University of Nebraska President Ted Carter Jr. said the University is at a pivotal moment.He told NU Board of Regents during a special meeting the University is facing a $80 million shortfall over the next two years."The long-term budget and operating model, from where I sit right now, is unsustainable," Carter said.It was a tough talk from NU's top gun."I don't want to keep playing defense worrying about budget cuts," Carter said.Carter said the university needs to look at permanent structural changes instead of business as usual."We've used a peanut butter budget reduction plan across the university. And I would tell you that's starting to show and maybe even weaken, weaken our entire institution. And that's going to have to probably stop," Carter said.He said flat enrollment, inflation, and increased faculty wages have created challenges for schools across the country."This conversation is about the future of higher education. It's happening all over the country," Carter said.He said besides cuts, he will propose a 3.5% tuition increase next fall. That would mean a $9 per credit hour hike for resident undergraduate students at the University of Nebraska Lincoln and an $8 per credit hour hike at the University of Nebraska Omaha.Carter said some other Big 10 schools are calling for much higher increases."We're not going to balance our budget on the backs of our students," Carter said.Board members voiced support.Regent Jim Scheer stressed the urgency to address the situation."Time is of the essence. If a businessman was looking at this, you'd be changing by this afternoon," Scheer said.Board Chairman Tim Clare said the "sky is not falling," but he believes NU can do better."There's no sacred cows out here. All options are on the table, including structural changes," Clare said.Carter will unveil a plan at the next board meeting on June 22.He stressed the university can't move forward until the budget gap is addressed. "I hope people notice zero new initiatives until we get this budget thing figured out. So that means I can't go after really top researchers or think about how do I adjust faculty pay for the, you know, for the best faculty that I keep here. I want to get to that," Carter said. "What great universities do, and I do, and all my heart believe this is a great university, they reinvent themselves. And that's what I think we're going to have to do," Carter said.