Pushing for an increase in school funding
University of Nebraska researchers fight for support
The University of Nebraska (NU) has proposed a 3.5 percent budget increase for each of the next two years for its approximately $700 million state-supported budget, which is vital for core academic functions. However, Governor Jim Pillen, a former regent of NU, has suggested a 2.07 percent reduction for the upcoming year as he aims to address a projected $432 million shortfall in the state budget over the next two years, along with providing additional property tax relief for Nebraskans. During the hearing, business leaders, including Heath Mello from the Greater Omaha Chamber, testified before the Legislature’s Appropriations Committee, highlighting NU’s significant $6.4 billion economic contribution to the state, as detailed in a recent economic impact study.
NU President, Dr. Jeffrey Gold, addressed the committee, characterizing NU's budget request as a necessary, yet modest, increase. He emphasized that this funding is crucial for the university system to uphold its commitment to Nebraska — to serve as a vital source of opportunity and innovation for future generations. Gold highlighted that Governor Pillen's proposed budget cuts would result in a significant $14.3 million decrease in the university's core funding. In addition, the state plans to redirect $11 million that was earmarked for, “tobacco settlement biomedical research funding” to different state agencies. This funding loss, along with statutorily mandated tuition waivers and increasing operational costs, effectively translates to a financial hit of around 4.5 percent, according to Gold.
Pillen has emphasized the necessity of cutting state expenditures, stating in his budget proposal letter, “We must have the courage to say, ‘No.’ We have to use what we have before we ask for more.” The governor has also suggested various reductions across other agencies, maintaining his commitment to enhancing property tax relief and stabilizing state support for K-12 public schools. During a discussion with the Appropriations Committee, Gold asserted that he would never request more from the state than what is essential, referencing ongoing efforts at NU over the last decade that have already saved over $130 million. “There is no more fat to remove,” he stated.
The suggested budget cuts come amidst significant reductions anticipated at the federal level. Gold noted that the federal impact is fluid, changing, “literally on a daily basis,” and has already exceeded a possible annual loss of $100 million.
According to Gold, any resulting funding shortfalls will likely be addressed through personnel reductions, particularly among faculty and staff. He indicated that total possible reductions from various sources could lead to a 10 percent decrease in the overall budget for the NU. Additionally, Gold mentioned that for every 1 percent decrease in revenue, approximately 73 jobs could be lost. He emphasized that such changes would have a substantial effect on the NU for future generations. Regent Jim Scheer of Norfolk expressed concerns that if NU were to increase tuition, it could rise by as much as 8%. “We’re not asking for the sun,” Scheer stated. “We’re asking to be treated fairly.”
By: Robert Tengker