MINNEAPOLIS (AP) - A new report says the Minnesota State Colleges and Universities system is facing dire financial challenges and that delays in addressing them will only make things worse.

The work group that spent eight months on the report says declining state funding may mean big changes for the system's 37 colleges and universities, which educate nearly 400,000 students a year.

Recommendations for dealing with the financial difficulties include consolidating duplicated services across the state, adopting more flexible labor practices and streamlining curriculum.

Chancellor Steven Rosenstone expects to have final recommendations for the system trustees by October.

The trustees board meanwhile has rebranded the overall name for the system's schools to Minnesota State instead of MnSCU.