HB265 is now law: Utah colleges begin implementing budget reallocation processes

SALT LAKE CITY — On Wednesday, Utah Gov. Spencer Cox signed into law HB265 — the controversial "strategic reinvestment" legislation requiring the state's eight public colleges and universities to reallocate millions to programs determined to be of highest value.

Later this year, the schools will present their respective final strategic plans to the Utah Board of Higher Education and lawmakers. If their recommended reallocations are approved, they can reclaim the 10% of their annual budget that was cut during the recent legislative session.

Reallocation plans are well underway at Utah's degree-granting institutions. Several schools responded to a Deseret News request for updates on their developing reinvestment plans.

Ultimately, the final allocation plans at each school are sure to be disruptive. Both Utah State University and Weber State University, for instance, have already begun offering voluntary separations to employees.

Utah State University

In a letter earlier this month to faculty and staff, Utah State University Interim President Alan Smith acknowledged that developing and implementing the school's reinvestment plan will demand "difficult decisions and significant changes."

"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."

The university, Smith's letter noted, must identify "components of instruction and administration functions" for reduction of elimination in order to account for the approximate $12.5 million being withheld from the school as part of HB265.

"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," wrote Smith. "In short, these dollars are not permanently cut, but we are required to reallocate them."

To address the budget impact, Smith announced that USU will implement a universitywide voluntary separation incentive program prior to considering other actions — "including potential layoffs and other operational reductions."

USU's voluntary separation option will be open to eligible employees until May 2, 2025 — with separations effective July 1.

"We will work closely with our colleagues at the Utah System of Higher Education to draft a successful plan, get approval from the USU Board of Trustees, and secure approval from the UBHE by July 2025," wrote Smith. "The USU plan must then be approved by the Legislature's Higher Education Appropriations Subcommittee in August and the Executive Appropriations Committee in September."

Smith added that he and his staff remain to employee input on ways USU can address the current budget impact.

Weber State University

Weber State University has assembled a committee of "key stakeholder groups" including faculty representation from each of the university's colleges to navigate implementation of HB265, according to a university information page dedicated to the reinvestment plan.

Approximately $6.7 million of the Ogden school's budget will be reallocated.

"We're trying to find efficiencies, things to streamline, things to reduce or eliminate, but all with the goal of ensuring Weber State remains strong and can deliver on the promise we've made to our students to give them the best education," reported university spokesperson Bryan Magaña in an email.

WSU's reinvestment committee will examine criteria and identify potential cost savings in reallocating academic and student success programs to comply with the Legislature. The committee will also offer recommendations on gathering input from stakeholders, utilizing methods such as surveys and town halls.

Key administrative positions at WSU have already been eliminated, after attrition, to date, including:

• Vice president of information technology.
• Assistant vice president of regional partnerships.
• Vice provost for high impact educational experiences and faculty excellence.
• Training lead for student success.
• Dean of the Moyes College of Education.

WSU has also announced plans to realign academic programs in the Moyes College of Education among closely related colleges, according to the university.

New "academic homes" are being determined for four departments: Child & Family Studies; Teacher Education; Health, Physical Education & Recreation; and Exercise & Nutrition Sciences.

Students on those impacted paths will be able to finish their degrees — and new students will have the same opportunities, only under different organizational structures and leadership, according to Magaña.

The renovated McKay Education Building is still slated to be opened later this year.

"To be clear, Weber State is still committed and laser-focused on training future educators," said Magaña. "Preparing Utah's K-12 teachers is a big part of our legacy, and it's a big part of our future."

Like Utah State University, WSU announced its own "voluntary separation incentive program" for eligible employees in academic affairs.

"Ultimately, difficult decisions will need to be made that impact people and programs, and our goal is to avoid as many involuntary layoffs as possible," according to a university site explaining the separation program.

"Offering a voluntary separation package early provides an option for those interested and helps inform our HB265 planning process," the site noted.

"We're charged with making tough decisions in the coming weeks, but we're also trying to see this as an opportunity to shape our future for the better as a university," wrote Magaña.

Reallocation updates: SLCC and Utah Tech

Officials at Salt Lake Community College and Utah Tech University also reported on their developing reinvestment processes.

SLCC and Utah Tech are required to reallocate $5.2 million and $2.5 million, respectively.

"Based on the recent legislation regarding HB265, Salt Lake Community College has put in motion a thorough and transparent process to evaluate instructional programs involving input from a variety of stakeholders — including deans, faculty members, and the college's top leadership," according to a SLCC statement.

"The college is taking a methodical and data-driven approach to determine the most appropriate programs to fund with plans to have final decisions made by the end of May," it said.

In a statement from Utah Tech University, campus leaders at the St. George institution said they have been engaging in "planning exercises and conversations" to prepare for the funding reallocation outlined in HB265.

"Now that the legislative session has concluded, we plan to convene a committee that will help ensure all members of our campus community are able to provide perspective as we work through the process outlined in the bill.

"The committee will assist in gathering feedback, identifying potential savings, communicating with campus and providing support resources to those affected," it said.

Utah Tech expects to submit its strategic reinvestment plan to the Utah Board of Higher Education early this summer.

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