Utah state lawmakers may cut higher education budget in 2025 – Deseret News

A struggle pitting Utah state lawmakers against higher education leaders could be developing in the weeks leading up to the 2025 legislative general session.

Utah House Speaker Mike Schultz is pushing for budget cuts and other reforms at public colleges and universities in the state, in the hopes of saving the state money and making college more accessible to more students. So far, higher ed administrators haven't publicly discussed the possible budget cuts, instead saying they're still having discussions with state lawmakers.

Any such cuts would sting Utah's publicly funded colleges, but Schultz said he thinks cuts don't need to be passed along to students through tuition hikes.

The state Speaker fires off a list of issues he classifies as "inefficiencies" and "challenges" inside the state's 16 higher education institutions that he would like to see remedied in the upcoming session:

The rising cost of higher education and resulting rising student loans.

Enrollment logjams in high-industry-demand majors such as nursing and engineering.

Declining Utah enrollment forecasts.

Bachelor's degrees taking too long to earn.

And, finally, costly low-participation degree programs.

With the 2024 elections now in the rearview mirror, Schultz, R-Hooper, and his colleagues can now focus on the fast-approaching 2025 legislative session. Count on higher-education funding to be one of the most closely watched debates on Capitol Hill this January.

Each year, Utah lawmakers funnel large amounts of tax dollars to the state's public colleges and universities.

"And I'm good with that as long as we're getting the right outcomes," Schultz told the Deseret News. "But if we're not getting the right outcomes, the question has to be asked: 'Do we still subsidize at the same level that we've been subsidizing at?'

"I think you can make the argument that you don't."

So how much of a possible budget cut can the state's universities and colleges anticipate?

That's to be determined, Schultz said.

"I don't have enough information yet to make a final determination on what I think those numbers ought to be ... it's a bit fluid," he said.

Schultz said that any legislative cuts to Utah's higher-education institutions should not be the same "across the board."

He points to jumps in administrative cost per student at, say, the University of Utah and Salt Lake Community College as being substantially higher than at Southern Utah University. According to the speaker, cost-per-student administrative costs at the University of Utah and SLCC over the past nine years rose 112% and 143%, respectively. SUU, according to Schultz, saw its cost per student rise just 20%.

"So we would maybe look at a higher (subsidy cut) percentage for some schools and a lower percentage number for others," he said.

Universities, colleges watching Legislature closely Obviously, leaders at the helm of the state's 16 colleges and universities and the state's Utah System of Higher Education will be watching the upcoming legislative session closely.

Geoffrey Landward, the state's commissioner of higher education, said he's already fielded several inquires about potential cuts or subsidy reallocations. And he's enjoyed ongoing communication with lawmakers. "To be candid, it's been a good process."

One of the Board of Higher Education's key priorities, noted Landward, is to deliver a quality education at the lowest cost possible for students. The upcoming debates on Capitol Hill "are opportunities within all of our institutions to look at each individual program major and assess whether or not they're providing value to the students in the state."

Landward noted that legislative leadership has actively engaged his office and the Board of Higher Education in their ongoing discussions as they move toward the general session.

"I want to ensure that while we look for ways to serve citizens of the state better and get a better return on investment to the taxpayers, I also don't want to have unintentional harm happen to higher education because it is critical to the success and well-being and prosperity of the state and its citizens."

There's room for improvement in higher education, added Landward. "We can be more strategic in how we invest funds going into our programs...I'm optimistic that we'll make the right decisions and do it in the right way."

Landward identifies the "best cast scenario" for Utah higher education, post-legislative session, "as just being more strategic about how we're using the money that we're given — and that we haven't taken any kind of drastic cut that substantially undermines our ability to meet our mission."

For now, University of Utah President Taylor Randall "is in ongoing discussions with legislative leaders," said university spokesperson Rebecca Walsh.

Meanwhile, the office of Salt Lake Community College President Greg Peterson said it's too early for the president to comment on any possible legislative actions.

Neither Utah Gov. Spencer Cox nor State Senate President Stuart Adams responded to requests for comments.

Rep. Karen Peterson, R-Clinton, the House Chair for the Higher Education Appropriations Subcommittee, said she is a believer in the state's higher-education institutions. They are the state's most "important economic driver" and, she said, a "critical element" of Utah's workforce development.

"So we're in a really good place to have conversations about what's working in higher education for our state and for students — and ask what we can do to even make that better going forward."

Like Schultz, she is alarmed by rising costs in Utah higher-education and administrative costs. Peterson cites data that since 2015, the annual statewide higher-education investment — including tuition and buildings — has jumped from $1.59 billion to $3.01 billion. Enrollment during that same 10-year period increased from 167,317 to 207,005.

"We didn't have an equal increase in the budget (commensurate) with how many students we're serving," said Peterson. "So it begs a few questions: 'Are we spending our money exactly where we want to spend it? Are we ensuring that we're getting the outcomes that we want for Utah students and for industries that need our students?'"

The goal of any funding change would be to empower the college presidents to have the flexibility to decide how their respective budgets are used within their own system.

But, as Schultz makes clear, the presidents are going to have to make perhaps difficult reallocation decisions. "But giving the presidents the flexibility inside their universities to make those decisions is better than the Legislature doing it."

Tuition hikes? 'Not while I'm here' Higher education in Utah requires forward-thinking and wise budgeting to protect future generations, added Schultz.

"If we don't make some changes inside of higher education, we're going to see fewer people interested in going to college and getting their degrees."

One way Utah public universities and colleges could recover money lost to slashed legislative subsidies would be to simply increase tuition costs. So if budget cuts to higher education in Utah's 2025 legislative session materialize, will students be left holding the bill?

"Not while I'm here," said Schultz.

If students end up having to pay more for college because of lawmakers' actions in 2025, he added, "then we missed the ball."

Peterson added the Utah Board of Higher Education approves any sort of tuition increase at a state-sponsored college. "There's going to be high scrutiny on any proposed increase."

Anticipating possible enrollments decreases Schultz said he is watching ongoing dips in nationwide college enrollment even as he's eyeing diminishing headcounts in Utah's public elementary and secondary schools. According to data released last month by the Utah State Board of Education , student enrollment decreased by 4,873 records — or 0.7% from last year.

Enrollment decreases at local schools in the elementary grades, said Schultz, will eventually result in headcount dips at the state's public colleges and universities.

Schultz said the state of higher ed in Utah is now at "a pivotal point." In hockey parlance, it's essential to move to where the puck's going — not where the puck's at.

"As leaders in the state, we need to be looking at not what's in front of us today — we need to be looking at the future. What are we doing to make things better in the future for our kids and our grandkids?"

The ultimate goal of higher education in the state, Schultz added, should not necessarily be enrollment numbers. "It should be to produce an educated workforce — and we can streamline things, become more efficient and do it faster."

A shift to three-year bachelor's degrees? So how to tighten the higher-ed budget belt while streamlining a student's costly college experience?

Start by challenging the long-held academic tradition of all bachelor's degrees being four-year programs, Schultz said.

"I do think there's a way to streamline the process and get a student graduated through the system in three years versus four years; 90 credit hours versus 120 credit hours," said Schultz.

Many counter that a college student will miss an essential year of learning and training if a four-year degree program shifts to three years — diminishing the value of a bachelor's degree and the graduate's workforce preparation.

"If done incorrectly, that's 100% right," said Schultz, responding to that concern. "But if done correctly, you eliminate a lot of the classes that the vast majority of people think are overkill."

Other life experiences such as, say, military or missionary service might also be utilized to offset some of a bachelor's degree's general education requirements, he added. Concurrent enrollment opportunities to earn college credit at Utah high schools might also be expanded.

Peterson added that shifting to three-year degrees for some majors is vital for Utah's public universities and colleges to keep pace with other higher-education options in the region. "BYU-Idaho and Ensign College have moved to 90 credit bachelor's degrees in a number of areas," she said. "So we've got to stay competitive with what other institutions in our area are doing — and they've already gone through the accreditation process."

More openings in high-demand majors A "priority adjustment" may also be in order in Utah's higher-education system, said Schultz.

Programs and college-major-availability levels should be better aligned with the state's job industry needs and opportunities, he said.

Utah's universities and colleges, he contends, are not currently structured to meet the state's needs for high-demand professions such as nursing and engineering. Schultz is frustrated by the limited spots open to students at Utah colleges in several majors with high-industry demands.

"We ought to expand the nursing program and engineering programs and decrease some other programs," he said.

Some degree programs offered at Utah colleges produce only a handful of graduates each year. That's an inefficient use of dollars, said Schultz. A better cost-saving option would be for institutions to work together and perhaps offer a low-demand major at only one university in northern Utah instead of, say, four northern Utah schools.

"Why does Utah Valley University and Weber State or Utah State and Weber State need the same master's program?" he also asked.

Instead, schools could look to combine low-interest programs. "That makes sense to me because it's going to reduce costs."

Meanwhile, several college campuses, including the University of Utah, were sites of recent pro-Palestinian protests and debates over diversity, equity and inclusion programs that snagged headlines and divided Americans. Schultz said any cuts or reallocations to higher-ed subsidies in 2025 would not be a response to such politically charged controversies.

But, he added, "It's fair for certain citizens of the state to ask, 'Why are my state tax dollars being spent in areas that don't align with my values and the values of the state of Utah.'"

With the 2025 legislative session is fast approaching, Peterson said she and her colleagues are already meeting with school presidents and with the Utah Board of Higher Education.

"There's still a lot of conversations to be had amongst all my colleagues, amongst our Senate colleagues and amongst our institutions about how we move forward."

Concerns about calls for cuts/change Democratic Sen. Kathleen Riebe, D-Cottonwood Heights, worries subsidy cuts and dramatic priority shifts "could harm our institutions and harm our status in the academic world."

Riebe said the state's higher education institutions are already committed to operating within their current budgets and using internal systems to funnel money to where it's needed most. "So I think they've been responsive to the requests that the legislative body has asked of them."

A public school teacher and a former member of the Utah State School Board, Riebe said there is much to celebrate across Utah's higher education system. Now's not the time to make dramatic cuts and shifts, she said, instead, allow institutions opportunities to rectify perceived problems.

"If we have the greatest economy in the nation, why are we cutting our (higher ed) budget?" asked Riebe, adding that she worries that there will still be political "fallout" following last session's DEI debates.

Michael Kofoed is an assistant professor of economics at the University of Tennessee, Knoxville, and a frequent Deseret News contributor.

He's also a native Utahn and a longtime observer of Utah's Legislature who has researched the consequences of states divesting from their public universities.

Regarding concerns of future enrollment dips at Utah schools, Kofoed acknowledges data shows population declines. "But when you look at state systems of higher education, some states' losses are going to be other states' gains."

Kofoed is bullish about the Beehive State's future college enrollment numbers because the state's fertility dip does not appear to be as severe as in many areas of the country.

Additionally, he said, Utah attracts outsiders to the state's public schools "because of its great business climate and great education outcomes."

Migration to Utah from outside states, he added, will continue to grow over the next several years, "which I don't see cooling off."

Plus, Utah's colleges and universities are a bargain for many.

"When I lived in New York, I did the numbers and realized that sending my kid to the University of Utah as an out-of-state resident was going to be less expensive than sending my kid to SUNY — the State University of New York — as an in-state resident."

Utah higher-ed institutions will also continue to draw Latter-day Saints from outside the state, he said.

Meanwhile, said Kofoed, restructuring a bachelor's degree from a four-year to a three-year program is risky.

A college education, he said, provides "human capital formation" — those skills valued across the labor force. Additionally, a bachelor's degree signals to a potential employer an applicant's innate ability that's impossible for a would-be employee to identify otherwise.

"Transforming a four-year degree into a three-year degree might run the risk of losing a quarter of the 'human capital formation' — while also lowering the signal value of going to college," said Kofoed.