04/07/11 Letter from Chancellor Perlman - FY2012 Budget Reduction Process

April 7, 2011


We have been anticipating that we would have to make some budget reductions for the next biennium. While the Legislature's budget proposal calls for no reductions in our state funding over the course of the next two years--and we are encouraged by that proposal--we still need to address increasing expenses and a likely salary increase. We had no salary program this year and the one in the year before was minimal. Faculty salaries have slipped about 1.5% overall as against the midpoint of our peers. The President has indicated his support for some funding for salary increases and I have supported that at well.

Current projections suggest that UNL may be facing a possible reduction of from $10 to $15 million over the next two years. I have concluded that we should begin the process by identifying $5 million this spring. I have initiated the process.

The budget reduction framework, as approved by the Academic Planning Committee, is posted on the UNL website.

I anticipate being able to provide you with details about recommended reductions yet this month. I am sorry that I have this type of news to bring to you at this time.