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University of Minnesota

Biennial Budget Request 2014-2015

President Eric W. KalerSenate Higher Education and Workforce Development

CommitteeFebruary 5, 2013

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Statewide Impact

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Goals: What well do

Stem the rise in tuition, increase financial aid to

enhance accessibility and affordability

Become a more efficient and effectiveorganization, and meet performance and

accountability standards

Invest in research that will fuel Minnesotabusiness and leverages Us strengths

Educate the next generation of Minnesotas

leaders and professionals, driving high-payingjob growth

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Freeze tuition

For 14-15, State commits an incremental $14.2 million each

year

U commits to hold resident undergraduate tuition flat 0%

increase

Save on average students nearly $2,500 over the

course of a four-year enrollment

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Reduceadministrative costs

Reallocate $28 million (5%) of our state

appropriation, consistent with Governor

Daytons request to state agencies

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Operational Excellence: Recent examples

Modernized purchasing procedures, saving$16M

Eliminated offices of Academic Administrationand of Bursar, saving $2.2M per year

Office of Information Technology shiftedinfrastructure to wireless, saving $1.5M

Reduced energy costs, saving $5.6M over 3

years Currently undergoing spans and layers

analysis and benchmarking in Finance,Information Technology, Human Resourcesand Purchasing

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Perform, or risk 1% of our appropriation. If the Universitydoesnt meet 3 of 5 performance targets it will lose

$11.5M in funding.

Targets are:

1. Increase U-funded financial aid FY14 comparedto FY12

2. Award at least 15,000 degrees systemwide in2014

3. Increase undergraduate 4-year and/or 6-yeargraduation rates on the Twin Cities campus4. Maintain 2011 level of total National Science

Foundation-recorded R&D expenditures5. Increase invention disclosures

Accountability and performance

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Advance research and innovationEstablish the Minnesota Discovery, Research and InnoVation

Economy (MnDRIVE) funding program to:

Advance Minnesotas economy

Leverage Minnesotas strengths and competitive advantages

Improve Minnesotans health and quality of life

Advance the capacity and competitiveness of Minnesota industries

Position our state as a national leader in key industries

MnDRIVE provides $18 million annually for scientific research in fourcritical, emerging fields:

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Serving the underserved across Minnesota

Forgive part of students loans if they practice health care inan underserved area of Minnesota

$1.5M annually

Many communities in Greater Minnesota and in low-incomeareas of the metro area are in need of health careprofessionals

Dental, Veterinary, Medical, Pharmacy

Annual amount of loan repayment is 15 percent of a students

outstanding debt.

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State support in 2001 =U request for 2015

9,000 more students, a new campus, newtechnology, increased energy costs, research

growth, inflation

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Business community

Chris Policinski, Land OLakes,

President and CEO

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MnDRIVE

University of Minnesota experts Food: Francisco Diez-Gonzales

Neuromodulation: Timothy Ebner

Robotics: Maria Gini

Water quality: Michael Sadowsky

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Securing the Global Food Supply

Francisco Diez-GonzalezProfessor

Department of Food Science and Nutrition

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Why food?

Minnesotas economic engine

$15B agriculture marketing in 2010

Top 5 states in corn, soybean, sugar beets,hogs and turkeys

Over 2,300 food companies in MN

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Why now?

Secure a safe, sustainable, affordable andnutritious food supply

Challenges

Globalization

Emerging pathogens

Changes in food production systems

Consumer trends

Intentional adulteration fraudulent, terrorist

Climate change

Food Safety Modernization Act of 2011

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Why the U of M?

Stakeholder partnerships Private sector

Cargill, General Mills, Land O Lakes, Davisco, Hormel,

3M,Ecolab

Commodity groups Government

State

Federal

International

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Why brain disorders?

Nervous system disorders affect 1 in 5Americans at an annual cost of ~$500 billion

Understanding the fundamental causes ofmost neurological/psychiatric diseasesremains a challenge

Need new therapeutic interventions toimprove quality of life and lessen economic

impact

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Blindness/

Vision loss

38.4

13

Blindness/

Vision loss

38.4

13

Alzheimers

Disease

60

4

Alzheimers

Disease

60

4

Addiction

160

30

Addiction

160

30

Pain

90

100

Pain

90

100

Depression

30.4

17.5

Depression

30.4

17.5

Stroke

3

25

Stroke

3

25

Head

Injury

25

1

Head

Injury

25

1

Parkinsons

Disease

6

0.5

Parkinsons

Disease

6

0.5

Patients (in millions)

Cost (in billions)

Patients (in millions)

Cost (in billions)

Cost and Impact of Neurological and Psychiatric Diseases

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What is neuromodulation? Therapeutic intervention that changes (modulates) the

activity of brain circuits to decrease symptoms and restorenormal functions

Deep brain stimulation (DBS) for Parkinsons disease as a

successful example

Transcranial magnetic or direct current

stimulation are newer, non-invasive

approaches

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Why U of M?

Great strengths in basic and clinical neurosciences

BiomedicalEngineering

Neurosurgery

PsychiatryNeurologyNeuroscience

Great strengths across the University

Center for

Neuroengineering

Center forMagnetic Resonance

Research

Institute forTranslationalNeuroscience

Center forMemory Research

and Care

Center forNeurodegenerative

Diseases

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Why Minnesota?

Minnesota industry is a world leader in neuromodulation Medtronic has 59% of world share in neurostimulation

systems

Boston Scientific and St. Jude Medical have growingneuromodulation programs

Combined neuromodulation revenues of $2.3 billion in 2011

We cannot be complacent

Sapiens Steering Brain Stimulation (Germany)

Aleva Neurotherapeutics (Switzerland)

Brainway Ltd (Great Britain) Each are launching new products that claim to offer more

precise, versatile and efficient neuromodulation

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What is the impact?

Make Minnesota the world leaderin neuromodulation

Improve health and reduce suffering of Minnesotans

Strengthen the medical device industry

Increase federal funding for research

Attract the very best trainees and faculty

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Wh ? P t ti l f j b

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Why now? Potential for jobs,economic growth

Worldwide in 2011 vs. 2010: Industrial robot sales up 38%

166,000 robots sold (34% for automotive sector)

Service robot sales up 9%

16,408 units (32% for the defense sector)

Market worth $18.39B, expected to reach $46.18Bby 2017

Personal and domestic robot sales up 15%

2.5 million units, $636M in sales (toys and robotvacuums)

* Data from International Federation of Robotics and marketsandmarkets.com

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Why Minnesota?

Existing strengths in local industry and inacademia, with unique niches, a broad base ofexcellence in STEM disciplines, and vibrant

interdisciplinary collaborations Existing strong K-12 and college-level

educational activities in robotics

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Why Minnesota? Existing strengths

Leading sensor and automation industries

(Honeywell, PaR Systems, MTS, ATK) An emerging robotics and intelligent vehicles

community built in part on University-generatedtechnologies

Strength in many areas: agricultural robotics (corn growers and soybean)

reconnaissance and surveillance (ReconRobotics)

medical robotics (UMN, Mayo, MRI Robotics, etc.)

environmental monitoring (St. Anthony Falls Lab)

Robotics Alley, an initiative by ReconRobotics andthe Minnesota High Tech Association

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Why U of M? Uniqueopportunities

Make Minnesota a key player in this growingarea that will provide high-quality jobs for thepeople of the state

Educate and excite students to becomeengineers and scientists in STEM disciplines(Science, Technology, Engineering andMathematics)

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Role of robotics in education

FIRST Robotics engages K-12students to pursue STEMdegrees

Robotics Technology Day

Camp (Center for DistributedRobotics)

Research opportunities forundergraduates at UMN

Outcome: more collegegraduates in robotics and STEMfields -- valuable for manyindustries

Photo: Adriana M. Groisman

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Why now?

Enhance opportunities for Minnesotas energy,

agriculture and mining industries through the useof science and technology to solve environmental

challenges and make more efficient use of currentand future water and energy sources.

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Why U of M?

Deploy newly developed University of Minnesotatechnologies on microbiological systems todiagnose, treat, and prevent water contamination

arising from mining, agricultural activities, andnatural gas exploration

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Why bioremediation?

The use of microorganisms to render hazardouswastes non-hazardous or less hazardous tohuman health.

They are the engines that drive the planet andcan be used to bioremediate:

Water

Soil

Air

Humans: personal bioremediation

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Impacts

This initiative may lead to: More permits for currently stalled mining,

industrial and agricultural processes requiringenvironmental remediation.

Improvement in water quality throughout the IronRange and Mississippi watersheds.

Increased employment and commerce in these

vital Minnesota industries.

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Students

Bailey Black, Willmar, Carlson School ofManagement

Jillian Ryks, Hermantown, College ofLiberal Arts

Michael Nagorske, Windom, College of

Veterinary Medicine

20

U i it f Mi t

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University of MinnesotaBiennial Budget Request 2014-2015

President Eric W. Kaler

Senate Higher Education and Workforce DevelopmentCommittee

February 5, 2013