The Nebraska Legislature on Tuesday gave final approval to the state budget package for 2017-19, including funding for the University of Nebraska. Legislators approved the mainline budget bill by a 36-12 vote.
The budget package has been delivered to Gov. Pete Ricketts for his consideration; he has until midnight on Monday to officially sign the bills in the package or return them with his vetoes.
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Under the budget approved by the Legislature, the university’s state funding would be reduced by $13 million over the biennium. This follows the $13 million reduction the university took in the current fiscal year. When rising costs such as health care, collective bargaining contracts and compensation increases are factored in, the university would need to close an additional budget gap of about $46 million by summer 2019.
University of Nebraska President Hank Bounds, Ph.D., noted that the university took steps last fall to limit spending across the campuses, including slowing hiring and other expenditures. Additionally, in January Dr. Bounds and the chancellors began a university-wide process for finding reductions in a range of operational areas. Those proactive steps will help the university manage cuts in state funding, although Dr. Bounds said there is no question that closing the budget gap will require difficult decisions.
“The legislature has sent a strong message of support for the budget developed by Chairman John Stinner and the Appropriations Committee,” Dr. Bounds said. “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.”
Dr. Bounds, the chancellors and their leadership teams, and members of the Board of Regents are continuing to work closely together on budget planning. The board will set the university’s 2017-18 operating budget, including tuition rates, when it meets in June.
“Although significant challenges still lie ahead, UNMC is ready to work with President Bounds to address the needs of our students, faculty, staff and the state as we move forward,” said UNMC Chancellor Jeffrey P. Gold, M.D. “These are tough decisions, but they will not keep UNMC from fulfilling its promise to create the future for our community, our region and the world.”