

The school says its appeal -- a $91.6 million, or 8.4 percent, increase over the current biennium -- comes with an unprecedented level of accountability. Along with the tuition freeze, it establishes five measurable performance goals and an initiative to pour state dollars into promising research.

"This is a different package from previous years, focused on accountability in these very difficult economic times," said Jason Rohloff, the university's lobbyist.

Still, he acknowledged that selling legislators on the added investment might be "a challenge, given the state budget shortfall."

U President Eric Kaler will present the proposal to the university's Board of Regents on Friday, Sept. 14. The board will vote on it at its October meeting and forward it to the state later that month.

Amid shrinking state coffers, a growing number of states have explored performance-based funding for public universities. They are tying fractions of state aid to specific goals, especially graduating more students -- and graduating more of them on time.

Universities in turn have felt pressure to bring more specifics into their funding appeals, prompting "a dialogue that's crisper and more candid about what the goals are," said Michael Tanner, vice president for academic affairs at the Association of Public and Land-Grant Universities.

Rep. Bud Nornes, the Republican chair of the House higher education policy and finance committee, praised the U proposal's focus on keeping tuition flat and boosting efficiency.

"This request is a big departure," he said. "I do appreciate the university's efforts to think outside the box."

But until more clarity about Minnesota's financial shape is forthcoming in the early spring, Nornes said, "It's premature to say we can make this happen."




In addition, the university is setting itself five improvement goals -- from beefing up financial aid to increasing graduation rates -- and asking the Legislature for an additional $11.5 million in the second year of the biennium if it meets at least three of them.

In essence, the university is taking a legislative stick and recasting it as a carrot: The goals are similar to ones the Legislature set for the U last year. The state will withhold 1 percent, or about $5 million, of the U's funding if it doesn't meet at least three of these goals.

At the time, some regents sharply criticized the move. They questioned its constitutionality and its implications for the school's autonomy.

"This time, the university is proposing (the goals) ourselves," said Chief Financial Officer Richard Pfutzenreuter, who unveiled the proposal Thursday. "We're saying, 'OK, we'll accomplish this, and you'll release that $11.5 million.' "

In addition, the university is pitching a new legislative initiative called MNDrive -- $18 million in recurring state investment into five research areas where the U believes it's poised to make economy-spurring discoveries. These include robotics and treatments for brain conditions.


"When you go to the Legislature and ask for increased funding, you also have to do some lifting of your own," Pfutzenreuter said.

Linda Cohen, the Board of Regents chair, said she is pleased with the proposal's emphasis on holding the line on tuition and investing in research.

"We recognize the state doesn't have a lot of money," Cohen said. "We're asking for a measured increase to that puts us back where we were a decade ago in terms of state dollars."
