UNL says it must cut $27.5 million this year

The University of Nebraska-Lincoln will have to cut $27.5 million this year, Chancellor Rodney Bennett announced Monday.

In an email to UNL staff, Bennet said he is initiating a formal budget reduction process, including convening the Academic Planning Committee.

He said the budget-cutting process will include reviewing academic programs for “potential elimination or mergers” as well as the likely institution of a voluntary separation program.

UNL will also extend its current hiring freeze, refilling only positions that are considered essential to university operations.

“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,” Bennett said in the email. “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.”

He said the Academic Planning Committee will start reviewing potential budget cuts this week to allow them to be considered by the Board of Regents at its December meeting.

“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,” Bennett said.

The University of Nebraska system had sought a 3.5% annual increase in appropriations for the 2026-2027 and 2027-2028 fiscal years, but the legislature approved only a 0.0625% annual increase.

NU increased tuition 5% this year at all of its campuses.

All campuses in the system are expected to make significant cuts.

The University of Nebraska Medical Center announced last month that it asked departments to make 4% across-the-board cuts.

The University of Nebraska at Kearney and the University of Nebraska Omaha have yet to announce their plans for cuts.