MINNEAPOLIS (AP) - Tuition at the University of Minnesota would rise 3.5 percent, or $410, for in-state residents under the first budget proposed by new President Eric Kaler.

The proposed $3.5 billion budget also includes a 2.5 percent pay raise for most workers. It would also provide more money for scholarships and faculty hires.

Data from the Office of Institutional Research show that the 3.5 percent increase for in-state undergraduates would be the smallest percentage increase in 12 years.

The Board of Regents will review the budget proposal Friday.

Under the proposal, undergrads on the university's Twin Cities campus would pay $12,060 for tuition if they're in-state and $17,310 if they're from another state.

The budget would also add a surcharge for students in the Carlson School of Management.

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