Balancing Our Budget
The University of Nebraska–Lincoln is reducing its State-aided budget by $27.5 million to address a structural budget deficit and anticipated challenges in FY2026. This total includes approximately $21 million to close the structural gap and an additional $6.5 million in proactive reductions. These steps ensure we can continue delivering on our important mission for students, faculty, staff and the people of Nebraska. You can read Chancellor Rodney D. Bennett’s Aug. 4 message, as well as the Nov. 10 Final Budget Reduction Plan. The University of Nebraska Board of Regents voted to approve this plan on Dec. 5.
Rationale
The University’s current revenues are not sufficient to meet operating expenses. This gap stems from a combination of factors: declining state appropriations, reduced net tuition revenue, smaller campus allocations, and sharply rising costs for health care, property and liability insurance, and utilities.
The University of Nebraska–Lincoln relies on multiple funding sources—primarily state appropriations, student tuition, federal research grants and student aid, and private giving. While Fall 2024 marked our first overall enrollment growth since 2017, net tuition revenue fell short of projections. The increase was driven by more Nebraska residents enrolling, while the number of higher-paying out-of-state students and international students declined.
The University’s annual operating budget, which is set by the NU System using a historic, incremental funding model, is made up of state appropriations and net tuition. Other funding sources – such as NU Foundation funds, grants and contracts, and auxiliaries such as housing and dining – are often restricted to specific purposes and cannot be used for general university operating expenses. Athletics is an entirely separate budget and reports to the Office of the NU System President.
A Strategic Approach
Addressing our budget deficit requires more than short-term cuts—it demands a deliberate, long-term strategy that protects our core mission while positioning the University for sustainable success. We will focus resources on high-impact priorities, align programs with enrollment trends and market needs, and streamline operations to reduce costs without compromising academic excellence.
This approach will combine disciplined financial management with strategic investments to grow revenue, expand partnerships, and strengthen our competitive position.
Academic Program Elimination Information Faculty and Staff Transition Information
Immediate Steps
Immediate steps are being taken, including an extension of an existing hiring freeze, refilling only those positions most essential to university operations. A Voluntary Separation Incentive Program (VSIP) program has been offered to eligible tenured faculty members.
Timeline
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Week of August 4
Chancellor invokes the budget reduction process and provides the Academic Planning Committee with the framework for consideration.
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August 20
Chancellor provides the APC the plan for budget reductions.
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September 5
APC provides initial feedback on the plan.
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Week of September 8
Chancellor makes the budget reduction plan public. APC announces procedure for campus feedback.
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September 15 – October 13
APC collects and considers feedback. Public hearing schedule, live stream links, and archived recordings posted on APC website.
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October 13 - 23
APC deliberates and prepares recommendations.
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October 24
APC makes budget reduction recommendations to Chancellor.
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November 10
Chancellor Bennett releases the Final Budget Reduction Plan.
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December 5
Board of Regents vote on Final Budget Reduction Plan.
The Academic Planning Committee
The Academic Planning Committee (APC) is a university-wide group responsible for formulating and recommending academic and planning goals and initiatives for UNL in the areas of education (resident and extension), research, and service to the Faculty Senate, Colleges, and Chancellor. The APC recommends actions and procedures for new and existing academic programs and is empowered to recommend changes in programs, including elimination.
Once the Chancellor invoked the budget reduction process on Aug. 4, university leaders closely adhered to the prescribed “Procedures To Be Invoked For Significant Budget Reallocations And Reductions.” These procedures were most recently revised and approved in 2022 by the APC, ASUN Student Government, and Faculty Senate. In accordance with UNL Bylaws, the APC consists of elected faculty, staff, and students, as well as appointed deans and vice chancellors. When a significant budget reallocation or reduction is determined by the Chancellor to be necessary, the APC is the primary representative body charged with ensuring robust consultation in the budget planning process. The APC is advisory to the Chancellor, and per UNL Bylaws, “all committee members shall vote on all motions.”
Academic Program Review
The Executive Leadership Team proposed teaching and research metrics that were used for academic program analysis. These metrics were aligned with the Nebraska Coordinating Commission for Post-secondary Education criteria, the revised and approved APC criteria for the review of academic programs, the N2025 strategic plan, and the NU System “Odyssey to the Extraordinary.” They were developed and refined in collaboration and consultation with shared governance partners over the spring and summer including college leadership teams, the APC, and department executive officers. Valuable feedback from these meetings resulted in improvements to this metrics-based approach that was consistently and fairly applied across programs.
The quantitative data analysis was conducted by data professionals in the Office of Institutional Effectiveness and Analytics in collaboration with the Office of Research and Innovation. The resulting data was subsequently shared with college leadership teams and data analysts to ensure thorough review during the development of the metrics. These experts continue to be available to address questions regarding specific metrics and data analyses; they have confirmed the appropriate use of z-scores to enable cross-unit comparisons across each metric, and affirm the validity of these analyses.
This quantitative approach, combined with qualitative assessments like strength of the program, needs of the state, and workforce alignment, were considered as part of the process.
Teaching and research metrics address our current deficit in a strategic way that moves beyond the percentage-based approaches of previous budget reduction processes and encourage us to think in a way that establishes a foundation for future decision-making and success. The anticipated result is a more streamlined, efficient university that retains the profile and impact of a comprehensive, Big Ten, land-grant, research university, continues its significant return of investment for the state of Nebraska and its taxpayers, and positions UNL to move forward toward aspirational goals, including being considered for readmission to the AAU.
Teaching metrics include:
- Student credit hour generation
- Number of majors
- Anticipated demand (in terms of recent growth)
- Retention
- Measures of instructional efficiency (e.g., ratio of student credit hours to instructional full-time employee)
- Comparison of tuition vs. instructional budget
Research metrics include:
- Normalized AAU Phase I indicators (competitive federal research expenditures; highly prestigious awards, fellowships, and memberships; book publications; and citations)
- Academic Analytics Scholarly Research Index (SRI) relative to AAU public institutions
- Externally sponsored awards (including NU Foundation) relative to state-aided budget
- Unit growth in externally sponsored research awards relative to UNL total growth
Academic programs proposed for elimination within the Chancellor’s budget reduction plan constitute a “bona fide discontinuance of a program or department.” The bona fide discontinuance of a program or department is a separate action from a declaration of financial exigency (BoR 4.12; 4.4.3). Consistent with Board of Regents Bylaws, faculty and staff with appointments in programs or departments that are terminated because of discontinuance will be given the required notice prior to the effective date of termination.
The Path Forward
UNL's current budget situation requires the university to reduce its expenses in the immediate future, but recurring budget reduction cycles are not a path to growth and distinction. For UNL to achieve an extraordinary future, the university must realize growth fueled by increased revenue generation.
UNL must enroll more students—providing Nebraskans with the opportunity of a Big Ten, Carnegie R1 education, while also attracting and retaining a greater share of out-of-state and international students.
UNL must also continue to make our compelling case to state leaders and other stakeholders that there is no better investment than the University of Nebraska-Lincoln.
UNL is an economic and cultural driver in the state of Nebraska with a $3.1 billion economic impact on the state. For every $1 invested in the University of Nebraska System, $10 is returned to the state.
UNL must remain committed to working closely with our federal partners and others to ensure that they continue to see the full value of our transformative research and creative activity-work that drives innovation and reflects the resilient spirit of Nebraska.
And UNL must continue to appeal to our alumni and friends, who are already so generous to the university, but whom we are increasingly reliant upon as we face an uncertain financial future.
FY2026 Budget Messages
November 10, 2025
Message from Chancellor Bennett - Final Budget Reduction Plan
October 31, 2025
Message from Chancellor Bennett - Update on Budget Reduction Planning
September 12, 2025
Message from Chancellor Bennett - Budget Reduction Proposal
August 8, 2025
Message from Chancellor Bennett - Budget Reduction Framework
August 8, 2025
Message from President Gold - Voluntary Separation Incentive Program
August 4, 2025
Message from Chancellor Bennett - Addressing our Budget Deficit
June 19, 2025
Message from President Gold - Update to the Board of Regents
May 20, 2025
Message from President Gold - Salary Guidelines
May 20, 2025
Message from Chancellor Bennett - Salary Program Update
March 4, 2025
Message from Chancellor Bennett - Budget Reductions
Prior Budget Reductions
Since FY20, UNL has made permanent budget reductions of approximately $75 million. Most recently, in our continued efforts to be fiscally responsible stewards, UNL finalized a $12 million reduction in January 2024, as well as a $10.8 million reduction in June 2023 and $5 million Spring 2025.