News Release

Proposed U of M budget balances employee support and maintaining excellence with rising costs

The Board of Regents welcomes in-person public comment next week and for an ongoing period online

Next week, the University of Minnesota Board of Regents will invite in-person and online public comment on the budget as the Board reviews Interim President Jeff Ettinger’s recommended fiscal 2025 operating budget. 

The budget focuses on fair pay for faculty, staff and student employees and the need to invest in student program and research priorities, while actively managing sharply rising costs, critical operational and safety needs, and stagnant state funding. The recommended and balanced operating budget anticipates approximately $5.1 billion in revenue for the coming year to cover approximately $5 billion in expenses, an increase of more than 3% in both categories over last year. The 3.3% increase in costs reflects economic pressures such as across-the-board inflation, calls for wage growth from employee groups, and necessary expenditures to maintain operations and excellence.

Despite constrained resources, the budget proposal prioritizes attracting and retaining the talented faculty and staff that U of M students expect to support them and that Minnesotans expect to deliver the groundbreaking research and engaging outreach programs that benefit the entire state. The budget proposes merit-based increases for employees systemwide, with local leaders distributing an average of 3% across their teams. In alignment with collective bargaining agreements, these distributions will be 4% for bargaining unit employees. The proposed budget also allows for an increase in the student minimum wage, to $15.25, and a $20 base salary floor for Civil Service and P&A employees.

Additionally, the proposal invests $63 million in academic and support unit activities, a number of which will meet the needs of students. Examples include increased funding for systemwide student financial aid delivered through the President’s Matching Scholarship Fund, adding faculty and support services for the growing program demand in Computer Science and Engineering, new resources to develop and deliver innovative liberal arts curriculum, and strengthening campus training and response initiatives such as the sexual misconduct prevention program. 

Internal reallocations from spending reductions and other necessary operational changes are envisioned to significantly offset increased costs in the coming year. This annual prioritization effort challenges leaders at all levels to identify efficiencies, reductions and means to ensure spending delivers the greatest results. Budget leaders assigned a reallocation target to every campus, college and support unit throughout the U of M System. These targets, along with projected growth in unit-generated revenues, will add up to more than $37 million in recaptured or new incremental resources. 

As was foreshadowed in a number of the Board’s budget-related discussions during the past year, the proposed budget also includes a necessary tuition and fee plan that will increase undergraduate tuition by 1.5% at the Crookston, Duluth and Morris campuses, 4.5% at Rochester and for resident students at the Twin Cities, and 5.5% for non-resident/non-reciprocity Twin Cities students. 

Public Forum on Recommended Annual Operating Budget

The Board will accept in-person public comments on the President’s Recommended FY25 Annual Operating Budget as it considers action at the next meeting of the Finance and Operations Committee on Thursday, June 13.

This annual public forum is scheduled to begin at 8 a.m. on Friday, May 10. Speakers can sign up for a timeslot beginning at 7:30 a.m. in the West Committee Room, sixth floor, McNamara Alumni Center. Available speaking slots of three minutes each will be assigned on a first-come, first-served basis. Those who cannot secure a speaking slot may opt to record their comments from the West Committee Room. Comments may also be submitted online at any time using the Board’s Virtual Forum. Comments will become part of the public record if submitted by 10:00 a.m. on Friday, June 7.

As part of its May meetings, the Board is also expected to:

  • Discuss health sciences strategic planning with health sciences school deans, including Connie Delaney, School of Nursing; Keith Mays, School of Dentistry; Laura Molgaard, College of Veterinary Medicine; Melinda Pettigrew, School of Public Health; Jakub Tolar, vice president for clinical affairs and dean of the Medical School; and Lynda Welage, College of Pharmacy.
  • Review and act on recommendations for promotion and tenure and other academic appointments, which will include three faculty members detailing their research, education and outreach activities.
  • Review proposed amendments to Board of Regents Policy: Tuition and Fees with Executive Vice President and Provost Rachel Croson, Vice President for Student Affairs Calvin Phillips and Interim Senior Vice President for Finance and Operations Julie Tonneson.
  • Review the administration’s recommended FY25 capital improvement budget with Ettinger and Vice President for University Services Alice Roberts-Davis.
  • Review the annual workforce and human resources strategy report with Vice President for Human Resources Ken Horstman.
  • Review and act on the appointment and employment terms of Charles Nies as chancellor at the Duluth campus.
  • Recognize distinguished students, faculty and staff, who will be introduced and honored by the Board at 9 a.m. Friday.
  • Review a proposal for the naming, renaming, revocation, or retention of naming for Nicholson Hall on the Twin Cities campus.
  • Discuss enrollment strategy plans for the Crookston, Duluth, Morris and Rochester campuses with Ettinger and Chancellors Mary Holz-Clause, David McMillan, Janet Schunk Ericksen and Lori Carrell. 
  • Receive an update on the Workforce Reinvestment Resolution with Ettinger, Croson, Horstman and Mark Bee, chair of the Faculty Consultative Committee.

For more information, including future meeting times, visit  

Media Contacts

Main Line

University Public Relations

Andria Waclawski

University Public Relations