OUR Financial outlook
Saint Paul College is financially stable, thanks to responsible budgeting and growing enrollment. However, future funding uncertainties, rising personnel costs, and inflation could impact our financial health. This site outlines our current position, influencing factors, and plans to ensure long-term sustainability.
An overview of Saint Paul College’s current financial position and FY2027 budget.
Exploring the revenue sources that support the College, including tuition, state appropriations, fees, and other revenue.
A look at how funding supports employees, academic programs, student services, facilities, and operations.
Key trends and external factors that may influence the College’s future financial outlook.
The strategies and priorities guiding long-term financial sustainability, enrollment growth, and operational effectiveness.
Answers to common questions about the budget, funding, and financial planning.
The FY2027 budget is balanced at approximately $54.8 million and is built on several key assumptions, including continued enrollment growth in FY26, moderate tuition increases, and disciplined expense management.
While current projections support a balanced budget, the College continuously monitors enrollment, revenue, and expenses throughout the year. Should key assumptions not be realized, adjustments may be required to preserve the College’s financial stability and long-term sustainability.
Enrollment remains a critical driver of the College’s financial health. Growth in student enrollment and tuition revenue continues to offset limited increases in state funding and supports the College’s ability to invest in students, employees, and institutional operations.
At the same time, the College is taking a conservative approach to expenditures. While personnel costs continue to increase, non-salary operating expenses and utilities are budgeted to remain flat, reflecting a commitment to responsible financial stewardship.
The next section explores the revenue sources that support the College and the important role enrollment and state funding play in our financial health.
Saint Paul College’s FY2027 budget is supported by a combination of tuition revenue, state appropriations, fees, and other revenue sources. Total projected revenue is approximately $54.8 million, with tuition revenue ($25.0 million) and state appropriations ($24.4 million) providing the vast majority of funding.
Enrollment growth plays a critical role in the College’s financial health. The FY2027 budget assumes enrollment will increase by 5%, reaching approximately 4,073 full-year equivalent (FYE) students. As enrollment grows, tuition revenue increases, helping support the programs and services students rely on.
State appropriations remain a vital source of funding, providing nearly half of the College’s operating revenue. Growth in state funding has remained limited, while operating costs continue to rise. As state funding becomes increasingly uncertain, our financial outlook will depend more heavily on enrollment growth, student retention, and careful financial planning.
Saint Paul College’s budget supports the people, programs, services, and infrastructure that make student success possible. While the College invests across many areas, personnel costs represent the largest share of expenditures, reflecting the importance of faculty and staff in delivering instruction, student support, workforce training, and campus operations.
Personnel-related expenses account for approximately $44.8 million, or about 82% of the FY2027 operating budget.
The budget includes anticipated increases in salaries and employee benefits, as well as costs associated with sabbaticals, retiree insurance and severance, and unemployment obligations. These investments help ensure the College can attract, retain, and support the employees who serve students every day.
Like colleges across Minnesota, Saint Paul College continues to experience increasing personnel costs. The FY2027 budget includes:
While these increases create additional financial pressure, supporting employees remains essential to maintaining high-quality instruction, student support, and operational effectiveness.
The College also invests in the facilities, technology, services, and infrastructure required to support learning and campus operations.
Together, these expenditures help maintain a safe, functional, and effective environment for students, employees, and community partners.
Although personnel costs continue to rise, the FY2027 budget assumes no increase in general operating expenses or utilities, reflecting a conservative approach to expense management.
By carefully managing non-personnel spending while continuing to support employees and mission-critical services, the College maintains a balanced budget and positions itself to respond to future financial pressures.
2028-2029 Biennium Challenges and Considerations
Looking Ahead
As Saint Paul College plans for the future, several external factors could affect the College’s financial outlook in the coming years.
While the College remains financially stable today, changes in state funding, rising operating costs, and continued enrollment pressures will shape future financial planning.
POTENTIAL CHANGES IN STATE SUPPORT
What could happen to state support?
State appropriations remain a critical source of funding for Saint Paul College, providing approximately $24.4 million in FY2027 revenue. However, several proposed changes to the Minnesota State Appropriation Allocation Framework could affect future funding levels.
Based on current funding simulations, Saint Paul College could experience an estimated $1.2 million reduction in state appropriations beginning in FY2028 if all proposed changes are implemented in their current form.
The largest impact, approximately $783,680, would result from the creation of the proposed Transitional Support Fund. Additional impacts include approximately $264,507 related to changes in leveraged equipment funding and $157,958 from increased enterprise technology assessments.
If enacted, these changes would remain in effect throughout the FY2028-2029 biennium and would increase the College’s reliance on tuition revenue generated through enrollment growth and student retention.
At the same time, future state funding levels remain uncertain. Changes in legislative leadership, competing state priorities, and long-term budget pressures may create additional volatility in higher education funding. As a result, thoughtful financial planning, enrollment growth, and operational efficiency will play an increasingly important role in maintaining the College’s long-term financial sustainability.
RISING COSTS & INFLATION
Why are expenses increasing?
Like colleges across Minnesota and the nation, Saint Paul College continues to experience increasing costs in both personnel and operations.
Personnel expenses account for approximately $44.8 million, or 82% of the FY2027 operating budget, making compensation and benefits the College’s largest expenditure. The FY2027 budget includes 3% increases for both salaries and employee benefits, as well as funding for sabbaticals, retiree insurance and severance obligations, and unemployment costs.
In FY2026 alone, personnel expenses increased by approximately $2.0 million, significantly higher than the historical average increase of roughly $1.2 million per year.
The implementation of Minnesota’s Paid Leave program added approximately $500,000 in fringe benefit cost.
In addition to personnel costs, inflation continues to affect supplies, technology, maintenance, utilities, and contracted services. While the FY2027 budget assumes no increase in general operating expenses or utilities, these costs are expected to remain a significant challenge in future years.
ENROLLMENT TRENDS
What factors influence revenue?
Enrollment and student retention play a critical role in Saint Paul College’s financial health. The FY2027 budget assumes enrollment growth of 5%, reaching approximately 4,073 full-year equivalent (FYE) students.
Because tuition revenue is the College’s largest source of operating revenue at approximately $25.0 million, even small changes in enrollment can have a significant financial impact.
Based on current estimates, a 1% change in enrollment equates to approximately $250,000 in tuition revenue
Looking ahead, colleges and universities across the country are preparing for demographic shifts that are expected to reduce the number of traditional college-aged students, a trend often referred to as the enrollment cliff. As competition for students increases, enrollment growth, student retention, and student success will become even more important to sustaining both the College’s mission and financial health.
GROWING RELIANCE ON TUITION REVENUE
Why do these trends matter?
Taken together, uncertain state funding, rising costs, and demographic changes are increasing the importance of tuition revenue in the College’s financial future.
While state appropriations remain a significant source of support, funding growth has remained relatively flat and may not keep pace with rising expenses.
As a result, Saint Paul College will become increasingly reliant on enrollment growth and student retention to maintain a balanced budget and continue investing in employees, academic programs, student services, and campus operations.
These realities reinforce the importance of thoughtful planning, responsible stewardship, and a continued focus on student success as the College prepares for the future.
Enrollment growth remains one of the most important factors in the College’s financial health. Saint Paul College continues to invest in recruitment, outreach, and student success initiatives that help attract new students and support their progress toward completion.
Retaining students is just as important as enrolling them. By enhancing advising, academic support, and student services, the College aims to improve persistence, completion, and workforce outcomes while strengthening financial sustainability.
The College continually evaluates processes, services, and resource allocation to identify efficiencies and ensure resources are directed toward mission-critical priorities. This commitment helps maximize the impact of every dollar invested.
Saint Paul College works closely with Minnesota State and policymakers to communicate the value of higher education and advocate for sustainable funding that supports students, communities, and Minnesota’s workforce needs.
Long-term financial planning requires preparing for multiple scenarios. The College will continue to monitor enrollment trends, state funding discussions, demographic changes, and cost pressures while making strategic decisions that support institutional stability and student success.
While future challenges exist, Saint Paul College remains financially stable today and is actively planning for tomorrow. Through enrollment growth, student success, responsible stewardship, and strategic planning, the College is positioning itself to remain strong and sustainable in the years ahead.
This section is designed to answer common questions about Saint Paul College’s current financial position, future outlook, and the factors that influence the College’s long-term financial sustainability.
If you have a question that is not addressed below, please contact Scott Wilson for additional information or clarification.
No. The FY2027 budget is balanced, with projected revenues and expenditures totaling approximately $54.8 million.
Enrollment directly impacts tuition revenue, which is the College’s largest source of operating revenue. Based on current estimates, a 1% change in enrollment equates to approximately $250,000 in revenue.
The enrollment cliff refers to projected demographic declines in the number of traditional college-aged students available to enroll in higher education. Many colleges and universities across the country are planning for the impact of these trends.
No decisions have been finalized. However, proposed changes to the Minnesota State appropriation allocation model could reduce Saint Paul College’s state appropriations beginning in FY2028 if implemented as currently proposed.
Like many organizations, the College is experiencing increases in salaries, employee benefits, healthcare costs, retirement contributions, utilities, technology, supplies, and other operational expenses.
The College is financially stable today. However, future funding decisions, enrollment trends, and cost increases will continue to influence budget planning. The purpose of this effort is to prepare proactively rather than reactively to future challenges.
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