Minnesota State Approves $25 Million Annual Aid

Minnesota State’s Board of Trustees approved a plan to redirect up to $25 million annually for four years to financially distressed institutions, with about $15 million primarily supporting St. Cloud State and Bemidji State. The universities have faced declining enrollment, budget deficits and cash shortages despite major cuts to programs and staff; the funding is intended as a temporary bridge while the system develops longer-term changes. Much of the money will come from two-year colleges, whose leaders say they too have endured layoffs, budget freezes and other hardships and object to losing funds. The revised plan reduces contributions from colleges with the weakest reserves and requires the recipient universities to develop financial recovery plans. The decision comes as Minnesota State confronts a growing systemwide deficit and considers broader restructuring, including possible campus closures or mergers.