By Aidan Mortensen | KOAL News | Photo  Courtesy of Utah State University

Utah State University’s tumultuous year looks to get rockier as the university plans to make $12.5 million in budget cuts. USU Interim President Alan L. Smith emailed all university staff statewide on March 7, detailing these cuts and the creation of the voluntary separation incentive program (VSIP).

These cuts, in part, were forced by HB265, or the Higher Education Strategic Reinvestment Bill, which” requires each degree-granting institution to create a strategic reinvestment plan to reallocate funding from certain programs and divisions of the institution to certain programs and divisions that merit additional investment.”

This bill – in conjunction with previously approved budget cuts – requires a $12.5 million cut to USU campuses statewide, including USU Eastern. “We must identify components of instruction and administrative functions for reduction or elimination that meet this dollar amount,” states Smith,” 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.”

This $12.5 million in cuts comes in addition to a $4.8 million cut by the legislature in 2024.

HB265 requires that universities develop a two-part plan. First, institutions must identify what administrative and departmental functions can be reduced or eliminated. The plan also requires schools to identify functions that merit reinvestment. These plans are to be based on criteria such as program cost, professional outcomes and workforce demands.

At least 30% of these cuts must be implemented in the 2025-26 academic year.

In his email, Smith also announces the voluntary separation incentive program,” USU will implement a universitywide 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.”

HB265 is the largest education budget cut in a decade for the state. Entering the 2025 session of the Utah State Legislature, higher education was a primary focus of many legislators. Senate President Stuart Adams said,” We need to reallocate and rethink about what we can do best in Utah and where the demands are. This is an opportunity to sit back, reevaluate and then try to refocus on high-demand areas with high-paying jobs that our employers are asking for.”

Smith concludes the email by stating,” 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.”