University Of Nebraska System President Ted Carter released a recommended 2023-24 budget proposal today, aiming to address budget shortfalls of the Nebraska university system.
Carter’s proposed operating budget, which will be considered by the Board of Regents on June 22, is highlighted by a 3.5% average tuition increase. Despite this increase, the NU System faces an estimated $58 million budget shortfall by the end of the 2024-25 year.
Notably, that number represents only what it would take to maintain the university’s current status quo; in other words, it assumes no new investments in strategic opportunities like faculty salaries, high-priority academic programs, student services, or others.
That, Carter said, means the university must act now to stay ahead of the challenge.
“This is a period of significant and rapid change in higher education, and the University of Nebraska is not immune to the challenges facing our peers across the country,” Carter said. “Our task is to separate ourselves in terms of how we respond. As President, I’m not satisfied with the status quo, and I don’t think our Board or most Nebraskans are either. We will need to think differently in the context of our new realities.”
In accordance with the Board’s directive, Carter will present his plan at the June 22 meeting. He said he anticipates announcing immediate steps to preserve cash in the short term, as well as a framework for addressing the longer-term challenges.
The proposed 2023-24 budget lays the groundwork for that plan. Its key elements include:
- A tuition increase that averages 3.5 percent for all students. Nebraska undergraduates taking a full course load at the University of Nebraska-Lincoln would pay $270 more next year, students at the University of Nebraska at Omaha would pay $240 more, and students at the University of Nebraska at Kearney would pay $210 more. Students who qualify for free tuition under the Nebraska Promise program would see no impact from the increase.
- A 3 percent increase in the salary pool for non-unionized faculty and staff. Salary increases are to be awarded based on merit.
- An additional $2 million in state funding for the Nebraska Career Scholarships program, which provide scholarships to Nebraska students in fields like healthcare, IT and engineering that are key to the state’s workforce growth.
- A $27 million shortfall in 2023-24, the result of inflationary pressures and lower-than-projected enrollment. NU anticipates an additional $30 million challenge in 2024-25, bringing the total shortfall to almost $58 million by the end of the biennium. Without the tuition increase, the shortfall would be close to $70 million.
Regents will also consider the 2023-24 operating budget for the Nebraska College of Technical Agriculture at their June 22 meeting. Under the proposed tuition increase, NCTA students would pay $5 more per credit hour next year