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Mergers, campus closures, program cutbacks could be in store for Minnesota State system
Officials say one in four Minnesota State institutions faces financial distress as leaders weigh mergers, closures and building sales to close the gap.
Minnesota State, a higher education system with 33 institutions, is planning a major downsizing process to address a $33 million fiscal year 2026 deficit on a budget of about $1 billion.
Declining state and federal investment has taken a steady toll on finances, prompting Chancellor Scott Olson to instruct the system to consider every option amid a predicted 12% decline in high school graduates by 2041.
System officials recently announced the Detroit Lakes campus will close in 2028, while Riverland Community College President Kat Linaker said her institution faces a $1 million shortfall in fiscal year 2028.
Board of Trustees member Gene Pelowski called the situation "this is unique," warning that "you'll see consolidations, you'll see closures, you'll see probably eliminated programs." Students at Riverland launched a campaign to save the theater program.
A system-wide assessment will continue over the coming months, with initial recommendations expected in January; any final plan for campus or program consolidation requires approval from the next governor and Legislature.