UConn Health is navigating a significant financial challenge as it heads into the 2027 fiscal year.
The organization’s Board of Directors recently approved a $2.2 billion budget that includes a projected deficit of $54.3 million.
This shortfall is largely driven by wage increase for staff negotiated by the State Employees Bargaining Agent Coalition (SEBAC) which total approximately $55.7 million for fiscal year 2026 and 2027.
Dr. Andy Agwunobi explained that the state budget did not provide the extra funding needed to cover these negotiated costs. To restore balance, UConn Health is implementing a multi-pronged contingency plan.
The strategy involves a workforce review which includes halting non-critical hiring and reducing temporary staff in non-revenue areas.
The institution is also suspending non-essential travel, events and catering while leveraging its fund balance and slowing down capital projects.
Regarding the plan, Dr. Agwunobi noted:
“The big categories are clinical revenues” and added “A big piece of it, a big category was delayed spending on capital. I would say about over 50% are one-time items which includes not spending capital that we can avoid spending. It included a slowdown in hiring.”
