The University of Nebraska-Lincoln will seek to close a $12 million budget deficit by cutting instructional and operational expenses, as well as costs related to diversity and inclusion, student affairs, and research and economic development.
In all, Chancellor Rodney Bennett is asking UNL department and unit leaders and other administrators to find savings across nine broad categories outlined in a memo to the Academic Planning Committee on Wednesday.
The areas identified for cuts emerged from a monthslong review by a task force convened by former Chancellor Ronnie Green in the spring following a previous round of budget cuts.
In June, Green approved cuts of $10.8 million to UNL's state-aided budget — which is made up of appropriations from the Legislature as well as tuition revenue — through a combination of closing open positions, reducing administrative costs and shifting some expenses to grant funding.
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The responsibility for cutting the remainder of a roughly $23 million structural deficit created through enrollment losses and increased costs then fell to Bennett, who became UNL's 21st chancellor on July 1.
"This is not something anybody is excited about, least of all yours truly," Bennett said in an interview Wednesday. "But the reality is we have never really addressed this structural issue and the lack of dealing with it has caused it to increase over the years."
In an email to students, faculty and staff Wednesday afternoon, Bennett said the cuts are "designed to increase efficiencies wherever possible and ensure that we continue to offer the high-quality education and support services that our students require."
Bennett said the proposed cuts do not include closing academic programs — as has been proposed at the University of Nebraska at Kearney — but will target $2 million in savings by "reducing instructional costs" and increasing efficiency.
The chancellor said those cuts would not likely be felt by students: "They will have minimal impact on their daily experience."
Other proposed cuts include:
* $2.9 million by reducing administrative positions, pools and stipends across the campus.
* $2.9 million from units managed by the executive vice chancellor's office.
* $1.4 million in savings from operations like information technology, communications, business services and student services.
* $1.2 million from the Institute of Agriculture and Natural Resources through reductions and reorganization.
* $800,000 from the Office of Diversity and Inclusion by refocusing efforts at the college and unit level.
* $460,000 in reductions of state-aided programming to the offices for undergraduate education and student success.
* $194,000 from the Office of Research and Economic Development's state-aided budget.
* $139,500 from Student Affairs' state-aided budget.
Bennett said he asked the Academic Planning Committee to expedite its review and provide its recommendation by early December.
"This aggressive schedule is essential to protect our university's cash reserves," he said. "Acting expeditiously also gives us time to focus on next steps."
He also cautioned UNL employees the current round of budget cuts would likely not be the last.
"Our reality is that additional reductions will likely be necessary, and we have already reduced the budget as far as we can without considering academic program eliminations," Bennett wrote. "I believe this will best position us to make strategic decisions that address our fiscal challenges while shaping us into the institution we want to be in the future."
Since 2016, UNL has cut roughly $78 million from its state-aided budget as it has dealt with challenges related to a shortfall at the Legislature, enrollment losses and inflationary pressures.
The cuts are also part of a broader effort by the NU system to close a projected $58 million budget shortfall by June 30, 2025.