The Montana Board of Regents and statewide university leaders brainstormed ways to address big budget shortfalls expected for the Montana University System.

Laptops and the university officials behind them filled the seats of a Montana State University ballroom Thursday.

On the day’s agenda is the question of how to replace more than $17 million. That's how much money of the current budget for state universities comes from federal stimulus funds. That money will not be there for the next biennium. So education leaders must look into ways to cut costs or increase revenue.

"But it's not just about raising tuition and cutting programs, it's about becoming more innovative about delivering programs for less mone,” Gov. Brian Schweitzer said.

MSU President Geoff Gamble and UM President George Dennison offered many suggestions to get back on budget.

They want to look into enhancing distance education opportunities, increasing retention and reducing staff overtime. They did not rule out tuition hikes or department cuts.

"We're going to discuss a lot of things. They're not all pleasant ideas, but that doesn't make them fact,” Montana Board of Regents Chairman Steve Barrett said.

Barrett said the board needs to proactively discuss as many of these options as possible and doing so this early will hopefully lead to the best decisions for the next budget cycle.

The final 2012-2013 Montana University System budget will not be finalized until the state legislature meets in 2011.

The Montana University System is comprised of 14 campuses with more than 42,000 students enrolled. The MUS is governed by a seven member Board of Regents.  The regents, appointed by the governor, create policies and procedures that govern the campuses in the University System.