University of Minnesota President Eric Kaler is headed in the right direction, as described in the Sept. 23 editorial "Rethink how the state sustains campuses." However, his proposal does not go far enough.
What is needed going forward is for the state to cover 100 percent of the cost of new buildings at both the U and the Minnesota State Colleges and Universities (MnSCU). In return, the two systems should commit to cover 100 percent of the depreciation (repair and renovation) on those new facilities.
Depreciation is a standard budget line item in every for-profit and nonprofit organization. It is the proxy number for the amount of repair and renovation that should be budgeted in any year. Depreciation should be a standard line item for both the U and MnSCU, and it should be funded from the general operations budget and include any gift or grant received for repair and renovation.
To get started, both systems should determine the current "cost" of the depreciation for all current facilities and report those numbers to the Legislature. Once the depreciation cost is available, and once those costs are calculated for any new buildings, a realistic conversation can be conducted on the long-range facility costs of the two systems.
If this idea is implemented — the state paying 100 percent of the cost of new facilities and the systems budgeting for the cost of the depreciation — the systems will be more likely to propose new buildings that can be maintained or renovated within their annual depreciation budgets.
DAN LORITZ, St. Paul
BROADBAND UP NORTH
Legislature needs to keep up momentum
Paul Bunyan Communications deserves praise for its serious investment in broadband infrastructure in northern Minnesota ('"GigaZone'" comes Up North," Sept. 19). As a cooperative, Paul Bunyan can expand world-class service because its customers are also its shareholders. Too often, larger providers' out-of-state shareholders demand quick returns on investments, inhibiting costly broadband expansions. Partly as a result, a governor's task force ranks Minnesota 23rd nationally in terms of broadband speed.
High-quality broadband means economic growth. For example, a Blandin Foundation-commissioned study found high-quality broadband in Kanabec County could spur $18.2 million in business revenue. Currently, 71 percent of households there — and 46 percent of Greater Minnesota households — don't meet state speed goals.
Thankfully, the Legislature recently established a broadband fund to target areas with greatest need and economic return, while helping align a provider's short-term need for a return on investment and a community's long-term need for broadband infrastructure.