The Office of the Chancellor for the Minnesota State Colleges and Universities will reduce its budget by $4.2 million and eliminate 41 positions by July 1, 2011.

The budget change is due to an anticipated reduction in state funding for fiscal year 2012, and it comes on top of budget reductions to the system office made in five of the past 10 years. This represents a 10 percent reduction from the current fiscal year.

“We know the colleges and universities have made painful reductions to their budgets,” said Chancellor James H. McCormick.

“This office has not been immune to the same pressures or pain. In making these decisions, we have done our best to improve efficiency and preserve the most critical services.” The elimination of 41 positions will be accomplished through resignations, retirements and layoffs.

Under the restructuring plan, some functions and services will be eliminated, suspended or curtailed though the office will continue to support the system’s strategic plan, carry out its legal obligations and provide campus services when they can be done more economically at the system level. The system office will not assess or mandate any additional costs to campuses in light of the system office changes.

Changes include restructuring and downsizing the Information Technology division, the Fire/Emergency Management Services Center and the Center for Teaching and Learning; and merging the development, government relations and public affairs divisions into a single division.

The plan will be put in place during the next nine months and all changes will be complete by July 2011.

The Office of the Chancellor is supported entirely with funds from the Minnesota Legislature, federal and private grants and partnership income. No tuition revenue is used to fund the office, unlike the system’s colleges and universities, which receive state funds and tuition revenue.

State support for the office has decreased 10 percent, or $4.3 million, between 2008 and 2011. The share of state appropriation used by the system office has been relatively flat at 6 percent every year since 2002 and is projected to stay flat at least through 2012.

The Minnesota State Colleges and Universities system comprises 32 state universities and community and technical colleges serving the higher education needs of Minnesota. The system also serves about 277,000 students per year in credit-based courses and an additional 157,000 students in non-credit courses. Riverland Community College is a member of the Minnesota State Colleges and Universities system.