LEXINGTON, Ky. (LEX 18) — The University of Kentucky is predicting a $70 million dollar budget shortfall for the next year, and there will be some layoffs.

In an email, President Eli Capilouto says the shortfall is the result of projected declines in revenues from enrollment, short term investments and the result of ongoing financial commitments and increased costs.

In order to reduce costs, Capilouto says a hiring pause will continue.

There will be some layoffs and reductions in staff, and reducing the University's retirement contributions to individual employees for one year.

There will also be no merit increases for the coming year.

Capilouto says many institutions across the nation are being challenged in ways never experienced before, and these steps will hopefully give the University a foundation to thrive on in the future.