The University of Minnesota’s Board of Regents approved a fiscal year 2018 operating budget during a special meeting today. The $3.9 billion budget focuses on access and affordability while making strategic investments and saving costs where possible.
“This budget reflects a balanced approach to tuition rates, fees and support for strategic priorities,” said Board Chair Dean Johnson. “President Kaler and his team brought forward a budget that is cognizant of the financial burden a college education has on students and families, while recognizing the markets we operate in. I appreciate Regents robust engagement around the budget and, in turn, the administration’s willingness to work with us.”
The approved budget, reflective of the state’s decision to only partially fund the University’s request this year, includes tuition increases for Twin Cities campus resident undergraduates of $254 per year (2 percent) and $102-$120 per year (1 percent) for resident undergraduates on the Crookston, Duluth, Morris and Rochester campuses. However, the increase is almost completely offset for many students eligible for federal Pell awards and Minnesota state grants. Additionally, the U of M Promise program will continue to provide more than $30 million in aid for nearly 15,000 Minnesota families with incomes up to $120,000.
Tuition increases for non-resident, non-reciprocity undergraduate students on the Twin Cities (12.5 percent, or $2,776 per year) and Duluth (5.5 percent, or $892 per year) campuses were approved, with the increase for continuing students capped at 5.5 percent. At the Morris campus, the recommended non-resident, non-reciprocity rate will increase by $140 per year (1 percent). Graduate and professional rates remain competitive with the market, generally increasing 0 – 5 percent. All students at the Medical School will see no tuition increase.
“Through continued reprioritization and reallocation, as well as with state support, we ensured that Minnesotan’s attending the University continue to pay tuition that has grown at less than the rate of inflation for the past six years,” said Kaler. “Our goal remains to provide a world-class education that is accessible and affordable for students and families.”
Student fees and room and board rates are proposed to rise on all campuses. Estimated increases in the total cost of tuition, fees and room and board for resident undergraduates will range from 0.4 to 2.9 percent, or $20,375 to $23,881 in total costs, depending on which campus a student attends.
The approved operating budget also makes strategic investments to support core operational activities, including infrastructure (technology/facilities), student services and support, targeted operating budgets of colleges and campuses, and a competitive compensation plan to retain and recruit top faculty and staff.
“This budget funds requests from each campus for mental health service enhancements as well as addresses sexual assault and Title IX needs system wide,” said Kaler. “These issues are of particular interest to our students, but also the University as a whole and I am glad further resources are being provided.”
Administrative reallocations of nearly $11 million are included in this budget, part of Kaler’s goal to reallocate $90 million by FY 19. Implementation of this budget will bring the University to approximately $79 million, or 88 percent, toward the goal with one year remaining.
Also at its meeting today, the Board approved a purchase of community solar garden subscriptions as well as a new committee structure for Board meetings.
The Board will meet again July 12. For more information, please visit the Board of Regents website.
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