On Jan. 15, Gov. Jim Pillen announced his biennial budget proposal during his State of the State Address to Nebraska’s legislature. Pillen recommended a 2.07% reduction in the University of Nebraska’s operating budget.
The budget reduction equals $14.5 million annually through the next two fiscal years beginning on July 1, 2025.
“The University budget is pretty significant, and 2% doesn’t sound like much, but that’s a lot of dollars in the total university budget,” said Stanley Clouse, a Nebraska State Senator representing District 37, which includes Kearney.
In his proposal, the governor recommended removing the University’s $11 million share from the Nebraska Tobacco Settlement Biomedical Research Fund. This fund attracts faculty from around the world and contributes to research programs at the University of Nebraska, Creighton University and Boys Town National Research Hospital. The governor’s proposal reappropriates the University of Nebraska’s portion of the settlement money but protects the other institutions’ shares.
Pillen’s budget also maintains statutory tuition waivers that cost the University system $6.25 million annually. In total, Gold suggests the cuts will amount to more than $30 million a year.
Dr. Jeffrey Gold, president of the University of Nebraska, said University officials will be meeting with state senators over the course of the 2025 Legislative session to advocate for the University.
“We are not only critically important as an educator, as a researcher, delivering healthcare, engagement and so many other things, but we’re a phenomenal economic investment, and the state has to understand that,” Gold said.
The state’s budget process is in its preliminary stages. The Nebraska Appropriations Committee consists of nine members and is currently chaired by Sen. Rob Clements. Senators on this committee will be reviewing Agency 051, the University’s budget item, on Feb. 25. University officials and representatives, including Gold and Sam Schroeder, UNK Student Regent, will testify at this hearing and provide information to persuade the legislators on the committee to strengthen the budget recommendation for the University.
President Gold said the University is currently focusing on collecting substantial amounts of accurate information about the status of its financial systems. They are using this information to communicate with legislators and their major stakeholders regarding why the University is important to the economic stability of the state.
At the February Nebraska Board of Regents meeting on Feb. 7, Gold announced the hiring of an economic impact firm to measure the influence of the University on the state. The University has an economic impact of $6.5 billion annually and a 10-to-1 return ratio on state investment.
The governor’s proposal decreases funding for the entire University of Nebraska system, but there will be a trickle-down effect on each of the campuses. After the vote on the budget in May, the Board of Regents and the chancellors of each institution will create a recommendation for specific cuts to budget categories.
UNK’s total operational budget is estimated to be $167.7 million per year. State funding makes up around $76.8 million or 45.8% of UNK’s total budget.
Schroeder is working on a resolution to send to the Governor about the budget and the University of Nebraska’s importance to the state. He is also encouraging students to attend the “I Love NU” Day celebration on April 2. UNK will be providing bus transportation to Lincoln for the event.
“Every student can have the opportunity to meet with elected representatives and tell them about their experience at Kearney, and hopefully that can influence how they make their decisions with appropriations this year,” Schroeder said.
