Michigan State University Plans 9% Budget Cuts Including Staff Reductions

Michigan State University is implementing staffing cuts across its colleges and units as part of a plan to reduce general fund spending by 9% over two years amid financial challenges. President Kevin Guskiewicz cited rising employee health care costs, inflation-driven operating expenses, federal funding reductions, and restrictions on international enrollments as key pressures necessitating these measures. The university plans a 6% budget cut in the 2025-26 fiscal year followed by an additional 3% cut in the next, totaling approximately $85 million, with efforts to prioritize non-personnel reductions and vacant positions before affecting filled roles. While the exact number and specific positions to be eliminated remain unspecified, the cuts will vary by department, and some layoffs are unavoidable despite efforts to mitigate impact. The university emphasized that essential student services such as police, food service, and payroll will be maintained at necessary levels to support the campus community. MSU will also work with employee unions and offer benefits like voluntary retirement incentives to those affected to ease the transition.