MINNEAPOLIMEDIA NEWS | MINNESOTA STATE SYSTEM WARNS CAMPUS CLOSURES MAY BE NECESSARY

ST. PAUL, MN (September 28, 2026). Minnesota State Colleges and Universities Chancellor Scott Olson is warning that some campuses may have to close as the system confronts declining financial reserves, inflation, enrollment pressures and a $30 million structural deficit.

The Minnesota State system includes 33 colleges and universities operating at 54 campuses. Olson told employees that approximately one-quarter of those institutions could soon deteriorate enough financially to trigger formal health warnings.

Chief Financial Officer Bill Maki said eight institutions could reach warning status by November because of low cash reserves. The system must resolve its $30 million structural deficit by the end of the year.

Olson said the system is considering closing individual campuses, although he does not currently expect entire institutions to disappear. Other possibilities include merging colleges, combining administrative operations, sharing services and eliminating duplicated academic programs.

Minnesota State’s Board of Trustees is referring to the process as a system redesign. Administrators have not identified which campuses could close, nor have they established a specific savings target. Trustees are expected to receive a progress report in January.

Faculty representatives have expressed concern about the speed and transparency of the process. The Inter Faculty Organization warned that instructors and campus employees may not receive a meaningful role before major restructuring decisions are made.

The union has also called for greater scrutiny of the NextGen Workday technology project, which was reported in March to be $48 million over its initially approved cost and four years behind schedule. Olson said the project’s spending had been anticipated and approved.

The financial warning follows two consecutive years of substantial tuition increases. Average undergraduate tuition increased 5.5 percent during the previous year and another 6.25 percent this year. Enrollment grew 4.2 percent in fall 2025, but officials said that growth has not produced enough revenue to offset rising operating expenses.

Source: Minnesota State leadership communications, Board of Trustees materials and Minnesota Star Tribune reporting.

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