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Utah State University Finalizes Strategic Reinvestment Plan Following Legislative Changes

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A close-up view of architectural tools and a strategic document on a wooden desk, representing institutional planning and restructuring processes in Utah State University's recent financial updates.
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Utah State University has finalized its updated Strategic Reinvestment Plan under the leadership of President Brad L. Mortensen. The plan follows legislative mandates to adjust reinvestment priorities and allocation amounts based on institutional review.

Key takeaways

  • USU has finalized its Strategic Reinvestment Plan following legislative mandates from HB 265.
  • The plan follows a $12.6 million+ budget impact resulting from the 10% withholding of state instruction funds.
  • A three-year phased approach will transition reallocated funds into reinvestment through fiscal year 2027-2028.
  • The university is implementing teach-out protocols to ensure students in discontinued programs can complete their degrees.
  • Reinvestment decisions will be based on enrollment, professional outcomes, and statewide workforce demands.

Utah State University has finalized an updated Strategic Reinstatement Plan, featuring revised implementation timelines and reallocation priorities. President Brad L. Mortensen presented the updated plan to the Legislature’s Executive Appropriations Committee on December 9, receiving preliminary support from both state legislative leaders and the Utah Board of Higher Education (UBHE).

The plan follows the passage of HB 265, which requires degree-granting institutions to develop strategic reinvestment plans in consultation with the Utah Board of Higher Education. This comes after the 2025 legislative session saw Governor Cox sign HB 1, which withheld 10% of the state’s budget allocation for higher education instruction. For Utah State University, this reduction impacts the budget by more than $12.6 million.

To manage these changes, the university is focusing on three primary areas: preserving a student-focused environment, prioritizing job-ready skills, and enhancing financial effectiveness. The reallocation process follows a three-year phased approach, with 30% of funds reallocated from reduced or eliminated programs moving to reinvestment in Fiscal Year 2025-2026, increasing to 70% in Fiscal Year 2026-2027, and reaching full 100% reinvestment by Fiscal Year 2027-2028.

The Executive Appropriations Committee has released 30% of the funding thus far, with remaining funds pending final approval following a legislative audit. The findings from this audit are expected to be released in late January.

University leaders are also seeking efficiencies through centralizing work, streamlining workflow, and trimming administrative budgets. As part of the implementation, the university has established a teach-out protocol to ensure students in programs being phased out can complete their degrees. Generally, students who have finished at least 50% of their required coursework will be provided a timeline equal to 50% of their program duration.

The Strategic Reinvestment Plan must adhere to specific criteria, including enrollment data, completion rates, professional outcomes such as licensure and wages, and alignment with workforce demands. Additionally, HB 265 introduces changes to academic programs, such as a 120-credit hour cap for degrees (with exceptions for certain accreditation requirements) and a shortened five-year cycle for program reviews.

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