University of Nebraska System braces for unexpected $36M state funding cut

Dive Snapshot:

The University of Nebraska System is facing an unexpected $36 million cut in state funding as it starts a fiscal year that has already brought painful cuts to its institutions. 
The reduction comes after Nebraska’s tax revenue fell $307 million short of projections for the state’s fiscal year 2026 year, which ended June 30. Nebraska Gov. Jim Pillen mandated state agencies in a July 8 memo to freeze hiring barring state approval, and reduce travel and other spending.  
NU System President Jeffrey Gold said Friday that administrators are “currently working with the governor’s office regarding expectations for our institution in fulfilling these measures, while at the same time upholding our mission.”

The impact: Gold acknowledged the deep challenges the state budget news presents for the NU System’s three campuses and medical center, which have already weathered multiple rounds of austerity in recent years. 

“I want to be clear: What the governor’s office is asking of us is significant,” Gold said Friday, adding that the NU System already reduced spending by $8 million for the fiscal year. “I believe it is important to acknowledge that there are limits to what can be achieved through continued reductions.” 

As more state reductions loom over the year ahead, Gold lamented what they mean for NU System campuses. 

“We cannot cut our way to extraordinary, nor can we fully realize our mission of exceptional teaching, research and statewide engagement if we are operating in a constant cycle of cuts and related restrictions, without the ability to predict even a single year of stability,” he said. 

The context: Since last summer, NU System institutions have instituted various austerity measures. Program cuts at the flagship University of Nebraska-Lincoln led to deep tensions on campus. Pushback by faculty eventually manifested in a no-confidence vote in November in the university’s then-chancellor, Rodney Bennett, who departed not long after.

The University of Nebraska at Kearney also cut programs as part of budget-saving measures. NU System’s Omaha campus, meanwhile, was able to shave $1.9 million from its budget without nixing academic offerings.

What we’re watching: The NU System plans to release details soon on the system’s hiring restrictions in addition to budgeting guidance for NU System campuses on implementing changes, Gold said.