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A Message from President Gold on Recent State Budget Directives

In a message to faculty and staff, University of Nebraska (NU) System President Gold provided an update on recent state budget directives.

The NU system seal and a headshot of President Gold. The text reads "A Message from President Gold on State Budget Directives."

University of Nebraska (NU) System President Jeffrey P. Gold, M.D.

Dear Faculty and Staff,

Wednesday evening, Gov. Jim Pillen released a memo directing state agencies, boards and commissions to reduce their current fiscal year spending effective July 1. This measure is to offset Nebraska income tax refunds that significantly exceeded projections and totaled $307 million more than anticipated in the 2026 fiscal year.

In the memo, Gov. Pillen outlined four measures below that he requires all agencies, boards and commissions to take in order to reduce spending:

  • “Effective immediately, no position shall be created or refilled without an exception approval from the State Budget Division following a review of the business case and justification. Sworn law enforcement officers and correctional officers are exempted.

  • “The State Budget Division is directed to provide monthly allotment in amounts reduced by not less than five percent in aggregate in FY 2026-27 pending further consideration and determination of deficit budget adjustments by the Legislature during its upcoming 2027 legislative session.

  • “All agencies, boards, and commissions are expected to submit monthly cash flow projections to the State Budget Division consistent with the current process for cabinet agencies. These projections should also identify appropriation that is anticipated to lapse as a result of fiscal restraint initiatives.

  • “The State Budget Division will provide additional guidance for this process. All agencies, boards, and commissions are expected to submit plans and proposals for fiscal restraint and spending reduction initiatives to the State Budget Division by July 31st to collaborate and discuss viable ideas and approaches for reducing state spending.”

Additionally, the memo calls for a reduction in spending on travel, membership dues, technology upgrades and equipment purchases. It asks agencies to prepare for reductions in appropriations over coming biennium. It also outlines several strategies for agencies to implement to realize savings, including setting rates and assessments that cover the costs of services. Also, please note that the University manages its own position control process and further instructions regarding hiring will be forthcoming.

I want to be clear: What the governor’s office is asking of us is significant. This new reduction in the current year’s budget represents more than $36 million across the NU System. This new requirement comes a little over two months since the legislature adjourned and just weeks after our Board of Regents approved the final 2026-27 state-aided budget, which already includes an $8 million annual reduction in spending. Over the past biennium—and many years before that—we have navigated budget reductions every year, and you—our faculty and staff—have responded with creativity, resilience and an unwavering commitment to our students, your professions and the communities we serve and that depend on us every day. I am deeply grateful for all you have done.

At the same time, I believe it is important to acknowledge that there are limits to what can be achieved through continued reductions. We cannot cut our way to extraordinary, nor can we fully realize our mission of exceptional teaching, research and statewide engagement if we are operating in a constant cycle of cuts and related restrictions, without the ability to predict even a single year of stability.

The University is currently working with the governor’s office regarding expectations for our institution in fulfilling these measures, while at the same time upholding our mission. We have engaged the budget and fiscal teams from the system and each of our campuses so they can begin to strategize about next steps to implement these changes. We will share more guidance as we gain clarity on the expectations for the university in meeting these goals.

I truly appreciate all that you do, and I am especially grateful for your patience as we work through this process together. As always, we will approach these decisions transparently and always do so with care, keeping our mission, our people and the communities we serve at the heart of every decision we make.

Sincerely,

Jeffrey P. Gold, M.D.

President, University of Nebraska System

About the University of Nebraska System

The University of Nebraska is the state’s only public university system, made up of four campuses – UNL, UNO, UNK and UNMC – each with a distinct role and mission. Together the campuses enroll more than 50,000 students and employ 16,000 faculty and staff who serve the state, nation and world through education, research and outreach. For more information and news from the University of Nebraska, visit www.nebraska.edu/news.