Chancellor gives updates on budget, university benefits

During Friday's town hall meeting, UNMC Chancellor Jeffrey P. Gold, M.D., said changes to the University of Nebraska's benefits providers in 2019 would cause minimal benefits disruption. Pending approval of the NU Board of Regents at its June 28 meeting, the university's health insurance third party administrator will change to UMR, a United Healthcare company, beginning Jan. 1, 2019. The university's dental insurance administrator will change to Ameritas. CVS Health will continue to provide pharmacy benefits administration. These changes were recommended by a working group of 15 representing all campuses. Only the third-party administrator will change, not the university's self-insured benefit plan designs, Dr. Gold said. Items within the plan design (ie: copays, deductibles, exclusions, etc.) are determined by the university and will not change, he said. In the future, the same university-wide group that reviewed the benefits providers will review elements of the design plan. With the new carriers, the university will save an estimated $12.3 million annually, including $6 million in ongoing state-aided savings. In addition, the the employee portion of the health and dental premiums will not go up next year, Dr. Gold said. Dr. Gold's town hall followed the spring signing of a state budget package that included a 1 percent cut to the University of Nebraska's base budget for 2018-2019. This is a cut from the base budget passed by the legislature in 2017. Earlier, a budget with a 4 percent decrease to the university had been proposed. The current budget is based on a 3.2 percent across-the-board tuition increase, as well as a 1.75 percent increase in the merit-based salary pool. In addition, some programs at UNMC will make tuition adjustments – affecting some of the incoming students – that will add revenue. In response to these considerations, UNMC will balance the campus budget, he said. UNMC will propose to eliminate approximately 50 positions total from the UNMC workforce to help address state budget challenges over the 2017-19 biennium. This includes all changes related to the Budget Response Team reductions and the most recent 2018-19 additional state budget cuts. Of those positions, approximately 30 are unencumbered positions, Dr. Gold said, and impacted colleges, departments and individuals have been informed. Regents will vote on the systemwide budget in late June. Dr. Gold also discussed:

• Blueprint Nebraska, a business-led, statewide economic development initiative. "The university system will be incredibly involved as we'll produce the workforce," said Dr. Gold, who has invited deans and directors to nominate individuals for participation in the initiative's subcommittees, which are focused on a wide range of areas key to Nebraska's economy. These include health care, education, workforce, agriculture, housing, entrepreneurship. Ideas may be submitted directly to Dr. Gold.
• The next biennial budget proposal, saying his suggestions would include such items as Campus wide salary equity, new program development, pipeline student program support, wrap-around learning services for students, additional behavioral health services and deferred maintenance for several of our aging facilities. Leadership is working on the proposed 2019-21 state biennial budget request, which will go to the Board of Regents for consideration in August.
• The national search for a joint vice chancellor of business, finance and business development for UNO and UNMC, which is actively underway in the hands of a very capable search committee and search consultant.
• Plans to update the turn lanes at 42nd and Leavenworth Streets, and UNMC's efforts to increase the use of public transportation, which will benefit from the Omaha Bus Rapid Transit system, which is expected to launch in 2019.