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Friday, December 4, 2020

State budget forecast and the implications for the U and CLA

 Minnesota Management and Budget, the state budget office, released updated state budget projections earlier this week. Their revised projections were favorable. Previously, the office had forecast a state budget deficit for the current year, Fiscal Year 2021. With the revision, the projection is now for a surplus for this fiscal year. This change doesn’t directly affect the University’s current budget, but it does reduce if not eliminate any requirement from the state for agencies and universities to find savings to plug a budget hole. 

The University, as President Gabel recently shared, does have a projected FY21 deficit of $150-175 million, spread across all units and campuses and including areas such as athletics, dining, and housing in addition to the academic enterprise. At next week’s meeting, the Board of Regents will discuss the tools available to address that shortfall.