According to the memo, the cuts are being made proactively, in anticipation of potential future reductions in federal funding. Two-thirds of the cuts must be implemented before the 2025-26 fiscal year budget is finalized in the coming months. 

“In planning to achieve a balanced budget, we have determined what we believe to be the most responsible approach to achieving that goal,” the memo reads. “While we continue to review additional measures, this guidance is intended to balance the budget over the next two years. This will best position the University for potential future federal actions, which are currently not numerable.”

University spokesperson Mark Bullion provided The State News a memo of the outlined plans but did not provide further information.

The requirements for MSU to cut its spending by 9% over the next two years include the following:

• A substantial portion (e.g., at least one-third) of your unit reductions should be targeted at permanently ending programs, services or activities (including administrative functions) that are underperforming and that we can no longer support.

• While the compensation program for faculty, academic staff and executive managers has not yet been determined, executive managers and deans with salaries greater than $200,000 will have a reduced merit pool.
• All collective bargaining agreements are to continue as bargained.
• All units, including administrative units, will be subject to the general fund reductions.
• The implications of a university-wide hiring review of all positions to be filled on all fund sources, ensuring MSU carefully monitor new hires during a “time of significant uncertainty.”
• A committee composed of representatives from the President’s Office, Provost’s Office, and Executive Vice President for Administration’s Office will review requests to fill positions.

• The need for full-time mission-critical positions and on-call seasonal positions to support operations.

The deadline for their plans to the Office of Financial Planning and Budget is June 6. Afterwards, the office will have until June 27 to review the plans and respond to department heads by July 1.

In a May 13 letter to faculty and staff, Guskiewicz acknowledged the broader context behind the decision and the human impact it may have.

“With federal impacts exacerbating our financial situation … we must adjust our financial path,” Guskiewicz wrote. “The next few months of financial planning will be demanding and difficult for some in our community, and we will need to make hard decisions that will impact people we care about.”

In his letter, Guskiewicz acknowledged the personal toll such decisions can have on the university community and reaffirmed MSU’s focus on supporting its people.

“Our goal has been — and will be — to do our best to support our people while making the necessary strategic decisions for the long-term success of Michigan State University,” he said.

As the university moves toward finalizing its next budget, MSU’s ability to balance fiscal sustainability with its core mission of education, research, and public service will be put to the test.

“We believe implementation of these reductions are necessary to create a balanced budget and ensure fiscal sustainability, and further, in the future provide both a contingency for state economic and revenue uncertainty and availability for strategic reinvestment in units,” the memo reads.

University spokesperson Mark Bullion provided The State News a memo of the outlined plans but did not provide further comment on the matter.