Gov. Pillen Orders $36 Million Mid-Year Cut To University Of Nebraska
The University of Nebraska system must absorb more than $36 million in state funding cuts in the fiscal year that just began, after Gov. Jim Pillen (R) managed all state agencies, boards and commissions to reduce spending effective July 1.
The order, issued in a July 8 memo, responds to Nebraska’s income tax refund exceeding projections by $307 million in fiscal year 2026, leaving the state with a budget hole it now expects agencies (including its university system) to help fill.
NU System President Dr. Jeffrey P. Gold, faculty and staff said in Friday’s message that the cut came a little more than two months after the Legislature adjourned and just weeks after the Board of Regents approved the 2026-27 budget with state aid, which already included $8 million in annual spending cuts. “I want to be clear: What the governor is asking of us is significant,” Gold wrote.
What the Governor’s Memorandum Requests
Pills directive orders four emergency measures:
- No positions may be created or re-filled without approval from the Department of Budget (law enforcement and correctional officers are exempt)
- Monthly distributions will be reduced by at least 5% in the aggregate for fiscal year 2026-2027
- Agencies must submit monthly cash flow projections
- Cost-cutting plans are due to The state budget department until July 31.
The memo also calls for cuts in travel, membership fees, technology upgrades and equipment purchases, and tells agencies to prepare for reduced funding. The University operates its own position control process, and Gold said further employment instructions are forthcoming.
Years of cuts are catching up
The NU system (which includes campuses in Lincoln, Omaha, and Kearney plus the University of Nebraska Medical Center) has has been cutting budgets every year for the last few years.
Recent rounds have eliminated academic programs at Lincoln’s flagship campus and in Kearney, contributing to vote of no confidence in the faculty in former UNL Chancellor Rodney Bennett, who left the university soon after. Omaha managed to cut $1.9 million without cutting academic programs.
“We cannot cut our way to excellence, nor fully realize our mission of exceptional teaching, research and engagement across the state, if we operate in a constant cycle of cuts and related restrictions, without the ability to foresee a single year of stability.“, Gold wrote.
How does this connect
Nebraska is the latest example of state budget stress on public university students. Minnesota lawmakers left a A $131 million student aid shortfall not fixed this year, threatening grants to 88,000 students, while UConn kept tuition flat even state funding fell to 14% of its budget. When state aid is cut, students typically pick up the difference through tuition increases, larger class sizes or fewer program options — a real concern for struggling Nebraska families student loans and financial aid options in the state.
The university is negotiate with the governor’s office on how the NU directives are being implemented, and system and campus budget teams are preparing implementation plans ahead of the July 31 deadline. On Nebraska Legislature won’t take up corrections to the deficit budget until it meets in January 2027, meaning more cuts could still follow.
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