What happens when a university, long seen as a beacon of opportunity in Colorado, faces a staggering $7 million budget shortfall and must lay off dozens of staff to survive? At the University of Northern Colorado (UNC), this grim scenario is unfolding in real time, with empty classrooms and anxious employees painting a stark picture of struggle. This isn’t just a local issue—it’s a window into the broader challenges gripping public higher education today, where shrinking enrollment and funding cuts threaten institutional stability. Dive into the heart of UNC’s crisis, uncovering the forces driving these tough decisions and what they mean for students, staff, and the future of accessible education.
The Weight of a $7 Million Deficit
The significance of UNC’s financial predicament cannot be overstated. A projected $7 million shortfall for the current fiscal year has forced university leaders to make painful choices, including laying off around 50 staff members and eliminating 30 vacant positions. These cuts, aimed at saving between $8 million and $10 million annually, reflect a desperate need to align costs with a shrinking student body. Beyond the numbers, this crisis touches lives—employees face uncertainty, students grapple with a changing campus, and the state watches as a public institution fights to stay afloat.
This issue resonates far beyond Greeley, Colorado. Public universities across the nation are wrestling with similar declines in enrollment and state support, making UNC’s story a critical case study. Understanding why this is happening and how UNC responds could shape policies and strategies for countless other institutions, highlighting the urgent need to rethink how higher education adapts to modern challenges.
Enrollment Plunge: The Core of the Crisis
At the root of UNC’s financial strain lies a dramatic drop in student numbers. Since 2018, fall headcount has plummeted by nearly a third, with the 2025 semester recording just 8,443 students—391 below the budgeted target. This decline, particularly among degree-seeking undergraduates, slashes tuition revenue, a lifeline for university budgets. Despite hopes for a post-pandemic rebound, the recovery has not materialized, leaving administrators scrambling to adjust.
Compounding the problem are external competitive pressures. Larger Colorado institutions, such as the University of Colorado and Colorado State University, have ramped up domestic recruitment, potentially drawing prospective students away from UNC. Past immigration policies may have also deterred international applicants, further shrinking the applicant pool. This multifaceted enrollment challenge paints a troubling picture of a university squeezed by forces both within and outside its control.
Funding Cuts and Unexpected Hurdles
State funding, another critical revenue stream, has dealt UNC a harsh blow with a sudden $550,000 reduction for the current fiscal year to address a statewide budget deficit. This cut, though seemingly small compared to the overall shortfall, exacerbates an already tight financial situation. High inflation and rising operational costs add to the burden, making it harder to balance the books without drastic measures.
Another unexpected snag has been low employee turnover. University planners had anticipated a natural reduction in staff through attrition, with turnover rates projected to help avoid layoffs. However, those rates dropped from 19.1% in 2022 to just 11.8% by mid-2025, meaning fewer positions vacated organically. This forced UNC to resort to direct layoffs, a decision that carries heavy emotional and professional tolls for the campus community.
Leadership Grapples with Hard Choices
Voices from UNC’s leadership reveal the depth of frustration and determination in facing this crisis. CFO Dale Pratt, speaking at a recent town hall, admitted, “Hopes for a post-pandemic enrollment surge didn’t pan out, and now tough steps are necessary.” His words underscore the dashed expectations and urgent need for action that permeate campus discussions. Meanwhile, President Andy Feinstein offers a sliver of optimism, pointing to strong student retention rates as a potential building block for recovery.
External analysts add a sobering perspective. S&P Global Ratings has cautioned that UNC must downsize operations to match its reduced student population, a recommendation that aligns with the university’s current strategy but highlights the long road ahead. These insights from leaders and experts weave together a narrative of a university caught between immediate survival and the hope of future stability, with every decision carrying weighty consequences.
Strategies for Survival: Cuts and Reforms
UNC’s response to the crisis extends beyond layoffs to a broader reevaluation of spending. Budgets for travel, professional development, and supplies have been slashed, while student wages and graduate assistantships are under review for potential reductions. Faculty positions, however, are being protected from direct layoffs, with cuts limited to vacancies and nonrenewals—a move aimed at preserving academic quality amid financial turmoil.
Metrics presented during campus meetings reveal another layer of the strategy: UNC’s employee-to-student ratio is higher than most Colorado colleges, and net operating results per student have been negative since 2023. Addressing this imbalance through workforce reductions and operational efficiencies is a key focus. These measures, while painful, offer a pragmatic blueprint for navigating fiscal constraints, potentially serving as a model for other struggling institutions.
Reflecting on a Path Forward
Looking back, UNC’s journey through this financial storm reveals the harsh realities of declining enrollment, reduced state support, and operational mismatches that forced layoffs and deep cuts. The university’s leadership wrestled with decisions that reshaped the campus, balancing immediate needs against long-term hopes. Each step, from staff reductions to budget trims, carried the weight of personal and institutional impact.
Moving ahead, the focus shifts toward sustainable adaptation—rebuilding enrollment through targeted recruitment, advocating for restored state funding, and refining operational efficiency. Stakeholders, from students to policymakers, are urged to engage in shaping a resilient future for public higher education. UNC’s experience stands as a call to action, prompting reflection on how communities can support institutions vital to opportunity and growth in challenging times.
