The University of North Texas (UNT) is addressing a projected $45 million budget deficit due to a decline in state funding and international graduate student enrollment. President Harrison Keller described the situation as “structural, not just temporary.” In response, UNT is cutting over 70 low-enrollment academic programs and planning major organizational and academic restructuring to be completed by next fall.
Keller highlighted that while UNT is financially sound with good cash flow and credit ratings, the budget deficit stems from losing approximately $16 million in state appropriations and a significant drop in international graduate students. Approximately 2,700 master’s students who were admitted were unable to attend due to visa issues, resulting in a net loss of about 2,500 international students. Each student typically contributes between $20,000 and $25,000 to the university.
In response to the deficit, UNT has already reduced its projected shortfall from $45 million to about $35 million by implementing hiring freezes and seeking efficiency improvements. Keller anticipates that the deficit could be resolved by fiscal year 2028, contingent on legislative developments and other variables.
In addition to program cuts, UNT is undergoing deeper academic and organizational restructuring. Keller noted that 80% of the university’s central funds are allocated to academic affairs, meaning cuts will predominantly affect this area. A systematic course redesign initiative has been introduced to drive new enrollment revenue and improve cost efficiency. Faculty have responded positively to this initiative, with 44 proposals for course redesign submitted.
UNT is also moving toward interdisciplinary schools and divisions, merging departments to foster collaboration. Keller stated that traditional disciplinary structures may not be suitable for current academic challenges, prompting a shift toward larger organizational structures.
Regarding budgeting strategies, UNT has transitioned to strategic budgeting that involves five-year plans for each unit. A performance-based funding model has also been adopted, incentivizing academic units based on student success metrics. Deans receive budget projections with the opportunity for mid-year adjustments based on performance outcomes.
As part of ongoing institutional evaluation, UNT is reconsidering criteria for faculty promotion and tenure to ensure it recognizes interdisciplinary work and broader contributions to the institution and community. This initiative aims to modernize expectations for faculty while aligning with the university’s mission.
Keller advised institutional leaders facing similar challenges to acknowledge financial realities and avoid overly optimistic budgeting. However, he emphasized the importance of maintaining sufficient contingencies to manage unexpected financial fluctuations without sacrificing institutional momentum.
Source: www.highereddive.com via Google News.
