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Dear Â鶹ÊÓƵ Community,

As the academic year concludes and with Â鶹ÊÓƵ’s fiscal year ending on June 30, we are tracking the FY23 financial results closely. Through ongoing work in the budget office and departments across campus, we expect that our collective efforts will close financial shortfalls of between $6 million and $9 million in this year’s budget caused by ongoing enrollment and student retention challenges. Additionally, we are looking ahead and updating our FY24 budget assumptions for fall enrollments, which will continue to be impacted.

While operating in these uncertain and evolving budget circumstances, we continue to prioritize our ongoing investments in our people as outlined in our May 11 message. Today, we want to update you on our fiscal challenges and our FY24 budget actions that will continue our economic discipline, address the immediate budget shortfalls related to student enrollment, and support our mission and strategic priorities.

Student enrollment and retention are impacted by both trends across higher education, such as rapidly changing demographics of prospective students and more localized factors within our community. We are working hard to land the incoming first-year undergraduate class in line with budget projections, with extensive anti-melt activities underway throughout the summer. Projected graduate student enrollment for the fall semester is also substantially below our targets, and we are addressing this component in both the short and long term. At the same time, retention of our current students is a top priority and an area where we need to continue significant improvements. We have a comprehensive strategy to help students come to Â鶹ÊÓƵ, thrive during their time here, and graduate.

The Â鶹ÊÓƵ budget is significantly influenced by student enrollment and retention, with 92 percent of our operating revenue coming from student-generated sources, such as tuition, housing, dining, and fees. Thanks to prudent fiscal management, appropriate use of our reserve funds, and careful expense management within schools, colleges, and departments, we expect to limit the significant financial deficit faced this year as we close the FY23 budget. As we project for FY24, we continue to assess numerous factors within the budget and currently anticipate managing against potential student enrollment and retention-related shortfalls that may approach $30 million depending on developments over the coming months. To address these matters, the FY24 budget will operate on the following principles:

• Our investments in our people—student financial aid and faculty and staff compensation increases—are our priority and will continue uninterrupted.
• Initial FY24 budgets will continue at current FY23 spending levels, with the only increases allocated for financial aid, compensation, and contractual obligations.

The University Budget Committee (UBC) will continue to meet and work during the summer to address the ongoing budget dynamics. We anticipate sharing further budget instructions in early June.

Thank you for your continued careful stewardship of our financial resources, as well as your support for the student enrollment and retention work across the community and our people investments.

Sincerely,

Peter Starr
Provost and Chief Academic Officer

Bronté Burleigh-Jones 
CFO, Vice President, and Treasurer

Seth Grossman 
Vice President of People and External Affairs