UNK chancellor shares final budget reduction recommendations to address $4.5M deficit

KEARNEY – University of Nebraska at Kearney Chancellor Neal Schnoor has shared final budget reduction recommendations with campus to address a $4.5 million structural deficit in the current biennium.

The recommendations reflect feedback gathered through UNK’s shared governance process, including a Dec. 9 campus listening session and follow-up input from faculty and staff through email and in-person conversations with the chancellor and university leadership.

“Our shared governance process is essential to making thoughtful decisions in this challenging time,” Schnoor said. “I am grateful to everyone who took the time to engage, ask questions and share feedback. Their input, collaboration and innovation directly informed the final recommendations.”

As a result, the Bachelor of Science in Family Science degree will not be discontinued because of strong workforce demand in Nebraska, program realignment and a transition to online delivery.

Proposed reductions in force have been reduced from five positions to three, with one family science and one history position retained. UNK’s online master’s degree in public history is expected to see increased demand through expanded online marketing, eliminating the need for a faculty reduction in that area.

Other academic proposals remain unchanged from the draft recommendations previously shared. Based on enrollment trends and alignment with available resources, the following degrees and programs continue to be proposed for elimination:

•    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.

The university’s total annual budget is approximately $170 million, including $80.3 million in state-aided funds.

The structural deficit reflects revenue that has not 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.

Personnel-related proposals include a Voluntary Separation Incentive Program projected to save $2.2 million. In total, 19 positions are included across voluntary separations, reductions in force and open positions not being filled.

Nine voluntary separations are proposed across art and design, communication, counseling and school psychology, cybersecurity, English, marketing and teacher education. UNK is also proposing the elimination of seven open faculty lines in family science, biology, chemistry, English, history and communication along with three additional reductions in force in family science and music.

UNK is also moving forward with $2.3 million in operational, administrative and structural reductions, including staffing, operating, remission and graduate assistant adjustments:

•    Open staff lines (7) and part-time custodial line (1) – $559,993

•    Student remissions/fundraise (Athletics, Kearney Health Opportunities & Kearney Law Opportunities programs) – $400,000

•    Operating fund rebalance (5%) – $350,000

•    Graduate assistant reductions (20) – $250,000

•    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

With final recommendations now shared, UNK will begin the University of Nebraska Board of Regents approval process, as required.

“We recognize the impact these decisions have on our campus community,” Schnoor said. “I am truly grateful to faculty and staff for their personal investment, time, effort and resilience throughout this process.”