U's Ettinger on declining enrollment, budget shortfalls

CATHY WURZER: Students are planning a walkout today at the University of West Virginia to oppose program cuts and to show support for the faculty and staff who may lose their jobs in a potential mass layoff. The school has a $35 million deficit, a deficit that's expected to balloon. Penn State has also made program cuts to reduce a deficit projected at $140 million.

These schools and scores of other institutions are suffering from budget shortfalls due, in part, to pandemic disruptions, enrollment declines, and other issues. A recent U of M Board of Regents meeting members, were told that the US seen a nearly 6% drop in enrollment system wide since 2019. It's part of this nationwide trend as the birthrate drops.

There are fewer high schoolers enrolling in post-secondary institutions. So how is the U of M dealing with these headwinds? Let's ask interim university president Jeff Ettinger who's on the line. Welcome, Mr. President.

JEFF ETTINGER: Thank you for having me, Cathy.

CATHY WURZER: U of M joins other Big Ten schools. Penn State, Nebraska come to mind with these budget issues. The legislature gave the U of M a $48 million check to deal with system level tuition shortfalls. Now you've looked under the hood of many businesses in your career. How serious are the universities' financial challenges?

JEFF ETTINGER: I think overall, the university's in solid shape. Clearly, we will be going to the legislature again in the upcoming year, both for bonding-related requests and also to talk to them about further support so that we don't have to have a big tuition increase next year. Overall, though, the University of Minnesota system really has steady enrollment.

64,000 students were in our system 10 years ago. And 64,000 are in the system here today. There has indeed been that drop since 2019. We have been gaining some ground. But overall, we're in a sound financial shape.

CATHY WURZER: But these headwinds, the U of M Regents heard about them, this enrollment cliff that the US is facing. So what about that? That sounds pretty serious.

JEFF ETTINGER: I've had the opportunity this week last week to travel to both the Morris and Crookston campuses and heading to Duluth later this week as has been the case with some of the MNSCU out state campuses. We have seen some enrollment declines in those areas. And we'll be working closely with the chancellors there to figure out good strategies to make sure we kind of level set those institutions and make them thrive from that level.

Overall, though, it is kind of a balancing act. We try not to have significant tuition increases. You try to get as much support as possible from the legislature for both the operating budget and for your capital projects. And we do a great job of attracting research dollars and donor provided funds as well.

CATHY WURZER: I know the legislature was asked for about $40 million to allow it to freeze tuition for resident undergrad students. Some state lawmakers think that if out-of-state tuition is increased, it would help subsidize education for Minnesota students. But I'm wondering if out-of-state tuition is cut, wouldn't that attract kids from other states who might stay here after graduation?

JEFF ETTINGER: I mean, that is the classic dilemma, Cathy. In terms of our out-of-state tuition, we are actually in the lower 1/3 in terms of our Big Ten peers. So you could make a case that a larger increase of out-of-state would be appropriate. But ultimately, it's about making sure that our campuses are thriving and we get as many students as possible. And if at some point, you price it too high or increase it too much, you would deter that.

CATHY WURZER: Higher education's financial problems were bad during the pandemic, but could have been a whole lot worse had it not been for the extra money the feds handed out to colleges. In a sense, it bought some time. You were picked to lead because you have this outside perspective. Given the demographics we've talked about the structure of higher ed, is there a financial reckoning coming for colleges and universities in this country?

JEFF ETTINGER: I think when you talk about higher education overall, I think there has to be a realization that the demographic trends are what they are, that there isn't a big influx of new students coming in the next 10 years. But that doesn't mean-- as you can in business, you establish sometimes a reset and say, hey, this is the new floor we're playing from. And let's make sure we're offering something compelling to, in this case, our students or our faculty at these levels.

CATHY WURZER: What's U of M's reset? What's the compelling offer that you're making students?

JEFF ETTINGER: We have just a world-class research institution. We provide all of the different medical major fields. We provide all of the other majors. We have a variety of campus experiences ranging from the big Twin Cities campus, but to also very hands-on opportunities in such places as Crookston and Duluth and Morse and Rochester. Ultimately, it's getting that University of Minnesota degree but having a variety of ways to attain that.

CATHY WURZER: Do you worry that will have to cut programs? We're looking at Saint Cloud State. We have a story we're going to have on the air here about Saint Cloud State getting rid of a number of different programs. Other colleges and universities are doing the same to balance their budgets. What programs might be on the chopping block? Do you see mass program reductions coming in the future?

JEFF ETTINGER: I don't have specific examples of programs nor do I think any mass change would be in the offing. I mean, at some point, whether it's a budget constraint at a given time or just the changes of times. People look at the burgeoning computerized areas that have happened over the last 10, 20, 30 years.

There are fields that if you have fewer students interested in a given program, you at some point have to make some adjustments in terms of what your offerings are in that case. But I think the group here tries to get ahead of that and has done a nice job of making sure we preserve offerings and as good a sense as we can.

CATHY WURZER: I wonder, given how things change, everyone's talking about artificial intelligence. Where would you like the U of M to go when it comes to some research on that to maybe monetize something developed at the U?

JEFF ETTINGER: Well, it's just been interesting even talking to both faculty groups and student groups about, OK, what is going to be the impacts of chat bot and these other options in terms of academic integrity? And is it a research tool, or is it a tool that's used for other reasons than that?

And I think as when the internet had its advent, I think we're going to have probably struggle through that initially. And it may change some evaluation techniques. But eventually, hopefully, we'll reach the good equilibrium of those.

CATHY WURZER: Say, I got to ask you about the whole U of M, Sanford Health, Fairview situation. Sanford Health dropped its controversial merger with Fairview. U of M and Fairview are still partners. But I'm thinking that partnership has been stretched a little thin given what we've heard from all sides. Is time running out to come up with a plan to deal with this partnership?

JEFF ETTINGER: Well, we're actually kind of on a dual track right now for the remainder of this fall until the end of the calendar year. The governor announced his new task force, which we welcomed. And we'll certainly be part of in terms of looking at the academic health systems.

The University educates 70% of the doctors and pharmacists and dentists and so forth in this state and has just a central role in that regard. But it will be a dual track with we will be having conversations with the Fairview organization. It's a 30-year arrangement, and we're in year 27 when it was drafted.

The notice provision to either stay with it or not expires at the end of this year. And so I think both the University of Minnesota and Fairview realized that the clock is ticking on that, and we'll be having constructive conversations to see if remaining in the partnership makes sense.

CATHY WURZER: Other dance partner's interest you? Say Mayo Clinic perhaps?

JEFF ETTINGER: We don't have any other specifics at this point. And that'll be another thing, I think, that the task force will help weigh in on as well.

CATHY WURZER: I have to ask you about campus safety. It's been a big concern over the years for students and parents of students. I'm wondering, the legislature gave you full funding for a system-wide safety and security investment. What are those safety improvements going to look like?

JEFF ETTINGER: We were very appreciative of that support from the legislature this year. In particular, all of our campuses, we continue to make sure we have robust procedures in terms of access to buildings and dorms, making sure that the students have right assistance and so forth. And then the funding will enable us to gain added technology, gain added personnel assistance, and really try to put us in a good position heading into this fall.

We recognize, particularly in the Twin Cities area, that there's on-campus activity, which clearly our University of Minnesota Police have the primary jurisdiction. And they do a great job with that. And then when you get into areas like Dinkytown and Stadium Village, it's really the primary jurisdiction is the city of Minneapolis, but we have a great partnership going right now between our police force and that group and are active all the time in trying to make those as safe as possible.

CATHY WURZER: And do you feel safe when you're on campus?

JEFF ETTINGER: Oh, I sure do. It's exciting. We have the big arrival of students is coming next week. In terms of my interim president role, I kind of started right after graduation. So it was pretty quiet around campus here those first couple of weeks. And then orientation kicked in.

But it's exciting to get ready for the arrival here. I was just up, and as I mentioned, Morris last week. And their arrival was Saturday. So it's happening. The fall is coming.

CATHY WURZER: I know that the recruiting of a new president in the quiet phase. And you are doing what you're doing is interim. What do you see your role as being in this time period?

JEFF ETTINGER: Well, my role in terms of the search, clearly, once they've designated their preferred candidate, I'll be working to transition with them. But otherwise, in consultation with the Regents, you can't treat anything as a caretaker job. I mean, things change. Things evolve.

One of the areas I've really tried to get right out of the gate and work on is in the area of government relations. So indeed even before I was officially in the office, I had been named. I made it sure I got to Capitol Hill and had a chance to meet with several of the legislators there.

And then we were very excited to announce last week the hiring of our new executive director of government relations Melissa Lopez-Franzen who will now be able to help us rebuild that department into a balanced, active, hands-on group that's going to really help us both at the state and federal level.

CATHY WURZER: Some faculty were not happy at all that you were picked, given that you're not an academic. Have you tried to mend fences?

JEFF ETTINGER: I mean, I've had great conversations with faculty. I've been meeting with the faculty leadership that's part of the Senate. It's a huge institution, and there's going to be people with different opinions at different times.

And as I think the Regents discussed, it may be one decision to have somebody with my background come in on an interim basis and a completely different decision when you look at the permanent role. But the shared governance is new to me, but obviously, it's a great blessing for me given that I have a more limited background on the academic side. And so having a systematized way of getting that input from faculty and staff and the students has really been helpful.

CATHY WURZER: Because you say this is kind of a little bit of a different role for you. You're used to being a CEO. What's been the biggest surprise of the job so far?

JEFF ETTINGER: I'd say the biggest adjustment, honestly, Cathy, is just adjusting to whole kind of the public meeting rules. I've been on corporate boards. I've been on nonprofit boards. I've been on trade association boards. And all of them had private board meetings.

And so suddenly, you're in an environment where basically all your meetings are broadcast. And when your consultants come in and give you advice, there it often is on the headlines in the paper the very next day. So it is what it is. It's an adjustment, but it's one that I'm prepared to tackle.

CATHY WURZER: All right. Now you have another meeting to attend. Thank you, President Ettinger.

JEFF ETTINGER: Thank you very much. I appreciate you having me today, Cathy.

CATHY WURZER: We've been talking to Interim University of Minnesota President, Jeff Ettinger.