The Finance & Operations Committee approved President Rebecca Cunningham's recommended FY2028-29 biennial budget request to the Legislature by voice vote, with no opposition heard. The $85 million in recurring asks includes $10 million for a statewide AI strategy tied to the university's AI hub, $15 million to graduate more students into health care workforce shortages, and $54 million to cover two years of inflation on core operations such as utilities, public safety and technology licenses. Smaller phase-one requests would start a career and workforce accelerator and expand market-responsive online learning. One regent pressed administrators on how they would defend the $54 million inflation item to skeptical legislators; officials said they will itemize those costs to make the case more transparent.
The committee approved by voice vote a 2027 state capital request totaling $350 million: $250 million from the state and a $100 million university match. The request covers a $150 million UMR academic building to expand Rochester's health sciences capacity, a $150 million renovation of 50-year-old dentistry clinical space in Moos Tower, and $50 million in HEAPR systemwide asset preservation. Regents also approved the 2026 six-year capital plan. Officials stressed the plan is a planning framework that does not commit construction funds. Near-term focus areas include St. Paul campus revitalization and a newly published student housing RFP, renovations of 10 Church Street and Diehl Hall to consolidate campus space, and the UMD Large Lakes Observatory. A Rochester student representative noted that UMR currently owns none of its buildings.
Regents reviewed the three real estate actions needed to return about 3,391 acres of the Cloquet Forestry Center to the Fond du Lac Band of Lake Superior Chippewa, as authorized by the Legislature. Under the plan, the university would first accept 407 acres from the state at no cost, made possible by a $1.3 million legislative appropriation to pay off outstanding general obligation bonds. It would then transfer the full property and its facilities to the band at no cost and sign a 30-year occupancy and use agreement. The band would charge no rent, and the university would cover its own operating and maintenance costs. Fond du Lac Chairman Bruce Savage called the return a powerful act of restoration tied to the university's TRUTH Project recommendations. The interim CFANS dean said forestry research and teaching at the center will continue in partnership with the band. Final board action is expected in December.
The committee approved its consent report, which included an employment agreement for Dr. Amy Pittinger as vice provost and dean for undergraduate education on the Twin Cities campus. The report also included a lease amendment for the 12th and 13th floors of a Rochester building that was built out in 2006 with state capital funds for joint university–Mayo Clinic biomedical research. The state operating appropriation that supported that program ended with the 2026-27 biennium. Under the amendment, Mayo will keep using the space for collaborative programming and continue covering all operating costs, pending Minnesota Management and Budget approval. The biennial Permanent University Fund report was also approved.
In the first report required by the board's amended liquidity and reserves policy, administrators said tier-one primary reserves totaled $1.67 billion as of June 30, 2026. That equals about 113 days of cash on hand, above the board's 75-day minimum. Combined expendable financial resources cover 83% of the FY2027 operating budget, which officials said places the university in the top quartile among Big Ten and large public peers. The report was informational; no action was taken.
