BEMIDJI — Bemidji State University has taken notable strides in recent years to address a budget deficit attributed to revenue loss from decreased enrollment and continues to make steps forward.
In March 2023, BSU and Northwest Technical College President John Hoffman stated that post-pandemic enrollment had dropped by approximately 20%, resulting in a $9 million deficit for the institution.
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“Both deficits at BSU and NTC were more than 20% of our revenues,” Hoffman said. “That made our deficits the largest of any institution in Minnesota State.”
An initial 23 employees were notified of their terminations in May of that year and 63 early retirement offers were given to faculty and staff through the Board Early Separation Incentive.
After the administration audited its budget in May 2023, the deficit was discovered to be closer to $11 million for the 2023 fiscal year — signaling additional layoffs and reductions to take place moving forward.
Coinciding with the start of the 2024-2025 school year, enrollment had rebounded at BSU with a 3% increase from the prior year — the first overall increase since 2017 — and an 11% increase in new student enrollment. NTC saw a similar enrollment increase of 11% from 2023-2024.
The deficit was reduced to $3 million last year, but despite the smaller gap, another wave of layoffs will affect 14 faculty members once this school year concludes.
Other reductions will affect the core computer science program — which has since been reimagined under the Technology, Art and Design Department — alongside cuts in the philosophy program.
NACUBO recommendations
Citing a difficult two years, Hoffman noted an upside regarding the end of the 2024-2025 school year.
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“With some one-time funding support from Minnesota State, we’re on track to finish this year in the black,” he said. “That’s good news.”
Hoffman added, however, that the institutions could once again be operating “in the red” next year after
Recognizing continued work to be done, administration enlisted the help of the — NACUBO — to make financial recommendations. NACUBO completed an extensive set of interviews and focus groups across campus before compiling its findings, which were released to faculty and staff this week.
NACUBO recommended eliminating Spanish and philosophy, programs found to have high-cost ratios and are already on the chopping block at BSU.
Other program cuts are not on the table for Hoffman including geology and special education. Hoffman noted NACUBO’s purely financial focus not taking into account other factors or benefits of certain programs.
He further emphasized this point given NACUBO’s recommendation to either eliminate or “rightsize” the music department and hockey program.
“Again, those are nonstarters,” Hoffman said. “I am fully committed to the future of music and fully committed to the future of hockey in Bemidji … We have some work to do to enhance the value proposition of those programs.”
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He noted the hockey program’s high cost and low revenue compared to other Division 1 programs, a central factor in NACUBO’s recommendation to eliminate it.
“It’s quite expensive for BSU, but I believe there’s a value proposition,” Hoffman said. “The academic performance of our hockey athletes is remarkable. The character development and life skills they develop is great … and it’s an important relationship for us with the Sanford Center.”
NACUBO also recommended that BSU and NTC consolidate campus facilities as well as alumni efforts. Administration recently launched its comprehensive facility planning process, which will allow both institutions to vet this recommendation holistically.
Areas for growth
NACUBO listed several areas for growth, particularly for programs with high market demand. It recommended more investment in the TAD program, biology, nursing, psychology and social work.
It also listed possible program additions like forestry — for which BSU is partnering with Minnesota North College to offer a forestry management program on campus — and wildlife conservation.
“We’ve got a great wildlife biology program and environmental science program,” Hoffman said. “We already offer most of the course work that might be needed for (wildlife conservation).”
Other possible additions include health information management and organizational leadership programs along with E-sports and wrestling in the athletic department.
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NACUBO findings also showed improvements needed in marketing efforts and the need for comprehensive strategic planning. Hoffman cited dramatic enrollment declines and overall financial situation for the switch to a two-year turnaround plan coined “strategic direction” for 2023-2025 rather than a typical five-year strategic plan.
Given NACUBO’s report, Hoffman expressed optimism for the rest of the spring semester as administration vets all recommendations.
“Because of the rapid changes the past two years, it was important for us to work with an external group, a fresh set of eyes to verify the work that we’ve done,” Hoffman left off, “and that we’re moving in the right direction.”
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