Public colleges in Utah update budget plans for strategic reinvestment

SALT LAKE CITY — If Utah's ongoing strategic reinvestment initiative for higher education was a three-period hockey game, it's now the start of the second.

Leaders from the Beehive State's eight public degree-granting institutions on Thursday updated the Utah Board of Higher Education, or UBHE, on their ongoing budget reallocations.

During the 2025 session of the Utah Legislature, lawmakers passed HB265 — the so-called "Higher Education Strategic Reinvestment" measure that cut 10% from each school's budget.

Each institution was then allowed to recapture those withheld funds if they reinvested, over a three-year period, in approved programs determined to be of highest value to both students and Utah's economy.

To recover set-aside funds, each of the eight schools were required to reallocate at least 30% of the equivalent funding amounts in fiscal year 2026, 70% in fiscal year 2027, and 100% in fiscal year 2028.

Backers of HB265 assert that the measure leverages academic opportunities benefiting Utah students and the state's fast-evolving high-tech world.

Utah's reinvestment plan has drawn national attention, but it's not been painless. The initiative created hundreds of new employee positions. But hundreds were also eliminated through the ongoing disinvestment process.

Meanwhile, academic programs and course offerings have been dramatically altered across Utah's higher education institutions — with aggressive reinvestment happening in healthcare, STEM and artificial intelligence.

As part of the three-year reallocation process, Utah's degree-granting public schools are required to report annually on their respective reinvestment plans to UBHE — and, subsequently, to the Legislature — to recapture set-aside funds.

Each school's overall plans were approved earlier, but they are allowed to make modifications each fiscal year, subject to UBHE and legislative approval. "Year two proposed modifications to institutional strategic reinvestment plans are generally minor," noted a UBHE memo.

And, the memo added, each of the school's Year 2 strategic reinvestment plans met statutory and UBHE guidance requirements for implementation timing, reallocation areas and proposed modification.

Regarding key expenditure categories, approximately 83% of total reallocation dollars are proposed for reinvestment in instruction and research — pushing total net reinvestment in those two academic areas to nearly $23 million.

"Utah colleges and universities are investing real money in Utah classrooms — $23 million more in instruction and research thanks to HB265," said board Vice Chair Jon Cox in a UBHE release.

"Students deserve to have their tuition dollars spent where it matters most, right in the classroom with high-quality teachers in high-demand fields."

$60 million being recaptured through strategic reinvestment

As outlined by HB265, the state's base budget approved by the Legislature in January of 2025 removed $60 million from the combined budgets of the eight schools.

Each institution's budget "cut" was different — accounting for, say, the size of each school's student body and its unique institutional mission.

The University of Utah, for example, had $19.5 million pulled from its budget — while $12.6 million was withheld from Utah State University. Smaller, regional institutions Southern Utah University and Utah Tech University had $3.1 million and $2.5 million pulled, respectively. Meanwhile the state's largest two-year institution, Salt Lake Community College, had $5.2 million removed from its annual budget.

Schools moving forward with HB265

Highlights of the Year 2 implementation plans approved Thursday by the board include:

• The University of Utah increasing its net reinvestment in instruction from approximately $5.6 million to $5.9 million, upon full plan implementation. On an itemized basis, the school's proposed changes were minimal, with slightly lower reinvestment in fiscal year 2026 due to some lags in faculty hiring and minor adjustments to program investment. Full reinvestment at the University of Utah is on target by Year 3.
• Utah State University is increasing its net reinvestment in instruction from the originally approved amount of $861,000 to approximately $1.4 million, upon full plan implementation. Approved reinvestment amendments reflect "a more consolidated AI competency initiative focused on instruction."
• Weber State University asked for only slight timing modifications to its plan implementation, while Salt Lake Community College requested no plan modifications. "For year two, we intend to do exactly what we said we would do in our plan. … With disinvesting and reinvesting, we're on track to meet that 100%," said SLCC President Greg Peterson.
• The school with the largest student head count, Utah Valley University, also remains on track to reach its reallocation targets — having already executed all its disinvestments.
• Snow College proposed minor repurposing of its reinvestments to, in part, accommodate an infusion of Talent Ready Utah grant funding. "Our goals for reallocation were to align resources with student demand and support high-growth academic programs — and then continue our commitment to workforce and student success," Snow College President Stacee McIff told the board.
• Utah Tech University proposed a slight boost to its instruction reinvestment to add more faculty resources to creative studios and marriage and family therapy programs.

Related topics