August 4, 2025
Colleagues,
The University of Nebraska System recently announced significant budget challenges. Additionally, the University of Nebraska–Lincoln will need to eliminate its structural deficit, something we have been working toward for several budget cycles. I want to acknowledge the significance of the challenges we are facing, as well as the cumulative effect of repeated budget processes that extend beyond financial impacts and into areas like employee morale.
As you know, we have reduced our budget several times in recent years. Despite our best efforts to live within our means, our revenue has not kept pace with expenses. This is due to a combination of downward trends in state appropriations, net tuition and campus allocations combined with historically high inflation of health care costs as well as property and liability premiums and utilities.
Growth of revenue from net tuition, including new enrollment and retention, as well as new and continuing extramural grants and contracts continues to be our priority. We remain highly committed in these areas.
Unfortunately, considering the structural deficit and anticipated new budget cuts, we must implement a plan by the end of this calendar year to reduce our budget at UNL by approximately $27.5 million. With this in mind, I am initiating the formal budget reduction process to include convening the Academic Planning Committee (APC).
This week, the APC will discuss the framework for the budget reduction process so that I may carefully consider their recommendations and propose a final budget reduction plan to the Office of the President in late October. This will allow for full Board of Regents consideration at its December meeting. It is important that we complete our process following this timeline while being thoughtful and adhering to existing shared governance processes, as well as Board policy, both in letter and in spirit.
This critical period for our university will include the intentional review of academic programs for potential elimination or mergers that will capitalize on UNL’s existing strengths. I want to note that many areas of the campus community will be impacted by this work, including the Office of the Chancellor. In addition, immediate steps will be taken to reduce spending. A Voluntary Separation Incentive Program (VSIP) will likely be offered this fall, with details forthcoming. We are also extending the existing hiring freeze, refilling only those positions most essential to university operations.
This spring, I asked our leaders to think differently about our budget challenges — to address our current deficit in a strategic way that moves beyond the percentage-based approaches of previous budget reduction processes. And to think in a way that establishes a foundation for future decision-making and success.
The Executive Leadership Team has proposed teaching and research metrics that will be used for academic program analysis with input from many people. Thus far, these metrics have been presented to the Academic Planning Committee, deans and department executive officers. Valuable feedback from these meetings has resulted in improvements to this metrics-based approach that can be consistently and fairly applied across programs. This quantitative approach, combined with qualitative assessments like strength of the program, needs of the state, and workforce alignment, are being considered as part of the current process. These metrics will help us to make decisions regarding ongoing and future investments in key programs that can further elevate the university and the state of Nebraska.
Thank you for your dedication to the University of Nebraska–Lincoln. You are navigating the uncertainty of budgets, federal and state impacts, and other challenges to higher education with professionalism, and with the success of your colleagues and our students in mind. In many cases, you are doing more than ever and at an exceedingly excellent level. I am grateful for you, and like you, I want to realize a future for UNL in which faculty and staff are not repeatedly asked to do the same quality and amount of work with fewer resources — but rather are provided the support and opportunity to excel beyond current levels of success.
Our goal is for UNL to emerge from this current process a more streamlined, efficient university that retains the profile and impact of a comprehensive, Big Ten, land-grant, research university, continue its significant return of investment for the state of Nebraska and its taxpayers, and position us to move forward toward aspirational goals, including being considered for readmission to the AAU.
Thank you again for all that you do for the University of Nebraska–Lincoln.
Rodney D. Bennett
Chancellor