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President's Report to the Board of Regents

Thank you, Chair Huebsch.

We have officially crossed the finish line of the 2025-26 academic year, and I’d like to begin by expressing my deepest gratitude to our faculty and staff all across the University. Your tireless dedication, mentorship and hard work is the heart and soul of what we do. Because of you, the University of Minnesota is strong, and getting stronger. And because of you, we are growing the University’s reputation for excellence, and driving our mission forward.

In May, the University of Minnesota celebrated Commencement, and recognized more than 14,000 students for their academic accomplishments. These graduates leave the University of Minnesota at a moment when the world needs their curiosity, resiliency and commitment more than ever. I participated in several Commencement ceremonies last month, as I know all of you did as well, and there is nothing quite like seeing the unbridled joy from everyone at these events. Attending Commencement is always a reminder of just how meaningful our work is at the University.

As I shared yesterday during the Academic Health Committee meeting, this week, we are making health and healthcare stronger in the state of Minnesota. I’m incredibly proud that we have finalized agreements with University of Minnesota Physicians and Fairview Health Services. Here’s what these agreements mean for Minnesotans:

  • With University of Minnesota Physicians, we’ve strengthened our partnership, so that through strong collaboration, we can best support the University’s vital research, education and clinical missions. Our agreement will strengthen the healthcare workforce pipeline and address worker shortages across the state.
  • And with Fairview, we’ve defined how we will partner to drive world-class medical research and education, affirming our shared goals and Fairview’s financial commitment to the University’s academic health mission. 

Together these agreements will help us meet our state’s most urgent health and healthcare needs.

Pending approval by the Board of Regents and our respective partner organizations’ governing groups, these agreements will take effect in January 2027. 

Throughout the negotiations, the University of Minnesota has been guided by our 175-year, land-grant mission, and our commitment to our faculty, learners and patients across Minnesota. I’d like to thank Dr. James Hereford, President and CEO of Fairview Health Services and Dr. Greg Beilman, CEO of University of Minnesota Physicians and their teams for their commitment to collaboration, to mutual compromise and to strengthening health and healthcare in Minnesota.

Shifting now to our Elevate Extraordinary 2030 roadmap, we continue to make great progress. One of our key priorities in the plan is a reimagined St. Paul campus. The St. Paul campus anchors a significant portion of the University’s knowledge and expertise in agriculture, food systems, environmental science and veterinary medicine. Last month, the state Legislature passed a $1.2 billion bonding bill that includes $75 million in funding for the University of Minnesota. In that funding, $35 million will be allocated for replacing the existing St. Paul Student Center and Magrath Library building, as part of a new St. Paul Campus Center.

This investment is a critical first step to creating a vibrant, future-ready hub that supports the University’s land-grant mission and prepares students — many from Greater Minnesota — for in-demand careers across the state.

We are grateful to Governor Walz and our state legislators for their bipartisan support and investment in this foundational University project, which will strengthen communities across Minnesota.

And thank you to Erin Sexton, our vice president for government and community relations, and the entire Government Relations team for their work during this legislative session. You will hear more from Vice President Sexton later today, but being able to secure the $75 million in total funding from an evenly divided state legislature is a remarkable achievement. 

Additionally, as a result of the bonding bill, the University is returning the Cloquet Forestry Center land to the Fond du Lac Band of Lake Superior Chippewa. This represents a landmark moment in recognizing our shared history. It’s about more than land—it’s about building a future grounded in respect, reconciliation and shared stewardship. We are deeply grateful to the Fond du Lac Band for their partnership, as well as our government partners, Minnesota’s 11 Tribal Nations and the Minnesota Indian Affairs Council for their support.

Moving now to our senior leadership team. I’m excited that Dr. Cynthia Carnes will join the University as vice president for research and innovation. She comes to us from The Ohio State University, where she serves as senior associate vice president for research operations at the Enterprise for Research, Innovation and Knowledge, a role she has held since 2022. Throughout her 30 years at Ohio State, Dr. Carnes has led initiatives to modernize research systems, improve support for faculty and staff and expand training for researchers and investigators. We look forward to welcoming her on July 31.

Before I get into detail on the budget, I want to extend a sincere thank you to everyone who provided valuable feedback via written comments or by participating in our in-person public budget forum. Your input has helped guide the budgets we’ve proposed. 

As I shared yesterday, during the Finance & Operations Committee meeting, higher education in the U.S. is facing challenging headwinds, and the University of Minnesota is no exception. Inflation continues to erode the University’s funding from the state of Minnesota, decreasing our purchasing power, even as we remain an important part of the state’s economy. With flat or declining state funding, decreasing federal funding, rising health care costs and rising inflation, we are seeing: 

  • a $25 million to $30 million reduction in purchasing power, 
  • and $25 million in increased pharmacy costs within our insurance program for FY27.

Ten years ago, the state provided 16% of our operations and maintenance funding through unrestricted funds. Today, that number sits at 13%.

In the face of all of these headwinds, we are taking critical steps to meet the moment. The budget we have proposed is balanced, and is a true reflection of our values and our land-grant mission. We made cuts to our budget last year and this year, and will need to continue to prioritize and focus our resources. Importantly, we remain one of the most affordable options for Minnesota students. We’re committed to remaining accessible for students at all income levels while we deliver a premier education that sets our students up for post-graduation success. Today, the cost of a University of Minnesota education, when adjusted for inflation, is lower than it was a decade ago. And we also remain committed to supporting and investing in our talented faculty and staff by offering fair and competitive compensation. 

While the financial pressures we’re facing require us to think differently, what remains unchanged is our deep commitment to the state of Minnesota. We will continue to serve as a statewide talent engine, supporting the full spectrum of Minnesota’s economy, and serving all 87 counties.   

Thank you to EVP Goldman, VP Roberts-Davis, VP Zewers, and their teams. And to all of the University’s faculty and staff who are helping us think differently about how we’re fulfilling our core mission and effectively managing our budget while we strengthen our impact across Minnesota. 

Last week, Provost Gretchen Ritter and I hosted an event called NEXT: Extraordinary Learning and Leadership. We convened University leaders from across our five campuses to discuss the future of our academic mission, our shared responsibility for coming together as one University and our recent successes.

It was great to see everyone collaborating and imagining what the University of Minnesota can achieve in the years ahead. I have a short video from the event that I will share with you.

Finally, while campus may be quieter during the summer months, our engagement across Minnesota never stops. Over the coming weeks, I am thrilled to be traveling throughout Greater Minnesota to connect directly with the communities we serve. My summer travels will take me to the county fairs in East Otter Tail, Pine, Stevens, Dakota, and Steele counties. I look forward to hitting the road, spending time in these communities, and meeting with many of our alumni, current students and the next generation of University of Minnesota alumni. 

Thank you, Chair Huebsch. That concludes my report.