LINCOLN- As costs increase and marginal revenue growth is minimal, the University of Nebraska will be closing a $49.4 million budget shortfall in FY23-24. Without cutting costs or finding additional revenue sources, NU's structural budget deficit will balloon to $79.8 million in 2024-25, university leaders told the Board of Regents at a special meeting. The meeting comes just two weeks before the board of regents will approve the new 2-year budget and set tuition rates for the 23-24 school year.

President Ted Carter said the hardship is not unique to Nebraska. "Large flagship institutions, even in the Big Ten, are not immune from these challenges," Carter said. Carter pointed to the number of traditional college-aged students being on the decline, the cost of doing business is on the rise and questions circle about whether a four-year college degree is worth it. Carter plans on using a combination of spending cuts and minimal tuition increases to do so.

Administrators will propose raising tuition rates for NU students by 3.5% in the coming school year at the regents' June 22 meeting as they begin planning how to close the remaining budget deficit. While the additional tuition revenue would alleviate some of the financial strain NU is facing, it would not eliminate it entirely, administrators told the board. If the tuition increases are approved as presented, NU would still be forced to cut $27.2 million from its budget in 2023-24 and $57.6 million in 2024-25.

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