USU Strategic Reinvestment Planning

Approval Status

Throughout the review process, approval of USU’s strategic reinvestment plan has been conditioned on the review and potential revision by the next USU president. We look forward to the next step and moving the plan forward once the Utah Board of Higher Education names USU’s 18th president.

Overview of HB 265: Higher Education Strategic Reinvestment

HB 265: Higher Education Strategic Reinvestment requires degree-granting institutions to develop strategic reinvestment plans in consultation with the Utah Board of Higher Education.

During the 2025 legislative session, the Utah Legislature passed and Governor Cox signed HB 1: Higher Education Base Budget, which withheld 10% of the state’s budget allocation for higher education instruction. This amounts to $60 million across the degree-granting institutions in the Utah System of Higher Education and impacts Utah State University’s budget by $12.6+ million.

HB 265 Priorities

As we implement these changes, we seek to strengthen programs for students, support impacted employees, and position USU to meet the future needs of students and the state. We will remain dedicated to:

  • Preserving a student-focused environment.
  • Prioritizing job-ready skills.
  • Enhancing our financial effectiveness.

Implementation Timeline

In late March, the Utah System of Higher Education released guidance for the development and implementation of institutional strategic reinvestment plans, including the adoption of policies addressing administrative and employment actions required to implement the plans.

University leaders are already working to draft a successful strategic reinvestment plan. Below are key deadlines:

Deadlines

  • May 9: Draft plan is due to Office of the Commissioner for Higher Education
  • May 23: Final draft is due to Utah Board of Higher Education for consideration during June 6 Board meeting in late May.
  • June 6: Institutions present Reinvestment Plans for UBHE approval during UBHE Board meeting.
  • August: USHE presents all plans to the Legislative Higher Education Appropriations Subcommittee for approval.
  • September: USHE presents all institution plans to the Legislative Executive Appropriations Committee for approval.

Once approved, USU will proceed with the strategic reinvestment plan. Changes to programs, including reduced or discontinued programs, will ensure students who have already started those programs will be able to complete them.

The legislation mandates a three-year phased approach to reinvesting reallocated funds:

  • Fiscal Year 2025-2026: A minimum of 30% reallocated from reduced/eliminated programs to reinvestment.
  • Fiscal Year 2026-2027: A minimum of 70% reallocated from reduced/eliminated programs to reinvestment.
  • Fiscal Year 2027-2028: Full (100%) reinvestment.

Criteria for the Strategic Reinvestment Plan

As outlined in the Higher Education Strategic Reinvestment Act, each institution must develop a two-part plan:

  • First, each institution must identify components of the institution's instruction and administrative functions to reduce or eliminate.
  • Second, each institution must identify components of the institution's instruction and administrative functions that merit further investment based on strategic priorities and create a plan for how to shift resources to these.

Under the Higher Education Strategic Reinvestment Act, both costs and reinvestments should address the following criteria:

  • Enrollment Data: Demonstrated enrollment figures.
  • Completion and Timeliness: Completion rates and timely degree completion.
  • Professional Outcomes: Discipline-related professional outcomes, including placement rates, employment rates, licensure attainment, and wage outcomes.
  • Workforce Demands: Current and future workforce demands at both the local and statewide levels.
  • Program Costs: Program-level costs.
  • System Alignment: Alignment with our mission and USU’s role within the Utah System of Higher Education.

Other Changes to Academic Programs

HB 265 also includes several academic program revisions

  • Credit Hour Cap: The bill limits the total credit hours that institutions may require for degrees to 120, reinforcing USHE policy R-402, with the exception of up to 126 credits for licensing or accreditation requirements.
  • Accelerated Three-year Degree Programs: The bill requires UBHE to create a process for granting conditional approval of accelerated three-year degree programs.
  • Program Review: The bill shortens the cycle for program reviews to five years instead of seven and requires UBHE to develop qualitative and quantitative program review standards. For programs that are determined to be underperforming, the bill adds an opportunity for UBHE to require an institution to develop a performance improvement plan for the program and provide an annual report. Other options currently available include modifying, consolidating, or terminating the underperforming program.

Frequently Asked Questions

The bill was signed by Governor Cox on March 26, 2025 and is in effect. Due to the compressed timeline and the large amount of work to be done, university leaders are already hard at work on our strategic reinvestment plan.

There is quite of bit of work still to do, and we know our community is anxious to know what programs may be impacted, particularly when decisions affect our staff and students. Currently, a committee is meeting and analyzing program-level data and make recommendations. University leaders will communicate decisions as they are approved in the coming weeks.

Yes, USU leaders are also looking at efficiencies that can be achieved through centralizing work, trimming administrative budgets, and streamlining workflow.

HB 265, provision 53B-7-107(3)(a), requires institutional reinvestment plans be prepared based on demonstrated enrollment data; completion rate and timely completion; discipline-related professional outcomes including placement, employment, licensure, and wage outcomes - current and future localized and statewide workforce demands; program-level cost; and the institution’s mission and role within the statewide system.

The provost is working with senior administrators and deans to review data and make recommendations for the strategic reallocation plan. The university president will consider the recommendations and take a draft strategic reinvestment plan to the USU Board of Trustees for approval before it then goes to the Utah Board of Higher Education on May 9, 2025.

Most students affected by the cuts will be able to finish their degree. As part of the university’s commitment to student success, a formal teach-out protocol is in place for programs that are being phased out. Generally, students who have completed at least 50% of the required coursework for their program will be given a timeline that is 50% of their program duration. For example, a bachelor’s program will have a two-year teach-out timeline, and an associate degree program will have a one-year teach-out timeline.

For students who have completed less than 50% of the program, academic advisors are working closely with them to explore related majors or alternative pathways that align with their academic and career goals. The university is committed to ensuring every student is supported in finding a clear path to graduation.

HB 265 provides for a very tight timeline, and it may not allow for as much notice as we would like to provide. Accordingly, an interim policy will be adopted that will supersede USU’s current policies for program closures and reductions in force. However, the law allows for some funds to be used over the next two years to teach out students who are already in programs to be discontinued or trimmed.

HB 265 provides for a new interim university policy that would supersede Faculty Code 406 when faculty layoffs are a direct result of the strategic reinvestment plan required by the law. However, to meet the budget cuts passed in the 2024 legislative session, USU Policies 398 and 406 do apply.

University leaders welcome suggestions for creating efficiencies and other ideas to consider for the strategic reinvestment plan (or to be considered otherwise).

All degree-granting institutions in the state are facing the same uncertainty, and each university has the same percentage withheld. (10% of the state allocation for instruction). As an R1 research and land-grant university, USU has resources and strengths other universities in the state do not, including: more degree program offerings, flexibility to study anywhere in the state or through a statewide campus, access to hands-on learning through undergraduate research and internships, and a vast network of alumni ready to help other Aggies. We expect to remain competitive in attracting in-state students to USU.

We value your feedback during this process. Please take a few moments to share your perspective and solutions for USU's strategic reinvestment plan.

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