Photo by Deb Gau Southwest Minnesota State University students collaborate on the campus late last week. SMSU is one of the Minnesota State colleges and universities that could stand to benefit from a projected state budget surplus. The Minnesota State system is requesting $60 million in supplemental funding that could prevent tuition increases in the 2022-23 academic year.

MARSHALL — With Minnesota facing a $7.7 billion budget surplus, state legislators will be faced with some important opportunities. That includes a chance to invest in higher education, said Minnesota State Chancellor Devinder Malhotra.

“We are asking for $60 million as a supplemental budget request,” for the Minnesota State system of colleges and universities, Malhotra said last week during a video conferencing session with the Marshall Independent last week.

While it sounds like a lot, $60 million represents less than 1% of the state’s total surplus.

“The projected $7.7 billion state budget surplus … presents a tremendous opportunity for the state and Legislature to make an investment in higher education in general, and in our colleges and universities in particular,” Malhotra said.

“Colleges and universities of Minnesota State are facing a significant need for support from the Legislature, both to deal with the ongoing lingering impact of the pandemic, but also to meet workforce shortages where our colleges and universities are critical.”

Minnesota House Rep. Chris Swedzinski, R-Ghent, was asked about the Minnesota State University request while speaking to the Marshall Noon Rotary last week.

Between the supplemental budget request and facilities funding requests, it’s possible that state schools like Southwest Minnesota State University could get some funding this session, Swedzinski said.

“I’m not sure what that will be at the end of the day, from a $60 million supplemental budget,” he said.

Half of the requested $60 million would be for campus support, Malhotra said.

“In the fiscal year 2022-23 biennium, the legislative appropriation was $30 million less than our request for campus support,” he said. That support would help Minnesota State meet inflationary needs and support educational services for students. “So we are asking for $30 million which was not given to us in our biennel budget request.”

Another part of the supplemental budget request was $25 million to freeze tuition for the upcoming year, Malhotra said. Without that funding, Minnesota State colleges and universities will have to raise undergraduate tuition by 3.5% for the 2022-23 academic year.

“With inflation being the highest it has been in decades, this could be a key way to really relieve inflationary stress our students and our campuses are feeling,” Malhotra said.

Over the past five years, Minnesota State universities have not received state funding in lieu of tuition, and tuition rates have increased, according to data provided by Minnesota State Communications Director Doug Anderson. For the 2022 fiscal year, tuition rates increased by 3.3% for Minnesota State colleges and 3.5% for universities. Minnesota State tuition rates could increase up to a maximum of 3.5% for the 2023 fiscal year.

Malhotra said the $60 million supplemental budget request would also include $2 million to fund mental health support for students, as well as funding to help address issues like food and housing insecurity for students, and funding aimed at career and technical education.

“Meeting the workforce needs of the state requires a sustained investment in our students,” Malhotra said.

The 30 colleges and seven universities in the Minnesota State system play a key role in providing education/training to filling workforce shortages in Minnesota, he said.

“An example — with less than one week’s notice, 16 of our colleges provided emergency training for approximately 400 National Guard (members) for deployment as emergency temporary nursing assistants,” Malhotra said. “This initiative is now being scaled up to recruit, train and deploy at least 1,000 new nursing assistants by the end of January, at the Governor’s Office’s request.”

Besides health care needs triggered by the COVID-19 pandemic, Minnesota also faces a shortage of qualified manufacturing workers. Malhotra said Minnesota State colleges and universities will also play a key role in filling that need.

Malhotra said Minnesota State is also making a capital bonding request, which includes $150 million for facilities maintenance. Compared to the Minnesota State system’s backlog of facilities needs, Malhotra said, “It is a very small and much needed amount.”

Facilities maintenance funding could be significant for Southwest Minnesota State University, Minnesota State leaders said. SMSU has presented bonding requests to the state House and Senate capital investment committees to help fund the design of a new wellness and human performance center. SMSU also has facilities maintenance needs, like renovating the campus’s original 1967 locker rooms.

In terms of whether SMSU will receive requested funding, Swedzinski said it means a lot that SMSU was the only state university to grow in enrollment last year.

“The supplemental (funding) is to essentially backfill the lack of students on a lot of these campuses so that they can operate. And what I’m not sure is, is what is the future? We’re seeing a lot more movement toward online classes,” Swedzinski said.

“So if it’s dollars that go toward just maintaining or building new buildings on our campuses, I think that really needs to be looked at closely. But if it’s just to maintain staff and keep people, and keep the talent on hand, that’s something as well, and I think that’s what the $60 million represents. I’m not sure that they’ll get all of it, but my guess is that they’ll get some.”

Malhotra was optimistic about legislators’ response to the supplemental budget request.

“The initial conversations we’ve had with legislators, they are very supportive of the institutions, colleges or universities located within their districts,” he said.

“We think over the years, both the legislators and the Governor’s Office have shown a great understanding and empathy to our needs, and also recognize the importance of investment in our colleges and universities and in our students. We hope that that trend continues.”