Utah State did what lawmakers asked. Here’s why they’re still withholding millions from the school.

Utah State University’s initial plan to comply with state-imposed budget cuts was picked apart and criticized by lawmakers, who said it would need substantial revisions before they would sign off.

But despite newly appointed USU President Brad Mortensen making the changes they called for, members of the Legislature’s main budget committee still withheld their full approval Tuesday.

And their reason for doing so effectively leaves Mortensen hog-tied by the previous president’s spending choices.

Earlier this year, the Legislature approved a controversial budget cut and reallocation process for the state’s eight public colleges and universities, slashing $60.5 million overall. Each institution was instructed to come up with its share of the cuts by eliminating academic programs that have low enrollment, few graduates or lead to lower paying jobs.

In return, schools could get their share of the money back — but only if they showed the funds would be reinvested in degrees that lead to high-wage jobs the state needs.

Every other college and university in the state got the approval needed for full reimbursement after presenting their plans on Sept. 17, quickly receiving the funds via wire transfer. But USU remains stuck in limbo.

On Tuesday, lawmakers on the Executive Appropriations Committee dropped their previous concerns about the direction of USU’s plan and instead pointed for the first time to lingering heartburn they have over returning the university’s $12.6 million portion of the cuts.

That’s based on, they said, issues with the previous president’s splashy expenses, including Elizabeth “Betsy” Cantwell using state funds to buy a new office bidet, a heat-controlled golf cart for driving around campus and two new cars.

“I do have some concerns about the last president’s spending,” noted House Speaker Mike Schultz, who is a member of the Executive Appropriations Committee and helped push for the initial cuts to higher education.

The Salt Lake Tribune reported earlier this year on the more than $660,000 Cantwell spent during her brief 18-month tenure, which prompted USU to revise its policies and provide more checks on presidential spending.

State leaders have also since ordered a full audit into her expenses. Lawmakers told Mortensen they’re now going to wait for that audit to be finished and made public before considering full approval of USU’s budget cut and reallocation plan.

Schultz, R-Hooper, said he’s worried about “giving the full reallocation back until we understand what’s in that audit.” He added that he’s “really nervous” about what the report will detail.

The audit is expected to come at the end of January, once the new legislative session has started.

Lawmakers also want Mortensen to present his plan again — marking the third time for the school — with additional changes based on the audit. They didn’t specify what that would look like or if Mortensen should plan to try to cover some of Cantwell’s expenses with the reallocations.

But until then, the Legislature has agreed to return only 30%, or roughly $3.8 million, of USU’s cut back to the school. That motion was passed unanimously.

Mortensen’s updates to the plan

Mortensen wasn’t president of USU during the school’s first presentation to the Legislature on Sept. 17. He took the helm in Logan on Nov. 10 after leaving his previous position as president of nearby Weber State University in Ogden.

The Legislature had previously heard USU’s plans from Alan Smith, who had been serving as the school’s interim leader after Cantwell stepped down in March. Members of the Executive Appropriations Committee at the time objected to Smith’s proposals to use the reallocation money for expanding nursing degrees at USU. They also contended that the plan didn’t focus enough on Utah State’s unique land-grant mission.

Legislators voted to wait for the new president to be named, so they could come in, revise the plan and present it again before giving it the green light.

Mortensen has spent the first four weeks in his new position adjusting the proposal, with the hope of getting it approved Tuesday ahead of the legislative session.

“Folks are eager to have the plan approved so we can begin moving forward,” he told the Utah Board of Higher Education on Monday morning. That board voted unanimously to approve the plan and send it the Legislature for final approval.

He also presented it to USU faculty and staff during a town hall on Monday afternoon.

Mortensen didn’t change much of the university’s original plan, including eliminating programs and accepting voluntary retirements.

But he moved about $2 million in the plans for where the university would reinvest the money, directing it instead to its agriculture efforts and statewide reach. That includes:

• Reducing the money allocated to nursing from $1 million in the initial plan to $370,000 in the revised plan.

• Cutting the funding for a doctor of physical therapy program.

• Shifting $81,700 to the school’s Moab campus for an emergency management program.

• Spending $200,000 to create a veterinary technician degree.

• Adding $250,000 for researchers to study effective water use in Utah’s dry climate, particularly around farms.

• And setting aside $125,000 to teach small business owners in rural parts of the state how to offer their services online.

The planned reinvestments into the rural and land-grant parts of USU’s mission now totals $4.4 million — or roughly a third of the funding.

“We feel strongly that these areas will have the most impact,” Mortensen told lawmakers.

Praise and disappointment

Leaders around the room applauded Mortensen’s plan and his early impact on the school.

“I had high expectations,” said Sen. Chris Wilson, a Republican who covers the Logan region where the school sits. “To be honest with you, in the first 30 days, you have exceeded those.”

Senate President Stuart Adams also called Mortensen “the right man at the right time” for USU.

And Rep. Casey Snider, R-Paradise, whose district also includes Cache County, congratulated Mortensen for making the president’s office more open and accessible to students.

“To have a president that doesn’t fear faculty or the student body is something that we haven’t had in a long time,” he said.

Schultz had previously criticized USU’s initial plan, particularly around nursing, saying it didn’t meet the expectations of “what we’re trying to accomplish here.” On Tuesday, he said he appreciated Mortensen’s changes.

“While we certainly need new nurses all across the state, it costs Utah State University 25% more than Weber State to get nurses out into the field,” he said. “That’s not the area we want Utah State focused on.”

Schultz also said he liked the part of the plan focused on water research and asked for additional focus on energy and minerals, too. And he commended the $250,000 added to the budget for USU’s new Center for Civic Excellence. That center came out of legislation passed earlier this year for the school to develop a new curriculum for the required courses Utah college students must take, focused on teaching about health discourse and “Western civilization.”

“Please put that on steroids and get that moving as quick as possible,” Schultz said.

But all of them pointed to a need to hold off approving Mortensen’s updates given the past conflicts at USU.

“We’ve been a little rudderless the last little bit” at USU, Snider added. “You’ve inherited some challenges that we’ve been critical of in this room and at Capitol Hill.”

Sen. Kathleen Riebe, D-Cottonwood Heights, also said: “I’m excited for the opportunity to calm the waters and start moving forward in a different way.”

Mortensen didn’t say anything further from the dais in the committee room, quietly walking away from state leaders with his head down.

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