Why I was Confused

First some background to explain why I got so worked up over all of this in the first place. In January I understood the two problems MSUM faced:

• structural deficit (too little tuition, enrollment not keeping up with system)
• cut to base budget because state budget forecast for the next biennium was terrible.

Then one day I got email saying the stimulus bill had passed and that it would guarantee funding at the FY2008 or 2009 level, and I thought "Yippee! The base budget cut is gone, we can do a gentle adjustment to the size of the institution!" I might even have done a happy dance.

Then I went to the President's open forum in March and was confused--the level of personnel cuts was the same as before stimulus, the stimulus was going to be used to pay the one-time costs of layoffs and early retirements, and we were now looking ahead 4 years rather than 2.

When asked about the stimulus money, the President said the one time costs were previously going to be paid out of reserves, and that we would likely need the reserves in two years.

I left very confused, and came out of the April open forum with the impression that MnSCU was asserting that stimulus money could not be used for ongoing costs.

I am now a lot less confused, though ultimately also less happy.