The Minnesota State Colleges and Universities system’s Board of Trustees approved a financial redistribution plan during a Wednesday meeting to address enrollment declines at two universities. Under the proposal, St. Cloud State University will receive an additional $10 million in funding beginning in fiscal year 2028, while Bemidji State University will receive $4.8 million. The system, which encompasses 26 colleges and seven universities, will source these funds primarily from community and technical colleges, though four-year institutions will also contribute to the effort.
Minnesota State University–Mankato faces the largest individual contribution requirement at $1.8 million among system institutions. Community and technical colleges will supply the majority of the transferred funds, with some institutions expressing concern about the impact on their own operations. Dakota County Technical College and Inver Hills Community College, both located in the Twin Cities suburbs, will together contribute $747,533 in the first year. Michael Berndt, president of those institutions, noted during the board meeting that the required contributions create challenges for colleges managing their own budget pressures.
Both St. Cloud State and Bemidji State have experienced significant financial strain in recent years. St. Cloud State has reduced its workforce by 40 percent over 15 years, suspended admission to nearly 200 academic majors, and obtained a $2 million loan from the system. Both universities have implemented additional cost-cutting measures and eliminated programs to manage declining enrollments.
System officials characterized the funding transfer as a temporary measure while they explore longer-term solutions. Under consideration are campus closures or mergers, consolidation of IT and other administrative services, reduction of underutilized buildings, and revision of the funding distribution formula that determines how resources are allocated across system institutions.
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