What MnSCU says seems, um, contradictory: stimulus can pay for operating costs

Warning: this is a rant. Read it for entertainment if you want, but the other posts have more info.

It didn't seem right to me that the stimulus money wouldn't reduce layoffs at MSUM. As a co-worker put it, MnSCU's position is: we should take money that was meant to prevent job loss and use it to make sure we can lay people off without digging into reserves.

Brilliant. Stimulate the economy by taking federal money, putting it in the bank, and firing people.

I thought it would be hard to find evidence that MnSCU was misleading in saying the stimulus is "one-time" money that cannot be used for routine expenses like paying salaries.

Then I read this in Gov. Pawlenty's revised MnSCU budget:

The small – 2.6% – operating reduction in FY 2010 and FY 2011 should be manageable. The FY 2012 and 2013 reduction of 10.7% of forecast base will provide significant challenge to the system... (Page 9, "Relationship to Base Budget")

So MnSCU goes down 2.6% and we go down 10%? Why? The Gov says:

The Governor recommends that MnSCU focus its federal stabilization funding on minimizing tuition increases in these two years [FY2010 and 2011], and focus its general fund appropriation on maintaining its highest priority services and reducing
duplication among programs where possible. (Page 9, Recommendation, last paragraph)

Translation: Gov. Pawlenty recommends all stabilization money be used to minimize tuition increase. OK, fine. How is MnSCU proposing we do that? By paying for the costs of downsizing. Why? So we can reduce duplication among programs.

That is not a legal requirement or a condition of using the money. It is a policy decision by MnSCU or the Board.

Still not convinced? Go to the MnSCU stimulus website and look at the Meeting Materials, specifically the Overview of Funding Opportunities, and read slide 12:

Stabilization Fund (cont.)

• Uses of Funds
• Education and general expenditures [emphasis added]
  
• Mitigate the need to raise tuition and fees
• Modernization, renovation or repair of facilities used for instruction, research or student housing

What wouldn't count as education and general expenditures? Wait, I know...salary!

Finally, read the stimulus bill yourself. I'll have an excerpt posted in a bit.