January 2011 newsletter
What to expect on higher ed policy in 2011
With the legislative session starting Jan. 4, there are a host of new leaders in positions to address higher education policy issues. First in line is higher education funding, and it might squeeze out consideration of much else. The challenge is that the calls for increased funding — for need-based State Grant aid as well as public institutions’ budgets — run up against the massive state deficit and the cuts that it will require.
Leadership changes
The many Republican victories
in fall legislative elections switched control of both the state House
and Senate, leading to changes as well for higher education committees.
- Sen. Michelle Fischbach, R-Paynesville, is chair of the Senate Higher Education Committee. Her district includes the College of Saint Benedict and Saint John’s University. A graduate of St. Cloud State University, she is new to the committee. Of the 13 other senators on her committee, six are new committee members and four of those are new to the Legislature.
- Rep. Bud Nornes, R-Fergus Falls, is chair of the House Higher Education Committee. His district includes Minnesota State Community and Technical College. A graduate of Brown Institute of Broadcasting, he chaired the committee when the House was last in Republican control, from 2005 to 2006. Of the 14 other representatives on his committee, eight are new committee members and six of those are new to the Legislature.
Committee members have already begun the work of becoming more informed about higher education institutions and the sector’s impact on the economy. Gov. Mark Dayton has not yet named the head of the Office of Higher Education, but an appointment could come soon.
Weighing funding
When it comes to higher
education spending, the bulk of the state’s $1.5 billion investment —
about 90% — goes to operating costs for the two public systems, the
University of Minnesota (U of M) and the Minnesota State Colleges and
Universities (MnSCU). Need-based aid through the State Grant program,
meanwhile, receives less than 10% of the state’s budget. For about
90,000 low- and middle-income students a year at both public and private
institutions, State Grant awards help keep college affordable.

Policymakers will be weighing requests to increase funding for all portions of the higher education budget — the public systems and the State Grant. Past cuts and increased demand are driving those requests. The U of M and MnSCU have both asked for increases of $50 million per year; there will be requests to increase State Grant funding as well.
But the ability to invest anywhere this session will be hampered by the $6.2 billion state budget deficit that the new governor and legislative leaders are inheriting. A new forecast is expected in late February, but policymakers of all parties say it is clear that they’ll have to make some tough decisions involving cuts; the governor has said he will recommend some tax increases as well.
Minding our own businesses
Collectively, Minnesota’s Private Colleges contribute more than $1.26 billion to Minnesota’s economy, through payroll and spending. But in a political climate where creating jobs and encouraging the growth of businesses are deemed absolute priorities, it’s worth asking what these same institutions are doing for — and with — the business community. Here are four creative and collaborative ways our institutions are meeting the needs of both large and local businesses, while giving students valuable exposure to the working world.
Good coffee, good cause
For their capstone
project, Augsburg College MBA students get a chance to put the
theoretical into practice by working closely with a local business or
nonprofit.
Students often find that “the real world problems are a lot more difficult than the theoretical ones,” said Bruce Batten, associate professor and associate director of the MBA program. It’s important to give students experiential opportunities like these, as MBA programs are sometimes criticized for lack of relevance, he said.
And while the students enjoy their projects, the businesses also benefit. “As a testimonial, many of our clients actually come back for second and third projects because they really liked the final result and the students did such a thorough job,” he said.
Recently, an Augsburg student interested in nonprofits made a suggestion of a business she wanted to work with for her capstone. Lynn Harris, who graduated in December 2010, was interested in CityKid Java, which operates several coffee shops and sells its own coffee beans and hot cocoa to more than 300 area businesses and organizations. “It’s a high-quality, locally roasted coffee, it follows true-trade practices, and 100% of its profits go to Urban Ventures Leadership Foundations, a nonprofit which funds youth programs for at-risk kids,” she said.
CityKid agreed to the project, and after initial meetings it was determined that their main goal was to increase their marketing, sales and brand exposure through their website and internet presence. Harris and her team members came up with some tactical steps CityKid could take to “capitalize on their internet and web 2.0 marketing channel” and increase sales, she said.
CityKid was happy with the project’s results, and has implemented many of the ideas; the project was one of many successful partnerships in the five years the capstone has been required, Batten said.
“In this economy, we’re oversolicited because there are so many businesses that would like an MBA team to come in, pro-bono, to advise on how to increase sales and visibility and make positive changes,” he said. “Those types of things can be helpful to any company, big or small.”
Food for thought
The business of selling food —
from production to transport to managing grocery stores — has been
changing over the past decades. Once a business that workers “grew up
in,” it now requires increased levels of education, technological
know-how and a global perspective, said Christine Kudelka, chair of the
Marketing Management and Innovation Department at Concordia University,
St. Paul (CSP).
As a response to the industry’s need for trained workers, CSP teamed up with the state through the Minnesota Job Skills Partnership and Eden Prairie-based Supervalu to create a special program to fill the void, Kudelka said. The Food Retail Management B.A. program is the first of its kind in Minnesota; its first class of 14 graduated in 2010.
“It’s unique because we worked with an industry and a company to meet their needs as we were designing the program,” she said. “It was part of a vision Supervalu had, too.”
From the start, CSP and Supervalu aimed to attract working adult learners with some college and food retail experience. Though students in the program work everywhere, from Byerly’s to Cub to smaller stores, Supervalu employees are well-represented. Supervalu helped draw students to the program initially through workplace informational meetings and tuition reimbursement.
Because it is applications-based, students can use things they learned in class the next day at work, and the capstone project for the degree encourages students to use a real workplace issue they’ve encountered as the basis for their research, Kudelka said.
Others have expressed enthusiasm for the program, Kudelka said, including Lunds and Byerly’s. However, just as enthusiastically, she cites the case of a student who was promoted to general manager after six months in the program as evidence of its success. “The best ambassadors are our students.”
Putting Oles on the “Case”
For the seventh April
in a row, two dozen college students at St. Olaf College will spend an
inordinate amount of time thinking about food. That’s because, as
participants in the General Mills Case Challenge, they’ll be on a team
assigned to solve an actual problem encountered by the company. At the
end of the month, General Mills will have five innovative solutions —
and the students will gain the experience of strategizing over “soup
wars” or selling cereal.
Started by an alum, the program also allows students to attend General Mills panel presentations, talk with young alumni employed there, and learn about the legal, financial and marketing aspects of the company. These opportunities “give students a leg up” when interviewing for internships and jobs, said Kirsten Cahoon, senior associate director of Career Connections at St. Olaf. They also end up with photos on a commemorative Wheaties box.
Students participating in the Case Challenge come from many different majors, from fine arts and philosophy to management and business disciplines, she said. They must also “polish their teamwork and communication skills” to do well on the project. “A liberal arts education is great, but doing something like this allows them to apply their learning, which is a great opportunity,” she said.
General Mills benefits from the teams’ creativity, she said. “Student solutions are always fun and really fresh, and General Mills has used elements from student proposals to change the way they look at their brands,” she said.
Helping small businesses thrive
For 30 years, the
Twin Cities Small Business Development Center (SBDC) has been working
with metro-area small businesses, offering consulting services free of
charge.
The SBDC, located at the University of St. Thomas’ Opus School of Business, works with 400 to 500 businesses each year, advising them primarily on issues related to marketing and access to capital, said Mike Ryan, the center’s director. Most of the businesses have between five and 20 employees and less than $5 million in annual sales.
Such businesses are important to the local economy, because “that’s where the growth is, and that’s where the jobs are,” he said.
Part of a federal program designed to help small businesses grow, SBDCs are located at universities in every state, with nine in Minnesota. To house a SBDC, a university must match the funding provided by the federal grant.
The SBDC at St. Thomas is staffed by contracted consultants, whose areas of expertise are matched with businesses seeking consultations. Teams of MBA students also do some consulting, said Ryan, and often receive projects that require extra legwork or research. In the upcoming years, he hopes to increase the percentage of consultations done by MBA students from 15 to 50%.
These collaborations are good for everyone involved; students “gain work and consulting experience,” and businesses get the enthusiasm and inventiveness of the students, Ryan said.
More than 90% of the businesses say they are “very happy” with the SBDC’s services, Ryan said. The SBDC does extensive surveying to see that the businesses they’ve served are getting results; they also track these businesses’ sales, profits and taxes paid annually, he said.
“Obviously, we want these businesses to be successful, to grow, hire people and contribute to the economy,” Ryan said. “But our work also fits nicely with St. Thomas’ mission of engaging the community.”
Note: See the Concordia College magazine story, “Delving Outside Their Discipline” for an example of campus collaboration with the city of Moorhead.
Private colleges educating state’s workforce

Minnesota’s Private College Council (MPCC) members consistently have been major contributors toward the education of Minnesota’s population. In academic year 2009–2010, MPCC institutions awarded 9,334 bachelor’s degrees and 5,176 graduate degrees.
MPCC institutions granted 30% of all bachelor’s degrees in Minnesota. This compares to 30% for the University of Minnesota and 32% for MnSCU four-year institutions.
While a third of all bachelor’s degrees in Minnesota are granted by MPCC members, they award about half of the degrees in physical sciences and mathematics. And, more than one-third of the bachelor’s degrees in foreign language, biological sciences, social sciences, health professions and history were awarded by MPCC institutions.

MPCC members also granted 39% of all graduate degrees in the state — the same as at the University of Minnesota. MnSCU four-year institutions granted 12% of graduate degrees in Minnesota. MPCC members awarded 45% of all master’s degrees compared to 38% at the University of Minnesota and 13% at MnSCU four-year institutions.
This degree production is significant due to changing workforce demands in Minnesota. As our economy requires more individuals with a college-level education, particularly in the fields of mathematics and sciences, MPCC institutions will remain important contributors.
Fact you can use
Minnesota's Private Colleges award 50% of the state’s bachelor’s degrees in physical sciences.
Campus news
- Carleton College is renaming its new Arts Union facility as the Weitz Center for Creativity. The renaming of the project reflects the $15 million contribution made by the family of Wally (’70) and Barbara (’70) Weitz, their children and their spouses toward the completion of the facility.
- Concordia University’s Brady Starkey was named DII National Volleyball Coach of the Year. The eight-year Golden Bear head coach garnered the national honor after leading the team to a record-setting four consecutive national championships.
- Thirty-nine College of Saint Benedict and Saint John’s University faculty, staff and students — including CSB president MaryAnn Baenninger — recently gathered together to recreate Raphael’s fresco painting “School of Athens” on the steps of the Sacred Heart Chapel on Saint Ben’s campus. Check out the video and full story.
- The University of St. Thomas in January became the state’s first private college or university to receive accreditation from the Association to Advance Collegiate Schools of Business. See the story.
- Hamline University is proud to announce that Lucinda Jesson, director of the Health Law Institute at the School of Law, has been appointed by Gov. Mark Dayton as Commissioner of the Minnesota Department of Human Services. She will begin her duties on Jan. 13.
Briefs
- Margaret Kelliher, president and CEO of the Minnesota High Tech Association, is featured on the LearnmoreMN blog this month. Read her post, "Welcome to a new year…and a new economy" and consider joining the conversation by adding your comment.
- Nate Lassila, vice president of the Minnesota Private College Research Foundation, recently had his article “The Relationship of Institutional Tuition Discounts with Enrollment at Private, Not-for-Profit Institutions” published in the Journal of Student Financial Aid.

