Dear Colleagues,
Over the last couple of weeks you have received communications from University of Minnesota leadership about our budget for the upcoming fiscal year. These messages and the approved budget represent a new strategy to navigate the financial challenges facing the university. This balanced budget addresses the constrained state funding, cuts to federal investments, and rising inflation. The budget includes solutions to meet the challenges of our current financial reality and to ensure the long-term well-being of UMD.
UMD FY26 Budget
Under the approved University of Minnesota budget, UMD’s budget for FY26 is $301.1 million for all non-sponsored programs and operations, which is 4% higher than FY25. Net tuition revenue and state-appropriated operations and maintenance (O&M) funding represent about 58% of non-sponsored resources. Those critical resources remain relatively flat. Navigating the profound challenges facing higher education will require difficult choices as well as investment in the people and programs that enable UMD to fulfill its mission. In particular, the U of M budget calls for a 7% reduction in O&M expenses over FY26 and FY27. That budget also invests in our outstanding faculty and staff, student success priorities, buildings and infrastructure, and research.
Scope reductions will be uncomfortable and will affect every campus, college, and unit across the University. These changes will enable us to focus our resources on the programs and investments that are most essential to our identity and most impactful for those we serve.
In partnership with UMD leaders, I will continue over the next several months to fine-tune our strategy and reduce our budget to meet the challenges of our current times.
Fall 2025 Tuition
UMD’s resident and Midwest tuition rates will increase by 4% beginning fall 2025. With the increase, resident tuition will be nearly 12% lower than it was in 2014 after adjusting for inflation. That tuition adjustment helps sustain the experiential learning and research experiences that prepare our students for successful careers and lives. The value of a UMD education remains strong, and I am pleased that we were able to keep our change in tuition lower than the increases experienced at many other universities.
We remain firmly committed to accessibility and affordability through the University, state, and federal financial aid programs. Additionally, University and donor-supported scholarships continue to make education accessible and affordable, so that our students graduate with an average loan debt far below the national average.
Financial Path Forward
I am grateful to the deans, research directors, and all unit leaders for their creativity and engagement in the UMD budget call process earlier this spring. We also appreciate the insights and guidance of shared governance leaders, department heads, the academic revisioning committee, and many others in campus conversations throughout this last year. There is no shortage of passion for this campus and for our students.
I ask for your continued participation and support as we navigate these financial challenges together. Working in partnership, I am confident that we will remain a strong institution for many years to come.
Thank you, |
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