Increased U admin costs equal higher tuition, says finance analyst

Jill Jensen

Increased administrative costs created the University of Minnesota’s budget crisis and lead to increased tuition, according to a presentation given by a finance analyst Friday, reported the Star Tribune.

Howard Bunsis, who was hired by the University of Minnesota chapter of the American Association of University Professors, determined that the University is in a “strong” financial state, according to Minnesota Public Radio.

He said the salary freeze and furloughs implemented by the University in the 2010-11 academic year were unnecessary, according to the Star Tribune.

Bunsis said administrative costs have increased and instructional ones have decreased about 3 percent from 26 percent in 2006.

Richard Pfutzenreuter, the University’s chief financial officer, told the Star Tribune that the administrative data Bunsis used for his presentation included costs for areas like student services and academic support.

“I find it a little absurd that he would call public service an administrative cost,” Pfutzenreuter told the Star Tribune. “I just flat-out reject that.”

Bunsis also concluded that faculty at the University are paid less than at peer institutions and that class sizes and athletic spending have both increased in the past several years, according to MPR.