Date Recipient
06/13/2017 UNL Mabel Lee Hall Consultant Selection
06/08/2017 A message from university leadership on our budget planning
A message from university leadership on our budget planning

June 8, 2017

Dear Colleagues:

Last week we wrote to you regarding our budget planning, including our work to cut costs to manage reductions in state funding. We’ve pledged to update you frequently throughout this process. Today we have new information to share.

The Board of Regents has approved the university’s operating budget for 2017-18, including our approach for managing a recurring $49 million shortfall resulting from funding cuts and rising expenses. We’ll close the gap with a combination of spending cuts and revenue – choices that, while difficult, protect to the greatest extent possible our affordability and the quality of our academic enterprise.

We’re in a position to protect those priorities because of your good work, and we’re grateful. As we’ve said all along, however, cuts to our budget become even more challenging when viewed together with state funding trends over time that have required us to become a lean institution already. We will manage this budget, but there’s no question that with additional cuts we would not be able to keep tuition increases as moderate as they are now – or limit our cost reductions to operational areas.

“Changing the way we do business will take time and will have a broad impact across the university. We’ll learn as we go along.”

The budget approved by the Board depends on $30 million in university-wide cuts over the next several years. As you know, “Budget Response Teams” made up of subject matter experts in areas like information technology, facilities and finance have been working since January to find cost savings. These colleagues have done diligent, thoughtful, difficult work. They deserve our thanks.

We are now beginning to finalize the teams’ recommendations and move to an implementation phase. While we’re still working through final decisions, we do know that they will include a range of changes. In some cases, we’ve identified more efficient processes or structures that will allow us to serve students and Nebraskans more collaboratively. Some of the changes will impact jobs. We expect to lose more than 100 positions, through attrition where possible and only after careful consideration and communication about decisions of this magnitude.

Changing the way we do business will take time and will have a broad impact across the university. We’ll learn as we go along. For example, new processes in how we contract with vendors will save us money in the long term, but may interrupt or slow down purchasing within colleges or departments as we adjust. We are moving with a sense of urgency, but we’re much more interested in getting this right – in putting lasting changes in place that will position us for long-term success.

To that end, we are pleased to tell you that Dr. Marjorie Kostelnik, dean of the College of Education and Human Sciences at the University of Nebraska-Lincoln since 2000, is stepping down to become senior associate to the president on July 1 to lead implementation of the Budget Response Teams’ recommendations. Chancellor Green has communicated with his campus about plans for interim leadership for the college and a national search for a permanent successor.

Marjorie has decades of experience as a faculty member, has steered her college through significant change and has a deep understanding of our governance, processes and our university-wide mission. She is an excellent choice to lead us through this process in close partnership with Budget Response Team members.

There’s another story that came out of last week’s regents meeting – a story that may not have gotten as many headlines as our budget, but which is equally important to the momentum and competitiveness of our university and state. The Board approved three new centers of excellence, in food for health, global health security and child health.

Each of these centers will take advantage of unique strengths on all four of our campuses for maximum impact. Each will transform lives in Nebraska and around the world. Each elevates our reputation in areas that matter. Each is a game-changer.

In remarks to the Board, one of our faculty members said it best: We have audacious goals. We do indeed. We are managing a challenging period – but we’re also looking ahead, thinking about what we can do to educate students, conduct research and grow our economy in new and innovative ways. Now, more than ever, the state of Nebraska needs its university to be an engine for growth. We are ready to lead the way.

We welcome your continued feedback and ideas. Please visit www.nebraska.edu/budgetplanning for the latest budget-related information, or submit comments and questions to us directly at This email address is being protected from spambots. You need JavaScript enabled to view it.. Thank you, as always, for all you do for the University of Nebraska.


Hank M. Bounds, Ph.D.
University of Nebraska

Jeffrey Gold, M.D.
University of Nebraska Medical Center
University of Nebraska at Omaha

Ronnie Green, Ph.D.
University of Nebraska-Lincoln

Doug Kristensen, J.D.
University of Nebraska at Kearney



06/08/2017 An update on budget planning from university leadership
An update on budget planning from university leadership

May 30, 2017

To the Faculty, Staff and Students of the University of Nebraska:

As you likely know, the Legislature has concluded its session after finalizing a two-year budget package for the state, including funding for the University of Nebraska. With our state appropriation known, we can move forward on other pieces of our budget, including tuition increases and the cost reduction efforts we began earlier this year.

The outcome of the legislative session is not what we had hoped for. Between reductions approved by the Legislature and additional cuts from Governor Ricketts’ vetoes – and when unavoidable cost increases like health insurance are factored in – we will face a recurring budget shortfall of $49 million by summer 2019.

While this is a challenging budget situation, your good work has helped ensure that our state funding was not reduced more deeply. Your efforts in serving as outstanding ambassadors for the university, in inspiring Nebraskans to speak out in our support, and in reminding the people of our state of the vital work we do in teaching, research and service have made a difference. We’re truly appreciative.

“We must view this challenge as an opportunity to think together about what kind of university we want to be in the future.”

Our budget situation and the increasingly competitive higher education landscape mean we will have to adapt quickly. We must do everything we can to emerge as a stronger university, even better positioned to join with our partners to grow Nebraska’s economy and quality of life.

Later today the University will release its proposed 2017-18 operating budget, including our plans for addressing our shortfall. The budget will go before the Board of Regents on June 1. Here are the key elements, in advance of their wider release:

Tuition

We know students and parents are working hard to invest in a college education. The proposed budget sets tuition rates for the next two years to help students and families plan, and includes tuition increases. In 2017-18, most resident undergraduates would pay $10 to $12 more per credit hour. In 2018-19, a typical resident undergraduate would pay $6 to $7.50 more per credit hour. This is subject to change if our state funding is cut further.

We do not make this recommendation lightly. As you know, state funding and tuition are the major sources of revenue for university operations, and moderate increases in tuition will help us close our budget gap while maintaining the quality of education our students deserve. The increase preserves our affordability, especially considering that we will increase need-based aid at the same rate as tuition. Our campuses will remain a great value compared to similar institutions.

Cost Reductions

In January, we shared a university-wide process for re-imagining our operations. Our goal was to reduce spending, while also positioning us to deliver on our mission. This will help us as we face a future in which resources will continue to be limited.

Nearly 100 of our employees served on Budget Response Teams that recommended cuts in areas like finance, human resources, IT and travel. We are grateful for their hard work, and we will continue to engage stakeholders on cost reduction ideas as we analyze implementation options. Based on our conversations with team members, we project we could realize up to $30 million in savings over the next several years – savings that will help us protect our academic core.

Reducing our operating costs by this amount will be challenging. But with challenge comes opportunity – to be more collaborative, to become more productive, and to create the kind of university we want to be. We’re going to be totally focused on the future – engaging Nebraskans about what their university can do to continue to grow the economy, meet the needs of the workforce, improve lives as we have done for nearly 150 years.

We invite you to join us in that conversation. Please continue to send your ideas and questions to us at This email address is being protected from spambots. You need JavaScript enabled to view it.. We’ll update you when new information on our budget planning is available and in the meantime, we look forward to your ongoing ideas and input.

Thank you for all you do for the University of Nebraska.


Hank M. Bounds, Ph.D.
President, University of Nebraska


Jeffrey Gold, M.D.
Chancellor, University of Nebraska Medical Center and Interim Chancellor, University of Nebraska at Omaha


Ronnie Green, Ph.D.
Chancellor, University of Nebraska-Lincoln


Doug Kristensen, J.D.
Chancellor, University of Nebraska at Kearney




05/10/2017 Statement from President Bounds on the Legislature’s approval of the 2017-19 budget package
Statement from President Bounds on the Legislature’s approval of the 2017-19 budget package

May 9, 2017

The Legislature has sent a strong message of support for the budget developed by Chairman Stinner and the Appropriations Committee. Senators have made difficult decisions to manage the current fiscal challenges and I thank them for their leadership. We will be a good partner to the state and we are prepared to manage the cuts that the Legislature approved. We have been candid about the fact that we will not be able to close the gap without making difficult reductions and increasing tuition.

We are navigating a challenging period, but I am convinced that there have never been greater opportunities for the state, its public university and the private sector to work together to grow Nebraska’s economy. I’m excited about joining with our partners to build a strong future for this state.



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