University of Minnesota President Robert Bruininks has proposed a budget that would hold tuition increases to 3 percent, but would eliminate over 1,200 jobs.

Bruininks said 60 percent of students who pay in-state tuition rates actually will see their bills go down next year, thanks to federal stimulus money and other aid.

Under the budget presented to the regents Friday 1,240 jobs will be cut. Bruininks said many will come through early retirement or by leaving open positions empty, but there will be at least 400 layoffs.

University officials host a public forum on the budget Wednesday.