University of Minnesota President Eric Kaler says a move to three semesters would allow more U of M students to graduate in three years and would boost tuition revenue. In his first State of the U speech, Kaler also emphasized the need to keep administrative costs down by being "nimble."

A faculty procession and a sense of change accompanied the ceremony to welcome the University of Minnesota's next president. Eric Kaler becomes the university's 16th president. He replaces Robert Bruininks who is retiring his administration post, but will return to teaching.

Incoming VP and Provost Karen Hanson brings a background in the humanities at a time when the liberal arts are under attack. University President Eric Kaler says her education will help balance his own as an engineer. Hanson has said that making the case for the humanities "will have to be made again and again."

It's Eric Kaler's final budget proposal as president.

Discoveries by researchers at the University of Minnesota led to a record 12 startup companies in fiscal 2012, according to a news release. “The diverse range of disciplines represented in these 12 startup companies demonstrates what a valuable resource the University of Minnesota is to businesses in this state, and beyond," president Eric Kaler wrote.

Governor Mark Dayton wants more businesses to improve education in Minnesota by adopting schools. He spoke at a Richfield school that's been adopted by both Best Buy and Fairview Hospitals. It's provided amenities ranging from laptops to a teen parent center.