UNK releases draft budget reduction recommendations to address $4.5M deficit

KEARNEY – University of Nebraska at Kearney Chancellor Neal Schnoor presented draft recommendations Tuesday to address a $4.5 million structural deficit across the current biennium.

He shared the recommendations in an email to campus. The recommendations were informed by campus Faculty and Budget Advisory Committees that reviewed UNK’s finances in collaboration with campus leaders, units, faculty and staff. Their reports and recommendations were also shared with campus. Schnoor is accepting feedback in person and by email to inform final decisions, which will be announced Dec. 22.

Chancellor Neal Schnoor
Chancellor Neal Schnoor

“Our shared governance process is essential to making thoughtful decisions in this challenging time. I am deeply grateful to all who contributed time, ideas and expertise throughout this process,” Schnoor said in his letter to campus. “Your involvement has helped us forge a collaborative path forward. I know the weight of these changes is felt differently across our community, and I appreciate the care and resilience you continue to show.”

UNK has identified $4.8 million in reductions for the current biennium ending in fiscal year 2027. The university’s current total budget for the year is $170 million, including $80.3 million in state-aided funds.

The structural deficit reflects revenue that hasn’t kept pace with rising expenses, including a 37.8% increase in health insurance costs since 2023 ($3.3 million). Enrollment pressures have reduced tuition, fees and credit-hour production, while a 7% biennium faculty salary increase added $1.85 million. Slower state funding growth, unfunded tuition mandates and remissions, and inflationary increases in operating costs have further contributed to the shortfall.

Academic proposals under consideration include the elimination of the following degrees and programs, based on enrollment trends and resource alignment:

  • Family Science, Bachelor of Science
  • Higher Education Student Affairs, Master of Science in Education
  • Modern Languages, Bachelor of Arts – German Emphasis
  • Music Comprehensive, Bachelor of Music – Music Business Emphasis
  • Modern Languages 7–12 Teaching Endorsement, Bachelor of Arts in Education – German Emphasis

Personnel-related proposals include a Voluntary Separation Incentive Program projected to save $2.4 million. In all, 21 positions are included. Nine voluntary separations are proposed across art and design, communication, counseling and school psychology, cybersecurity, English, marketing and teacher education. UNK is also considering eliminating seven open faculty lines in family science, biology, chemistry, English, history and communication along with five additional reductions in force in family science, music and history.

UNK is also evaluating $2.4 million in operational, administrative and structural reductions, including staffing, operating, remission and graduate assistant adjustments. Proposed strategies include:

  • Open staff lines (7) and part-time custodial line (1) – $559,993
  • Operating fund rebalance (5%) – $400,000
  • Student remissions/fundraise (Athletics, Kearney Health Opportunities & Kearney Law Opportunities programs) – $400,000
  • Graduate assistant reductions (20) – $300,000
  • Summer salary budget – $200,000
  • Athletics operations – $200,000
  • Chancellor: Vice Chancellor Enrollment/Marketing restructure, Office Associate (1) – $153,983
  • Vacating Memorial Student Affairs Building and Thomas Hall – $85,047
  • Office for Intercultural Engagement and Leadership restructure (1) – $66,630
  • Museum of Nebraska Art memo of understanding support (beginning FY28) – $35,649
  • College of Business and Technology – Marketing and Institutional Engagement – $18,737