University of Nebraska pushes back against proposed budget cuts

By Fred Knapp , Senior Reporter/Producer Nebraska Public Media

Feb. 25, 2025, 5 p.m. ·

Dr. Jeffrey Gold testifies Tuesday (Photo by Fred Knapp, Nebraska Public Media News) — Dr. Jeffrey Gold testifies Tuesday. (Fred Knapp/Nebraska Public Media News)

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The Legislature’s Appropriations Committee heard testimony Tuesday from people concerned about proposed budget cuts to the University of Nebraska.

The University had asked for a 3.5% increase in state funding. Gov. Jim Pillen has proposed, and the committee’s preliminary budget endorsed, a cut of 2%.

That would be around $14 million, and University President Jeff Gold said federal cuts being discussed could raise that total to around $100 million. Sen. Jason Prokop asked what the university could do to handle that, prompting Gold to talk about the magnitude of the cuts.

“Truthfully, given the magnitude of these changes, we could remove every one of our rural programs and still not get close to the challenges that we're facing," he said. "Not to say we would ever do that, but with something we would have to consider."

Pillen has also proposed eliminating about $11 million in tobacco settlement for biomedical research. Joann Sweasy, director of the Fred and Pamela Buffett Cancer Research Institute, said that would hurt their efforts.

“These cuts, compounded by reductions in federal funding, would put the critical advancements we've made and the breakthroughs still on the horizon at risk," Sweasy said. "The impact of these funding cuts cannot be overstated. The loss of state support for biomedical research is not just a budgetary decision, it's a decision that directly affects the lives of Nebraskans. The research we conduct today will shape the treatments available to patients in the future."

Sen. Machaela Cavanaugh faulted Pillen for proposing the cuts to fund other budgetary priorities.

“In order to provide the governor's priority of property tax relief, we have to cut essential things like education at all levels, including the university,” she said.

University Regent Jim Scheer talked about what the cuts could mean for tuition increases.

“(A) 1% increase in tuition generates roughly $3 million, maybe a little more. You cut us $14 or $15 million we're going to have to go up 5-8% in tuition just to cover it,” he said.

The governor’s budget office says the University started the year with nearly $600 million in cash reserves, and the governor’s recommended cuts amount to only half a percent of the university’s overall budget.

Gold said he’s hoping the state’s financial picture improves.

“I think I speak for all of us when I say that we hope that the upcoming projections from the economic forecasting board are favorable, and further hope that those that follow in months and years to come are even more favorable. But I know all too well that hope is not a plan,” he said.

That board meets Friday to revise state revenue projections, which currently show a $432 million shortfall for the next two fiscal years. After that, the Appropriations Committee will decide which, if any, cuts to recommend in its budget proposal in April.