UMD Reveals Plan to Reduce Budget Deficit

The University of Minnesota-Duluth announced plans Tuesday to balance the school’s budget deficit. 

UMD has been working to chip away at it’s budget deficit since 2014.  The deficit started at $12 million dollars. 

Today, the recurring imbalance is $4.3 million.  The school credits increased investments from the University of Minnesota system, revenue growth and strategic funding reductions for the drop. 

For the next two fiscal years, the University of Minnesota has allocated one-time funds of $1 million each year, bringing the deficit to $3.3 million. 

The framework has six components to eroding the budget deficit: 

1) Required savings budget process

Campus offices and departments would be given a target amount to save

2) Academic administrative restructuring

A reassessment of the campus academic administrative structure to determine if having three colleges rather than the current five college model would save money, create operational efficiencies, and enhance interdisplinary programs. 

3) Academic Program and Course offering Optimization

Programs would be prioritized based on strategic priorities, enrollment, interdisciplinary program support, and contribution to the liberal education mission

4) Targeted reductions, tuition, and revenue generation

Determining where additional eliminations could occur with least impact on strategic plan priorities

5) Enrollment growth and Reinvestment

Growing enrollment in areas of high demand

6) Deficit reduction and investment fund transfer

Units would be encouraged to retain 75 percent of any carryforward balance with remaining 25 percent to be used to retire the deficit

The next steps will be for UMD to collect feedback from the campus and present the plan to the University of Minnesota in early March.  The school will then implement an action plan.