The state’s anticipated budget deficit remained a key concern during the University of Northern Colorado’s February Board of Trustees meeting. The deficit, projected at $750 million during the board’s December meeting, has grown in recent months to $1.2 billion, creating even more uncertainty around the state’s allocation for higher education next fiscal year. 

UNC President Andy Feinstein informed the board that he and other leaders from Colorado’s institutions of higher education recognize the challenges and difficult decisions ahead for state lawmakers. In response, Feinstein testified before the Joint Budget Committee (JBC) in January, presenting a modified collective funding request for the state’s higher education institutions of $61.9 million, a decrease from the $80.2 million that was first made to the JBC last December.  

While the new request is significantly higher than the governor’s initial $12.1 million increase proposed back in November, according to Feinstein, it’s far below the investment needed for the state’s institutions of higher education to even maintain current operations. 

Feinstein also addressed the uncertainty created by actions at the federal level, from potential cuts to funding research to questions about diversity, equity and inclusion (DEI) programs and the future of the Department of Education. He shared some of the efforts the university is undertaking to navigate the uncertainty, including the development of a webpage to consolidate federal updates, information and resources.  

“The shifting landscape for higher education at the federal level and the state’s budget pressures here in Colorado create some uncertainty about the future,” said Feinstein. “My team and I are monitoring executive orders and policy proposals closely and issuing communications and guidance as needed.” 

Feinstein told the board his leadership team is trying not to speculate or take pre-emptive actions and instead remain focused on the vision and objectives identified in the university’s strategic plan to guide their work. 

“I remain confident that we will continue to be resilient, even in the face of pressures that are beyond our control,” said Feinstein. 

Financial Updates and Forecast 

With the university midway through fiscal year 2025 (FY25), Dale Pratt, vice president for Finance and Administration, shared with the board the university’s second quarter financial report and forecast during the Feb.27, Finance and Audit Committee meeting. Pratt is projecting a $3.7 million operating loss at the fiscal year end on June 30, 2025, and a $2.1 million cash decrease once capital reserve transfers and balance sheet changes are considered. 

Pratt said one of the primary drivers for this year’s deficit is a $2.8 million decrease in net student revenue due to lower-than-projected enrollment last fall. Coupled with that decrease in revenue was an unexpected increase in the amount of undergraduate institutional aid UNC awarded to students, a result of changes in the Free Application for Federal Student Aid (FAFSA). 

As part of the FAFSA Simplification Act that was implemented last academic year, the federal government changed the metric used to calculate student financial need and eligibility, moving away from the former Expected Family Contribution to a less-complicated Student Aid Index. Pratt said the new formula expanded the percentage of students at UNC who qualified for federal financial aid, jumping from an anticipated 30% of UNC’s student population to 38%.

“We structure our institutional awarding matrix based on Pell-eligibility and that 8% increase was more than we anticipated in our initial projections. The significant delays at the federal level, in FAFSA filing and awarding, also exacerbated the issue as there wasn't time to make changes,” said Pratt. “We’ll make adjustments to our awarding matrix in the future to account for this metric.” 

Other issues contributing to the operating loss include a projected $1.3 million decrease in other operating revenue sources, primarily due to declining oil and gas revenue, interest revenue and application fee revenue, and a $2.1 million increase over budget in personnel expenses.  

Pratt said staff salaries are the primary factor for the projected increase as vacant positions are filled, and turnover rates decline. As a cost control measure, a hiring pause was announced in early February to give time for each position to be reviewed. Only critical positions will be approved to move forward. 

Strategic Planning Update 

With the university over a quarter of the way into Phase III of its strategic plan, Rowing, Not Drifting 2030, Feinstein presented the board with the most recent brochure that highlights significant accomplishments from the previous phase and the priorities for the current phase. 

One of the key accomplishments from Phase II that Feinstein shared was the Strategic Plan Progress report dashboard. The dashboard is updated every six months and allows the university to assess progress on key actions. Feinstein said each of the Phase III key actions are measuring at 25% completion or more, which is what he would expect six months in. 

In light of the federal landscape around DEI initiatives, Feinstein also called out the institution’s commitment to Key Action 4 in Phase III — developing a comprehensive DEI plan to that will address equity gaps in outcomes for students, faculty and staff. 

While that work was initially going to be led under the leadership of a new chief diversity officer, hiring for that position has been paused, along with pausing all other positions for review at UNC as part of the strategy to address the uncertainties about the level of state funding for the next fiscal year. Despite not having that position on board, Feinstein said he and his leadership team are still exploring other ways to advance this key action.  

Some of those considerations include providing opportunities for members of the university community to engage in projects aligned with the campus climate survey or to help undertake the planning process next year to ensure efforts continue. In addition to the conversations about DEI, Feinstein also acknowledged the uncertainty about UNC’s federal Hispanic Serving Institution designation.  

“Regardless of what happens at the federal level, we will continue the work of serving our students,” said Feinstein. “This is a good example of how a strategic plan helps guide our decisions; and how we can continue to make progress, even when we need to adapt.” 

Some of the other key achievements Feinstein shared with the board are the university’s continued work on enhancing curricular offerings, including progress on UNC’s proposed College of Osteopathic Medicine, the achievement of the prestigious R2 Carnegie Research Activity Designation and progress toward the 2030 goals for student retention and graduation.

“We have a lot to celebrate,” said Feinstein. “Even as we face some uncertainties, our shared commitment to the values and priorities defined in our strategic plan continue to guide us.” 

2025 Enrollment Update 

Last fall, UNC celebrated key milestones in student enrollment — the second of back-to-back years with an increase in the number of new, first-time students and record setting persistence and retention rates. During his presentation to the board, Pete Lien, associate vice president for Enrollment Management, told the board those successes show growth the university can capitalize on to meet fall 2025 goals. 

“We have seen momentum over the past two years in our undergraduate, degree-seeking populations, specifically from the state of Colorado,” said Lien. “Early indicators for fall 2025 show that we are on pace with those targets in both the number of students admitted and those who have confirmed their enrollment.” 

According to Lien, the upward trend in enrollment is the result of intentional efforts from across the university.  

“This truly has been a collective effort,” said Lien. “From the people who make sure our facilities and campus look beautiful, to the faculty engagement and support, excellent advising and collaborative partnerships across campus – our success depends on being invested and engaging in this work and we’re definitely seeing that across our community.” 

One key area of growth was in students who qualify for UNC’s Tuition Promise, a program launched last fall that covers standard tuition and mandatory fees for eligible incoming and continuing undergraduate students. Lien said his teams have made significant efforts to communicate earlier in the admission process with students who are eligible for the program.

Other key efforts also focused on enhanced communication with students. This includes sending out preliminary financial aid offers to all admitted students with a completed FAFSA on file, so they have information early in the college admissions process to help inform their decisions. The Admissions team has also developed new yield communications that focus on sharing information and resources with students that focus on UNC's community, academic opportunities and support services.

Another key success that Lien points to is the university’s Destination UNC events, designed for admitted students and their families/support persons. Held every spring, the day-long event offers a warm welcome from the university, an immersive academic experience, lunch and an afternoon session that can be tailored to students’ interests. Lien said attendance at the events has increased every year for the past three years and is a direct indicator of student engagement and potential to enroll.

“As we look at all our engagement indicators, we’re in a position that supports hitting our enrollment targets next fall across both undergraduate and graduate populations." 

Curriculum Updates 

Provost and Executive Vice President Kirsty Fleming presented the board with several curriculum updates that will make select programs more visible to students and potential employers.

The changes include two new degree programs, both of which elevate concentration pathways that were already embedded within other existing degree programs. They include a new Master of Arts in Inclusive Early Childhood Education/Early Childhood Special Education and a Bachelor of Science in Climate Sciences.

The updates also include four new certificate programs. Three of the certificates — a graduate Business Analytics Certificate and undergraduate Professional Selling and Customer Management and Analytical Chemistry certificates — are designed to create more flexible formats for students to obtain postsecondary credentials. The undergraduate Applied Leadership Certificate will replace the existing Leadership minor.

The board approved the new changes beginning in the 2025-26 academic year. 

In other news, the board:  

• Received the fiscal year 2024 annual audit report and athletics financial report from Crowe LLP, which did not include any findings or adjustments.  

• Approved a permanent potable water easement and covenant with the City of Greeley as part of the construction for UNC’s proposed College of Osteopathic Medicine. 

• Heard discussion on the university’s philosophy on institutional, information and individual communications, which maintains a position of institutional restraint in issuing public statements on complex social, political or policy issues, natural disasters or tragedies that extend beyond the core operations of the university.