U of M officials outline requested $235 million budget increase

Every biennium, University of Minnesota officials come before the House Higher Education Finance and Policy Committee with a budget request. How they present this year’s request is a bit different.

This session, they plan to come before the committee three times to present their 2026-27 budget request that includes a $235 million funding bump.

Rep. Marion Rarick (R-Maple Lake), the committee chair, said the three days will give committee members time to discuss and ask questions.

“We felt it was simpler to identify our total needs and priorities for the two-year budgeting period and if the state decides to provide additional funding to us, we’re happy to take it in whichever year works best for you,” said Julie Tonneson, vice president and budget director for the university. “Another way to look at it is that we're asking for four items totaling or recurring increase of $235 million by the end of the biennium.”

[MORE: View the university’s full biennial request; Thursday’s presentation]

Thursday’s presentation focused on $120 million for the university’s “core mission support” — teaching, learning, student services; research and discovery; and service in Minnesota communities — and another $30 million to “enhance the student experience.”

The $120 million would cover 45% of $267 million the university has budgeted for its “core mission,” with the university picking up the other 55%. Of that $267 million, $157 million would be earmarked for compensation throughout the university system, which employs more than 28,000 people.

“We anticipate significant costs related to compensation and investment in our people,” Tonneson said. “It is the people that make the university, and it will be the single largest planned spending increase in the university for the next biennium.”

The $30 million for “enhancing the student experience” of its over 70,000 students includes:

• individualized services such as career and academic advising and mental health;
• additional resources to cover basic needs;
• new technology tools, resources, and analytics;
• support for students’ transition into the workforce; and
• active learning classrooms and other classroom improvements to support in-person learning

Next week, the university leaders are expected to present its $45 million request for a Health Science Strategic Plan and $40 million for Research to Drive Economic Growth.

“We take our responsibility as stewards of state resources very seriously,” said President Dr. Rebecca Cunningham. “We understand that every dollar appropriated to us by taxpayers is an investment in the future of our students, our communities, and the economic vitality of this state. This is why we're committed to spending these funds wisely, ensuring they are directed towards initiatives that provide the greatest impact.”