The University of Minnesota is bracing for significant budget cuts as it prepares for the fiscal year 2026, with President Joan Gabel outlining a challenging financial landscape during the Board of Regents meeting on June 13, 2025. Gabel emphasized that the proposed budget will necessitate a 7% reduction across various programs and workforce adjustments, a decision driven by a combination of flat state support and cuts in federal funding.

"This budget is not an easy one, and these are not easy times," Gabel stated, highlighting the need for difficult choices that will impact beloved programs. She clarified that the responsibility for deciding where cuts will occur lies with local leaders—deans, chancellors, and department chairs—rather than the central administration. This decentralized approach aims to ensure that decisions are made by those most familiar with the specific needs and strategic directions of their respective units.

The anticipated workforce reduction is projected to affect approximately 300 full-time equivalent positions across the university, with some units facing more significant impacts than others. Gabel noted that recent federal funding cuts have already led to the loss of 150 to 200 positions, underscoring the urgency of the situation.

Despite these challenges, Gabel pointed out that tuition rates, adjusted for inflation, remain lower than they were a decade ago, with a proposed increase aimed at maintaining affordability. She reiterated the university's commitment to accessibility, particularly for families with incomes below $110,000, where net costs have decreased by 39% over the past ten years.

As the university navigates these financial hurdles, Gabel stressed the importance of investing in faculty and staff to uphold the institution's mission. "Investing in our workforce is investing in our students," she asserted, as she outlined plans to pursue new revenue sources and philanthropic efforts to support academic priorities.

The Board of Regents will convene for a special meeting next week to further discuss and finalize the budget, as the university seeks to balance fiscal responsibility with its commitment to providing quality education and support for its community.