The University of Minnesota Board of Regents reviewed the president's recommended six-year capital plan and the university's 2026 state capital request at a special meeting, focusing on a new internal capital investment initiative designed to provide predictable funding for repairs and renovations.

The plan presented by Executive Vice President Greg Goldman and Vice President Alice Roberts Davis proposes setting aside $10 million a year in recurring operating (O&M) funds beginning in fiscal 2026 to support a borrowing strategy that would generate roughly $150 million each funding cycle and, as presented to the board, produce about $750 million to invest in critical facility needs over multiple cycles. “The traditional ways of maintaining and modernizing these assets are no longer sustainable,” President Cunningham said, stressing unpredictability in state funding.

Why it matters: the university reported a systemwide facility condition assessment showing about $6 billion in deferred maintenance. That backlog, combined with irregular state capital appropriations, has made multi-year planning difficult, presenters said. The plan is intended to pair more predictable internal borrowing with state requests to accelerate projects and reduce future cost escalation.

Key elements of the presentation

- State funding to date: Goldman told regents that the university requested $200 million in HEAPR and $20 million in project funds during the 2025 legislative session but that the enacted statewide capital package was $700 million, with the University receiving $60 million for HEAPR. He also noted an $8 million appropriation for the Washington Avenue pedestrian bridge included in the transportation bill and said the university has averaged about $47 million per year in state capital investment in recent years.

- Capital investment initiative: The administration proposed using $10 million annually from O&M to support a predictable borrowing program that would allow the university to start projects without waiting for state cycles. Goldman said the approach would allow the university to plan and prioritize multi-year projects instead of relying solely on irregular state funding.

- 2026 state requests highlighted: Vice President Alice Roberts Davis said the university's near-term state requests will continue to prioritize HEAPR and include two major project requests for 2026: a new Saint Paul Campus Center and a dentistry clinical renovation. The Saint Paul Campus Center was described as approximately 98,000 square feet of student union, meeting and active-learning spaces, retail, recreation, student health services and a new campus library to replace the existing student center in McGraw Libraries on the Saint Paul campus. The dentistry clinical renovation would renovate portions of Moose Tower; Davis said the project is a $150 million plan for which the university will ask the state for $100 million.

- Examples of combining funds to accelerate work: Davis gave the Food Science and Nutrition building renovation in Saint Paul as a model: $25 million from last year's HEAPR appropriation will be combined with an equal amount from the capital investment initiative to complete a full renovation now rather than waiting for future state appropriations.

Other items and campus-specific notes

- University of Minnesota Duluth: Regent Johnson and Davis discussed the Large Lakes Observatory project in Duluth, which is slated for a 2027 request. Davis said the project remains tied to local entitlements and a developer and the university continues to coordinate with city and private partners.

- Biomanufacturing Innovation Lab: Davis said the Biomanufacturing Innovation Lab timeline has been delayed because of changes in the federal research funding landscape; the project remains a priority but needs more time to align financing with potential federal grants.

- Rochester campus growth: President Cunningham and Executive Vice President Goldman described rapid enrollment growth in Rochester (Cunningham said an approximately 80% enrollment increase) and said the university currently leases all Rochester facilities. Goldman said the administration is exploring multiple approaches — including public-private partnerships for housing and partnering with Mayo Clinic and the Discovery District for academic space — and aims to present a long-term plan to the Board by the end of the calendar year. Goldman emphasized the university will not request state capital funding for Rochester until the university owns facilities there.

Budget trade-offs and board context

President Cunningham and regents noted that the internal $10 million O&M set-aside required difficult budget trade-offs adopted in the university's most recent budget, and that setting aside those operating dollars affects other choices such as compensation and tuition. Cunningham said those were deliberate budget decisions to create a predictable capital pipeline.

Process and next steps

Alice Roberts Davis reminded the board that the six-year capital plan is required by board policy and that projects advance to the board for approval either in the annual capital budget or as midyear capital budget amendments. She said the 2026 state request will be presented to the board for approval at the board's October meeting. Regents asked for continued refinement of project details, additional work on Rochester planning, and more clarity on HEAPR needs framed for legislators.

What the regents did: this session was a review; regents did not take formal action. The board will be asked to act on the 2026 state capital request and the six-year capital plan at its October meeting.

Quotes

- President Cunningham: “The traditional ways of maintaining and modernizing these assets are no longer sustainable.”
- Executive Vice President Greg Goldman: “This funding has been sporadic over the years. We cannot defer basic safety infrastructure or modernization that's needed year after year.”
- Vice President Alice Roberts Davis: “The six-year capital plan comes before the board each year and outlines a comprehensive approach to addressing our most pressing capital needs across the system.”
- Regent Farnsworth: “I'm really thrilled to see [the Saint Paul Campus Center].”

Ending

Regents and university leaders said they will continue to refine project lists and financial plans over the coming months. The board will consider formal approval of the 2026 state capital request and the six-year capital plan at its October meeting.