OHE: Tuition now funds 59 percent of MN public colleges

Over the years

Just got the state Office of Higher Education’s reaction to results from the report on higher-ed finance released today by the State Higher Education Executive Officers.

The main message: Higher ed is relying increasingly on tuition for funding.

Below is the OHE’s reaction. After that comes a full copy of the report.

You can also see here the original version of the chart above. Scroll through all the state’s charts till you get to it.

Here’s an edited version (for length) of the OHE statement:

As indicated in the report, enrollment in public postsecondary education increased by 2.4% nationwide over the past year, while state support[i] per student in constant dollars decreased by nearly 4% and net tuition per student increased by 4.7 %.

In Minnesota, public higher education enrollment decreased slightly (less than 1 percent) in 2011, state support decreased by 14% per full-time student in constant dollars, and net tuition[ii] increased by 12.8% per student in constant dollars, when compared to 2010. As a result, total educational revenue per public student in Minnesota remained about the same between 2010 and 2011.

Information provided for the years 2006 – 2011 shows state appropriations for public higher education per full-time student in Minnesota decreased by 21%, while spending per full-time student increased between 5 and 6 percent. This gap has been covered by student tuition, which in 2011 comprised 59% of public higher education revenue in Minnesota.[iii] This is an increase of 15 percentage points over 2006, according to SHEEO.

This report, coupled with previous studies on tuition and student debt led to the following observation by Larry Pogemiller, Director of the Minnesota Office of Higher Education:

“Minnesotans are continuing to invest in higher education in spite of decreased state funding,” said Pogemiller. “However, to do so, education has had to rely on tuition revenue with students and families borrowing more.

Finding a way to maintain quality while curtailing student debt is one of the most pressing policy issues facing higher education.”

i For the purpose of this study, state appropriations from agriculture, research and medicine are deducted first for comparative purposes.
ii The 12.8% is a statewide comparative figure between the University of Minnesota and Minnesota State Colleges and Universities and does not fully account for state appropriated financial aid.
iii The national average for net tuition revenue as a percent of total public sector revenue is 43.3%.