Dive Brief:
- The University of Nebraska System is offering buyouts this fall to tenured faculty members eligible for retirement across its four campuses as the institution’s leaders look to shave $20 million from its budget.
- Buyouts will be available to tenured faculty who will be at least age 62 at their date of separation and have worked at least 10 years in the system. More than 500 faculty members will qualify, according to reporting from Channel 8 News.
- In a Friday message to faculty and staff, system Chancellor Jeffrey Gold said the buyouts would position the institution “for long-term strength and financial sustainability.” The system has made several rounds of cuts in the past few years in the face of rising costs and limited state funding increases.
Dive Insight:
Like many other higher education institutions, the University of Nebraska System has sought to lower its expenses amid myriad financial headwinds, including rising labor costs and state and federal funding challenges. In June, system leaders approved plans to cut $20 million from its budget for the 2025-26 fiscal year and raise tuition by an average of 5%.
Those moves come after system leaders slashed $11.8 million from the most recent budget and $30 million from two years prior. The system has also offered several waves of buyouts over the past 15 years, though the payouts have decreased, according to the Lincoln Journal Star.
In this case, those taking the buyouts will receive 70% of their annual base salary in a lump sum payment. In 2019, eligible faculty who took buyouts got 80% of their annual salary and in 2014 they received 90%, the Journal Star reported. In 2010, eligible faculty received 100% of their salary.
Faculty members who take the latest buyouts will separate from the university next summer.
However, not all faculty members who apply will automatically be approved. While the system plans to allow as many interested employees to participate as possible, an FAQ said “each campus reserves the right to limit the total number of participants in order to preserve the viability of programs and services, as well as to remain fiscally responsible.”
The news comes as the University of Nebraska-Lincoln, the system’s flagship campus, plans to slash $27.5 million from its own budget by the end of the year to remedy a structural deficit. The cuts could include eliminating or merging academic programs.
Earlier this month, UNL President Rodney Bennett said will review a planning committee’s recommendations for cuts and present final budget recommendations to Gold in October.
UNL officials also plan to grow extramural grants and contracts and boost revenue through higher enrollment and retention. They also hope to see increased revenue from the system’s tuition hike, which raised in-state undergraduate tuition from $277 to $291 per credit hour.
The other institutions in the Nebraska system are the University of Nebraska at Kearney, the University of Nebraska at Omaha and the University of Nebraska Medical Center.
