LINCOLN — The University of Nebraska is no longer set to receive a decrease in its state-aided budget after the Legislature’s budget-setting committee Tuesday reversed its earlier decision.

Gov. Jim Pillen had recommended a 2% cut for NU in January, which the committee had preliminarily accepted. But in a 7-1 vote, with State Sen. Ashlei Spivey of Omaha “present, not voting,” the Appropriations Committee opted instead to increase NU’s general fund state appropriation by 1.25% in the next fiscal year.

NU currently gets about $700 million from the state each year from this bucket of funds, which is 20.1% of NU’s $3.5 billion operating budget.

State Sen. Myron Dorn of Adams proposed the one-time 1.25% increase after NU President Jeffrey Gold and Pillen, and their respective staff, continued to negotiate.

The committee delayed reconsideration of NU’s budget multiple days last week after a disagreement on the specifics of a deal between Gold and Pillen. Both had agreed to a 1.25% increase, but Gold thought it was for both years. Pillen’s staff said it was for one year.

Gold, in a brief afternoon call, said he was “deeply grateful” for the change, which he said is “certainly a lot better” than a cut.

“Anything that they can do to help us keep education high quality and affordable in the state and to further our research mission is always appreciated,” Gold told the Nebraska Examiner.

Tuition Hike, Future Cuts Possible

State Sen. Machaela Cavanaugh of Omaha, who said NU deserved a larger increase, opposed Dorn’s proposal.

The change means NU would see an overall increase of $8.7 million in the next fiscal year to its state-aided budget and be held flat at that new level in the second year. The NU Board of Regents in August requested a 3.5% increase each year.

“As this is substantially less than that, it will, unfortunately, force us to have some very serious discussions regarding tuition in each year at the upcoming biennium and, thereafter, some very serious discussions about belt-tightening and further budgetary reduction across all of the campuses, colleges and institutes in the state,” Gold said.

Clements, committee chair, said his team continues to try to rightsize the state budget in face of a projected $457 million projected budget shortfall over the next two fiscal years. He said that both the governor and NU engaged in what he described as “give and take on both sides.”

He noted the reversal will increase the budget hole that the committee is working toward. Combined with the previous cut, it’s about $46 million that the committee will need to find. Clements had released a preliminary committee budget in February that made progress toward closing the projected shortfall, trimming it down to $289 million.

Larger Increase Rejected

The committee on Tuesday also rejected a proposal by State Sen. Jason Prokop of Lincoln for an additional 1.25% increase in the second fiscal year, on a 5-4 vote.

State Sen. Rob Dover of Norfolk, a Republican, joined Prokop, Cavanaugh and Spivey, all Democrats, for the added increase. State Sens. Rob Clements of Elmwood, Christy Armendariz of Omaha, Myron Dorn of Adams, Loren Lippincott of Central City and Paul Strommen of Sidney rejected the increase. The Legislature is officially nonpartisan.

Pillen, who joined the NU Board of Regents in 2013 before becoming governor in 2023, also disagreed with NU’s budget request two years ago. The committee landed in between them then, too.

Dover said he wanted to give NU more but that the committee needed to decide and move on. Dorn said lawmakers needed to be careful with the projected budget deficit.

Biomedical Research, Project Health

The committee also voted Tuesday to restore $5 million for biomedical research at postsecondary institutions — $3 million to NU. About 4.67% of the $15 million in state funds dedicated for such research annually remains earmarked for research to improve racial and ethnic minority health. Pillen recommended that the committee remove the specific earmark.

NU also will get $50 million each year from the state’s tobacco settlement fund for Project Health in Omaha, rather than from the state’s “rainy day” cash reserves. The Legislature has adopted a statement of intent to fund $300 million for NU’s project, over six years.

Project Health, a new $2.19 billion health care facility at the University of Nebraska Medical Center and Nebraska Medicine, is planned to serve as a clinical learning center to “train the “next generation of health care providers, conduct research and offer clinical trials,” according to an NU news release.

This is Gold’s first year as president. He previously served as UNMC chancellor for 10 years.

Gold said the restoration of funds will have a 10-to-1 return on investment on general appropriations as well as a 16-to-1 return on new research dollars. He said that could lead to new medications and diagnostics that, hopefully, enhance the health and wellness of Nebraskans.

“This will give us an opportunity to continue to further the mission but also to support the future economy of the state,” Gold said. “I only hope that over time the overall revenue to the state continues to grow, so we can invest even more in the university that produces the future workforce and does all this very important research.”

This story was published by Nebraska Examiner, an editorially independent newsroom providing a hard-hitting, daily flow of news. Read the original article: https://nebraskaexaminer.com/2025/04/08/legislative-committee-reverses-c...