Full Breakdown
Minnesota State Board Approves Funding Shift to Rescue Struggling Universities
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Funding Shift Approved for St. Cloud State and Bemidji State
The Minnesota State Colleges and Universities Board of Trustees voted to reallocate up to $25 million each year for four years from its two-year colleges to St. Cloud State University (projected $10 million in FY 2028) and Bemidji State University (projected $4.8 million). Participating institutions must contribute $121,000–$1.8 million in the first year, with lower-cash-reserve schools paying less.
Background & Context
Both universities have faced repeated budget cuts. St. Cloud State has reduced its workforce by roughly 40 % over 15 years, suspended admission to nearly 200 majors, minors and certificates since 2023, and taken a $2 million loan from the system office. Bemidji State has eliminated about one-third of its faculty and cut two programs. Officials cite declining enrollment, flat state funding, inflation, and a $35 million reduction in base state funding as drivers of the crisis.
Data & Statistics
- Annual reallocation: up to $25 million (? $100 million over four years).
- System-wide deficit: a $30 million structural deficit projected to rise to $100 million by summer 2028 if unchanged.
- System composition: 26 colleges and 7 universities.
- Emergency fund contributions: institutions will contribute $121,000–$1.8 million in year 1, with two-year colleges providing the bulk of the transfer.
Official Statements & Responses
Board vice chancellor for finance and facilities Bill Maki called the transfer a “temporary solution” for the “significant financial challenges” at the two universities. Chancellor Scott Olson said the move is a bridge while the system works on a broader “realignment” that may include campus closures, mergers, and shared services.
Criticism & Opposition
Leaders from two-year colleges warned the shift could strain already tight budgets. Lori Kloos, president of St. Cloud Technical and Community College, noted that a 5 % budget cut could have a disproportionate impact when 80–85 % of operating budgets are salaries. Kevin Lindstrom, president of the Minnesota State College Faculty, called the proposed $40 million transfer to St. Cloud State over four years “an extraordinary amount” with “negative consequences for two-year colleges.”
Conflicting Reports & Gaps
Some outlets report that the board approved the funding shift at a Wednesday meeting, while the board’s agenda lists the proposal as scheduled for October 14, 2026. The discrepancy remains unresolved. Precise timelines for the broader realignment plan are mentioned only in general terms, with a presentation of options slated for January.
Verbatim Quotes
- “It’s frankly demoralizing to our employees to see the outcome of our work significantly reduced by seeing our allocation dollars reduced,” — Michael Berndt, president of two community colleges in the Twin Cities suburbs
- “It’s not a choice that gets made between a good idea or a bad idea. It’s competing choices of things that are damaging or less damaging,” — Edward Inch, representative of other Minnesota State university presidents
- “We take the tough medicine, and hopefully we can get this thing corrected over the years coming ahead.” — Trustee Roger Moe
What’s Next
The system will request a one-time $25 million state appropriation for the emergency fund and an additional $25 million for building demolition in the upcoming legislative budget. Options for campus closures, mergers, and shared services are slated for presentation to the board in January. Trustees will review the funding transfer annually through 2031 to determine continuation.