University of Minnesota proposes balanced budget focused on student affordability, workforce investments and mission-driven growth

What and when: University of Minnesota Board of Regents Meeting (Thursday, June 11, beginning at 9:15 a.m. and Friday, June 12, beginning at 8:15 a.m.)

Where: McNamara Alumni Center, sixth floor, 200 Oak St. S.E., Minneapolis. A livestream of the meeting is available at youtube.com/UMNRegents.

MINNEAPOLIS/ST. PAUL (06/05/2026) — Next week, the University of Minnesota Board of Regents Finance and Operations Committee will review the proposed fiscal year 2027 annual operating budget. Centered on the Elevate Extraordinary 2030 University Strategic Plan, the proposal prioritizes student access and affordability, investments in the University’s statewide workforce and long-term, mission-driven growth.

In today’s evolving higher education landscape, the proposed budget reflects the University’s decisive steps to meet the moment. The proposal reinforces the University’s commitment to delivering a high-quality, accessible education, supporting its workforce and serving Minnesota, while navigating rising costs and constrained state funding.

“This budget puts our values into action and reflects our strong commitment to financial stewardship,” said University of Minnesota President Rebecca Cunningham. “Through Elevate Extraordinary, we are prioritizing and aligning our resources with what matters most — our students, our people and our impact across Minnesota. I deeply appreciate the disciplined, forward-looking decisions being made to ensure the University remains strong, accessible and competitive for years to come.”

Maintaining affordability and value for students

The University continues to deliver strong value. Adjusting for inflation, tuition across its five campuses is roughly 16% lower than it was 10 years ago.

The University’s Promise Programs, combined with state and institutional aid, continue to expand access for students from all backgrounds. For low- and median-income families, the University remains the most affordable four-year public option in the state while delivering a premier education that sets graduates on a path for future success.

The proposed budget includes a moderate resident tuition increase of approximately 3.8%, aligned with inflation and below many peer institutions, balancing financial sustainability with a commitment to access.

Investing in people and priority work

The proposed budget prioritizes mission-critical investments that advance academic excellence, student success and research impact, while continuing efforts to improve alignment and reduce duplication.

Units across the University are identifying efficiencies to focus resources and programs on high-impact work. Efforts are underway to strengthen University-wide alignment — including a common academic calendar — to expand educational opportunities without unnecessary overlap.

The University also remains committed to investing in its faculty and staff through fair, competitive compensation. The proposal includes a 3% merit pool for eligible employees.

Addressing financial pressures with discipline

The University continues to navigate financial headwinds while remaining a critical driver of the state’s economy. With flat or declining state funding and rising inflation, the University is experiencing a $25 million to $30 million reduction in purchasing power and $25 million in increased pharmacy costs within its insurance program. In response, it is aligning programs with student and workforce needs, and pursuing new revenue through partnerships, philanthropy and research.

“We are taking disciplined, responsible steps to address today’s financial challenges while strengthening our long-term foundation,” said Gregg Goldman, University of Minnesota executive vice president for finance and operations. “This budget ensures we can sustain academic excellence, advance world-class research, and use our resources responsibly to support Minnesota and extend our impact beyond the state for years to come.”

The Board is expected to act on the budget proposal on June 26.

Public forum on the recommended budget

The Board will accept in-person public comments on the operating budget proposal during the annual public forum scheduled to begin at 9:15 a.m. on Friday, June 12. Speakers can sign up for a timeslot beginning at 8:30 a.m. on the sixth floor of the McNamara Alumni Center. Three-minute speaking slots will be assigned on a first-come, first-served basis. 

Feedback may be submitted online at any time using the Board’s Virtual Forum. Comments received by 10 a.m. on June 25 that meet the Board’s guidelines will become part of the public record included in the June 26 special meeting docket materials.

Also in June, the Board is expected to:

• Take action on the University’s new enrollment plan with Executive Vice President and Provost Gretchen Ritter and Vice President for Strategic Initiatives Ryan Schmiesing.
• Explore a new comprehensive Online Learning Hub, an Elevate Extraordinary initiative designed to increase access to lifelong education, improve flexibility and support AI-driven, high-quality digital education for all students. 
• Mark the one-year anniversary of the CentraCare Regional Medical School Campus in St. Cloud. 
• Hear an update on the University’s support of the upcoming 2026 Special Olympics USA Games with Vice President for Communications Chris Gade and Chief Executive Officer for the 2026 Special Olympics USA Games Christine Sovereign.
• Receive a recap of the 2026 Legislative Session with Vice President for Government and Community Relations Erin Sexton.

All in-person meeting attendees at the McNamara Alumni Center are required to go through security screening. Visitors are encouraged to allow ample time for the screening process. A livestream of the meeting and recordings of previous meetings are available at youtube.com/UMNRegents.

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. 

For more information, including future meeting times, visit regents.umn.edu.