In total, 1.3% of MSU employees have been eliminated through the budgeting process and in response to federal actions since March 1.

College and unit leaders were tasked over the summer with slashing 6% of their budget for the current fiscal year, and another 3% the following, after Guskiewicz declared a pressing need to improve the university's financial health by reigning in spending.

As contributors to a recurring budget deficit, MSU has pointed to rising costs for employee health care, inflation outpacing tuition hikes, as well as unbudgeted headcount and financial aid spending.

Academic unit leaders have been responsible for determining what to cut, with the university recommending they prioritize non-personnel expenses such as supplies, services and travel costs. Guskiewicz noted that nearly two-thirds of the reductions made thus far have been non-personnel expenses.

The cuts are already being felt in the classroom, with students reporting larger class sizes and cancelled study aboard opportunities. Over a dozen student positions have been cut since the start of the academic year.

In a recent interview with The State News, Guskiewicz said that the Michigan Legislature's approval of a one-time 2.1% increase in its appropriation for MSU is unlikely to change the university’s request that academic units cut 3% of their budgets next year. That funding bump, although welcome, was built into MSU’s planning assumptions and is "not additional revenue available to spend," he wrote in the letter.

It continued that "ongoing savings" from the reductions will "achieve" MSU's goal to reduce spending by 6% this fiscal year, or $50 million.

"I think we are in a much better financial state today," Guskiewicz said in the interview.

The statement included more details on the federally funded projects at MSU that have been terminated by the federal government. Seventy-four projects have been terminated — with a multi-year impact estimated at $104 million — and another 86 projects have been impacted by stop work orders, pauses on future funding decisions or conditional terminations. 

As the cuts continue, the university is also reassessing how it doles out money to individual academic units and programs, the letter said. The endeavor, called the "Budget Model Redesign project," was launched by Provost Laura McIntyre and Chief Financial Officer Lisa Frace.

The end product, Guskiewicz wrote, will emphasize clear resource allocation methodologies, financial stewardship and sustainable operational practices.