Minnesota State asks for $200M HEAPR, $25M demolition and targeted learning-environment funds
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Summary
Chancellor Scott Olsen and associate vice chancellor Brian Swanson presented Minnesota State’s 2026 capital request: $200,000,000 for HEAPR, $25,000,000 for demolition (cash), and $13,500,000 for learning-environment upgrades; the governor recommended $74,800,000 for HEAPR.
Chancellor Scott Olsen told the Senate Capital Investment Committee that Minnesota State’s board has requested $200,000,000 for the Higher Education Asset Preservation and Replacement (HEAPR) program and additional targeted capital dollars to modernize and right-size campus facilities.
Olsen said Minnesota State owns 495 buildings over 40 years old, comprising 53% of buildings and 68% of square footage, and that without HEAPR and demolition the long-term operating costs and deferred maintenance will grow. He said the governor recommended $74,800,000 for HEAPR in the 2026 proposal but the system’s board request is substantially larger.
Associate Vice Chancellor Brian Swanson walked the committee through the system’s prioritized projects, including four standalone projects with prior design funding: Saint Paul College student-services and classroom renovation (repurposes ~100,000 sq ft and demolishes older space), Armstrong Hall replacement at Minnesota State University, Mankato, a Center for Interdisciplinary Collaboration at Winona State that replaces obsolete 1960s classroom buildings, and the Heinz Center renovation at Rochester Community and Technical College to support high‑demand career and technical programs.
Swanson also described a $25,000,000 cash request for demolition targeted at 16 buildings totaling about 500,000 gross square feet, and a $13,500,000 request for a systemwide learning-environment program to upgrade 11 projects (simulation labs, applied clinical spaces, industry certification centers).
Committee members asked practical questions about demolition funding and whether demolition could be included in bonding when attached to new construction; staff confirmed demolition is typically included in the cost of a new bonded project. Senators also raised concerns about online education rigor and metrics; Chancellor Olsen described student feedback mechanisms, faculty evaluation processes and program‑specific requirements that maintain rigor in applied programs.
The presentation concluded with committee appreciation for the system’s focus on renovating and repurposing existing space rather than expanding the footprint. No formal votes were taken during the hearing.