Demographic and Economic Profile of Minnesota
With 4.6 million residents, Minnesota ranks 20th in population. Since 1990, the population has been increasing, with an influx of out-of-state professionals to the Twin Cities and a growth in rural areas.
Minnesota is relatively affluent. The state ranks above the 1995 U.S. mean in per capita income ($23,118 versus $22,788) and well below it in the poverty rate (9.2% versus 12.8%).
The economic strength of Minnesota is found in the southern third of the state. The economy of Minnesota is producing new jobs at a rate slightly higher than that of the United States as a whole. The growth is predominantly in the service and trade sectors, and heavily concentrated in the Twin Cities. The exception is manufacturing, which is growing faster in areas outside, but not far from, the Twin Cities.
Minnesota generates a high level of state general revenue relative to per capita income. The state invests heavily in social services and K-12 education, but less heavily in higher education.
Educational Profile of Minnesota
Reflecting the needs of the state's economy, Minnesota ranks above the national average in educational attainment at the following levels: high school graduate (33% versus 30%), associate degree (8.6% versus 6.2%) and baccalaureate (15.6% versus 13.7%). In addition, the state's high school dropout rate (6%) is among the lowest in the United States. Minnesota ranks below the national average at the graduate and professional levels. Educational attainment is highest in the southeast quadrant of the state.
In recent years, the number of high school graduates has declined significantly from its historical zenith of the late 1970s. The decline has recently stabilized, however, and is now trending upward slightly. The number of high school graduates is projected to grow incrementally during the next decade, from an estimated 59,080 in 1996-97 to 67,378 in 2006-07. This growth will be greatest at the beginning of this period. It will occur in and around the Twin Cities, while declining somewhat in many other parts of the state.
Student demographic trends also show that the future college-going population will likely be older, more part time, more diverse, less able to pay and more in need of both basic and career-specific skills.
Approximately 5,500 Minnesota community college students transfer to the state's four-year institutions each year. The percentage of community college students who transfer in Minnesota is well above other nationally reported data.
Tuition and fees for colleges and universities in Minnesota are slightly higher than the national average. Tuition for the 1994-95 academic year was $2,919 for Minnesota four-year public colleges and universities, compared to $2,689 nationally; tuition for Minnesota two-year institutions was $1,928 versus $1,194 nationally; and tuition at four-year private colleges in Minnesota was $12,233 versus $11,522 nationally.
External Threats and Opportunities
State funding for all sectors of higher education in Minnesota has increased just ahead of inflation over the past two years. In fiscal year 1996, appropriations to higher education increased six percent over the prior two years to a total of $1,066,898,000. State funding for higher education is unlikely to increase significantly over the next three years because of an increased competition for limited public funds from other public policy areas such as health care, corrections, K-12 and family aid.
Based on recent analysis predicting significant state revenue shortfalls by the year 2001, advisors to the governor recommended major changes in higher education financing. These proposals include a new student voucher system, in which all Minnesotans would be eligible for grants to help pay for an education at any public or private institution in the state. The proposal is intended to move public colleges to operate more efficiently through emphasis on competition, quality and accountability.
Opportunities do exist for institutions that can enhance quality, maintain access and increase operating efficiency and accountability to the public. Institutions that cannot meet these imperatives are unlikely to do well in the years ahead. A very robust state economy, with broad sector diversification, presents an opportunity for increased demand for higher education students.
