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The state budget deficit

Minnesota legislators and Governor Pawlenty must pass a two-year budget (for fiscal years 2010-11) that addresses the state's $4.8 billion deficit. One-time federal stimulus money (much of which is committed to education funding) could fill in for expected reductions in the U's base budget, providing much-needed support for the state budget for the next two years.

When the stimulus program ends in FY 2012, the U's funding would likely fall back to a lower level yet to be determined. Because these one-time dollars cannot be used to sustain the ongoing costs of running the U, it remains critical that the U substantially reduces its state-supported spending to account for decreased state funding in the future.

The U asks state leaders to preserve our economic and academic value and vitality throughout this process. We recognize our responsibility to help address today's budget problems, but we must not compromise the U's long-term capacity to serve this state.

The U has a responsibility to help the state balance its budget. At the same time, the state needs to keep its top economic engine healthy for the long haul.
Federal stimulus dollars will help in the short term, but they cannot support the ongoing expenses of running the U.
State leaders must find a way to balance its budget without diminsihing the U's economic and academic value to the state.

How is the U meeting today's economic challenges head-on?

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