MANKATO — Minnesota State University has announced a series of budget actions to address a projected $22 million deficit over the 2026-27 biennium.
According to information released by the university Wednesday morning, despite strong student enrollment, the university is facing a structural budget gap driven by rising operating costs, limited growth in state funding and a state funding formula that provides the university with less funding per student than the average among the Minnesota State system’s seven universities.
“The reality is that if we do not act now, while we still have the opportunity to be thoughtful and strategic, the decisions required in the future would likely be far more severe and disruptive,” university president Edward Inch wrote in an email to staff this week, notifying them of what’s to come.
The plan includes new revenue initiatives, non-personnel spending reductions and workforce changes, which could impact approximately 60 current positions, according to university officials. The university said bargaining unit leaders were informed of the decisions Aug. 4 and employees whose positions may be affected are expected to be notified during the week of Aug. 24, in accordance with collective bargaining agreements. University officials said position-specific information will not be released publicly while contractual processes remain underway.
More information can be found at mnsu.edu/2026BudgetDecisions. This is a developing story and will be updated.