SF 3329

as introduced - 90th Legislature (2017 - 2018) Posted on 03/15/2018 12:53pm

A bill for an act
relating to higher education; requesting the University of Minnesota to control
administrative costs; requiring a report; proposing coding for new law in Minnesota
Statutes, chapter 137.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [137.026] ADMINISTRATIVE COSTS.
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new text begin (a) The Board of Regents of the University of Minnesota is requested to maintain
administrative costs at or below 15 percent of the university's total expenditures.
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new text begin (b) Administrative costs are expenditures not associated with direct mission delivery or
student aid. Administrative costs must include personnel and nonpersonnel expenses in the
university's leadership and oversight and in mission support and facilities, but must exclude
the following items:
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new text begin (1) student workers;
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new text begin (2) campus operations;
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new text begin (3) repair and maintenance;
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new text begin (4) utilities;
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new text begin (5) rents or leases; and
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new text begin (6) debt and capital project transfers.
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new text begin (c) The accounting methods for calculating administrative costs under this section must
conform with the accounting methods used in reporting administrative costs under section
135A.031, subdivision 7, paragraph (a), clause (11), item (vii).
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new text begin (d) Within 90 days of the end of the university's fiscal year, the board is requested to
report data on its administrative costs to the legislature. The report must include the ratio
of administrative costs to the university's total expenditures. The report must explain any
change in accounting methods from the previous year's report. The report must be filed in
accordance with section 3.195, with copies provided to the chairs and ranking minority
members of the committees in the house of representatives and the senate with jurisdiction
over higher education finance and policy.
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