St. Cloud State, Bemidji State Receive Millions In System-wide Financial Support Plan [AUDIO]

ST. CLOUD (WJON News) -- The Minnesota State Board of Trustees has approved the Allocation Framework proposal.

It shifts up to $25 million next year between institutions within the system.

The money will be used for technology upgrades, building demolition, and provide transition support for institutions experiencing financial difficulty. Specifically, St. Cloud State University will receive $10 million, and Bemidji State will receive nearly $4.9 million.

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Vice Chancellor for Finance and Facilities Bill Maki says the allocation is for just this budget year, with an annual review for up to four years.

As we go through this journey over the next few years, there will be regular discussions about advancements that are happening at the university and how they are contributing towards improving enrollment, improving revenue, and cost reduction.

Maki says the plan includes building demolition, which would help to reduce the university's costs.

The demolition program is one that would significantly benefit and reduce operating costs at both of the impacted universities and put less stress on their budget.  The program was approved for up to four years, but it will be looked at on an annual basis.  It is up to $40 million over four years.

SCSU President Gregory Tomso released a statement saying,

"We recognize that this funding represents a significant commitment by Minnesota State at a difficult time across the system, and we will be responsible stewards of that investment."

Maki says it's not about taking money from colleges and giving it to universities; it's about supporting the system as a whole.

At certain points and times, our institutions need more support from the system, and at this point and time it is St. Cloud State and Bemidji State that need some support.  There have been other times when the colleges needed support.

Since 2010, SCSU has reduced its workforce by about 40 percent and its physical footprint by nearly 20 percent.

Since 2023, 189 academic credentials have been discontinued or suspended admission.

SCSU is still the second largest university in the Minnesota State system with over 9,100 students.

Read More: Minnesota State System Enrollment Holds Steady At 172,879 Students |

Maki says it is too important to Central Minnesota.

It's critical to the vibrancy of Central Minnesota, as well as the state at large.  That's the commitment the board made on Wednesday in approving the transitional funding to provide funds to allow the university to recover from a very difficult financial situation.

St. Cloud State has an economic impact of nearly $600 million on Central Minnesota.

President Tomso,

"This temporary support will help ensure that we can continue serving our students, our region, and the state as we have for more than 150 years."

Maki says a draft of Minnesota State's budget request for the upcoming legislative session shows the system will ask lawmakers for $25 million in one-time funding to support struggling institutions, as well as $25 million for building demolition.

Minnesota State is facing a $31.5 million systemwide deficit that, if left unaddressed, could more than triple by 2028.  In January, the Board of Trustees will begin discussing a systemwide redesign that will likely include campus closures, mergers, or consolidated administrative services.