MINNEAPOLIS — The Minnesota State Colleges and Universities Board of Trustees voted to approve a revised timeline, updated budget and financing plan for the NextGen implementation and authorized a statement of work with Workday to implement the student module and student employment functions.

Board members approved a proposed increase to the NextGen project budget of about $47,700,000 to cover student‑phase costs, project support increases and a reestablished contingency. Vice Chancellor Mackey told trustees the student budget would increase by $15,100,000, project support would rise by roughly $16–17,600,000 and a $15,000,000 contingency would be added. Those increments reflect inflation, an extended timeline and additional internal and consultant resources staff said are necessary to reduce implementation risk.

"The student budget, increasing by $15,100,000," Mackey said while outlining the proposed changes. He described a financing strategy that relies on the dedicated NextGen state appropriation, a biannual request for $25,000,000 in one‑time state funds, possible extension of institutional annual contributions, and roughly $3,000,000 estimated for projected cash‑flow interest costs. Staff cautioned that peak implementation year costs could exceed $40,000,000 and that temporary borrowing might be needed for cash flow purposes.

The board also approved a timeline change proposed by program staff: launch of the student project in December with a phased rollout that begins student‑facing functionality in 2028 (admissions and recruiting for students enrolling in 2028), additional functionality through 2028–2029, and full live operations for new and continuing students by 2029. Staff said the revised plan extends the overall project completion by about three years compared with the original schedule.

Trustee questions focused on whether earlier contract approvals were included in the revised budget (staff said yes, they are within the project support line item), how lessons from the HCM and finance rollout are being applied to reduce risk on the student work, and how campuses and the system office will staff implementation and sustainment. Staff described a three‑phase staffing approach — repurposing system office positions, shifting staff from HCM/finance as appropriate, and engaging campus content experts — plus shared employee agreements and phased hiring to fill critical roles.

During a separate motion, the board authorized the chancellor to execute a statement of work and order form with Workday to implement Workday Student and student employment functionality for a total of $61,112,875. Staff explained that the contractual amount reflects negotiated changes and option elections, including a negotiated reduction in the original fixed implementation fee and a mix of subscription and implementation items. As staff explained, the contract negotiation produced roughly a $2,000,000 decrease in the previously estimated fixed fee to implement Workday Student and a subscription arrangement that reduces projected five‑year subscription costs in exchange for committing to an initial five‑year subscription term.

"This is a tool — it doesn't replace people," said Dr. Nate Hallinger, deputy program manager, describing functionality such as mobile access, degree planning dashboards and advising supports that staff say will help students and advisers track progress. He and other presenters emphasized that technology alone will not close equity gaps and that policy, practice and people will remain central to Equity 2030 aims.

Trustees pressed staff about one specific requirement: the system's desire for a single‑session cross‑registration experience for students across multiple campuses. Staff said Workday does not provide that exact feature out of the box in its present release cycle, that Workday updates functionality twice a year and that Minnesota State will invest in internal configuration capacity or third‑party integrations as needed. Staff said the proposed budget increase includes resources intended to address that cross‑registration requirement.

Both motions were approved by roll call. Trustees who recorded affirmative votes included Trustee Kohls, Trustee Erlinson, Trustee Grabowska, Trustee Huebsch, Trustee Jacqueline Johnson, Trustee Moe, Trustee Murillo, Trustee Richter, Trustee Sharon and Trustee Teffer; the chair also voted in favor.

The board directed the chancellor, or the chancellor's designee, to execute all necessary documents. Trustees thanked staff for the negotiations and planning work and asked for periodic progress reports as implementation proceeds.

What's next: With board authorization in hand, staff will finalize the statement of work with Workday, refine sustainment and decommissioning plans (including planning to retire ISRS and archive necessary historical data), continue detailed implementation scheduling and staffing, and return to the board with progress reports during the multi‑year rollout.