There were no surprises Friday at the University of Colorado Board of Regents’ budget hearing for the fiscal year that begins July 1, as the Colorado Springs campus presented its projections for a $4 million deficit and reduction strategies to balance the upcoming budget.

“It was cut-and-dried,” said UCCS spokesman Chris Valentine.

A 9.4% state funding increase for UCCS would boost its overall budget by nearly $8 million, for a total of $187 million for 2024-25.

However, “state funding and tuition-rate increases do not cover mandatory cost increases or service-level expectations,” the UCCS budget proposal states. “Costs continue to increase at rates higher than projected revenues, resulting in budget shortfall and requiring budget cuts.”

Officials announced tuition increases across the system’s four campuses in line with the Joint Budget Committee’s decision last week to cap increases by setting aside a $132 million increase for higher education.

Under the budget proposal, which won’t be finalized until June, in-state resident undergraduate students at UCCS would pay $300 more in the fall, bringing the total to $10,318 for 30 credit-hours.

Mandatory fees for undergraduates would rise by $135 next year to $1,858, with nominal additional charges for classes such as biology and dance.

Out-of-state resident undergraduates at UCCS would pay 4% more in tuition, at a cost of $14,976.

UCCS is reducing expenses by offering early voluntary retirement to employees, Valentine said, with open positions not necessarily being filled.

Employees have another month to apply, he said, so there is not yet any data on how much cost savings that strategy will produce.

In addition to eliminating vacant positions and offering retirement incentives, UCCS leaders intend to reduce expenses by $4 million by reorganizing and restricting some departments, reducing operating expenses and use “isolated reductions in filled positions,” according to the campus’ proposal.

Employees are expected to receive salary increases, with the Regents approving 3% across-the-board compensation boosts for classified staff, a 2% merit pool for faculty and staff earning less than $85,000 annually and 1% merit pool for faculty and staff earning more than $85,000, based on revenue thresholds.

UCCS would need to increase revenue by $1.5 million for the threshold to allow for the 1% increase for non-classified employees who earn more than $85,000 annually, according to its budget calculations. That won’t be determined until after fall enrollment is determined in September.

Enrollment at UCCS in the fall is expected to be flat and about the same as last fall, which had 10,678 students, after hitting a high in 2018 and marking the lowest fall census in a decade.

“We project a realistic scenario to base the budget on and hope for a higher enrollment,” Valentine said.

The UCCS tuition proposal represents the highest percentage increase in the CU system and the maximum the state is allowing institutions of higher education in order to help contain costs for students.

But the cost of tuition at UCCS would remain below other CU campuses.

CU Boulder projects a 2.8% tuition increase to $12,312 next academic year for new undergraduate students, with tuition for continuing students varying under the campus’ four-year guarantee program.

CU Denver would raise tuition by 2.9% to $11,700 for 30 credit hours.

The Denver campus also is working to cut expenses to address an expected $5.1 million budget shortfall and anticipated decline in enrollment in the fall. The CU Boulder and Anschutz medical campuses are predicting enrollment and revenue increases.

While budgets for the CU system won’t be finalized until after the state approves its budget in June, UCCS officials aren’t expecting many changes to its proposal, Valentine said.