University of Wisconsin-Milwaukee, like many other institutions of higher education around the country, is facing considerable uncertainty. Several federal actions are affecting multiple fronts: research funding, uncertainty in the next State of Wisconsin biennial operating budget, and the impact of national and state factors decreasing enrollment; the largest single variable in UWM’s budget.
Desperate Measures In Desperate Times
According to an email sent out to all staff and faculty, UWM is heading toward an operating deficit for the current fiscal year due to a decline in graduate student enrollment, lower interest rates, and increasing salary and benefit expenses.
To address this, UWM implemented a temporary campus-wide freeze on non-essential spending to conserve resources. The temporary freeze which went into effect on Thursday generally includes the following depending on the funding source:
- Hiring is on hold, even for jobs that have already been posted, unless the vice chancellor specifically approves an exception.
- Pay raises are not allowed, except for those linked to promotions or new job positions. Temporary or extra-duty pay adjustments are still permitted.
- Out-of-state travel is restricted, except when funded by contracts, grants, or other external sources. In-state travel should be limited to essential trips.
- Purchases over $10,000 from general supply and expense budgets are restricted.
These measures will be re-evaluated mid-summer when more information becomes available regarding federal and state funding decisions.
Possible Silver Linings
UWM’s financial constraints reflect broader challenges across Wisconsin, including concerns about the federal government’s approach to funding. Earlier this month, Representative Angela Cruz (D-Racine), alongside Representative Christian Phelps (D-Eau Claire), Senator Chris Larson (D-Milwaukee), and other key constituents & community members held a press conference to introduce the “Frozen Federal Funds Emergency Act”.
“At best, this bill will be an example of how bipartisan efforts can meet the basic needs of every Wisconsinite,” said Rep. Cruz speaking at the press conference. “At worst, it will highlight the stark contrast between legislators who stand with their constituents and those who side with federal interests that are undermining our democracy.”
The “Frozen Federal Funds Emergency Act” is a proposed stopgap that would require Wisconsin’s state legislature to convene a special session and allocate money from the state “rainy day” fund if the U.S. President abuses powers and freezes pre-approved funds to Wisconsin by executive order.
“No matter the outcome, Wisconsinites will continue to demand that their representatives act in the best interest of the people,” said Rep. Cruz. “Those engaged in the current power-grab frenzy can buy anything, but they can’t buy a backbone. And we shouldn’t let anyone forget it.”
Looking Ahead
Although both the budget of UWM and the state of the country face great uncertainty, there is some clarity in the chaos. This spending freeze for fiscal year 2025 will not delay the ongoing development of UWM’s fiscal year 2026 budget submission to the Universities of Wisconsin or the implementation of a new budget model focused on long-term program enrollment and sustainability. UWM will continue its fiscal year 2026 planning and adjust as necessary during the summer once the final budget is approved.
The outcome of the “Frozen Federal Funds Emergency Act” will play a critical role in shaping not just UWM’s financial stability, but Wisconsin as a whole.