On Monday, June 20, we made the case once again for investment in the University of Minnesota, and the Board of Regents approved the University's recommended provisional budget for 2011-12 by a 9-2 vote. The great baseball player and manager Casey Stengel once famously said, "Managing is getting paid for home runs someone else hits." The same applies to leading a university. You cannot accomplish transformative change in an organization the size and complexity of the University of Minnesota without consensus, collaboration, and the hard work and dedication of countless stakeholders across the state. You cannot go it alone. 

During my nine years as president, the University of Minnesota has recruited more and better-prepared students; retained and graduated those students in higher numbers; raised unprecedented private support for scholarships, fellowships, and the University's academic mission; grown its research enterprise to garner record levels of federal support; and managed existing resources in order to sustain this momentum despite three separate, deep state budget cuts. We've come a long way -- but these are not my achievements, nor my wife, Susan's. We must give credit to the countless extraordinary colleagues whose hard work and dedication have made this University a stronger, better place, including:

• the best executive team I've seen in more than 40 years at the University of Minnesota;
• faculty and academic/professional leaders who set the gold standard in shared governance and productive engagement;
• thousands of dedicated staff without whom the University could not maintain its statewide presence and three-fold mission of education, research, and public engagement; nearly 70,000 students, who are our primary reason for being and our future; and
• the state of Minnesota and its citizens, who for 160 years have recognized the value of advancing knowledge for the public good.

Furthermore, I've been truly blessed to enjoy an exceptionally strong partnership with the University's Board of Regents, which has shown great courage in supporting difficult and controversial reforms at the University during my tenure. Together we have created a culture of unquestioned commitment to teaching and learning, discovery and innovation, and service for the public good. Together we have generated new knowledge, new graduates, new ideas, and new jobs. Together we have made magic. 

Writer and former Herman Miller CEO Max De Pree once said that the last responsibility of a leader is to say thank you. On behalf of my wife Susan and myself, I offer my heartfelt gratitude for everything the University has achieved. Thank you for your support, your well-wishes, and countless wonderful memories.

Sincerely,

Robert H. Bruininks,

President 

For more on the Bruininks administration: 

From fiscal year 2001 through fiscal year 10: 

• Total employee headcount: up 6.9%, or 0.7% per year 
• State appropriation per employee: down 0.9% 
• State appropriation per full-year equivalent student: down 11.5% 

During that same period: 

• FYE students per employee: up 11.9% 
• Degrees per employee: up 31.8% 
• Sponsored research funding per employee: up 50.2% 

Also during this time, the University has recruited more and better-prepared students; improved the student experience through the all-University Honors program and other initiatives; retained and graduated those students in higher numbers; raised unprecedented private support for scholarships, fellowships, and the University's academic mission; grown its research enterprise to garner record levels of federal support; transformed our technology commercialization processes; and managed existing resources in order to sustain this momentum despite three separate and historically deep state budget cuts. Unfortunately, today Minnesota is among the leading states in the nation in reducing funding for higher education.

I hope you will each take the time to review the report and reflect on the scope and magnitude of our achievements together. We've come a long way these past nine years, and I am truly grateful for your hard work and support.

Sincerely,

Robert H. Bruininks

President

Last month, Governor Dayton vetoed budget bills that would have reduced state funding for the University of Minnesota to levels not seen since 1998, and the Minnesota Legislature adjourned without successfully negotiating a new state budget. While I am grateful for the governor's actions to support better funding for higher education and deeply discouraged by the gridlock at the Capitol, as I said in my May 5 message, it is still necessary to present a balanced 2012 budget to the Board of Regents for action in June in order to have a budget in place at the start of the new fiscal year July 1.

The difficulty, of course, is making appropriate assumptions about state funding in order to model likely and alternative scenarios so that the Board of Regents and the next administration are positioned well for whatever state budget is eventually approved. The Regents previewed the 2012 provisional budget at their May 13 meeting; the timeline for reviewing and acting on the budget is as follows.

Unfortunately, due to the deep reductions proposed by both chambers of the legislature as well as the conference committee, we must plan for the worst, even as we continue to work tirelessly to improve our legislative outcome. We expect that Governor Dayton and members of the legislature will advocate for moderation regarding the University's proposed budget reductions; however, we also expect that state reductions will still be deep. To address them, I will recommend a fiscal 2012 budget that includes:

• more than $40 million in unit reductions, including elimination of staff positions (largely through voluntary strategies), reduced expenses, reduced reserves, restructured operations, and elimination of programs;
• more than $23 million in productivity gains, including new, uncommitted tuition revenue from growth in student credit hours and enrollment, as well as other miscellaneous revenues;
• a five-percent tuition increase for most resident undergraduates; and
• the University's third wage and salary freeze in the past decade (subject to collective bargaining).

It is important to note that budget planning has been under way for months now, and includes strategies to proactively manage our biggest cost center -- our talented faculty and staff -- while preserving employment and moderating unplanned job losses. The most recent retirement incentive option (RIO), for example, prompted nearly 350 eligible faculty and staff to participate, with projected long-term savings (salary, wages, and fringe benefits) of more than $30 million. On average, approximately 60 percent of vacated positions are not refilled; the other 40 percent are generally refilled at significantly less expense than the original position.

In addition, we are planning changes to fringe benefits (also subject to collective bargaining), including increased medical premiums and co-pays for employees; restructured administration of our healthcare benefits to reduce costs; and higher retirement contributions from new faculty and academic staff.

Our planning also includes contingencies and principles to guide our operations in the case of a state government shutdown in order to avoid disruption to our educational programs and research commitments, ensure continued patient care and services for our clinical programs, safeguard our fiscal integrity, and appropriately support our employees and our physical infrastructure. Although the loss of state support (temporary or permanent) and the possibility of a shutdown pose challenges for the University, I am confident we can navigate these challenges especially if they are short-lived.

First, let me reassure you that the University will remain open for business. The University of Minnesota operates on a year-round basis, with clinical care responsibilities and summer programs, which expect to serve some 19,000 students in the next few months. We also have contractual obligations to numerous external funders, including the National Institutes of Health; the National Science Foundation; other federal agencies, foundations, and non-profits; and business and industry partners. We cannot interrupt these contractual activities with a total shutdown. Furthermore, any disruption puts additional funding, including new faculty research proposals and long-term partnerships, at risk and would simply cause further harm to our academic mission.

Second, we are hopeful that any state government shutdown would mean only a short-term, temporary interruption in the flow of funds from the State of Minnesota. During the current fiscal year the state temporarily withheld $89 million in state appropriations; it will return those funds to the University by the end of this month. The University, like any large and complex organization, continually manages fluctuating expenditures and revenues, and the payment of these funds will assist us in weathering a short-term disruption in the flow of next year’s state appropriations to the University.

University officials have been aware of a potential state government shutdown for several weeks and have been planning a variety of short-term actions to minimize any impacts on faculty, staff, and students; the communities we serve; and the long-term financial health of the U. It is unclear how long the current state budget impasse will last; however, appropriate plans are in place, and we are confident that we can manage through any short-term disruption without impacting day-to-day operations.

Finally, I want thank you for your perseverance and hard work. In difficult economic times, outstanding faculty and staff like you have absorbed state budget reductions that have not only impacted your work, but also have taken a significant toll on your household budgets. Yet every day, you continue to deliver on our mission:

• recruiting and retaining more students,
• granting more degrees per year,
• generating historic levels of competitive research funding and private support,
• finding creative ways to reduce costs and increase productivity, and 
• returning more than $13 to Minnesota's economy for every $1 of state investment. 

You can expect another communication later in June with more information about our circumstances and planning. In the meantime, we must continue to tell the legislature that such productivity on the state's behalf should be rewarded, especially during lean times, when every job and every dollar of external support matter. The University has always been committed to aggressively presenting our case for state support through the outstanding advocacy of our senior leaders, Regents, faculty, staff, students, alumni, and friends. I do not know if state policy-makers will be swayed, but we will continue to fight for this most critical of state assets: the University of Minnesota. 

Sincerely,

Robert H. Bruininks

President