March 4, 2025
Dear Members of the University Community,
I am writing to inform you that I have directed the Executive Leadership Team to prepare for additional budget reductions to clear our structural deficit, resulting from rising costs and a decline in net tuition, as well as to prepare for the potential of reduced funding from the state for the next biennium.
Today, we are taking several actions:
- We are extending the existing hiring freeze, refilling only those positions most essential to university operations;
- We are developing a plan that reduces UNL’s permanent budget by $5 million this fiscal year, with units assigned a proportional share of the total reduction;
- We are initiating plans for an additional permanent budget reduction of $10 to $20 million, in the event such a reduction is necessary early in the next fiscal year. A reduction of this magnitude must be driven by UNL’s strategic priorities, informed by performance metrics, and aligned with the NU System’s developing strategic plan and the needs of the state of Nebraska. We will use the time between now and June 30 to carefully weigh these factors and prepare for the additional reductions that may be necessary.
In addition, we are closely working with our partners in Washington D.C. to fully understand and plan for proposed changes at the federal level. Given this uncertainty and growing budgetary pressures at the state and institutional levels, we have also made the difficult decision to not issue new awards as part of the Grand Challenges Catalyst Competition. No new proposals will be accepted or funded in 2025, the initiative’s final year. These dollars will likely be needed to help bridge essential research infrastructure and services in the months ahead. Currently, we plan to continue to support active, multi-year projects awarded in 2022, 2023 and 2024, contingent on the availability of funds.
I recognize the significant sacrifices we will have to make, as these steps follow a $12 million reduction finalized in January 2024, a $10.8 million reduction finalized in June 2023, and other reductions in our recent past. I also sympathize with the strain this places on programs and services, as well as our people that are being asked to do more with less yet again.
While this message focuses on our expenses, we must also remember that budget reductions are not the only path to the future we all envision for the University of Nebraska-Lincoln as the state’s land-grant, flagship, research institution that is an economic, educational, cultural driver for Nebraska. As President Gold referenced in a recent message, we face difficult decisions, but we also need the state’s and other supporters’ “continued partnership to uphold our promise to Nebraska: to remain a powerful engine of opportunity, education, and innovation.”
The strategic, hard work we complete in the coming months can propel us beyond our current challenges and into a brighter future. Our future must be driven by mission and vision—and also revenue growth. UNL offers a high quality, personally engaged education for students, a place where faculty discover, innovate and create in ways that advance Nebraska, the nation and world, and a place that truly matters to what is important for all of Nebraska. To continue to do that,
- We must grow our enrollment, continuing to increase the number of students we educate both from within and outside of Nebraska.
- We must continue to make our compelling case to state leaders that there is no better investment than the University of Nebraska-Lincoln.
- We must continue to work with our federal partners and others to ensure that they see the full value of the life-changing research and the life-giving and enhancing creative activity that makes us a hub of innovation and Nebraska spirit.
- And we must continue to appeal to our alumni and friends, who are already so generous, but we are increasingly reliant upon as we face an uncertain financial future.
Before I close this message, I want to thank you for your good work and continued dedication to the University of Nebraska-Lincoln. Our challenges are significant, but every day I see and hear new examples of how our students benefit from your expertise, your enthusiasm for your teaching and research, and your passion for supporting students. I am grateful to be here with you and to push forward for our current and future students, and for the future of the state of Nebraska.
Thank you, again,
Rodney D. Bennett
Chancellor