University of Minnesota asks Legislature for $235 million increase, details how state "specials" are spent

Julie Tonneson, budget director for the University of Minnesota, told a legislative committee that the university is requesting a $235 million increase in operating (O&M) appropriations for the next biennium and presented how existing state “special” appropriations and O&M riders are distributed across the system.

Tonneson said the university’s O&M appropriation is unrestricted and “absolutely critical” to the institution’s three missions of teaching, research and outreach. She described an internal “base plus/minus” budget process (driven by the president and the Board of Regents) that reviews every unit’s needs annually, and noted that state-directed riders and state specials are allocated according to statute or, when the law is not specific, historical legislative work papers.

The university presented four broad components of its biennial request: a $120 million core mission increase, investments to enhance student experience, research investments (biomanufacturing, advanced agriculture, hypersonics and green energy/green iron) and a proposed $45 million launch of a Health Sciences strategic plan. Tonneson said the total $235 million request is presented as a biennial sum and can be delivered to the state in whichever year the Legislature prefers.

Tonneson and other university witnesses also reviewed multiple state specials the committee asked about, noting that many of the appropriations have been level-funded for years and that inflation has reduced purchasing power. She said state special funds are maintained in separate fund codes in the university’s accounting system, are audited periodically by the University Office of Internal Audit, and sometimes are supplemented by other university resources to deliver programs.

University witnesses emphasized statewide reach: Extension offices in all 87 counties, research and outreach centers across Greater Minnesota, residency and training programs that place clinicians in rural communities, and centers such as the Natural Resources Research Institute that partner with industry. Tonneson closed by saying the university recognizes the state’s fiscal constraints but felt obliged to present its needs to a large state partner.

The presentation concluded with brief questions from committee members and Tonneson inviting follow‑up. No formal vote or committee action occurred during the hearing.