Annual Budget Set by Minnesota State Board of Trustees

ST. PAUL, Minn., May 20, 2026 - The Board of Trustees of the Minnesota State Colleges and Universities today approved the annual operating budget for fiscal year 2027, including an average undergraduate tuition increase of 6.25 percent across all 33 colleges and universities within the system, resulting in an average increase of $357 for colleges and $578 for universities. Annual fulltime undergraduate tuition, before scholarships and grants, will still be the lowest of all higher education options in Minnesota, with an average of $6,074 at Minnesota State colleges and $9,827 at Minnesota State universities.

The tuition increase is just part of how Minnesota State is planning to balance its budget for FY2027. The system and its colleges and universities continue to take a hard look at how to cut costs, such as closing low interest programs, streamlining offerings, not filling open positions, hiring freezes, containing administrative costs, and delaying investment in facility and technology infrastructure. The colleges and universities offer 4,000 academic programs ranging from certificates, diplomas, associate and bachelor's degrees, as well as graduate and doctoral degrees.

Minnesota State colleges and universities are primarily funded by two sources: legislative funding and tuition. Minnesota State did not receive any new operational funding from the legislature in the last budgeting session (2025).

Over the last 10 years Minnesota State tuition increases have averaged less than 3 percent per year, which has allowed member colleges and universities to offer the lowest tuition in the state. In the meantime, the cost of doing business, including technology, maintenance, and salaries has continued to climb.

Board policy requires all 33 colleges and universities to confer with student leaders about each school's budget and discuss various tuition scenarios.

"Everything we do is focused on providing an opportunity for all Minnesotans to create a better future for themselves, for their families, and for their communities," said Scott Olson, chancellor for Minnesota State. "We are committed to fulfilling this mission in the most affordable and accessible way possible for our students, and do not take the decision to increase the cost of attendance lightly."

Annually, the colleges and universities provide $76 million in private scholarships to their students. Additionally, other State of Minnesota aid and programs also provide assistance to students to make getting an education more accessible:

• The "North Star Promise" - a scholarship program that provides access to public higher education without tuition cost for students from families with annual incomes of less than $80,000.
• Expanding offerings in free course materials and resources, including through open educational resources, open textbooks, and implementation of "Z-Degrees" (complete associate or bachelor's degree programs that exclusively use course resources that are available at no cost to students).
• Continuing the highly successful Workforce Development Scholarship program that encourages students to enter programs in high demand by employers.
• Student support initiatives, including emergency grants, that help campuses address basic needs insecurity, mental health, and other high-need student support services.
• Developing and expanding industry sector programming to build capacity and support new and redesigned curricular options with an emphasis on offering students work-based learning experiences.

Scholarships like these, and other support services, ensure graduates leave college with minimal debt. In fiscal year 2024, the most recent year data is available, 68.5% of Minnesota State graduates with associate's degrees and 39.9% of graduates with baccalaureate degrees graduated with no debt. Of those who did borrow to pay for their education, the median debt for associate grads was $12,713 and for those with bachelor's degrees was $22,284.

"Higher education is an investment of time and resources that pays dividends in expanded opportunities, increased social and economic mobility, and vibrant communities," said Olson.

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Minnesota State includes 26 community and technical colleges and seven state universities serving approximately 270,000 students. It is the third-largest system of two-year colleges and four-year universities in the United States. More information at MinnState.edu.