MnSCU replenishes reserve fund; lawmaker wonders if it's too much

Author:
Updated:
Original:

For fifteen years the Minnesota State Colleges and University system (MnSCU) has been working on building up a rainy day fund. Now the reserve is approaching $100 million and a key lawmaker is raising questions about why that much money is sitting in the fund and how it will be used.

The St. Cloud Times reports Rep. Gene Pelowski is considering holding Capitol hearings on the issue this fall. Pelowski is a Winona DFLer who chairs the House committee overseeing state colleges and universities.

The Times reports MnSCU's reserve fund has grown from $38 million in fiscal year 2003 to $99 million last year. A MnSCU spokesman tells the newspaper the increase has solidified the system's financial footing. And a national expert on university finances says a reserve of that size is in line with what hundreds of other colleges maintain.

Pelowski, though, says a $100 million reserve "is a paradigm we can no longer sustain." Tuition rates have climbed for most of the past decade, although a tuition freeze was enacted this year when the Legislature boosted state funding for higher education.

Over in Wisconsin the UW system took criticism this year for keeping a surplus of nearly $1 billion in reserve. The Milwaukee Journal reported the system has an annual budget of $5.6 billion.

Next Up

protest, chauvin, george floyd

Walz: Demobilization of troops, police to happen 'as quickly as possible'

It's unclear just when troops and police will pull out of the Twin Cities.

Screen Shot 2021-04-20 at 5.33.13 PM

'The first step towards justice': AG Ellison calls for change after Chauvin conviction

Ellison's office led the prosecution of the former Minneapolis police officer.

chauvin

Derek Chauvin guilty on all counts in George Floyd's death

Chauvin was charged with second-degree murder, third-degree murder and second-degree manslaughter.

Screen Shot 2021-04-20 at 4.13.07 PM

LIVE UPDATES: Reaction as Derek Chauvin is found guilty on all counts

We bring you the latest reaction after the verdict in the Derek Chauvin trial.

Derek Chauvin

Watch live: Verdict in Derek Chauvin murder trial

The verdict will be announced between 3:30 p.m. and 4 p.m. Tuesday, April 20.

derek chauvin court - closing arguments

Verdict reached in Derek Chauvin murder trial

A verdict will be read Tuesday afternoon.

logan olson gofundme

18-month-old boy who nearly drowned welcomed home with police escort

Logan Olson was found in a retention pond in Stewartville on April 7.

covid, vaccine

Is Minnesota's latest surge plateauing? Expert says 'no idea'

Hospital admissions have leveled off in the past week, though ICU cases have risen.

Related