Mnookin, Zumbrunnen, Cramer, Thompson: Update on the state budget process

The following message was sent to all employees from Chancellor Jennifer L. Mnookin, Interim Provost and Vice Chancellor for Academic Affairs John Zumbrunnen, Vice Chancellor for Finance and Administration Robert Cramer and Vice Chancellor for University Relations Craig Thompson on July 3, following completion of the 2025-27 biennial budget. It is being translated into multiple languages. Check back for updates.

Dear campus colleagues,

Earlier this morning, the Wisconsin State Legislature passed the 2025-27 state biennial budget and it was signed into law by Governor Evers. The budget includes many different items that impact UW Madison’s operations and capital program.

First, knowing that the state has many funding priorities, we’re certainly grateful that Governor Evers and legislative leaders passed a bipartisan budget that includes additional state resources for the Universities of Wisconsin, including UW–Madison. This budget makes a meaningful bipartisan investment in higher education, and we very much recognize the importance of making compromises for the common good. We also appreciate this acknowledgment of our role as a $30 billion economic engine for the state, and of the important role we play in helping educate Wisconsin’s future leaders and workforce. There are, however, some concerning new statutory requirements related to instructor workload and additional expectations around transfer credits and position levels.

Key funding areas

The budget includes the following:

The ability to move forward on key projects, including the critical renovation of historic Science Hall, as well as funding to expand our University Housing dining halls in Chadbourne and DeJope. However, we are disappointed that the capital budget does not include the ability to proceed on a much-needed residence hall, which would have been funded entirely with university resources.
Planning dollars for demolition and relocation of the Humanities Building. With more than $70 million in maintenance costs, this building can no longer support the needs of students or campus. We appreciate that the budget bill includes several million dollars in planning funds toward the relocation of the departments that remain in the Humanities Building.
Compensation increases of 3% and 2% for all state employees, including UW–Madison employees.
$27 million annually to attract faculty in high-demand fields of study.
$11.25 million annually in additional revenue for UW campuses in proportion to the aggregate number of course credits awarded to undergraduate students.

Areas of Change

Instructor workload requirement

The budget also includes statutory requirements for faculty and instructional academic staff workload. We are immensely proud of the ways our faculty and staff serve the state of Wisconsin, not only through excellent teaching, but also through world-class research and high-impact outreach. All are foundational to our mission and to our success. All three comprise what makes us a world class university, one that has proudly served and contributed to the great state of Wisconsin for the past 176 years.

The budget calls for the Regents to submit additional instructional workload guidelines to the Joint Committee on Employment Relations (JCOER) by for approval. We will work with the Board of Regents to develop a reasonable and thoughtful policy that accounts for the invaluable contributions made by faculty and instructional staff, one that recognizes that we operate in a competitive marketplace for the most talented, effective and productive researchers and teachers. For the sake of our ongoing excellence, it will be imperative that the Regents and JCOER craft and approve a policy that recognizes the vital importance of teaching, research and outreach to our mission, and positions us to recruit and retain the strongest possible faculty and instructional staff.

While the Universities of Wisconsin System will lead the work in this area, Interim Provost John Zumbrunnen will form a UW–Madison advisory committee including representatives from faculty and academic staff, including shared governance, to understand the impact of this legislation and shape recommendations that we will provide to UW System and JCOER.

Transfer credits

The budget also includes a provision that requires the Board of Regents, by September 1, 2026, to ensure in its transfer credit policy that all credits for core general educational courses are transferable between UW campuses and satisfy general education requirements at receiving institutions. Universities of Wisconsin leadership is committed to working with campuses and faculty as this policy is developed, and we welcome the opportunity to provide greater clarity to potential transfer students.

Position Cap

The budget also includes a provision that extends the existing System-wide position cap indefinitely. The cap was set to expire in December 2026. Given the current uncertain fiscal climate at the federal level, limiting hiring and eliminating some unfilled positions has been a campus budget reality, and we will also be working toward greater administrative efficiency in the coming years. With that in mind, extending this cap is manageable for the moment; however, the absence of any end date for this restriction is problematic.

Finally, we are enormously grateful to our State Relations team for their tireless advocacy efforts, and for the excellent work they’ve done to help us reach this point. We will share more information as it becomes available.

Chancellor Jennifer L. Mnookin

Interim Provost and Vice Chancellor for Academic Affairs John Zumbrunnen

Vice Chancellor for Finance and Administration Robert Cramer

Vice Chancellor for University Relations Craig Thompson