A university funding update amid HB265
On Dec. 9, newly appointed Utah State University President Brad L. Mortensen appeared before the Utah Executive Appropriations Committee to present a revised budget plan for the university in accordance with House Bill 265. Despite receiving partial funding, the State denied USU full funding once again due to concerns regarding the spending of previous university presidents.
Passed in March of 2025, HB265 withheld 10% of funding to Utah’s public universities, including Utah State, which amounted to over $12 million for the university. As part of the bill, universities were required to create a strategic reinvestment plan to receive their full funding again. As part of these plans, universities must reallocate funds into programs that lead to high-demand career fields, as well as focus on growing industries around the state of Utah.
On Dec. 8, Mortensen presented the revised budget plan to the Executive Committee of the Utah System of Higher Education, where the proposed budget was accepted unanimously.
When presented the following day to members of the legislature’s budget committee, the plan was accepted with positivity from state officials, but concerns remained over the spending of former USU President Elizabeth Cantwell.
“I do have some concerns about giving the full reallocation back until we understand what those concerns are in that audit,” said House Speaker Mike Schultz during the hearing. “There were some things that made us really nervous, to be honest with you.”
The committee ultimately decided to release 30% of the withheld funding back to the university while retaining the remaining 70% until the State has completed and reviewed an audit of the spending of the previous president.
In a statement shared with Fox 13 in the article “Utah State University officials wait on lawmakers for millions in budget funds,” Schultz shared the following concerning the plan: “We have full confidence in President Mortensen and believe the changes he made to Utah State University’s strategic reinvestment plan build on the institution’s unique strengths and mission. At the same time, we felt strongly it was important to give USU additional time to review and make any additional changes to its plan in response to the forthcoming audit before making a final determination about its compliance with HB265. We appreciate the university’s leadership and partnership as we work together to make higher education affordable, high-impact and aligned with today’s workforce needs.”
Mortensen spoke as well about the decision, stating that it was a step in the right direction for the university.
“I was told to treat it like it’s a yellow light,” Mortensen said in an interview with Fox 13. “Like we’re proceeding with caution, but we are proceeding, and students should have confidence that we’re going to do the work to get the rest of that money restored.”
Major changes in the university’s budget plan include the reallocation of $2.4 million in funding to various programs around the university. Those affected the most include the university’s health programs, which will receive less funding than previously allocated in prior plans. The new plan includes larger investments in AI programs as well as nearly $1.4 million allocated for student success initiatives across the university.