USU Interim President Details Budget Cuts From Legislature, Voluntary Separation Incentive Program

Editor’s note: The following message from USU Interim President Alan L. Smith was sent to faculty and staff on March 7.

Dear faculty and staff,

I am reaching out to share more information about forthcoming budget changes faced by higher education institutions across the state.

As you likely know, the Utah Legislature approved a 1.5% budget cut during the 2024 legislative session. For USU, this $4.8 million budget cut takes effect on July 1 of this year. Additionally, the Utah Legislature passed HB 265: Higher Education Strategic Reinvestment during this legislative session. Together, these laws directly impact our university community. I am writing to share information on how HB 265 affects our budget process, our implementation timeline, and our next steps, the first of which is a voluntary separation incentive program (VSIP).

Budget Process

In addition to the budget cut approved last year, this year’s legislation impacts Utah State University’s budget by roughly an additional $12.5M. We must identify components of instruction and administrative functions for reduction or elimination that meet this dollar amount. However, we then have an opportunity to use these dollars to reinvest in our institution, with a focus on strategic instructional priorities that meet state needs. In short, these dollars are not permanently cut but we are required to reallocate them.

Importantly, some of the monies withheld from us can be used over the next two years to ramp down and “teach out” in program areas that will be discontinued.

The task for our budget process this year, then, is to absorb the cut from last year’s legislative session and immediately outline the reductions and eliminations, investments, and necessary ramp-down tied to the legislation passed this year.

HB 265 Implementation Timeline

Over the coming month, the Utah Board of Higher Education will develop guidance for the development and implementation of institutional strategic reinvestment plans. The UBHE hopes to have their standards and guidance approved by the end of March.

We will work closely with our colleagues at the Utah System of Higher Education to draft a successful plan, get approval from the USU Board of Trustees, and secure approval from the UBHE by July 2025. The USU plan must then be approved by the Legislature’s Higher Education Appropriations Subcommittee in August and the Executive Appropriations Committee in September.

You can learn more about USU’s strategic reinvestment planning process at usu.edu/president/reinvestment.

Next Steps for USU

To address this budget impact, USU will implement a university-wide voluntary separation incentive program (VSIP) prior to considering other actions, including potential layoffs and other operational reductions. This program will open on March 17 and close on May 2, 2025, at 5 p.m., with separations effective July 1, 2025. Please look for more information from USU’s Human Resources office once the program opens.

I will provide more information about the implementation of the 1.5% budget cut and HB 265 at the next University Forum for faculty and staff on March 20. I encourage you to attend in person or on Zoom and to submit your questions ahead of time. Also, we welcome receiving your input on ways the university can address this budget impact. You may offer your perspective and solutions through an online survey.

Developing and implementing the strategic reinvestment plan will mean difficult decisions and significant changes in some areas of our university. I well understand the concern and anxiety this raises and assure you that we are centering the long-term health of our institution—which is first and foremost comprised of talented and committed people—as we proceed with the planning process.

Sincerely yours,

Alan L. Smith