LINCOLN — The University of Nebraska-Lincoln is facing a significant financial challenge, with Chancellor Rodney Bennett announcing a proposed $27.5 million budget reduction plan.
The cuts are designed to address what Bennett described as a structural budget deficit that has developed over time due to multiple financial pressures facing the institution.
"There's absolutely no question that the University of Nebraska Lincoln provides a significant return on investment for our students and for the state of Nebraska," Bennett said. "Even so, UNL has been faced with declining revenues in several key areas, including reduced net tuition revenue, changes in state appropriations and campus allocation models, and sharply rising costs for healthcare, property and liability insurance, and utilities, resulting in a structural budget deficit that compounded over time."
The $27.5 million reduction breaks down into $21 million needed to close the structural gap and an additional $6.5 million as a safeguard against future financial uncertainty.
Program eliminations and job losses
The most significant impact will be the elimination of six academic programs: Community and Regional Planning, Earth and Atmospheric Sciences, Educational Administration, Landscape Architecture, Statistics, and Textiles, Merchandising, & Fashion Design.
These program cuts will result in the elimination of 58 full-time employee positions.
Department consolidations
To achieve additional savings, four academic departments will be consolidated into two new interdisciplinary schools, generating $2 million in total savings.
The Department of Entomology and Plant Pathology will merge into a new interdisciplinary school, with faculty given until spring 2026 to develop the framework. This consolidation is expected to save $1 million through natural attrition and the university's Voluntary Separation Incentive Program.
Similarly, the departments of Agricultural Economics and Agricultural Leadership, Education and Communication will merge, saving another $1 million through an open staff position and natural attrition.
Graduate program reductions
Graduate assistantship programs will also face cuts. The College of Engineering will lose $225,000 in graduate assistantship funding, while the College of Arts and Sciences will see a $325,000 reduction, totaling $550,000 in cuts to these programs.
Funding limitations
Bennett clarified that certain revenue streams cannot be used to address the deficit.
"I often receive questions about two highly visible revenue streams, so I'd like to take just a moment to clarify," Bennett said. "We cannot use athletic funds to offset this deficit. And we cannot permanently backfill deficits with foundation funds, which are largely designated for specific purposes."
The university developed its formal budget reduction plan using what Bennett described as "quantitative assessments informed by research and teaching metrics as well as qualitative considerations like program distinctiveness, the needs of our state, and post-graduation opportunities."
The final budget reduction plan will be presented to the Board of Regents for consideration at their December meeting.
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