HB265 proposes $15M budget cut for USU
On Jan. 21, the first day of the Utah Legislative Session, House Bill 265 Higher Education Strategic Investment was proposed, a bill requiring a reinvestment plan for institutions under the Utah Board of Higher Education.
UBHE anticipates reducing $60 million in funding to public higher education institutions throughout Utah. In a statement addressing this bill on the university website on Jan. 24, President Elizabeth Cantwell shared Utah State University expects to lose funds of approximately $15 million.
The plan required by the bill must identify areas for reinvestment, reduction and elimination throughout public universities. This includes programs, courses, degrees, departments, colleges, operational efficiencies and other components of instruction and administrative functions, including administrative positions. If passed, UBHE will provide further guidance and standards for the institutions involved.
Each plan must be approved by June 30 and then by legislative committees the following August and September. The anticipated budget adjustments will take effect July 1.
The plan will be developed based on six criteria: enrollment data, completion and timeliness, professional outcomes, workforce demands, program costs and system alignment. Part of the stipulations requires that institutions cannot backfill reductions with tuition increases or other state funds, with an exception for teach-out purposes.
HB265 would also require a credit hour cap of 120 credits per degree, accelerated three-year degree programs and program reviews to occur every five years rather than every seven.
The bill requires UBHE to develop both qualitative and quantitative program review standards. If a program is determined to be underperforming, UBHE may require an institution to develop a performance improvement plan. Action may include modifying, consolidating or terminating the underperforming program.
In her statement, Cantwell shared USU has formed a committee dedicated to addressing the new bill should it pass. This committee is currently developing a comprehensive plan aimed to meet the criteria of the bill and ensure success. Part of this plan involves exploring options such as voluntary separation incentives, teach-out plans, reassignments and possibly a reduction in force.
Part of the committee’s plan is to pinpoint potential cost savings throughout programs within the university. They also plan to develop a communication and feedback strategy to ensure effective engagement and awareness throughout the campus community.
The committee will consult with experts on the subject to ensure effective decision-making. Cantwell noted part of their goal is to proactively support the morale of staff and students during and after the budget reallocation process.
In her statement, Cantwell wrote, “We are actively working to mitigate the impact of these potential reductions on our students and our core teaching and research missions.”
Cantwell acknowledged there may be opportunities over the next three years to propose initiatives to potentially regain access to funding. This would entail demonstrating value in strategically defined areas of instruction and programming.
USUSA Student Advocate VP Sydney Lyman explained more about the bill.
“Everything I’ve heard — there’s been an effort to protect students and the resources that they need and to continue doing the good work that we do at Utah State,” Lyman said.
HB265 will be addressed at the All-Faculty/Staff Forum on March 20.