UNMC Interim Chancellor H. Dele Davies, MD, said that UNMC remains committed to ensuring long-term stability as its leaders make decisions about a 4% budget reduction that will be enacted across every college and institute for the 2025-26 fiscal year.
“UNMC leaders have prepared this budget reduction, partly in reaction to projected federal funding reductions,” Dr. Davies said. “Leaders have been working through various scenarios for some time and will be finalizing soon what these reductions will look like.”
Leaders have been asked to reduce their budgets, and the intent is to be proactive as the university looks at potential funding losses from federal and other sources in the current year, especially in the face of potential changes to the federal “indirect costs” model in regard to research funding. Units have until mid-August to submit how the cuts will be implemented.
“We are working to ensure that UNMC can continue to provide important research breakthroughs that improve the lives of our fellow Nebraskans, as well as the country and the world, while also ensuring continued excellence of our education and training programs,” Dr. Davies said.
The chancellor pledged continued transparency in the ongoing budget process as UNMC leaders reallocate resources to best protect the university’s core operations and tripartite mission.
Dr. Davies said that the cuts, though painful, are necessary to UNMC’s future.
“We are planning for sustainability and, ultimately, to be positioned for continued future growth in a shifting financial landscape,” he said. “These decisions will keep UNMC on a fiscally responsible path as we pivot and innovate in growing alternative sources of revenue over time to continue our important work on behalf of all Nebraskans.”