is facing an $18.3 million structural deficit and we are taking steps to address it, once and for all. We have a plan to build our financial stability over the next five years with focused investments to deliver a highquality education for our students.

We are TAKING CONTROL of our future. We are BUILDING ON OUR STR…NGTHS as we set the future of SCSU on sound financial footing. We are FOCUS…D ON GROWTH by investing in programs that provide students with a high-quality academic experiences.

TAKING ON A CHRONIC STRUCTURAL DEFICIT

We’ve made some difficult decisions in the past with cuts and reorganizations. But our instructional and staffing costs are significantly more than our revenues. Simply put, we are inefficient, and these inefficiencies impact how we operate and what level of support we receive from state funding.

We’ve temporarily ‘solved’ our budget shortfalls with funds that we would normally keep on reserve, similar to a savings account that many would rely on for a rainy day or unexpected expenses. This kind of budget strategy is risky and unsustainable, especially for today’s system of higher education.

ADDRESS THE GAP

Not in compliance with reserve requirements

HOW W… BUDG…T: Use reserve/cash Make reductions Adjust operations

2023 / actual

FLIPTHESCENARIO

EXPENSES

WHERE WE ARE

Our structural deficit is a chronic condition as revenues have been persistently less than our expenses over time.

FLIPTHESCENARIO

ADDRESS THE GAP

In compliance with reserve requirements

HOW W… BUDG…T: Save Invest Grow

2024-2028 / ideal

WHERE WE NEED TO BE

The only way to solve a structural deficit is to work within a balanced operating budget, over time, and without using reserves.

Our Approach

Our approach is thorough as we put everything on the table and work painstakingly to identify areas for savings and areas for investment. Decisions are informed by data and by other considerations that feel right for the future direction of SCSU. We are aligning our choices with the vision of It’s Time as we are building on our strengths and determining a focused portfolio to prepare students for in-demand careers.

FOURDISTINCT AREASOFFOCUS

HOLISTIC HEALTH AND WELLNESS LEADERSHIP

EDUCATION ENGINEERING & APPLIED SCIENCE

We are growing our nationally recognized programs and strengthening our foundation in the liberal arts

These kinds of decisions we need to make can be difficult, and we are mindful of the impact they will make on members of our campus community. But our work will continue, with our students at the heart of what we do, and a plan that is focused on the success of our Huskies and SCSU.

FOCUSING OUR PORTFOLIO OF OFFERINGS

Using SCSU enrollment data, we reviewed all degree programs, majors/minors, concentrations, and certificates.

Some proposed areas will no longer be offered. Student admissions to these areas will be suspended. All students will have support and resources to complete their degree programs.

At its core, It’s Time centers around serving our students in our learning environments online and at our St. Cloud, Plymouth and Alnwick campus locations. Because of this, Our Husky …xperience is what sets St. Cloud State apart. By providing Husky Student Success Advisors combined with a world-class education that provides the tools and critical thinking skills needed to succeed, our graduates leave SCSU prepared to meet the ever-evolving and changing needs of organizations in our region, state and world. Being a Husky is about belonging and contributing to something greater.

CREATING NEW SYNERGIES

We are rewriting the old playbook that prescribes how and what students learn for career preparation. Instead, we are leveraging the expertise of our faculty and aligning them with programs to extend our reach into refreshed and compelling learning environments for our students. Our Huskies are at the leading edge.

We are investing in:

• Accelerated online programs to drive enrollment, diversify our student body, and extend our marketing reach.

• Aligning programs that complement each other to prepare graduates for career success.

• Connect faculty expertise access disciplines to inspire students while meeting workforce demand.

Partnerships with our community to mutually benefit form shared knowledge, resources and experiences.

ADDRESSING INSTRUCTIONAL INEFFICIENCIES

We carefully analyzed our costs for instruction. We reviewed all degree programs, majors/minors, concentrations, and certificates using SCSU enrollment and Minnesota State Cost Study data. We set out to determine where there are proportionally more faculty than students and if program delivery cost is significantly more than comparable programs in the Minnesota State system. Other factors were considered to make decisions that make sense for a given program.

We are proposing personnel reductions in our instructional units. We expect students will experience little or no disruption to their progress.

Making reductions in the number of employees is always a difficult decision. We know that these changes can make a big impact on the members of our Husky community. And we are thankful for all of our employee contributions through the years. With the generous One-time Campus Support Allocation, we will be able to offer more voluntary separation packages to those who are eligible. These funds and other efforts to find savings helped us to save jobs.

Our Focus for the Future

THE MINNESOTA INSTITUTE OF TECHNOLOGY DRIVES COLLABORATION ACROSS DISCIPLINES AND CAREERS

Technology touches all aspects of people’s lives — from work and education to home life and recreational activities.

Because of this impact and the undeniable role that technology plays across our lives, SCSU took a bold and innovative step in integrating technology throughout departments and disciplines across campus by creating The Minnesota Institute of Technology at St. Cloud State University (TMIT), the first of its kind in Minnesota.

TRANSFORMING LIVES THROUGH THE APPLIED BEHAVIORAL ANALYSIS PROGRAM

St. Cloud State University’s Applied Behavior Analysis master’s degree program provides students the opportunity to transform lives. These students learn by working directly with patients and their families affected by autism spectrum disorders to determine strategies that work best for their unique situations. The rigorous program consistently ranks among the top graduate programs that are available online. As the need for professionals in Applied Behavior Analysis grows across the country and globally, SCSU’s program serves students on campus as well as internationally, reaching students and helping communities across the globe. Intercultural awareness is built into every aspect of the program, allowing students to meet the needs of families from all types of backgrounds.

THE NEW AUTISM DISCOVERY CENTER

SCSU’s new, donor-funded Autism Discovery Center brings students cutting-edge, research-based learning through both traditional in-home care and telehealth practices. Through this unique campus-based center, students work with patients and families in the St. Cloud area, providing a true training clinic and resource for the community. Students apply what they’re learning in the classroom, working with patients and families on everything from behavior management and skill acquisition to social skills and preparing them to attend school. SCSU’s center prepares students to thrive as practitioners, and the upcoming PsyD program will prepare students to hit the ground running as successful clinic leaders immediately after graduating.

As we are reimagining SCSU, there is so much to be proud of.

INDIVIDUALIZED STUDENT SUCCESS

HUSKIESADVANC…:

A holistic approach to learning, with students designing an experience in addition to their major that fits their professional and personal goals by earning certificates in one of six specific areas of interest: Environmental Sustainability, Social Justice, International Engagement, Entrepreneurship, Leadership and Civic Engagement. This approach allows for a richer and more well-rounded educational experience. Students engage in planning their learning portfolio early on and quickly learn how their education builds their knowledge, practical skills, and confidence. The distinction is noted on their transcript.

HUSKY STUDENT SUCCESS ADVISORS:

Challenges facing college students today are as diverse and nuanced as students themselves. That’s why St. Cloud State provides individualized support through our Husky Student Success Advisors, striving to help all Huskies achieve academic goals and overcome challenges at any point in their college experience. This level of individualized support is rare for universities of our size.

PROVIDING OPPORTUNITY THROUGH PROFESSIONAL SELLING

One of the important elements of the It’s Time work is to create programs of distinction that provide our students with real-world training and skills that employers are seeking out and need.

As part of the Herberger Business School, the Professional Selling Specialization (PSS) program helps meet the needs of the ever-growing professional selling and sales management fields, and strengthens students’ competitive advantage as they begin and pursue their careers. The specialization provides students with the essential communication, leadership, professional selling and sales management skills to succeed. It is open to students of any major — a unique aspect that sets St. Cloud State’s PSS program apart.

GRADUATE DEGREES WITH REAL-WORLD FLEXIBILITY

Often, when it comes to pursuing an advanced degree, one of the biggest hurdles is time. As St. Cloud State continues to find new ways to meet students where they are at, flexibility is key — especially for working adult learners. St. Cloud State offers a variety of online graduate programs in both business and education with 100% online learning options that are affordable, offering the flexibility needed to meet the real-world demands of today’s learners — and today’s workforce and businesses.

PRIORITIZING DIVERSITY, EQUITY AND INCLUSION

At SCSU, we are making significant strides in advancing equity and inclusion. The Antiracism Institute demonstrates St. Cloud State’s commitment to invest in new and innovative projects intentionally designed to dismantle systemic racism through teaching and research. Faculty involved in the Antiracism Institute facilitate conversations and projects to integrate antiracism throughout the institution and its policies and practices.

We are aligning our efforts with Equity 2030, a strategic vision that supports every Minnesota State college and university in closing the educational equity gaps across race and ethnicity, socioeconomic status, and geographic location by the end of the decade. (minnstate.edu/…quity2030)

POPULARITY OF GAMING TURNS INTO CAREERS AND COMMUNITY BUILDING

As part of the University’s It’s Time vision and its focus on delivering academic programs of distinction while providing an individualized student experience, the esports program offers unique opportunities. Students gain exposure to, and develop skills in, translating gaming interests into a potential career. Even more importantly, as students organize around gaming activities, they benefit from being part of a community of Huskies with similar interests and varied strengths.

THE CENTER FOR INTERNATIONAL DISABILITY ADVOCACY AND DIPLOMACY

The Center for International Disability Advocacy and Diplomacy (CIDAD) at SCSU is a University center and hub for interdisciplinary research and advocacy to promote the rights of people with disabilities locally and globally.

CIDAD’s five pillars:

• Strengthening cross-cultural knowledge and understanding through global academies

• Developing strategic networks and partnerships for advancing the U.S. CRPD

• Promoting and advancing the rights of people with disabilities through education and training

• Promoting scholarly research, training and development

• Promoting diversity, equity, inclusion and accessibility at all levels of public policy and diplomacy

TEACHER-SCHOLAR MODEL COMBINES LEARNING WITH HANDS-ON, REAL-WORLD LEARNING EXPERIENCES

The University’s teacher-scholar model combines faculty members’ traditional role of teaching in the classroom along with actively researching in their fields. Students are often a vital part of this research, giving them real world experience in the classroom to enhance and often accelerate their learning. This model of integrating research, scholarship and creative work with students creates a culture of innovation by bringing new approaches to teaching and learning by allowing faculty to return to the classroom with relevant examples and up-to-date perspectives.

INTERNATIONAL PARTNERSHIPS GIVE STUDENTS WORLDWIDE PERSPECTIVES

As part of the It’s Time initiative, SCSU is dedicated to extending its global reach to give students a wider and more diverse learning experience. Through its Center for International Studies, SCSU has options for international interaction both abroad and on-campus in central Minnesota. In addition to offering over 45 study abroad programs, SCSU opens its campus to more than 1,200 international students from over 96 different countries each year. This accounts for about 12% of SCSU’s student body.

Learn How You Can Support SCSU

Our work to reimagine St. Cloud State University into a new kind of university will continue. As we build a budget on strong financial footing, we will invest in offerings that will grow our enrollment.

OUR INDUSTRY PARTNERS MAKE A BIG IMPACT

Continue to connect to our faculty-scholars and the Career Center to make big impacts on our Huskies. stcloudstate.edu/careercenter

ONCE A HUSKY, ALWAYS A HUSKY!

Share the news that we are making bold changes for a bright future. Continue to connect with us and give back to your Husky community. stcloudstate.edu/scsuproud

WE VALUE OUR COMMUNITY PARTNERSHIPS

Continue to engage with us and mutually benefit from shared knowledge, resources and experiences. stcloudstate.edu

AND FOR PROSPECTIVE AND CURRENT STUDENTS, WE’VE GOT THIS, AND WE’VE GOT YOU.

We are focused on your future and continue to develop new ways to prepare you for careers that are cutting edge and in demand. It’s a great time to be a Husky! stcloudstate.edu/admissions

St. Cloud State University does not discriminate on the basis of race, sex, color, creed, religion, age, national origin, disability, marital status, status with regards to public assistance, sexual orientation, gender identity, gender expression, or status as a U.S. veteran. For additional information, contact the Office for Institutional Equity & Access, (320) 308-5123, Admin. Services Bldg. Rm 121.