Administrators: We’re charting a sound course for the future of the University of Minnesota

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For more than 170 years, the University of Minnesota has been the foundation of Minnesota’s economic, educational and social fabric, serving as a major employer and hub for education and innovation. The university is an engine of the state’s economy, generating over $11.5 billion each year. Over 60% of university students call Minnesota home after graduation and our alumni contribute an additional $65.9 billion to the Minnesota economy.

The university has kept costs low for families and is committed to doing so going forward. Tuition at the Twin Cities campus, adjusted for inflation, is 7% lower than it was 10 years ago, and the net cost is 39% lower for less-resourced students. Even with the proposed increase, in-state tuition will remain 3% lower than it was 10 years ago across all student income levels.

The University of Minnesota is not immune to the unprecedented challenges facing higher education — the current fiscal environment creates uncertainty and profound complexity.

A decades-long trend in diminishing support from the state of Minnesota is real. In the 1970s, when university enrollment was around 40,000, the state directly funded 45% of all university costs. The university now serves 70,000 students and taxpayer dollars pay 14% of our costs.

That reality is compounded by significant cuts to federal research support. This week, federal funding cuts to the university passed $40 million. We are grateful for the continued state support in difficult state budget times. The flat state budget this past year and for the next two years represents a $75 million loss in buying power with inflation. Between state and federal cuts, the university needs to adjust at a minimum for an over $115 million loss in revenue.

Rising to meet these challenges as good financial stewards requires fortitude, diligence and, in some cases, unpopular decisions. Our proposal charts a course to sustain and grow our mission and commitment to Minnesota as we deliver on our bold vision for the future, including an affordable and accessible education and investment in our talented faculty and staff.

Decades-long disinvestment has threatened the university’s ability to deliver solutions for the most pressing challenges facing Minnesota and the world today and into the future.

The proposed budget focuses resources on areas of highest strategic impact, particularly those that directly serve students and our mission. The proposed budget generates $92.1 million in savings through 7% budget reductions, giving us the ability to invest in our people and crumbling infrastructure across all campuses.

Tuition rate increases for Minnesota residents that range from 4-6.5% and nonresident undergraduates of 7.5% account for $71.8 million of increased revenue. The budget recommendation was considered in detail by the Board of Regents at its June 12 meeting and is expected to be voted on next week.

University, state and federal financial aid programs allow us to invest in access and ensure affordability for students who need it most — both the lowest earners and many middle-class students. The university directly supports these generous scholarship programs, reflecting our strong commitment to accessibility and affordability of a university education for Minnesotans.

We are also strongly committed to recruiting and retaining talented faculty and staff who conduct critical teaching and research. Our staff — librarians, student counselors and research assistants — fill so many important roles, interact with students every day and are vital to our mission.

The university delivers a full array of services to our students, from career advising to navigate the job market to disability support. The University of Minnesota is a $1.3 billion research enterprise. Our world-class faculty and staff deliver life-changing education and services and conduct world-class research. This talented workforce has been underinvested in for years. Continued investment in these 28,000-plus employees statewide makes up the largest share of incremental investment planning ($59.1 million).

Other recommended investments include program enhancements and student aid ($43.8 million) and facility and technology infrastructure ($34.9 million). We’ve also designated $15 million to support forthcoming programs and initiatives to best support student success, express research excellence, build stronger Minnesota communities, lead in environmental and human health, shape the next era of AI innovation and modernize our facilities and operations.

The university cannot afford to wait to see what happens. We must act boldly and make continued and difficult choices as we navigate these budget complexities.

We look forward to continued discussions at the board’s special meeting on June 18 as they make a final determination on how we proceed and strategically invest in our infrastructure and support our students, faculty and staff as they achieve at the highest levels now and into the future.

Rebecca Cunningham is president of the University of Minnesota. Gregg Goldman is executive vice president for finance and operations.