Pres. Cantwell: Higher Education Bill HB 265 Introduced in Legislature This Week

Editor’s note: USU President Elizabeth R. Cantwell sent this message on Jan. 24.

Dear Aggie colleagues and community,

On the opening day of the Utah legislative session, January 21, 2025, the proposed bill HB 265, Higher Education Strategic Reinvestment, was formally introduced. This legislation, if enacted, will mandate a comprehensive review and restructuring of Utah State University's strategic operations. This message provides an overview of the bill’s key components and our initial response.

Strategic Reinvestment Plan

HB 265 proposes a “reinvestment fund” under the Utah Board of Higher Education (UBHE). The legislature anticipates reducing $60 million from statewide degree-granting institution budgets to establish this fund. We anticipate Utah State’s share of this reduction to be approximately $15 million.

The bill mandates the development of a strategic reinvestment plan, which must be approved by UBHE by June 30, 2025 (end of our current fiscal year 2024-25), and by legislative committees in August and September 2025. This plan must identify areas for reinvestment and areas for reduction or elimination, encompassing "programs, courses, degrees, departments, colleges, or other divisions, operational efficiencies, and other components of instruction and administrative functions, including dean and other administrative positions.”

According to the bill, the strategic reinvestment plan will be developed based on a comprehensive assessment of the following six 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 role within the UBHE system.

UBHE will provide further guidance and standards. Institutions cannot backfill these reductions with tuition increases or other state funds, except for teach-out purposes.

Academic Program Revisions

HB 265 also proposes 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 an exception of up to 126 credits for licensing or accreditation requirements.
• Accelerated 3-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.

USU Response

Utah State is working closely with other USHE institutions as the bill proceeds through the legislative process. The legislature and governor are clearly committed to implementing a reinvestment plan. We are actively working to mitigate the impact of these potential reductions on our students and our core teaching and research missions. However, adjustments of this magnitude will necessitate difficult decisions regarding academic programs.

We understand there may be opportunities over the next three years to propose initiatives and potentially regain access to some of these funds. These opportunities would focus on demonstrating value in strategically defined areas of instruction and programming. While the possibility of future reauthorization is encouraging, it’s important to acknowledge the interim costs associated with program adjustments. The expenses related to transitioning existing programs, supporting current students, and developing new initiatives in alignment with state priorities could be significant.

Given all of this, we are going to need to implement strategic changes before the anticipated budget adjustments take effect on July 1, 2025. This proactive approach will allow us to thoughtfully position USU for continued success within the state’s evolving higher education landscape. This is an opportunity to showcase USU's unique strengths as a land-grant, R1, and public service university with significant contributions to the state of Utah.

We are committed to incorporating input, perspectives, and creative recommendations through this process. However, the timeline for these decisions is tight. Several cost-saving measures may be implemented this spring. To address the challenges and opportunities presented by this legislation, we have formed a committee of key stakeholders focused on data-driven evaluation and strategic decision-making. This committee is currently working to:

• Using the criteria in the bill, develop a comprehensive, transparent data set to pinpoint potential cost savings through strategic reallocations within academic and student success programs.
• Develop a thorough communication and feedback strategy, which may include surveys, meetings, and town halls, to ensure effective engagement with leadership and the university community.
• Consult with industry subject matter experts to inform decision-making.
• Consider options such as voluntary separation incentives, teach-out plans, and reassignments, and possibly even a reduction in force.
• Formulate strategies to proactively support morale during and after the budget reallocation process, based on data and best practices.

We will discuss the committee’s formation, timelines, and other aspects of HB 265 and the 2025 legislative session at upcoming meetings, including Faculty Senate on February 3, our Director+ Forum on February 6, and our all staff/faculty University Forum on March 20, 2025.

Your contributions to the university’s mission and our community are important, and these decisions are not to be made lightly. We encourage you to join us in shaping the brightest possible future for USU and each other as we navigate these challenging circumstances. This is a moment to reaffirm our commitment to Utah and demonstrate the vital role USU plays in the state's success.

Sincerely,

Elizabeth R. Cantwell

President