[{"_1":2,"_88":-5,"_89":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6528622,"mediaKeyId","5749389-72ff2971d423b74d105a50aeae8917d9","parentId",5749389,"title","Minnesota State presents scaled 2026 capital framework and recommends 5.5% tuition parameter for FY26","audioSeconds",2840,"startMs",6300000,"endMs",9140000,"viewUrl","/Search/View?dp=1&key=5749389-72ff2971d423b74d105a50aeae8917d9&start=6300&end=9140","thumbnailUrl","https://assets.pipeline.soar.com/5749389-72ff2971d423b74d105a50aeae8917d9/thumbnail_6300000.jpg","articleUrl","/articles/6528622/Minnesota/Minnesota-State-presents-scaled-2026-capital-framework-and-recommends-55-tuition-parameter-for-FY26","mediaUrl","https://secure.pipeline.soar.com/6528622-b85c383dc0c464700ce621b7210c7c1b/orig.mp4?Expires=1770576202&Signature=DkOLuCQRPZAMbQrDgT1taO4dPwp0nCdpWzTENQgVDR8IkqYMQqrMzmj6jRzbQOkhObzhm1dgz0z5Qt31J1oB-GZu9JKs3EzFfQ2mcqVQxJU2NR~Z3Y2ZvF~v6mTS0y35dQ33skFus6Ljrq3rue8F2nH0aGPGrsqFJ8lpD5wJNcarqCU3wzVXJF7O0VenZGxe6NHQpvUI6raXHi2ZRcBsyWU8n1k8AdIeYc5AAdWX07ODO0HGvIsUYMANQyFZYuCcq9yPd2vdQOF0dtF0pwTiF3b7AEODFWgIWmJ5S17hzRjdT986CoFjvzac8B6oU8zWQXCnhiOAJSEwzR4pDGW6DA__&Key-Pair-Id=KUT5TJCACFTXG","author","Minnesota State Board of Trustees","date","2025-05-21T17:13:56Z","article","The Minnesota State Colleges and Universities System’s Finance & Facilities Committee received first readings on the 2026 capital budget framework and the fiscal 2026 operating budget on a meeting continued from the prior day, with staff urging a narrower, preservation-focused capital request and recommending a tuition parameter for FY26 that would set a system-average increase at 5.5 percent.

Karen Hewitt, system director for capital planning and analysis, reviewed the system’s 2025 bonding request and explained why staff recommend a smaller, more targeted 2026 request. Hewitt said the 2025 request totaled $552.3 million, including $200 million for Higher Education Asset Preservation and Replacement (HEAPR), $352.3 million for 14 major projects, $25 million in an operating request for demolition and $13.5 million for equipment and program learning environments.

Hewitt said legislators signaled stronger support for asset preservation but at funding levels well below the system’s previous requests and showed limited appetite for large new projects. She recommended the system focus the 2026 request on urgent, likely-to-be-funded needs, scale down overall project counts and carry forward the most advanced projects previously funded for design while preserving the demolition and equipment asks.

Vice Chancellor Mack (system office) framed the capital recommendation as “departing from what we’ve done in past years” and said tighter criteria were developed to advance only the most ready and compelling candidates. Hewitt said 18 candidate projects were advanced to general scoring in the current cycle; together the candidates totaled roughly $638 million and the five projects previously funded for design added up to about $247 million. She recommended modest inflation adjustments and scope reductions to previously funded projects and fewer new projects overall to reflect the state’s debt capacity and legislative signals.

On operating and tuition, Vice Chancellor Mack presented a first reading of FY26 budget parameters. Staff modeled multiple scenarios in April and proposed a system-average tuition parameter of 5.5 percent for FY26. Under the staff model, a 5.5 percent system-average increase would generate about $41.3 million in new tuition revenue but the model also factors in a projected $35.0 million decline in state operating allocations compared with the current year, leaving a structural shortfall on the order of $50 million for FY26 that would need to be addressed by reallocations, reductions or use of reserves.

Staff proposed differentiated maximums by sector: a college-average maximum of 4.5 percent, a university-average undergraduate maximum of 6.5 percent, and two noted exceptions. Inver Hills would be allowed an 8 percent increase over a transition tied to an institutional merger; Minnesota State University, Mankato would be allowed an 8 percent adjustment tied to a 13+ credit tuition reset intended to accelerate student completion. Mack said the parameters are designed to consider institutional financial health indicators such as fund balances and the composite financial index (CFI).

Trustees and campus leaders debated strategy and political risk: several trustees urged a longer-term strategy linking academic and facilities planning, regional collaboration and shared services; others suggested more aggressive tuition proposals to avoid deeper cuts. Presidents and students are reported to have expressed concern about service reductions if revenue is insufficient; student consultation letters and campus referendums will be included with the board’s June materials.

No formal votes were taken. Staff said the board will receive a June packet with full campus proposals, student-consultation letters, and motions for final action on tuition, fees and revenue-fund rates. The committee also signaled interest in continued emphasis on demolition of obsolete space, targeted equipment investments for high-need workforce programs and practical scope adjustments for previously funded projects.","mediaType","Video","parentTitle","Minnesota State Board of Trustees meetings - May 21, 2025","oneSentenceSummary","Karen Hewitt, system director for capital planning and analysis, presented a scaled 2026 capital framework focused on preservation and urged a smaller, more realistic slate of projects; staff also delivered a first reading of FY26 operating budget parameters and recommended a system-average tuition parameter of 5.5 percent.","taxTitle","Minnesota State Colleges and Universities System, Public Universities Board of Trustees Meeting, School Boards, Minnesota","taxId",80593,"location","Minnesota","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6528627,"Consultants, trustees test enterprise risk tools in Minnesota State study session",5379,0,5379000,"/Search/View?dp=1&key=5749389-72ff2971d423b74d105a50aeae8917d9&start=0&end=5379","https://assets.pipeline.soar.com/5749389-72ff2971d423b74d105a50aeae8917d9/thumbnail_0.jpg","/articles/6528627/Minnesota/Consultants-trustees-test-enterprise-risk-tools-in-Minnesota-State-study-session","https://secure.pipeline.soar.com/6528627-952ec39c4124a03b894fee2265713876/orig.mp4?Expires=1770576202&Signature=C8unz3S9UYUom6qLnYTFKsDfs43a4DmGdO-QG6zFpg1llKbpgqWn5sZ61OnpfvZmkgSmkQGz8EjxxGTslMhsU6gHRCevghZk07Vp8ZpbLUJYJBLbLZBqOt~oQYajbQoNpb6UkZecuFDrUMm61U4lxVH0l2PUnWb98VNt6EmqaviGXTKSct~RsmuIwDQT2IIU7PHMiITlLYqTB~8GSIVMPu3EEYj32nqc1woEFmGKzLIuYRyi9S3IsNqUUvCM1OITSQN~1~ZEdGnJJblZVTGEX8nsv~0g~t1TB7PH-xkxCiCqqLD1QH4OQXdfBpeImThVV0eOoix5FMfZf3JZQQl3-g__&Key-Pair-Id=KUT5TJCACFTXG","Audrey Lindquist of Baker Tilly and John Regula, Baker Tilly managing director, led a study session on enterprise risk management for the Minnesota State Colleges and Universities System board, demonstrating a live collaboration tool and asking trustees to assess the system’s readiness across five oversight areas.

The session, presented as a facilitated workshop rather than an action item, aimed to clarify “the board’s responsibility for risk oversight,” show how an enterprise risk framework supports that role and surface opportunities to strengthen board reporting and monitoring, the presenters said.

Lindquist told trustees that a board’s “foremost duty is to safeguard and advance the institution’s mission, reputation and resources,” and said that duty requires balancing protection with taking strategic risks to advance the system. Regula said enterprise risk management should not be “just a threat detector” but also “an opportunity identifier.”

Baker Tilly organized the discussion around five oversight components: risk governance, strategic oversight, policy and compliance, monitoring and reporting, and crisis management. Trustees used a QR-linked tool Baker Tilly calls a risk-synergy collaboration platform to vote on the program’s maturity. The aggregated results shown during the session indicated trustees saw strategic oversight as the area most in need of improvement and policy/compliance as the strongest area.

Trustees asked how enterprise risk work differs from internal audit and whether the system has a single compliance officer. Lindquist and system staff said audit is an assurance component that validates whether mitigation plans are working, and described compliance as a distributed function: academic accreditation sits in academic and student affairs, legal compliance in general counsel and other areas “depending on which particular compliance,” a staff member said.

Trustees pressed on practical topics such as how the board can set risk appetite to prevent “people going rogue,” how to scale risk reporting for a multi-campus system, and how to balance public transparency with the need for candid discussions about sensitive risks. Regula outlined a “top-down and bottom-up” approach in which trustees set strategic objectives and campuses supply tactical execution and warning indicators.

The presenters shared recommended practices—establishing a risk framework, performing regular risk assessments, integrating risk into decision-making, improving communications and dashboards, training trustees, leveraging technology, considering a dedicated risk committee and engaging external experts—and asked trustees to rank those priorities. Trustees ranked establishing a risk framework, integrating risk into decision-making and leveraging technology as the highest priorities.

Trustees and presenters agreed on next steps: pursue clearer, data-driven reporting with key risk indicators that show whether mitigation measures are working; consider targeted closed-session reviews for high-sensitivity topics; and follow up with more detailed dashboard examples and training. The session closed with a planned Q&A window and an acknowledgement that the board would reconvene later to evaluate specific reporting formats and any charter or policy language to anchor board expectations.","Baker Tilly led a board study session on enterprise risk management using a live collaboration tool. Trustees and consultants discussed board oversight responsibilities, five risk components, and areas for improvement, with trustees identifying strategic oversight as the greatest need.","actionData","errors"]

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Minnesota State presents scaled 2026 capital framework and recommends 5.5% tuition parameter for FY26

Consultants, trustees test enterprise risk tools in Minnesota State study session