University of Utah leaders instruct all departments to prepare for budget cuts — including one up to 25%

University of Utah leaders have instructed all departments to run a “planning exercise” for anticipated budget cuts — including asking one area of campus that provides direct support for student mental health counseling and disability services to prepare for as much as a 25% reduction.

The emails from the top three administrators for the state’s flagship school provide a glimpse at the conversations happening behind the scenes and the stress in higher education after Utah lawmakers have called for a major trim to the budget this upcoming session.

In one of the messages, U. President Taylor Randall wrote: “We all hear the narratives regarding higher education from those who challenge its purpose and value, and are acutely aware of the heightened political interest in our own state.”

The Salt Lake Tribune received copies of the communications in a public records request. The emails are from Randall, as well as the two senior leaders at the school: Mitzi Montoya, who oversees the academic side, and Michael Good, who is currently in charge of health sciences and the U.’s hospital system (though a new leader will take over in February).

Their instructions to deans and division heads to start planning for cuts came this fall, just days before House Speaker Mike Schultz first spoke publicly about his intentions to either cut some of the budget for higher education or shift funding to programs that he considers high performing. In an interview with The Tribune, he focused on a figure of 10%.

In an Oct. 9 email, Randall told campus leaders in his cabinet to work with their staff and model what that percentage cut would look like for their departments. “This exercise will apply to all areas,” he wrote; that also includes things like IT services or human resources.

His email indicated that the conversations with those same leaders had been ongoing for some time before the message, noting that an attached memo would outline the “budget reduction exercise we have discussed in prior cabinet meetings.” He also spoke to faculty earlier this month, saying it’s going to be a tough session.

“Please be mindful that this is a planning exercise,” he added in the attachment. “We remain optimistic that any state funding reductions will be minimal, but must prepare for multiple scenarios.”

In recent years, state lawmakers made targeted efforts to rein in what they have seen as excess in higher education. Last year, that included eliminating diversity, equity and inclusion, or DEI, efforts at the state’s eight public colleges and universities. They also made an initial cut to the budget for schools then.

Legislators slashed 1.5% of higher education funding. That amounted to about $20 million. The Utah System of Higher Education was given about the same $20 million figure in one-time funding as a stopgap. But the message was a clear heads-up to the commissioner: Learn how to operate off less now.

In her message about the budget planning exercise sent to academic leaders, Provost Montoya — along with Jason Atuaia, the associate vice president for budget and finance at the university — mentioned that previous cut.

“As we approach the upcoming legislative session, we are mindful that another budget reallocation could occur,” she said. “While it is too early to determine the specifics or the full scope of any future adjustments, we must begin planning now.”

It’s her message that indicates the cuts to certain areas, though, could go beyond even the anticipated 10% reduction mentioned by Schultz.

Montoya told the academic colleges to all prepare documents explaining a 10% cut. But “services and support areas” that report to her, she said, should “plan for reductions of up to ten to twenty-five percent.”

Those other areas are student supports and includes, for instance, Student Affairs — which houses programs for financial planning, the counseling center, disability services, student government and what’s remained of cultural programs after the DEI cuts (veterans support and Native American services, among a few others).

Also under “services and support” is digital learning programs, continuing education for adults, the Office of Undergraduate Studies, Enrollment Management and the Office for Global Engagement.

A spokesperson for the university said those areas of campus have been asked to look at potentially higher cuts to allow for reallocation of money there to be moved into academics, if needed.

“While some units may face larger reductions, this is part of a broader effort to prioritize and align our resources across the institution,” Montoya said in her message.

Each department was asked to submit plans running three different scenarios “outlining how these reductions could be managed and the potential impact on students and services.” Montoya repeated the same words as Randall, saying it was important to be “agile” and that she’s “optimistic” the cuts might be lower.

The point, she said, is to find “creative solutions to balance fiscal realities.”

And she stressed, at this point, there was no intention to cut any departments entirely, as some have worried after an audit requested by the Utah Legislature told university presidents to eliminate “inefficient” programs.

“We are committed to ensuring that all units, academic and non-academic alike, play an integral role in helping the university remain strong and resilient,” she said.

Senior Vice President Good shared a similar, but shorter message with his staff in health sciences. He noted those fields are not exempt from possible budget reductions and need to perform the same exercise.

His message also came weeks after Randall’s and Montoya’s, and it directed deans to an article from The Tribune talking about the budget cuts with Schultz.

The instructions for the planning exercise cover five pages, asking campus leaders to draft a document that encompasses statistics about student enrollment, projected growth or declines, research plans and hiring needs. It directs: “Provide a critical analysis and concise discussion of opportunities and threats that your unit needs to address.”

A deadline for those was set for March 1. Randall said in his message that the school won’t know the final budget reductions until the legislative session wraps up on March 7. But he said it’s prudent to plan ahead.

“I remain a steadfast advocate for the value of a University of Utah degree, while understanding that there are always opportunities for improvement in our organization,” he said.

He then added: “We recognize the challenging nature of this exercise.”

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