For the first time in the school’s history, the University of Minnesota will depend more on revenue from students than state appropriations after an $81.1 million cut from the state. Despite the loss of state revenue, the budget passed by the Board of Regents still attempts to hold costs down for students through a combination of federal money, scholarships and substantial staff cuts.  The University of Minnesota System will use federal stimulus money to keep tuition increases for in-state undergraduate students to 3.1 percent , however, most graduate and professional students – which make up about 40 percent of the university system’s student population –  will see a 7.1 percent increase. To make up for the increase for middle class families, the budget includes a new scholarship program targeted toward Minnesota residents who come from families with incomes of $40,000 to $100,000 which will be funded with about $8 million in stimulus money.  The $3 billion budget includes a 5.5 percent reduction in the institution’s workforce which will eliminate more than 1,200 staff positions including 220 faculty members. 
 
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