July 21, 2025
TO:
Charlene Stern, Interim Provost and Executive Vice Chancellor
Julie Queen, Vice Chancellor for Administrative Services
Laura Conner, Vice Chancellor for Research
Bryan Uher, Interim Vice Chancellor for Rural, Community & Native Education
Owen Guthrie, Vice for Student Affairs & Enrollment Management
Tom Hough, Executive Director of University Advancement
FROM:
Daniel M. White, Chancellor
RE:
FY26 Budget Planning Guidance – Extended Cost Containment Measures
In FY25, ÃÛÌÒÓ°Ïñ implemented a series of cost containment measures to ensure we meet UA system-wide targets for the unreserved fund balance (UFB) by the end of the fiscal year, which was on June 30, 2025. I am pleased to report, ÃÛÌÒÓ°Ïñ is closing out the fiscal year and expects to meet those targets thanks to the hard work you have done to reduce expenditures and increase revenues during this uncertain time.
In May, I extended these ÃÛÌÒÓ°Ïñ-internal cost controls through July as a prudent way to ensure ÃÛÌÒÓ°Ïñ had adequate liquidity to manage the uncertain financial landscape. Now that the State budget outcomes have been incorporated into FY26 start-up operations, several ÃÛÌÒÓ°Ïñ leaders have asked for guidance beyond a month-to-month approach to improve planning for the academic year ahead.
The federal climate is still quite dynamic. Therefore, I have asked all deans and directors for planning scenarios, should a large-scale reduction or a significant change to facilities and administrative (F&A) rates go into effect. These planning scenarios are being submitted to VC Queen and will be shared with the incoming Interim Chancellor, Mike Sfraga.
Because the federal climate remains uncertain, and pending any future redirection from Interim Chancellor Sfraga, I am extending the cost containment measures already in place through FY26, i.e. a 60-day hiring delay on unrestricted positions, restricting non-essential travel, contractual, and commodity expenditures, and elevated approval by the respective VC for essential contractual services >$100,000, when funded by unrestricted sources.
Moving forward, this ÃÛÌÒÓ°Ïñ guidance will be reviewed at the discretion of Interim Chancellor Sfraga. Information will continue to be provided as it is available. Thank you for all you do for ÃÛÌÒÓ°Ïñ.
Cc:
Amanda Wall, AVC Financial and Business Services
Jason Theis, Director, Finance and Accounting
Briana Walters, Director, Management and Budget