FY25 budget planning

To the Temple community, 

As many of you know, several factors have adversely affected Temple University’s operating budget over the last few years. The uncertainty of the state appropriation, together with inflation and a decrease in enrollment, have combined to create a perfect storm of strain on the university’s finances.  

As we have dealt with both decreasing enrollment and stagnant state funding, the university has worked to mitigate its challenges by reducing the budget approximately $170 million since 2021. The university began the current fiscal year with a projected $90 million budget deficit, but that has since been balanced by the elimination of over 150 administrative staff vacancies and the use of one-time reserves, as well as reducing the number of staff hires through the administrative hiring review process implemented in fall 2022. 

Our two main revenue sources, tuition and the appropriation, account for 84% of the operating budget, which finances the day-to-day operations of the university. The appropriation has remained at $158.2 million for the last five years despite near unprecedented levels of inflation. For context, more than 15 years ago, the appropriation was $175.1 million, which further illustrates how our state’s funding system has not stayed constant, let alone kept pace with inflation. 

This year, the university’s total enrollment is 30,530, but just six years ago, in the fall of 2017, the total was 40,240. This decline of nearly 10,000 students translates to a reduction of approximately $200 million in gross tuition.  

To ensure a more sustainable path forward, every central university support unit has been asked to make reductions in current spending and submit a plan for reducing the budget by 5% for the coming fiscal year. Each of us must take a closer look at our programs, services and the way we do business. We will continue to explore options that help the university balance the budget. 

There may be some painful decisions to come, and we will work closely with each unit to develop a plan that is viable and aligned with providing students with the highest-quality education and experience. 

Thank you for your time and your commitment to helping to ensure that Temple University remains on a sustainable path moving forward. 


Ken Kaiser 
Senior Vice President and Chief Operating Officer