January 17, 2025
Dear NU Faculty, Staff and Students,
On Wednesday, Governor Pillen delivered his State of the State address, outlining his proposed biennial budget amidst projected declines in state tax revenues. As you likely read in the Omaha World-Herald, Lincoln Journal Star and other news outlets, the Governor’s plan includes cuts to many state agencies, including the University of Nebraska. While we are only at the beginning of the process of determining the University’s state-aided budget for the next biennium, I want to provide an update on what this could mean for our university system and the communities we serve.
First, we are grateful to Governor Pillen for supporting Project Health, a public-private partnership to expand professional learner enrollment at UNMC and Nebraska Medicine by up to 25% and enhance healthcare education, research, and delivery statewide. His proposed budget releases $50 million of the total amount that was previously appropriated by the Legislature for this initiative in 2020. The release of this previously appropriated funding will hopefully allow us to move forward on this project.
However, the proposed budget also includes a 2.07% reduction in the University’s base state-aided core budget. The Governor’s plan removes all of the University’s $11 million share of the Nebraska Tobacco Settlement Biomedical Research Fund and maintains statutory tuition waivers that cost the University $6.25 million annually and continue to increase. In total, the result lays out approximately $31.5 million — or 4.55% — in negative budget impact across the NU system annually for each year of the biennium. Given the recently announced consumer price index from the U.S. Bureau of Labor Statistics of 3.1% inflation, this functionally deepens the cut to 7.8% in FY26.
On top of these reductions, there was no mention of the other budgetary requests for research growth, Presidential Scholars or for facility planning funds.
The University strives to be a good partner. After all, one of the five pillars we developed to guide our strategic plan is “extraordinary stewardship and effectiveness.” But I don’t have to tell you that cuts of this magnitude would significantly impact the University at a time that our mission of research, teaching, and extension and engagement is critically important to the state.
Over the course of the 2025 Legislative session, we will work to address this challenge strategically and collaboratively. In the days ahead, we will review the Governor’s proposal in detail. We will engage with state senators to advocate for the 3.5% increase in state-aided funding that was passed by the Regents in alignment with Nebraska’s state and community college systems and in consultation with the Governor’s office last August. We will do our best to make sure Nebraskans understand the University’s powerful role in driving Nebraska’s economy and delivering affordable, world-class education. And we will continue to move forward on developing the strategic plan that will guide our odyssey to the extraordinary.
This ongoing work requires the support of our entire community—leaders, alumni, and stakeholders and, critically, our faculty, staff and students. Each of you has seen first-hand the power of the University of Nebraska to transform lives. As a first step, I challenge you to share real life examples of the transformative power of the University with friends, family and neighbors. I also welcome your ideas on how we can continue to advocate for our institution.
Nebraskans come together in times of need, and we will come together to face this challenge. I remain proud of this university, honored to work alongside all of you, and confident in our extraordinary future.
Sincerely,
