Votes at a glance: Minnesota State trustees approve FY26 operating budget, capital request and interim president

MINNEAPOLIS — The Minnesota State Board of Trustees voted on June 18 on several major items affecting system finances and governance. The board approved the system’s FY26 operating budget (including tuition and fee parameters), advanced the 2026 capital budget request to state channels, and appointed an interim president at Southwest Minnesota State University. The meeting also recorded committee‑level approvals of construction and audit contracts and the adoption of several policy updates.

Operating budget and tuition parameters

What passed: The board approved the FY26 operating budget the finance committee had recommended on a 8–5–1 recorded vote. The approved package includes a system‑average undergraduate tuition increase of 5.5% (a proposed 6.5% average at universities and 4.5% at colleges in the materials submitted to the board) and system‑level parameters that distinguish between college and university sectors. Fee changes were reviewed by campuses and many fee changes were lower than tuition increases; the combined average cost to a full‑time college student was presented as about a 4.1% increase and 6.1% for a university student under the approved package.

Why trustees approved it: Supporters said the package balanced affordability with urgent budget shortfalls. The state appropriation picture and uncertain federal changes left a structural gap; trustees were told the approved tuition parameters were a compromise to raise net new operating revenue while keeping increases below higher proposals requested by some campuses.

Board tally: The board recorded 8 votes in favor, 5 opposed and 1 abstention on the operating budget measure.

2026 capital budget request

What passed: The board approved the system’s 2026 state capital request, which centers HEAPR (heating, electrical, plumbing, roof and related repairs) and a $200 million HEAPR ask among other line items. The request carried the projects previously funded for design and seeks funding for demolition of underused campus buildings and equipment for high‑need workforce programs. The finance committee and full board voted to forward the preliminary request to the governor and Minnesota Management & Budget for inclusion in the governor’s capital budget.

Why it matters: The system prioritized asset preservation and projects that address imminent system‑wide failures in building systems; trustees emphasized the need to show quick, effective use of any HEAPR funds awarded and to coordinate tours with legislators.

Contracts and committee approvals

Saint Cloud Technical & Community College roof and build‑out: The finance committee approved a construction contract authorization to spend up to $4.9 million for Heartland building roof replacement and a second‑floor Weidem Center student‑success buildout; funding sources include a gift, campus funds and HEAPR. The project was described as the first active FY25 HEAPR project.

External audit services: The audit committee and finance committee supported an extension of the external audit services contract (CliftonLarsonAllen) for system financial statements, the revenue fund, and federal single‑audit schedule work through FY28; the board authorized the extension with an overall contract cap and conditional authority for cybersecurity‑related audit work to be procured as needed.

Policy actions

The board approved several policy updates that completed second readings at committees earlier in the month: - Policy 1B.3 (********* misconduct) — updated to current style and procedure references and accompanied by a renewed system training plan for students. - Policy 4.9 (Employee Evaluation) — technical edits and clarifications about annual evaluation expectations. - Policy 5.22 (Acceptable Use of IT Resources) — second reading approval. - Policy 6.8 (Naming buildings and major public places) — updated to clarify roles for naming and to allow chancellor consultation with board leadership for renaming; updated procedures define honorary, philanthropic and commercial naming and establish a maximum initial term of 50 years. - Policy 7.6 (Sales of products and services) — second reading approval and alignment with tuition/fee policies.

Presidential appointment

What passed: Chancellor Chuck Olsen recommended — and the board approved unanimously — the interim appointment of Dr. David Jones as president of Southwest Minnesota State University, effective July 1. Dr. Jones is currently vice president for student affairs and enrollment management at Minnesota State University, Mankato. Trustees said Dr. Jones’ enrollment and retention experience made him a fit for an interim assignment while the campus prepares a permanent search.

Process notes and what happens next

- The FY26 operating budget approval establishes tuition and fee parameters the chancellor and presidents will use to finalize institutional budgets and to guide campuses as they prepare fall term plans. - The capital request will be refined through the summer and transmitted to Minnesota Management & Budget and the governor for the 2026 capital budget process; appropriations, if any, will require separate legislative action. - Trustees asked for ongoing reporting: campuses that receive initial capital or HEAPR funds should demonstrate progress and closeout before further allocations; system office staff will return to trustees with updates on audits, IC‑POET RFP results and other near‑term budget matters.

Speakers and where to find the details: The trustees’ decisions and the committee materials — including the tuition tables, fee worksheets by campus, the FY26 all‑funds budget and the capital request — are included in the meeting docket recorded in the board packet for June 18.