University of Minnesota Board of Regents approves capital and operating budgets

The University of Minnesota Board of Regents convened June 26 to consider and act on the University’s fiscal year 2027 capital and operating budgets.

The balanced operating budget anticipates approximately $5.4 billion in revenue for the coming year to cover approximately $5.4 billion in expenses. It addresses key priorities shared by the Board and University of Minnesota President Rebecca Cunningham, with a focus on maintaining student access and affordability, workforce investments and mission-driven growth priorities. 

The approved operating budget includes:

• A modest 3.8% resident undergraduate tuition increase, less than inflation and below many peers. This supports long-term financial sustainability while maintaining strong affordability and value for students.
• Continued investment in faculty and staff, including a 3% merit pool, which reinforces the University’s commitment to attracting, retaining and rewarding the talented workforce that powers its mission.
• Strategic investment that advances mission-driven academic, research and workforce efforts designed to drive future growth and impact across Minnesota.

“I’m grateful to the Board for approving the University’s fiscal 2027 capital and operating budgets,” said Cunningham. “These budgets reflect our clear focus on and commitment to student access, workforce investment and priorities that matter most to Minnesota. These approvals strengthen our ability to deliver a high-quality, affordable education while advancing our land-grant mission to serve all of Minnesota.”

The Board also approved the University’s fiscal 2027 capital improvement budget, including funding for a new St. Paul Campus Center — supported by $35 million in state bonding. Aligned with the Elevate Extraordinary 2030 University Strategic Plan, this investment rooted in the strategic roadmap begins reimagining a campus central to Minnesota’s leadership in agriculture, food systems, environmental science and veterinary medicine, while creating a vibrant hub that prepares students for in-demand careers across the state.

“The approved budgets reflect disciplined choices grounded in our responsibility to Minnesota — supporting students, investing in faculty and staff, and focusing resources where they make the greatest impact,” said Board Chair Doug Huebsch. “We are ensuring the University remains a strong, statewide partner for the future.”

The Board also:

• Approved a resolution supporting financing and cost savings for the Community-University Health Care Center project — an expanded facility that increases patient access, enhances care delivery and strengthens the University’s health professional training programs.
• Approved the sale of Les Bolstad Golf Course, reflecting fiscal responsibility, strategic alignment and external opportunity. The sale enables long-term investments in University students, research and mission-driven activities, especially on the St. Paul campus.

The Board’s Virtual Forum accepts audio, video and written input, which is shared directly with Regents and included in the Board’s public materials. The public is encouraged to visit the Virtual Forum to submit their comments. 

The Board of Regents is scheduled to meet next on July 22–24, 2026. Visit regents.umn.edu for more information.